If you are buying property in India from a non-resident seller, the process just got simpler. From October 1, 2026, eligible resident individuals and Hindu Undivided Families (HUFs) no longer need a separate Tax Deduction and Collection Account Number (TAN) to manage TDS when they purchase immovable property from a non-resident. The Central Board of Direct Taxes (CBDT) officially notified this change on September 22, 2026.
This update matters most to people involved in resale transactions where the seller is an NRI or another non-resident. But before you interpret this as a tax cut – read on. The change simplifies paperwork, not tax rates.
What Changes From October 1, 2026?
Earlier, when a resident individual or HUF bought immovable property from a non-resident seller, they had to obtain a separate TAN solely to meet TDS compliance requirements. That step added time, effort, and documentation to an already complex transaction.
From October 1, 2026, eligible buyers skip the separate TAN entirely. Instead, they use the revised PAN-based Form 141 to complete TDS reporting and payment. The CBDT notification introduces a new Schedule E within Form 141, specifically covering TDS on property transactions under Section 393(2) of the Income-tax Act, 2025.
Is This a Tax Cut for NRIs?
No – and this is the most important point buyers need to understand.
Many headlines describe the October 2026 change as “tax relief for NRIs buying property.” That framing misleads readers. The change specifically applies when a resident individual or HUF buys immovable property from a non-resident seller. It addresses how buyers report and pay TDS – not whether they owe it.
The October 2026 amendment does not reduce TDS rates on property transactions, does not eliminate TDS obligations for buyers, and does not apply to NRIs who are purchasing property (where the NRI is the buyer, not the seller).
The tax treatment of the actual transaction stays unchanged. Buyers must still deduct TDS, deposit it correctly, and file the required documentation.
What Is Form 141?
Form 141 is a consolidated challan-cum-statement introduced under the Income-tax Act, 2025. It brings several earlier PAN-based TDS reporting forms together into one mechanism, making compliance simpler and more efficient. Buyers file it through their PAN login on the Income Tax e-Filing portal.
Following the September 2026 amendment, the form now includes Schedule E – a new section specifically covering immovable property transactions involving a non-resident seller.
What does Schedule E require?
The new Schedule E collects detailed information, including: property address and type; details of all buyers with PAN; details of all sellers including PAN, name, and residential status; seller contact information and address; tax residency details; property transaction and payment amounts; and TDS deduction and deposit information.
Accurate and complete information across all these fields is essential. Errors or missing data can create compliance issues for both the buyer and the seller.
Do Buyers Still Deduct TDS?
Yes – absolutely.
Removing the separate TAN requirement does not remove the TDS obligation. Buyers must still confirm whether the seller is a resident or non-resident for tax purposes, identify which TDS provision applies, determine the correct TDS rate, check whether the seller has submitted required tax documentation, deduct TDS before releasing payment, deposit it with the government within the specified timeline, and file Form 141 with Schedule E for eligible transactions.
Because TDS rates and requirements can vary depending on the seller’s status and the transaction structure, buyers should consult a qualified Chartered Accountant or tax professional before completing any high-value purchase.
NRI Buying Property vs. Buying Property From an NRI
This distinction trips up many buyers – and many online articles get it wrong.
When an NRI buys property in India, the NRI is the buyer. When a resident buys property from an NRI, the NRI is the seller and the resident buyer takes on TDS obligations related to the payment going to a non-resident.
The October 1, 2026 change applies specifically to the second scenario. It simplifies TDS compliance for resident buyers who purchase immovable property from non-resident sellers. If you are an NRI looking to sell property in India, a different set of provisions governs the TDS on that sale – not the ones this article covers.
What Should Buyers Check Before Purchasing Property From an NRI?
Work through these checks before completing a resale transaction from a non-resident seller.
Confirm the seller’s residential status.
Establish whether the seller qualifies as a non-resident for Indian income tax purposes before deciding which TDS rules apply.
Verify PAN details.
Make sure the buyer’s and seller’s PAN information is accurate and matches official tax records. Errors in PAN details can create filing problems.
Review property documentation.
Carefully examine the sale deed, previous title documents, encumbrance records, property tax history, possession documents, and applicable approvals or NOCs.
