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If you are buying property in India from an NRI seller, one of the most common and costly assumptions is that the same simplified property TDS rule applies in every case. It does not. Many buyers know the resident-seller property TDS route, but when the seller is non-resident, the compliance framework changes, the applicable form changes, and in many cases the remittance documentation also needs separate attention. <\/p>\n\n\n\n
That is why this issue creates so much confusion in practice. A buyer may hear that property TDS can be done without TAN, or that everything now runs through a single property form, or that Form 145 and Form 146 have replaced the old foreign remittance forms. Each statement has some truth in it, but none of them gives the complete answer unless the residential status of the seller is checked first. <\/p>\n<\/div><\/div>\n\n\n\n
Under the Income-tax Act, 2025, the simplified property TDS route applies in the resident-payment table under section 393(1), while payments to non-residents fall under a separate table under section 393(2). That distinction is the starting point of correct compliance. A buyer should therefore avoid treating an NRI seller transaction as if it were a standard resident-seller property deal. <\/p>\n\n\n\n
Where the seller is resident, taxpayers generally think in terms of the simplified property TDS route and challan-cum-statement compliance. On your website, that practical route is best connected with Form 141 & Form 132 \u2013 Unified Property \/ Rent TDS<\/a><\/strong>. However, when the seller is non-resident, the buyer steps into the non-resident TDS regime, and the more relevant compliance page becomes TDS Filing \u2013 Form 138, 140 & 144<\/a><\/strong>. <\/p>\n\n\n\n As on date, the practical answer is yes<\/strong>. The Income-tax Department\u2019s own TAN guidance says TAN is required for persons deducting tax at source except in the limited PAN-based exceptions such as section 194-IA, 194-IB, 194M and specified 194S cases. The Department\u2019s tax-deductor guidance also makes it clear that these are exception-based routes, not a blanket rule for all property transactions. <\/p>\n\n\n\n This is precisely where many taxpayers get confused by a recent budget proposal. The confusion is understandable. The Finance Bill, 2026 memorandum and the official Budget 2026 FAQ both state that a relief has been proposed<\/strong> so that a resident individual or HUF buying immovable property from a non-resident will not be required to obtain TAN, and the deduction will be reported through a PAN-based challan-cum-statement mechanism. But the same official material also states that this amendment is proposed to take effect only from 1 October 2026<\/strong>. Until that effective date and corresponding operational rollout, the current position continues. <\/p>\n\n\n\n One of the biggest practical errors is to assume that every property purchase attracts the same simple TDS treatment. In the case of an NRI seller, the relevant entry is section 393(2), Table Sl. No. 17, which covers \u201cany interest \u2026 or any other sum chargeable under the provisions of this Act, not being income chargeable under the head Salaries,\u201d payable to a non-resident or foreign company, at rates in force<\/strong>. That is a different compliance framework from the simplified resident-seller property route. <\/p>\n\n\n\n This matters because the buyer may need to evaluate whether the payment is wholly chargeable, whether a lower or nil deduction route should be explored, whether bank remittance documentation is needed, and whether the seller\u2019s position requires closer review. In transactions involving NRI sellers, blind reliance on the resident-seller property approach can create short-deduction risk, late filing issues, and practical difficulties for both buyer and seller. <\/p>\n\n\n\n For payments to non-residents, the relevant quarterly TDS statement under the new framework is Form No. 144<\/strong>. The official guidance note states that Form 144 is the quarterly statement for TDS on payments other than salary made to NRIs, foreign companies, and other non-resident persons. This is why the most relevant service page for buyer-side quarterly compliance is TDS Filing \u2013 Form 138, 140 & 144<\/a><\/strong>. <\/p>\n\n\n\n The official FAQ on Form 144 confirms the quarterly filing structure and due dates. As a practical compliance article, this is worth highlighting because many readers wrongly search only for the property challan route and miss the non-resident quarterly statement obligation altogether. <\/p>\n\n\n\n No. This is another area where many buyers, bankers and even intermediaries mix up two separate compliance tracks.<\/p>\n\n\n\n Form 144<\/strong>\u00a0is the quarterly TDS statement for relevant non-resident payments. By contrast,\u00a0Form 145<\/strong>\u00a0and\u00a0Form 146<\/strong><\/a> belong to the foreign remittance documentation framework. Your live service page correctly explains that Form 15CA and 15CB have been replaced by Form 145 and Form 146 under the new regime, and that these forms become relevant in taxable remittance situations depending on thresholds and certificate requirements. For readers who need remittance-side support, the correct internal link is\u00a0Form 145 \/ 146 \u2013 CA Certificate for Foreign Remittance<\/a><\/strong>.