Buying from an NRI in Dehradun: no TAN needed for TDS from October 2026

From 1 October 2026, resident individuals and HUFs buying property from an NRI can deposit TDS with their PAN through Form 141, without a TAN. The TDS itself still applies.

What happened

A new notification. The Central Board of Direct Taxes (CBDT) issued Notification 121/2026, the Income-tax (Fifth Amendment) Rules, 2026, on 22 September 2026, Taxguru and TDSMAN reported. Taxguru gave its gazette number as G.S.R. 830(E). The rules took effect on 1 October 2026.

What changed. Until now, a resident who bought property from a non-resident seller had to get a TAN (Tax Deduction and Collection Account Number) just for that one deal, and file a quarterly TDS return. Under the new rules, an eligible resident individual or Hindu Undivided Family (HUF) can deposit and report the TDS using their own PAN, through Form 141. TDSMAN reported that the rules amend Rules 215, 218 and 219 to bring these deals under section 393(2) of the Income-tax Act, 2025.

A new schedule in Form 141. Form 141 has a new Schedule E for these deals, Taxguru reported. It asks for property details, the stamp duty value and sale price, the buyer's and seller's PAN, and the NRI seller's overseas address, Tax Residency Certificate and foreign Tax Identification Number. It also asks whether payment is in one go or in instalments. Gujarat Samachar's report of 24 September 2026 named the property schedule as Schedule B. The other sources we read, including the article that summarises the notification text, say Schedule E.

The deadlines. Form 141 must be filed within 30 days from the end of the month in which the tax is deducted, TDSMAN reported. MAS LLP reported that the buyer must then give the seller a TDS certificate in Form 132 within 15 days of the Form 141 due date.

Who is not covered. The relief is only for resident individuals and HUFs. Several tax advisers we read, including MAS LLP, stressed that TDS has not been removed. Integrated India, writing on the Union Budget 2026-27 proposal that led to this change, said TDS rates for NRIs remain unchanged. Buyers outside the new route, such as companies and firms, are not covered by this change.

The ₹50 lakh question. Sources disagree here. Gujarat Samachar wrote that TDS is required when the property value exceeds ₹50 lakh. Dinesh Aarjav and Associates wrote that the ₹50 lakh limit applies only to resident sellers, and that for NRI sellers "there is still no threshold". Taxguru's April 2026 explainer on Form 141 also tied the ₹50 lakh limit to resident sellers. We think the second reading is correct, but check with a chartered accountant on your own deal.

How much is deducted. For resident sellers, the buyer deducts 1% of the sale price or stamp duty value, whichever is higher, once it crosses ₹50 lakh, Taxguru reported. For NRI sellers, Dinesh Aarjav and Associates reported that tax is worked out on the full sale price, not on the seller's gain. It gave 12.5% plus surcharge and cess for long-term gains and slab rates for short-term gains, unless the seller has a lower or nil deduction certificate in Form 128. We have not seen these rates in the notification itself.

What it means for buyers and sellers in Dehradun

This section is our view.

Many Dehradun sellers live abroad. Families from the Doon valley often have members working overseas who still own a plot or house here. If you are buying from one of them, you no longer need to apply for a TAN and wait for it. That should make small deals simpler.

Ask the seller about residency first. Whether the seller is a resident or an NRI changes how much tax you must deduct, often by a large amount. Ask for a passport, visa or a written statement of residential status for tax. Do not rely on where the seller is standing on registry day.

Get the lower deduction certificate sorted early. If the NRI seller has a certificate for a lower rate, deduct at that rate and keep a copy with your papers. If not, the deduction on the full price can be large, and sellers sometimes push back. Settle this in writing before you pay the token amount.

The buyer carries the risk. If you deduct too little or deposit late, the interest and penalty fall on you, according to the advisers we read. Keep the challan, the Form 141 acknowledgement and the Form 132 you give the seller with the sale deed.

Do not forget the state side. Uttarakhand has also approved online PAN checks at registration. Read our post on PAN verification at property registration, and our papers to check before buying a plot in Dehradun. You can browse property for sale in Dehradun on ILA Infra.

Questions people ask

Do I still need a TAN to buy property from an NRI in 2026?

Not if you are a resident individual or HUF and the deduction happens on or after 1 October 2026. You can deposit and report the TDS with your PAN through Form 141. The change does not cover companies or firms.

Is there a ₹50 lakh limit for TDS when the seller is an NRI?

Sources differ. Most tax advisers we read say the ₹50 lakh limit applies only to resident sellers, and TDS applies to an NRI sale of any value. Confirm with a chartered accountant before you pay.

Has the TDS rate on NRI property sales changed?

No. The reports we read say the October 2026 change only affects how eligible buyers deposit and report TDS. The rates and the obligation to deduct remain.