You live in India. The other party does not.
Buying from, renting from, or receiving money from an NRI.
The rules changed on 1 April and change again on 1 October 2026.
You are the buyer, the tenant, the seller or the family member in India, and the person on the other side of the transaction is a non-resident. The tax duty lands on you, the forms were renumbered on 1 April 2026, and the TAN rule for property buyers changes on 1 October 2026. These pages are written for you, not for the NRI.
The checklist
Five things, in order.
Skip any one of these and the next year of your Indian tax life gets harder. Each step cites the exact Section or Form so you can verify.
Buying property from an NRI: deduct under Section 195, not the 1% rule
The 1% route (Section 194-IA, now 393(1)) is for resident sellers only. With an NRI seller you deduct on the sale value at the capital-gains rate, deposit by the 7th of the next month and file Form 144 (formerly 27Q). From 1 October 2026 a resident individual or HUF buyer no longer needs a TAN.
Citation: Section 195 / 393(2); Finance Act 2026, s.397(1)(c)
Start step 1Before you pay an NRI seller a token: the due-diligence checklist
Confirm the seller's status and operative PAN, the title chain and encumbrance certificate, and who is signing: a power of attorney authenticated abroad and stamped in India, or every heir. Pay only into the seller's Indian account, and hold a lower-deduction certificate before you deduct less.
Citation: Section 195 / 393(2); Registration Act s.33; Stamp Act s.18
Start step 2Already bought from an NRI and missed a step: how to fix each one
No TDS, the 1% resident rate, a late deposit, a certificate that did not cover you, a power of attorney nobody checked or an heir who never signed. Tax gaps grow every month, so start there: if the seller has already paid the tax in their return, you may owe only interest.
Citation: Section 398 (formerly 201); Form 149 (formerly 26A)
Start step 3Paying rent to an NRI landlord: TDS from the first rupee
Section 194-IB does not apply to an NRI landlord. You deduct under Section 195 at the landlord's rate, take a TAN, deposit monthly and file quarterly. The landlord can hand you a lower-deduction certificate (Form 128, formerly 13) that brings the deduction down.
Citation: Section 195 / 393(2); Form 144; Form 131
Start step 4Selling to an NRI buyer: your tax is unchanged, the payment route is not
The NRI buyer deducts 1% and files Form 141 (formerly 26QB); you claim it on your return. The money must come through banking channels or from an NRE, NRO or FCNR(B) account, never in cash or foreign currency. An NRI cannot buy agricultural land, a plantation or a farmhouse.
Citation: Section 194-IA / 393(1); RBI Master Direction 12
Start step 5Receiving money from an NRI relative: usually tax-free, always documented
A gift from a relative is not income; from anyone else it is, once the year's total passes 50,000. A rupee gift from an NRE or NRO account to a resident is permitted under FEMA. Keep a gift deed or a signed letter, because the AIS will show the credit.
Citation: Section 56(2)(x); FEMA deposit regulations
Start step 6Holding an account or property jointly with an NRI
A resident close relative can be joint holder of an NRI's account on a former-or-survivor basis only. On a co-owned rented property each owner is taxed on their own share, and the tenant's TDS splits by owner.
Citation: RBI Master Direction on deposits; Section 26
Start step 7Free tools for this stage