New TDS Reporting Rules for Buying Property from Non-Residents
If you are a resident buying property from a non-resident, you must now report the transaction using updated tax forms.
- Document
- Notification Notification No. 121/2026
- Dated
- 24 Sep 2026
- Effective
- 1st day of October, 2026
- Act by
- 1st October 2026
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- You must deduct tax at source when buying property from non-residents.
- Updated Form 132 and Form 141 now include specific property transaction details.
- You must provide seller contact details and tax residency information.
- These rules apply to all resident individuals and Hindu Undivided Families.
In short
Notification 121/2026 updates tax reporting rules to ensure the government tracks property sales between non-residents and resident buyers.
What has changed
How it worked before
There was no specific requirement to report these property transactions using these specific schedules in Forms 132 and 141.
What has changed
The government added new reporting fields to Forms 132 and 141, specifically requiring details like property address, seller tax residency, and payment schedules.
Who this affects
Resident individuals and Hindu Undivided Families (HUF) who purchase immovable property from a non-resident seller.
An example
You are a resident individual buying a house from a non-resident seller. Previously, you simply deducted tax. Now, you must use the updated Form 141 and complete Schedule E, providing the seller's tax identification number from their home country and the property's stamp duty value.
What you should do
When filing your tax forms for such property purchases, use the updated versions of Form 132 and 141 and ensure you fill out the new Schedule E.
Deadline · 1st October 2026If you do nothing
Failing to report these details or deduct the correct tax can lead to penalties, interest charges, or a formal notice from the tax department.
The terms explained
- TDS
- Tax Deducted at Source, where the buyer subtracts tax before paying the seller.
- Non-resident
- A person who does not live in India for tax purposes.
- Immovable property
- Physical assets like land or buildings that cannot be moved.
- Tax residency certificate
- An official document proving which country a person pays taxes in.
The original document
| Issued by | IT |
|---|---|
| Document | Notification Notification No. 121/2026 |
| Full title | CBDT has issued Notification No. 121/2026 extends TDS reporting requirements for non-resident property transactions and updates Forms 132 & 141. |
| Issued on | 24 September 2026 |
| Effective | 1st day of October, 2026 |
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