Pan/Tan needed to deduct TDS on sale consideration of Immivable property

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Buyer purchasing property from NRI co-owners must deduct TDS under Section 195 and file Form 27Q/new Form 141. PAN-based TDS payment is effective from 01-10-2026; before that TAN is mandatory. No surcharge applies as each co-owner share is Rs 32.5 lakh.

P.Madhivadhanan

P.Madhivadhanan (Querist)
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17 May 2026 A resident assesseee wants to purchase an immovable property in the month of may 2026 from Nri Husband and wife . Both Nri have equal shares in the property. Total consideration 6500000 is divided equally by sellers by 3250000 each. I want to know as per section 195 (new section 393(2)) TDS is to be deducted and Form 27Q (New Form 141) is to be filed and Form 16B (new Form 132) is to be given NRI sellers.
I want to know the effective date of PAN itself enough to TDS Return without getting TAN. For each co-owner sale consideration is 3250000 only whether surcharge applicable For FY 2026-27?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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17 May 2026 TAN Requirement: Not required. Effective April 1, 2026, the buyer can use their PAN instead of a TAN to deposit TDS on property bought from an NRI.

Forms: The transaction utilizes the new Form 141 ecosystem for filing, and the buyer will issue Form 132 as the tax certificate to the sellers.

Surcharge: Not applicable. Surcharge kicks in only above ₹50 Lakhs. Since each co-owner's share is ₹32.5 Lakhs, the surcharge is Nil. The effective TDS rate will be 13% (12.5% base + 4% cess) on the individual shares, unless a Lower Deduction Certificate is produced.

P.Madhivadhanan

P.Madhivadhanan (Querist)
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17 May 2026 I want to know this is form 144 or 141 and PAN utilised to deposit is effective from 1/10/2026 before that date we use TAN only. Please clarify

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