The Central Board of Direct Taxes has created a PAN-based route for resident individuals and Hindu undivided families buying immovable property from non-residents. The change takes effect October 1, 2026.
Buyers will report tax deducted at source through Form 141, using a newly added Schedule E for these property transfers. They can use PAN for this process rather than obtaining a separate TAN.
The revised process applies to resident individual and HUF purchasers dealing with a non-resident seller. It does not take effect on the notification date.
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The filing steps include depositing the deducted tax and furnishing a certificate to the seller. Buyers must also report transaction and seller information, including details of the seller’s tax residency.
Buyers will deduct, deposit and certify the tax
The buyer must deduct TDS and submit the filing through the revised route. One account of the workflow says the deposit must be made within 30 days from the end of the month in which the tax is deducted. That timing is reported as part of the described process.
The filing combines payment and reporting in a dedicated challan-cum-statement route. The amount reported must include surcharge and cess wherever applicable. The amendment does not itself specify a new deduction rate in the material describing the change.
After the filing, the buyer must give Form 132 to the non-resident seller as the TDS certificate. The certificate form has also been amended to correspond with the revised process.
Chartered Accountant Suresh Surana said buyers must deduct the tax and deposit it within the prescribed timeline. He described the new schedule as designed specifically for these property transfers.
The amendment changes the form and its governing rules
The government notified the Income-tax (Fifth Amendment) Rules, 2026, on September 22, 2026, through G.S.R. 830(E). The rules establish the new filing framework, which begins on the later effective date.
The form’s heading now refers to deductions under Section 393(1) and Section 393(2). The added schedule covers transfers from a non-resident to a resident individual or HUF.
The notification also amends Rules 215, 218 and 219. Those changes bring the covered transactions into the prescribed TDS payment and reporting mechanism. The reporting route therefore has a defined statutory framework as well as a new set of transaction-level fields.
The schedule captures property, parties, payment and deduction details
The schedule requires information about the property, each party and how the consideration will be paid. It also collects the amounts and dates needed to report the tax deduction.
| Reporting area | Details required |
|---|---|
| Property and agreement | Property address and type; agreement date; registration date; stamp duty value |
| Buyers and consideration | Names and PAN of buyers; each buyer’s proportion of consideration; total sale consideration |
| Seller | Residential status; PAN where available; overseas address; contact number; email ID |
| Tax residency | Tax Residency Certificate number; Tax Identification Number where applicable; residence-country address details |
| Payment | Whether payment is a lump sum or in instalments; amount paid in the current transaction; payment date |
| TDS | Amount on which TDS is payable; rate; tax deducted; date of deduction |
The seller information goes beyond PAN. Buyers must provide an overseas address, contact number and email ID, as well as the seller’s residence-country address details, even when the seller has a PAN.
The schedule also asks for the seller’s Tax Residency Certificate number and Tax Identification Number where applicable. Those entries sit alongside the seller’s residential status and any PAN available for the transaction.
For transactions paid in instalments, buyers must report whether the consideration is being paid in instalments, the amount paid in the current transaction and its payment date. The schedule separately records total consideration and the amount on which TDS is payable.
The tax fields include the applicable TDS rate, the amount deducted and the date of deduction. Where applicable, the reported tax amount includes surcharge and cess.
The new route is aimed at one-time property deals
Before the amendment, resident buyers dealing with non-resident property sellers generally faced a TAN-based compliance process. The revised route allows the covered individual and HUF buyers to report the transaction using PAN instead.
Tax commentators have characterized the change as a simplification and a practical relief, particularly for one-time property transactions. The change is limited to this reporting route for resident individuals and HUFs purchasing from non-residents.
The rules were notified on September 22, but the revised process starts October 1, 2026. Buyers making a covered purchase from that date will use the new process and provide the transaction information specified in the schedule.
