Income-tax Act, 2025: Updated TDS Sections And Forms For Property Buyers, Sellers And NRIs

By Arosh John
Founder – John Real Estate | MahaRERA Registered Real Estate Consultant – A51700001835 | Editor-in-Chief – Thane Real Estate News

The Income-tax Act, 2025 has introduced a new numbering system for several TDS sections and forms. The responsibility to deduct tax has not been removed, but the section numbers, form numbers and compliance references have changed.

For property buyers, sellers, NRIs, chartered accountants and real estate consultants, this is a direct transaction-level update. Property transactions already involve registration planning, payment schedules, TDS deductions, challans, certificates and post-registration compliance. If old references are used in new transactions without checking the updated law, it can create confusion during documentation and compliance.

From 1 April 2026, applicable TDS events are governed by the Income-tax Act, 2025. Transactions where the earlier event of credit or payment happened on or before 31 March 2026 continue to be governed by the Income-tax Act, 1961.

The Main Change

Under the Income-tax Act, 1961, resident property TDS was commonly referred to as Section 194-IA. NRI property sale TDS was generally referred to under Section 195.

Under the Income-tax Act, 2025, these references have been reorganised.

For most real estate transactions, the section to track now is Section 393. It covers tax deducted at source for several types of payments through different tables and serial numbers.

Buyers, sellers and consultants should now update the language used in agreements, emails, TDS notes, transaction summaries and post-registration checklists.

Resident Property Sale TDS

For a normal resident-to-resident property sale, the old reference was Section 194-IA.

The updated reference is:

Section 393(1), Table Sl. No. 3(i)

This applies to consideration for the transfer of immovable property, other than agricultural land, where applicable.

The TDS rate remains 1% of the higher of the sale consideration or the stamp duty value, subject to the prescribed threshold of ₹50 lakh.

The earlier Form 26QB has now been replaced by Form 141. For property purchases, the relevant part is Schedule B of Form 141.

The earlier Form 16B, which was issued as the TDS certificate to the resident seller, has now been replaced by Form 132.

Resident Property TDS: Old And New References

Earlier Reference	Updated Reference
Section 194-IA	Section 393(1), Table Sl. No. 3(i)
Form 26QB	Form 141, Schedule B
Form 16B	Form 132
Filing login	PAN login
TAN	Not generally required for this PAN-based property TDS filing

For resident resale transactions, the updated chain is:

Section 393(1), Table Sl. No. 3(i) → Form 141, Schedule B → Form 132

NRI Property Sale TDS

NRI property transactions need separate treatment. A buyer should not handle an NRI sale like a regular resident-to-resident resale where 1% TDS is commonly applied.

Under the old law, payments to non-residents were generally handled under Section 195. Under the Income-tax Act, 2025, the updated reference for many non-resident payments is Section 393(2).

For NRI property sale files, the working reference is generally:

Section 393(2), Table Sl. No. 17, Code 1057

The earlier quarterly TDS return Form 27Q has now been replaced by Form 144.

The earlier TDS certificate Form 16A has now been replaced by Form 131.

NRI Property TDS: Old And New References

Earlier Reference	Updated Reference
Section 195	Section 393(2), Table Sl. No. 17, Code 1057
Form 27Q	Form 144
Form 16A	Form 131
Form 15CA	Form 145
Form 15CB	Form 146
Form 13	Form 128
Form 26AS	Form 168

For NRI resale transactions, the updated chain is:

Section 393(2), Table Sl. No. 17, Code 1057 → Form 144 → Form 131

Resident Sale And NRI Sale Are Not The Same

This distinction is critical in property transactions.

In a resident sale, the buyer usually has to comply with the 1% property TDS framework. In an NRI sale, the buyer must check the seller’s residential status for income-tax purposes and deduct tax under the applicable non-resident tax provisions.

The buyer cannot reduce or skip NRI TDS based only on the seller’s verbal assurance. If the NRI seller has obtained a valid lower or nil deduction certificate, the buyer can act according to that certificate. Otherwise, the TDS calculation should be finalised only after CA advice.

This should be checked before registration, not after the sale deed is already executed.

Form 141 For Resident Property Transactions

Form 141 is now the challan-cum-statement for certain PAN-based TDS transactions.

Earlier, different forms were used for different transactions. Form 26QB was used for the purchase of immovable property. Under the new structure, these have been brought into Form 141 with separate schedules.

For resident property sale TDS, the relevant schedule is:

Form 141, Schedule B

Form 141 is available through PAN login. It is not applicable where the deductee is a non-resident.

The deducted amount must be paid within the prescribed timeline, and Form 141 filing must be completed as part of that process.

Form 132 For Resident Seller TDS Certificate

Earlier, after filing Form 26QB, the buyer would download Form 16B and issue it to the resident seller.

Under the new structure, the certificate is Form 132.

This certificate is proof that tax has been deducted and deposited on behalf of the seller. The seller will need it for tax credit and income-tax filing.

For real estate transactions, Form 132 should be included in the closing checklist after registration.

Form 144 For NRI TDS Return

For non-resident non-salary TDS, Form 144 replaces Form 27Q.

In an NRI property sale, the buyer’s responsibility does not end after depositing the TDS. The quarterly TDS return must also be filed correctly.

Only after the TDS statement is processed can the relevant TDS certificate be generated and issued to the NRI seller.

Form 131 For NRI Seller TDS Certificate

Form 131 replaces Form 16A for non-salary TDS certificates.

In an NRI property sale, Form 131 is an important document for the seller. It supports the seller’s TDS credit, return filing, refund claim and further tax compliance.

For NRI sellers who plan to remit sale proceeds outside India, this certificate can also be included in the broader documentation trail.

