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TDS · TDS ON COMMON PAYMENTS

Paying an NRI or Buying NRI Property: Avoid the Resident-Rate Trap

Check residency, taxability, withholding documents and the new Form 141 Schedule E route for eligible property buyers.

By Vyapar Setu Online | TDS on common payments · 27 October 2026

An Indian couple reviewing housing documents in their apartment

TDS learning series · TDS on common payments · Article 15 of 25

The most expensive NRI-property mistake is often using the resident seller’s 1% TDS rule. Residential status changes the legal route, even when the seller has an Indian PAN and the payment stays in India.

Current-year guide: Reviewed 27 October 2026 for Tax Year 2026–27 under the Income-tax Act, 2025 and Income-tax Rules, 2026. Familiar old section and form names are identified for comparison. Earlier-period obligations retain their applicable rules; read the dates and exceptions in this guide.

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For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.

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