\u00a0<\/p>\n\n\n\n So, in simple terms, Form 144 is the TDS-return side, while Form 145 and Form 146 belong to the remittance-compliance side. Some transactions may require one, some may require the other, and some may require coordinated handling of both. <\/p>\n\n\n\n The buyer should first confirm the seller\u2019s tax residential status and stop assuming that all property purchases are covered by the same simplified route. Once the seller is confirmed as non-resident, the buyer should review the agreement, identify the payment structure, verify whether any lower deduction mechanism is available, assess whether remittance documentation will be needed, and ensure that TDS compliance is mapped correctly before the first payment is released. <\/p>\n\n\n\n After that, the buyer should ensure timely deduction, deposit and quarterly reporting in Form 144 where applicable. If the transaction also involves foreign remittance or bank-side certification requirements, the Form 145 \/ 146 framework should be reviewed separately. Where the transaction value is material or the facts are not straightforward, it is safer to take professional review before payment<\/a><\/strong> rather than trying to correct the compliance trail later. <\/p>\n\n\n\n A very common mistake is using the resident-seller property TDS mindset for an NRI seller case. Another is assuming that because a no-TAN proposal exists in the Budget 2026 papers, TAN can already be ignored in current transactions. A third is mixing up Form 141<\/strong> with Form 144<\/strong>, and a fourth is treating Form 145 \/ 146<\/strong> as a substitute for the quarterly TDS statement. If a reader wants to understand the resident-seller property route separately, you can direct them to Form 141 & Form 132 \u2013 Unified Property \/ Rent TDS<\/a><\/strong>. <\/p>\n\n\n\n In NRI property purchase cases, the real challenge is not merely filling one form. The transaction may involve status review, TDS applicability, rate review, TAN support, Form 144 filing, remittance documentation, bank coordination, and seller-side capital-gains alignment. That is why it makes sense to connect the reader to the correct service pages instead of leaving them with a generic explanation.<\/p>\n\n\n\n For buyer-side quarterly TDS compliance, see TDS Filing \u2013 Form 138, 140 & 144<\/a><\/strong>. For outward remittance and certification support, see Form 145 \/ 146 \u2013 CA Certificate for Foreign Remittance<\/a><\/strong>. Where the seller also needs return-filing or tax-credit support, your ITR Filing & CPC Notice Reply<\/a><\/strong> page is the right internal destination. <\/p>\n\n\n\n If you are buying immovable property from an NRI seller, do not proceed on the assumption that the standard resident-seller property TDS model automatically applies. The safer and presently correct approach is to treat the transaction under the non-resident TDS framework, understand whether TAN is presently required, identify whether Form 144 applies, and separately evaluate whether Form 145 \/ 146 of Income Tax Act 2025<\/a> becomes relevant for remittance. The proposed Budget 2026 relief is useful and welcome, but the official material itself states that it is proposed to take effect from\u00a01 October 2026<\/strong>. Until then, current compliance discipline remains essential. For transaction-specific support, you may place a final CTA here:\u00a0Book Consultation \/ Schedule Appointment<\/a><\/strong>.\u00a0<\/p>\n\n\n\n Not automatically. The simplified 1% property route belongs to the resident-seller framework. NRI seller cases presently move to the non-resident TDS regime under section 393(2). <\/p>\n\n\n\n Practically, yes. The official guidance continues to treat non-resident seller cases outside the PAN-based resident property forms. The Budget 2026 relaxation is proposed from 1 October 2026. <\/p>\n\n\n\n The relevant quarterly TDS statement is Form 144<\/strong> under the new Rules, corresponding to old Form 27Q. <\/p>\n\n\n\n No. Form 144 is the TDS return. Form 145 and Form 146 belong to remittance compliance before sending taxable sums outside India to a non-resident. <\/p>\n\n\n\n Yes, lower \/ nil deduction or determination mechanisms exist under section 395, including Form 128 and Form 129 pathways. <\/p>\n\n\n\n Using the resident-seller property TDS mindset for an NRI transaction and assuming that Form 141 or no-TAN compliance automatically applies. <\/p>\n\n\n\n Buying property from an NRI seller and unsure about TDS, TAN, Form 144 or remittance documents?<\/strong>Does the buyer presently need TAN when buying property from an NRI seller?<\/h3>\n\n\n\n
Why the \u201c1% property TDS\u201d assumption can become risky<\/h3>\n\n\n\n
Which TDS return form should be filed?<\/h3>\n\n\n\n
Is Form 145 or Form 146 the buyer\u2019s TDS return?<\/h3>\n\n\n\n
Practical step-by-step checklist for the buyer<\/h3>\n\n\n\n
Common mistakes that lead to notices and delays<\/h3>\n\n\n\n
How CA Alok Kumar can help<\/h3>\n\n\n\n
Final word<\/h3>\n\n\n\n
FAQ on Form 144 of Income Tax Act 2025<\/h2>\n\n\n\n
1. Is 1% TDS applicable when buying property from an NRI seller?<\/h3>\n\n\n\n
2. Is TAN required for buying property from an NRI seller in April 2026<\/a>?<\/h3>\n\n\n\n
3. Which form is to be filed by the buyer?<\/h3>\n\n\n\n
4. Are Form 145 and Form 146 the same as Form 144?<\/h3>\n\n\n\n
5. Can lower TDS be obtained in an NRI property sale?<\/h3>\n\n\n\n
6. What is the biggest practical mistake buyers make?<\/h3>\n\n\n\n
Get transaction-specific guidance from\u00a0CA Alok Kumar<\/strong>\u00a0for buyer-side compliance, seller-side capital gains coordination, lower deduction strategy, Form 144 filing, and Form 145\/146 support<\/a>. Book a consultation:<\/strong>\u00a0<\/a><\/p>\n\n\n\n