CBDT Notifies Fifth Amendment to Income-tax Rules, 2026

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 22nd September, 2026

INCOME-TAX

The Central Board of Direct Taxes (CBDT), Ministry of Finance, has issued Notification No. 121/2026 dated 22 September 2026, introducing the Income-tax (Fifth Amendment) Rules, 2026. The amendments modify the Income-tax Rules, 2026, particularly regarding TDS compliance on immovable property transactions involving non-resident sellers and resident individual or Hindu Undivided Family (HUF) buyers.

The amended rules will come into force from 1 October 2026.

Key Amendments

• Expanded TDS Reporting: Rules 215, 218, and 219 have been amended to incorporate provisions relating to tax deduction on immovable property transfers under section 393(2) of the Income-tax Act, 2025.

• Revised Income-tax Forms: Forms No. 132 and 141 have been updated to capture additional details relating to immovable property transactions involving non-resident sellers.

• New Schedule E in Form No. 141: A dedicated schedule has been introduced for reporting TDS on consideration paid or credited for the transfer of immovable property covered under section 393(2).

• Additional Transaction Details: The revised reporting framework requires information regarding property particulars, buyers, sellers, sale consideration, stamp duty value, payment instalments, capital gains classification, and TDS deducted.

• Non-Resident Seller Information: Details such as overseas address, tax residency certificate number, and foreign tax identification number are required, with specified provisions for cases where PAN is unavailable.

• Multiple Deductors: Where a transaction involves more than one deductor, each deductor is required to file a separate form.

• Updated Notes and References: The notification also revises instructions, form references, and provisions relating to certificates issued under section 395.

Effective Date

The Income-tax (Fifth Amendment) Rules, 2026, shall be effective from 1 October 2026.

Notification Details