New Form 141 rules simplify Indian buyers' tax compliance for NRI property deals
From October 1, 2026, Indian resident buyers can meet TDS obligations on purchases from NRIs using a dedicated Form 141 route, eliminating the need for a TAN.
The Central Board of Direct Taxes issued notification G.S.R. 830(E) on September 22, 2026, establishing a new compliance pathway for resident individuals and Hindu undivided families acquiring property from NRIs. Effective October 1, 2026, buyers will no longer need a TAN; instead they will deduct TDS and file it using Form 141, which now includes a specific Schedule E capturing buyer, seller and property details. The TDS must be deposited within 30 days of the month in which it is deducted, and a Form 132 TDS certificate must be provided to the seller within 15 days of the Form 141 filing deadline.
The amendment also outlines procedures for sellers without a PAN, requiring foreign tax identifiers. Chartered accountants Ashish Karundia, Suresh Surana, and Neeraj Agarwala describe the reform as a move toward a PAN-centric model that eases compliance without sacrificing oversight.
Why it matters
The rule change lowers the administrative burden for Indian buyers dealing with overseas sellers while maintaining tax transparency.
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