The changes have been notified through the Income-tax (Fifth Amendment) Rules, 2026. The rules amend the Income-tax Rules, 2026 to provide for reporting of TDS on property transactions covered under Section 393(2) of the Income-tax Act, 2025.
What changes from October 1?
The revised rules specifically bring TDS on payments for the transfer of immovable property by a non-resident to a resident individual or HUF into the prescribed TDS challan-cum-statement mechanism.
The CBDT has amended Form 141, which is used for the challan-cum-statement for specified TDS transactions. A new Schedule E has been introduced in the form to capture details of property transactions involving non-resident sellers.
For a property transaction covered by the rules, the buyer will have to provide details including the address of the property, the type of property, details of all buyers and details of all non-resident sellers.
What information will buyers have to provide?
The new Schedule E requires buyers to report the PAN and name of each buyer, along with the proportion of the total sale consideration to be paid or credited by each buyer.
For the seller, the form requires details such as the PAN, where available, name, status, contact number, email ID and the address in the foreign country or specified territory where the seller is a resident.
The buyer will also have to provide the non-resident seller’s tax residency certificate number and tax identification number, where applicable.
The rules specifically state that the non-resident seller’s contact number, email ID and overseas address must be provided even if the seller’s PAN is available.
What if the NRI seller does not have a PAN?
The notification also lays down additional reporting requirements where the non-resident seller does not have a PAN.
In such cases, the buyer will have to provide the seller’s tax identification number in the country or territory of residence. If such a number is not available, a unique number used by the foreign government to identify the seller has to be furnished, as prescribed under the rules.
The notification says these details are required to ensure that tax is not deducted at a higher rate.
Property and payment details to be reported
The revised form requires buyers to provide the date of the agreement, the registration date, if available, the total stamp duty value of the property and the total sale consideration.
Buyers will also have to indicate whether the payment is being made as a lump sum or in instalments.
If the transaction is being paid in instalments, the form requires the buyer to specify whether the payment is the first, subsequent or final instalment. For subsequent or final instalments, the previous acknowledgement number also has to be reported.
The form further requires transaction-level details, including the amount paid or credited, date of payment, amount on which TDS is liable to be deducted, applicable TDS rate, tax deducted and the date of deduction.
Capital gains details also part of reporting
The revised Schedule E also asks for information on the nature of capital gains in the hands of the non-resident seller — whether the transaction relates to long-term capital gains or short-term capital gains, subject to the categories specified in the form.
The form also provides for reporting the proportionate stamp duty value and amounts paid or credited in previous instalments.
What happens when there are multiple buyers?
The notification provides that where there is more than one deductor, each deductor has to file a separate form.
This means joint buyers covered by the provision will have separate reporting requirements rather than filing a single form collectively.
New compliance requirement, not a change in property ownership rules
The October 1 changes primarily amend the TDS reporting and documentation mechanism for these transactions. The notification does not introduce a new property registration requirement.
The CBDT has also stated that some information in the form will be pre-filled to the extent possible, while amounts are generally required to be reported in rupees unless otherwise specified.