CBDT Amends Income Tax Rules 2026, Introduces New TDS Reporting Requirements for Property Transactions:

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has further amended the Income Tax Rules 2026 to introduce the Income Tax (Fifth Amendment) Rules, 2026, in exercise of its powers granted under section 533 read with sections 395(4)(a) and 397(3)(a) and (b) of the Income-tax Act, 2025 (30 of 2025).

According to the Notification No. G.S.R. 830(E), dated September 22, 2026, the amended rules are set to take effect from October 01, 2026. The amendments introduced are particularly related to tax deducted at source (TDS) on immovable property transactions. These changes are likely to affect taxpayers, property buyers, sellers and tax professionals handling TDS compliance for property transfers significantly.

One of the key amendments introduced to the Income Tax Rules 2026 is to Form 141, which is used to file challan-cum-statements concerning TDS. The government has expanded the heading of Form 141 in order to include deductions under both Section 393(1) and Section 393(2). Furthermore, Schedule E has been added to the form for the purpose of reporting TDS related to consideration paid for the transfer of immovable property falling under Section 393(2).

The notification discloses the introduction of Schedule E, which requires taxpayers to provide details such as the address of the immovable property, the type of property (such as land or building), details of all buyers, PAN and names of buyers, the proportion of sale consideration payable by each buyer, details of all sellers or deductees, the seller's PAN, where available, the seller's residential status, contact details and email ID, the overseas address in case of a non-resident seller, the tax Residency Certificate details, the tax Identification Number of the non-resident seller, the agreement and registration dates, the stamp duty value of the property, the total sale consideration, details of whether payment is made in a lump sum or instalments, etc.

Where a resident individual or HUF buys immovable property from a non-resident, they now have a defined TDS mechanism under section 393(2) (separate from the existing 393(1) regime), with a dedicated reporting form (new Schedule E in Form 141) capturing the non-resident seller's foreign contact/tax details, TRC, TIN, and instalment-wise TDS computation.

Refer to the official notification for complete information.