Determine TDS requirements.
Identify the applicable TDS provision, calculate the correct rate, and plan the deduction and deposit schedule before releasing any payment.
Maintain payment and banking records.
Keep thorough records of all payments made, agreements signed, and TDS amounts deposited. These records protect you during disputes or inquiries.
Review FEMA and RBI requirements.
Transactions involving NRIs may attract Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) requirements depending on the nature of the deal. Check these in advance.
Get professional tax and legal advice.
Tax treatment varies based on the seller’s status, transaction structure, and other specifics. A qualified CA or tax professional can verify the exact requirements for your transaction.
Can NRIs Buy Residential Property in Noida?
Yes. NRIs can purchase eligible residential property in India, including in Noida and Greater Noida, subject to applicable FEMA, RBI, tax, and other legal requirements. Both cities have developed into significant residential and commercial hubs in the NCR, offering a range of housing options for homebuyers and investors.
NRI buyers researching property in this region typically evaluate factors such as 2 BHK, 3 BHK and larger configurations, new-launch versus ready-to-move properties, connectivity to Delhi and other NCR locations, proximity to commercial hubs, social infrastructure, developer track record, RERA registration, total acquisition costs and possession timelines.
For buyers exploring residential options in Noida, Express Zenith in Sector 77, Noida can be included as a relevant project link. Those researching residential property in Greater Noida West can also explore Express Astra in Sector 1, Greater Noida West.
Tax and TDS compliance is only one part of the overall property-buying process. Prospective NRI buyers should evaluate the property’s documentation, project approvals, location, developer credentials, costs and applicable legal requirements before making a purchase decision.
October 2026 NRI Property TDS Change: At a Glance
| Aspect | Earlier Position | From October 1, 2026 |
|---|---|---|
| Transaction | Resident individual or HUF buying immovable property from a non-resident | Same |
| Separate TAN | Required for the applicable TDS compliance | Not required for this purpose |
| Reporting Mechanism | TAN-based TDS compliance | PAN-based Form 141 |
| Form Used | Applicable TDS form and process | Form 141 with Schedule E |
| TDS Obligation | Applicable | Continues to apply |
| Tax Rate Reduction | Applicable rate as per the prevailing tax rules | Not a blanket tax-rate reduction |
| Key Change | Separate TAN-related compliance requirement | Simplified PAN-based reporting process |
What This Means for Property Buyers
The October 1, 2026 change makes TDS compliance less cumbersome for resident buyers who purchase property from non-resident sellers. By eliminating the need for a separate TAN and routing transactions through the PAN-based Form 141 mechanism, CBDT reduces friction in an already document-heavy process.
But the fundamental obligations remain intact. Buyers must still correctly identify the seller’s residential status, calculate and deduct applicable TDS, deposit it within the required timeline, and complete prescribed reporting through Form 141 and Schedule E.
For any high-value property transaction involving a non-resident seller, professional tax and legal advice is not optional – it is essential.
Frequently Asked Questions
What is the new NRI property tax rule from October 1, 2026?
From October 1, 2026, eligible resident individuals and HUFs purchasing immovable property from non-resident sellers can use the revised PAN-based Form 141 instead of obtaining a separate TAN for TDS compliance.
Is there a tax cut for NRIs buying property in India?
No. The October 2026 change is a compliance simplification for resident buyers who purchase from non-resident sellers. It does not reduce TDS rates or eliminate tax obligations.
What is Form 141?
Form 141 is a consolidated challan-cum-statement for specified TDS transactions under the Income-tax Act, 2025. Following the September 2026 amendment, the form includes a new Schedule E for property transactions involving non-resident sellers.
Will buyers still deduct TDS when purchasing property from an NRI?
Yes. The October 2026 amendment removes the separate TAN requirement but does not eliminate the underlying TDS obligation. Buyers must deduct, deposit, and report TDS correctly.
Can NRIs buy residential property in Noida?
Yes. NRIs may purchase eligible residential property in India, including in Noida and Greater Noida, subject to applicable FEMA, RBI, tax, and other legal requirements. Verify the rules that apply to your specific circumstances before proceeding.
