On 24 September 2026, the CBDT released Notification No. 121/2026, which amends TDS reporting obligations for non-resident property transactions and prescribes updated Forms 132 and 141. The notification, issued under Section 195 and related provisions of the Income Tax Act, 1961, aims to enhance transparency in cross-border real estate deals by requiring more detailed disclosure of consideration, tax residency, and treaty benefits. The revised forms must be used for all transactions occurring on or after the notification date.
Key Takeaways
- Expanded TDS Reporting Scope: Purchasers of immovable property from non-residents must now report additional particulars, including the seller’s tax residency certificate and applicable DTAA benefits.
- Revised Form 132 and Form 141: The updated forms incorporate new fields for PAN of the non-resident seller, country of residence, and article of DTAA claimed, ensuring comprehensive data capture.
- Immediate Applicability: The changes take effect from the date of notification, requiring buyers and their authorized dealers to adopt the new formats without delay.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement