Buying property from an NRI seller in Hyderabad: TDS under section 393(2) (old 195), Form 144 and the section 395 certificate
Short answer: If you buy a Hyderabad flat, house or plot from a seller who is a non-resident (NRI) for tax, the resident-seller TDS form (Form 141 Schedule B, ex-26QB) is not the default route. TDS falls under section 393(2) of the Income-tax Act, 2025 (old section 195), at a rate that depends on the seller's gain, and the department describes reporting it in Form 144 (ex-27Q). Get the seller's PAN and any section 395 certificate before you pay. Telangana stamp duty is separate.
Why an NRI seller changes the TDS step
- The usual property form is for resident sellers. The department's note on Form 141 says Schedule B (which replaced Form 26QB) covers a buyer paying a resident transferor. For a resident seller, see our Telangana buyer's TDS guide.
- Payments to non-residents fall under section 393(2) of the Income-tax Act, 2025 (the old section 195). The rate is not the flat resident rate; it depends on the seller's capital gain (to verify with a tax professional).
- No Rs 50 lakh threshold is mentioned for non-resident payments on the pages we read, so do not assume a small sale is exempt (to verify).
The filing route the department describes
- Form 144 (was Form 27Q): the quarterly statement for TDS on payments, other than salary, to non-residents. The department's note lists the due dates as 31 July (Apr to Jun), 31 October (Jul to Sep), 31 January (Oct to Dec) and 31 May after the tax year (Jan to Mar).
- Form 144 needs a TAN of the deductor, the challan details, the seller's PAN, the country of remittance and the rate used.
- Lower or nil deduction: Form 144 has a field for a certificate number under section 395. If the seller holds one, deduct at the rate it states and keep a copy.
- Treaty rate: where the seller claims a tax treaty (DTAA) rate, the note lists Form 10F and a Tax Residency Certificate as documents needed.
To verify before you pay: tax publishers report that from 1 October 2026 a resident individual or HUF buyer no longer needs a TAN for this deduction and reports it with PAN through Form 141. The official Form 141 note we read on 21 Oct 2026 still describes Schedule B for resident sellers only. Check the e-filing portal on the day you pay, or ask a tax professional. Rates for non-resident sellers depend on the seller's gain and are not shown on the pages we read. Not legal or tax advice.
Before you sign: what to ask the NRI seller
- PAN of every seller, and written confirmation of each one's residential status for tax
- A lower or nil deduction certificate under section 395 if they want less deducted, applied for well before the sale date
- Who signs at the Sub-Registrar office: the seller in person, or an agent under a registered power of attorney (see the Telangana NRI power of attorney guide)
- A clause in the agreement saying what happens if the certificate is late (for example, full deduction and the seller claims a refund)
- Your own route confirmed on the portal: Form 141 with PAN, or TAN plus Form 144
Property in Vizag or Vijayawada? See the Andhra Pradesh guide to buying from an NRI seller.
A free sample from our Hyderabad property do-it-yourself pack for NRIs: which papers to ask for, which official portals to check, and in what order.
Get it free (instant download)FAQ
Can I use Form 26QB or Form 141 when the seller is an NRI?
The department's Form 141 note says Schedule B is for payments to a resident transferor. Tax publishers report a non-resident schedule from 1 October 2026 for individual and HUF buyers; confirm on the e-filing portal before paying.
What is Form 144?
Form 144 replaced Form 27Q. It is the quarterly TDS statement for payments, other than salary, to non-residents, due 31 July, 31 October, 31 January and 31 May.
Can the NRI seller reduce the TDS?
Yes, with a lower or nil deduction certificate under section 395 of the Income-tax Act, 2025. Form 144 has a field for that certificate number; the buyer deducts at the rate the certificate states.
Is there a Rs 50 lakh limit when buying from an NRI?
The Rs 50 lakh line on the pages we read applies to resident sellers under Form 141. We found no such limit for non-resident payments; check with a tax professional.
Does this TDS replace Telangana stamp duty?
No. TDS is income tax deducted from the seller's payment. Stamp duty and registration fee are paid separately at registration.
Official sources
- Income Tax Department: note on Form 144 (was Form 27Q)
- Income Tax Department: note on Form 141 (Schedule B for resident sellers)
- Income Tax Department: section 393, Income-tax Act, 2025
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.