Income Tax 28 September 2026
New TDS, PAN & Form 141 Rules for Buying NRI Property Effective Oct 1
From October 1, the Finance Act 2026 amends Section 397(1)(c) of the Income Tax Act, exempting resident individuals and Hindu Undivided Families from deducting tax when purchasing property from non‑resident Indians. The changes also streamline PAN verification and introduce Form 141 for reporting, simplifying compliance for buyers and sellers alike.
- Effective date: October 1, 2026, under the Finance Act 2026.
- Key amendment: Section 397(1)(c) now exempts resident individuals and HUFs from deducting TDS on property transfers from NRIs.
- Compliance updates:
- - Mandatory PAN verification for both buyer and seller.
- - Introduction of Form 141 to capture transaction details and report to tax authorities.
- Impact: Reduces tax withholding burden, speeds up settlement, and provides clearer reporting guidelines for cross‑border property deals.
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