New NRI Property Sale Compliance Rules and TDS Forms Starting October 2026

Starting October 1, 2026, revised compliance rules govern property sales by non-resident Indians, altering how tax deduction at source and associated documentation are handled. Buyers can utilize Form 141 Schedule E without needing a Tax Deduction Account Number, simplifying the procedural burden on purchasers. Additionally, sellers can secure lower deduction certificates using Form 128 to ensure tax is withheld at an appropriate rate. These changes overhaul the administrative steps required during property settlements involving non-resident participants.

Tax compliance in cross-border real estate transactions ensures that capital gains do not escape domestic jurisdiction while facilitating smoother asset transfers. The procedural framework balances rigorous tax collection with the practical challenges faced by overseas citizens executing local property deals. In the past, obtaining mandatory identifiers like a TAN created friction and delays in property registration, but the updated provisions optimize the documentation workflow for all parties involved. CAs and legal advisors must update their checklists for clients engaging in NRI property transactions ahead of the October 1, 2026 deadline.

Professionals should guide buyers on filing Form 141 Schedule E correctly and assist sellers in obtaining timely Form 128 lower deduction certificates to prevent cash flow blockages. Bottom line: proactive adherence to these revised forms ensures smooth property transfers and protects clients from procedural penalties.