Quick Summary
The Central Board of Direct Taxes (CBDT) has notified the Income-tax (Fifth Amendment) Rules, 2026, introducing changes to the Income-tax Rules, 2026, particularly in relation to tax deducted at source (TDS) on immovable property transactions. The notification was issued by the Ministry of Finance, Department of Revenue, on September 22, 2026and the amended rules will come into force from October 1, 2026. The changes are important for taxpayers, property buyers, sellers and tax professionals h
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FAQ :
The new TDS reporting requirements for property transactions will come into effect from October 1, 2026.
Form 141 has been expanded to cover deductions under Section 393(1) and 393(2), and a new Schedule E has been inserted to report TDS on immovable property transactions under Section 393(2).
Schedule E will capture details such as the property's address and type, buyer and seller information (including PAN and residential status), sale consideration, agreement and registration dates, stamp duty value, and TDS amounts and dates.
Yes, for non-resident sellers, additional information like contact number, email ID, and overseas address is required, even if they don't have a PAN. Tax residency certificate and tax identification number details are also needed where applicable.
Yes, Form 132 has been amended to include reporting for property transfers involving a non-resident seller to a resident individual or HUF.
Yes, the notification clarifies that the TDS amount reported in the relevant form will include surcharge and cess, wherever applicable.
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