Form 145 And Form 146 For Remittance

Forms 15CA and 15CB were widely used for foreign remittance compliance.

Under the new form structure:

Form 15CA is now Form 145
Form 15CB is now Form 146

These forms may be relevant when an NRI seller wishes to repatriate sale proceeds outside India after the property transaction is completed.

The exact requirement should be checked with a CA or authorised bank before remittance.

Lower TDS Certificate

In NRI property sale transactions, sellers often apply for a lower or nil TDS certificate when their actual tax liability is below the standard deduction position.

The earlier Form 13 reference is now Form 128.

If the NRI seller has obtained a valid lower deduction certificate, the buyer should deduct TDS according to that certificate. Without such a certificate, the buyer should not take a casual call on reducing TDS.

Transition From Old Act To New Act

The transition rule depends on the earlier event of credit or payment.

If the earlier credit or payment event occurred on or before 31 March 2026, the Income-tax Act, 1961 applies.

If the earlier credit or payment event occurs on or after 1 April 2026, the Income-tax Act, 2025 applies.

This is relevant in property transactions because token payment, part payment, agreement date, registration date and final payment may not always fall in the same tax period.

For transactions crossing March and April 2026, the CA should check the exact payment and credit timeline before deciding which Act and forms apply.

Updated Real Estate TDS Cheat Sheet

Transaction	Earlier Process	Updated Process
Resident property sale	Section 194-IA → Form 26QB → Form 16B	Section 393(1), Table Sl. No. 3(i) → Form 141, Schedule B → Form 132
NRI property sale	Section 195 → Form 27Q → Form 16A	Section 393(2), Table Sl. No. 17, Code 1057 → Form 144 → Form 131
Foreign remittance declaration	Form 15CA	Form 145
CA certificate for remittance	Form 15CB	Form 146
Lower / nil TDS application	Form 13	Form 128
Annual tax credit statement	Form 26AS	Form 168

What Buyers Should Check Before Registration

Before registration, a buyer should check the seller’s residential tax status. This should be done before finalising the payment schedule.

For a resident seller, the buyer should follow the resident property TDS process under Section 393(1), Table Sl. No. 3(i), file Form 141, Schedule B, and issue Form 132.

For an NRI seller, the buyer should seek CA advice, deduct TDS under the applicable non-resident provisions, file Form 144 and issue Form 131.

The payment structure should clearly mention when TDS will be deducted, deposited and reported.

What Sellers Should Check

Sellers should also check the TDS position early.

A resident seller should make sure that the buyer files the correct form and issues the TDS certificate after registration.

An NRI seller should discuss the tax position with a CA before the transaction reaches the registration stage. If a lower TDS certificate is required, it should be applied for in advance.

Waiting until the registration date can delay payment, documentation and closure.

What Real Estate Consultants Should Update

Real estate consultants should update their internal templates and transaction formats.

Old references such as Section 194-IA, Section 195, Form 26QB, Form 27Q, Form 16A and Form 16B may still be familiar, but new transactions under the Income-tax Act, 2025 should use the updated references.

This applies to:

• Email confirmations
• MOU drafts
• Agreement notes
• Payment schedules
• NRI transaction checklists
• Registration-day checklists
• Post-registration compliance tracking

For a resident resale transaction, the updated reference should be:

Section 393(1), Table Sl. No. 3(i) → Form 141, Schedule B → Form 132

For an NRI resale transaction, the updated reference should be:

Section 393(2), Table Sl. No. 17, Code 1057 → Form 144 → Form 131

Editorial View

The Income-tax Act, 2025 has changed the language of TDS compliance. The responsibility remains with the buyer, but the section numbers and form numbers have changed.

For resident property transactions, the old references to Section 194-IA, Form 26QB and Form 16B should now be updated to Section 393(1), Form 141 and Form 132.

For NRI property transactions, the old references to Section 195, Form 27Q and Form 16A should now be updated to Section 393(2), Form 144 and Form 131.

Property buyers should not treat this as a minor paperwork update. TDS compliance affects seller credit, refund claims, remittance, registration planning and transaction closure.

The correct process is to identify the seller’s tax status early, confirm the applicable provision with a CA, deduct and deposit TDS correctly, file the correct form and issue the correct certificate after processing.

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Also READ: Documents You Need for a Lower or Nil TDS Certificate (Form 13) When Selling Property as an NRI

Also READ: Penalties & Issues If You Don’t Disclose NRI Status or Follow TDS Rules in Property Sales

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About the Author

Arosh John is the Founder of John Real Estate, a MahaRERA registered real estate consultant with registration number A51700001835, and the Editor-in-Chief of Thane Real Estate News.

He has over a decade of experience in Thane and MMR real estate, advising homebuyers, sellers, investors and NRIs on residential resale, new project sales, luxury homes, NRI property transactions, documentation, payment structuring and property compliance.

Through John Real Estate, he works across key Thane micro-markets including Ghodbunder Road, Pokhran Road, Majiwada, Kolshet, Balkum, Thane Upper, Thane–Dombivli Link Road and the wider Mumbai Metropolitan Region.

Through Thane Real Estate News, Arosh John writes on real estate, infrastructure, MahaRERA updates, property taxation, NRI transactions and buyer-seller awareness. His work focuses on helping readers understand Thane real estate with practical, transaction-level clarity.

Disclaimer

This article is for general information and real estate awareness only. It should not be treated as tax, legal or financial advice. Property buyers, sellers, NRIs and real estate professionals should consult a qualified chartered accountant, tax advisor or legal professional before acting on any TDS, remittance, capital gains or income-tax matter.