Now Reading: CBDT eases TDS rules for property bought from NRIs from Oct 1
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CBDT eases TDS rules for property bought from NRIs from Oct 1
The Central Board of Direct Taxes (CBDT) has introduced a new reporting framework for resident individuals and HUFs buying immovable property from non-residents. The changes, notified on 22 September under the Income-tax…
The Central Board of Direct Taxes (CBDT) has introduced a new reporting framework for resident individuals and HUFs buying immovable property from non-residents. The changes, notified on 22 September under the Income-tax (Fifth Amendment) Rules, 2026, take effect from 1 October 2026.
A new Schedule E has been added to Form No. 141, requiring buyers to provide detailed information including the property address, type, buyer and seller details, PAN (if available), the seller's status, contact number, email, foreign address, and the seller's Tax Residency Certificate and Tax Identification Number. Payment details such as the agreement date, registration date, stamp duty value, total sale consideration, instalment details, TDS amount, and applicable rate must also be furnished.
If a non-resident seller does not have a PAN, additional contact and tax residency details are required. In cases with multiple deductors, each must file a separate form. Some information may be pre-filled where possible, and all amounts must be entered in rupees.
Indian Opinion Analysis
The CBDT's move addresses a long-standing compliance gap: property purchases from non-residents have no centralised reporting mechanism under the TDS framework, leaving tax authorities with limited visibility. The new Schedule E in Form 141 mirrors the detailed disclosure already required for resident-to-resident transactions under Section 194-IA. The key change is that the deductor, not the seller, now carries the burden of reporting the seller's foreign tax status. Buyers who fail to collect and submit these details risk TDS shortfall notices. The rule applies to all payments made on or after 1 October 2026, so transactions already in progress should factor in the additional documentation needed.
Source: bazaar.businesstoday.in
This brief was synthesised by AI from the source linked above.
