Income Tax 21 September 2026
NRI Property Sales Face New TDS Rules in India
Under Section 393(1) of the Income Tax Act, 2025, buyers of non‑agricultural immovable property must deduct tax deducted at source (TDS) at a different rate when the seller is an NRI, unlike resident sellers. The rule specifies exact withholding percentages, required documentation, and penalties for non‑compliance, impacting both buyers and NRI sellers nationwide.
Buyers purchasing property in India need to be aware of new TDS obligations for transactions involving NRI sellers. Details are outlined in the original article.
- Who must deduct TDS? Any buyer of immovable property other than agricultural land when the seller is an NRI.
- Rate and amount: Specific percentages are prescribed, differing from resident‑seller rates.
- Documentation: PAN of seller, Form 26QB filing, and certificate of tax deducted are required.
- Penalties: Failure to deduct or deposit TDS attracts interest and fines.
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