CBDT Notifies Rules for Reporting TDS on Property Purchases from Non-Residents

The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Fifth Amendment) Rules, 2026 (Amendment Rules) by Notification No. 121/2026 [G.S.R. 830(E)] dated September 22, 2026. The Amendment Rules amend the Income-tax Rules, 2026 (Rules), to prescribe how a resident individual or Hindu undivided family (HUF) buying immovable property from a non-resident reports tax deducted at source (TDS) under section 393(2) of the Income-tax Act, 2025 (Act). The Amendment Rules apply from October 1, 2026.

The Act replaced the Income-tax Act, 1961 from April 1, 2026, and the Rules were notified on March 20, 2026 [G.S.R. 198(E)] to operationalise it. Before this amendment, Form No. 141 under the Rules covered only specified deductions under section 393(1) of the Act. The Rules were last amended on September 17, 2026 [G.S.R. 822(E)].

The Amendment extends rules 215, 218 and 219 to cover tax that a resident individual or HUF deducts when buying immovable property from a non-resident. Such buyers will now have to report this TDS deducted in Form No. 141, which lists the transaction as a new category and adds a new Schedule E for it. The same transaction type is also added to Form No. 132.

The details of the property, every buyer and every seller, the dates of agreement and registration, the stamp duty value, the sale consideration, and whether payment is made in a lump sum or in instalments will have to be mentioned in Schedule E. For each seller, the buyer must also report the type of capital gains, the amount paid, the rate and amount of TDS, and any certificate obtained under section 395(1) or 395(2). The seller’s contact details and overseas address must  also be given in every case. Where the seller does not have a PAN, the seller’s tax residency certificate number and foreign tax identification number must also be furnished so that tax is not deducted at a higher rate.