By CA Shivam Gupta | Published: September 30, 2026
EXECUTIVE SUMMARY
Purchasing immovable property from a Non-Resident Indian (NRI) has historically represented one of the most operationally burdensome tax compliance workflows for individual homebuyers in India. Unlike transactions involving resident sellers—which are streamlined through a PAN-based challan-cum-statement—
1. THE NEW REGIME AT A GLANCE
| Parameter | Old Rule (Up to 30 Sept 2026) | New Rule (From 1 Oct 2026) |
|---|---|---|
| TAN Requirement | Mandatory under Section 203A | Abolished for Resident Individuals/HUFs |
| Reporting Form | Challan 281 + Quarterly Form 27Q | Single Form 141 (Schedule E) |
| Deposit Timeline | 7 days from month-end | 30 days from month-end |
| TDS Certificate | Form 16A (Quarterly) | Form 132 (Within 15 days) |
2. CRITICAL SUBSTANTIVE TRAPS
- No ₹50 Lakh Threshold: Unlike Section 194-IA where TDS applies only above ₹50 Lakh, NRI purchases have no minimum threshold. TDS applies on every rupee.
- Rates in Force: Deduct at 12.5% on Long-Term Capital Gains (plus surcharge/cess) or regular slab rates for STCG, unless the seller provides a Section 197/395 Lower Deduction Certificate.
- Circular 07/2026 Reminder: The Tax Audit Report deadline has been formally extended to 21 October 2026, and audited ITRs to 21 November 2026.
By CA Shivam Gupta. Originally published on Tax Advisor – Your Own Tax Guide. This article reflects its original publication date; provisions and deadlines may have changed.