The Central Board of Direct Taxes (CBDT), through Notification No. 121/2026 dated 22nd September 2026, has introduced the Income-tax (Fifth Amendment) Rules, 2026 to simplify TDS compliance for resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from non-residents. The amendments will come into effect from 1st October 2026.
Removal of TAN Requirement
Eligible resident individuals and HUFs purchasing immovable property from non-residents will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) solely for these transactions.
Instead, they can deposit and report TDS using their PAN through Form 141. The obligation to deduct TDS at the applicable rate remains unchanged.
Modification of Rules 215, 218 and 219
The notification introduces the following amendments to the Income-tax Rules, 2026:
- Rule 215: Includes eligible immovable property transactions under Section 393(2), Table Sl. No. 17, within the prescribed reporting framework.
- Rule 218: Extends the prescribed TDS payment mechanism to these transactions.
- Rule 219: Includes these transactions within the challan-cum-statement reporting requirements and updates the relevant statutory reference.
Introduction of Schedule E in Form 141
A new Schedule E has been introduced in Form 141 for reporting TDS on consideration paid for the transfer of immovable property by non-residents. The schedule requires the following information:
- Property Details: Property address, type of property, agreement and registration dates, stamp duty value and total sale consideration.
- Buyer and Seller Details: PAN, names, seller status and proportion of consideration payable or receivable.
- Non-Resident Seller Details: Overseas address, contact details, Tax Residency Certificate and foreign Tax Identification Number, wherever applicable.
- Transaction Details: Lump-sum or instalment payments, type of capital gains and the seller’s option under Section 202(1), wherever applicable.
- TDS Details: Amount paid or credited, applicable TDS rate, tax deducted and details of lower or nil deduction certificates, wherever applicable.
The revised schedule also accommodates transactions involving multiple buyers, multiple sellers and instalment payments.
Amendments to Forms 132 and 141
The notification introduces the following modifications:
- Form 132: Updates the rule reference and introduces a new option for the transfer of immovable property by a non-resident to a resident individual or HUF.
- Form 141: Updates the heading and Part A to include these transactions and introduces Schedule E in Part B.
TDS Payment and Filing Requirements
Under the revised framework:
- Form 141 must be furnished within 30 days from the end of the month in which TDS is deducted.
- Each buyer must furnish a separate Form 141 where multiple buyers are involved.
- Previous payment and acknowledgement details must be reported for instalment transactions, wherever applicable.
- The amount of TDS must include applicable surcharge and cess.
Download the Official Notification:
To read the complete details of CBDT Notification No. 121/2026 dated 22nd September 2026, download the official document below:
Download Notification Document
Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help.