Through Notification No. 121/2026 dated 22 September 2026 (the Income-tax (Fifth Amendment) Rules, 2026), the CBDT has changed how resident individuals and HUFs report tax deducted when they buy immovable property from a non-resident under section 393(2) [Table Sl. No. 17] of the Income-tax Act, 2025.
From 1 October 2026, such buyers report the deduction in Form 141, which now has a new Schedule E for property, buyer, seller and payment details; Form 132 is updated to match. As reported by Taxmann, individual and HUF buyers no longer need to obtain a TAN for this purpose.
Who it affects: resident individuals and HUFs buying land or buildings from NRIs, and NRI sellers.
What to do: keep the seller’s PAN or foreign tax ID, overseas address and tax residency certificate ready before making payment.
Source: Taxmann (https://www.taxmann.com/research/research/direct-tax-laws/top-story/104010000000116989/cbdt-amends-form-no-132-141-to-cover-tds-on-immovable-property-bought-from-non-residents-removes-tan-requirement-cirnot); CBDT Notification No. 121/2026 (https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-09/Notification-no-121-2026.pdf)