Income-tax (Fifth Amendment) Rules, 2026: New TDS Reporting Requirements for Property Transfers
Published: 25 September 2026
Notification No.: 121/2026
Date of Notification: 22 September 2026
Effective From: 1 October 2026
The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Fifth Amendment) Rules, 2026 through Notification No. 121/2026 dated 22 September 2026. The amendments introduce additional compliance and reporting requirements for certain TDS transactions involving the transfer of immovable property, particularly where a resident individual or Hindu Undivided Family (HUF) purchases property from a non-resident seller.
The amended rules will come into force from 1 October 2026.
What Has Changed?
The amendments update Rules 215, 218 and 219 of the Income-tax Rules, 2026 and make corresponding changes to Form No. 132 and Form No. 141.
A significant change is the introduction of Schedule E in Form No. 141, specifically for reporting TDS on consideration paid or credited for the transfer of immovable property covered under Section 393(2), Table Sl. No. 17 of the Income-tax Act, 2025.
Key TDS Changes for Immovable Property Transactions
From 1 October 2026, the revised reporting framework requires more detailed transaction-level information for covered property transfers.
1. New Schedule E in Form No. 141
Schedule E requires detailed information relating to:
- Address of the property
- Type of immovable property
- Details of all buyers
- Details of all sellers/deductees
- PAN and other identification details
- Seller’s contact and email details
- Overseas residential address of a non-resident seller
- Tax Residency Certificate details
- Foreign Tax Identification Number
- Share of consideration attributable to each seller
- Agreement and registration dates
- Stamp duty value
- Total sale consideration
- Whether payment is made in lump sum or instalments
- TDS rate and amount deducted
- Date of deduction
- Applicable certificate details
The revised Schedule E therefore requires buyers and deductors to maintain comprehensive information about the property transaction and the parties involved.
2. Additional Information for Non-Resident Sellers
Where the seller is a non-resident, the reporting requirements become more detailed.
The revised form requires information such as:
- Contact number
- Email ID
- Address in the country outside India where the seller is resident
- Tax Residency Certificate number
- Tax Identification Number
- PAN, where available
- Seller’s proportion of the consideration
The prescribed foreign identification and residency information becomes particularly relevant where the seller does not have a PAN.
3. Property and Payment Details
The new reporting framework also captures important transaction information, including the nature of the property, agreement date, registration date, stamp duty value and sale consideration.
The form also distinguishes between lump-sum and instalment payments, making accurate tracking of payment and TDS details important for transactions completed through multiple instalments.
4. Separate Reporting Where There Are Multiple Deductors
Where a transaction involves more than one deductor, the prescribed reporting framework requires appropriate reporting by each deductor.
Therefore, buyers involved in joint transactions should ensure that the respective ownership, consideration and TDS information is correctly documented.
Who Needs to Pay Attention to These Changes?
The changes are particularly relevant to:
- Resident individuals purchasing immovable property from non-resident sellers
- Hindu Undivided Families (HUFs) purchasing property from non-resident sellers
- NRIs or other non-resident persons selling immovable property in India
- Tax professionals handling property-related TDS compliance
- Buyers making property payments in instalments
- Parties involved in transactions with multiple buyers or sellers
What Should Property Buyers Do Before 1 October 2026?
Buyers and deductors involved in covered transactions should consider collecting the required information before making payments.
Important documents and information may include:
- Property details and complete address
- Buyer PAN details
- Seller PAN, where available
- Seller’s overseas address
- Seller’s contact and email details
- Tax Residency Certificate information
- Foreign Tax Identification Number
- Agreement and registration details
- Stamp duty value
- Total sale consideration
- Instalment/payment schedule
- TDS deduction details
- Applicable certificate details
Maintaining complete documentation can help reduce errors when completing the revised reporting requirements.
Why This Amendment Matters
The amendment provides a more detailed reporting mechanism for covered property-transfer TDS transactions. With the introduction of Schedule E in Form 141, transaction-specific information concerning the property, buyers, sellers, consideration, instalments and TDS will need to be reported.
For transactions involving non-resident sellers, collecting foreign tax residency and identification information in advance will be particularly important.
Key Takeaway
The Income-tax (Fifth Amendment) Rules, 2026 introduce important changes to the TDS reporting framework for specified immovable-property transactions.
From 1 October 2026, resident individuals and HUFs involved in covered property purchases from non-resident sellers should be prepared to provide expanded transaction and seller information through the revised reporting framework, including Schedule E of Form No. 141.
Taxpayers should review their property transaction documentation and seek professional tax advice where the transaction involves a non-resident seller, multiple parties or instalment-based payments.
