Stories
Attention Home Buyers! Major Changes in TDS Rules from October 1 for NRI Property Purchases
- •The tax reporting process for buying property from Non-Resident Indians (NRIs) will change from October 1.
- •The Central Board of Direct Taxes (CBDT) has amended rules for reporting TDS when resident individuals and HUFs purchase immovable property from NRIs.
- •Buyers will need to provide more information related to the property, buyer, NRI seller, payment, TDS, and capital gains.
- •Form 26QB has been amended with a new Schedule E, requiring details like property address, type, and information of all buyers and NRI sellers.
- •Each buyer must report separately and submit a separate Form 26QB, even if jointly purchasing a property.
Key Questions Answered
Starting October 1, 2026, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from Non-Resident Indians (NRIs) must provide detailed tax reporting information through an amended form featuring a new Schedule E. This includes comprehensive details about the property, all individual buyers, NRI seller identification such as PAN or Tax Identification Number (TIN), payment schedules, and capital gains classification, although it does not alter property ownership or registration processes.
No, under the revised framework effective October 1, 2026, resident individuals and HUFs are no longer required to obtain a separate Tax Deduction Account Number (TAN) for one-off property transactions with non-resident sellers, simplifying compliance through a PAN-based challan-cum-statement mechanism.
If two or more people jointly purchase an immovable property from an NRI, submitting a single form for all buyers is not sufficient. Each individual buyer must report separately and submit their own independent Form 26QB (or Form 141) containing their specific share in the transaction.
