Your NRI Property Tax Forms Were Renumbered: Form 128 and Form 144 in 2026
If you are selling India property as an NRI in 2026, the forms changed names. The lower-TDS certificate is now Form 128, and the buyer's quarterly TDS return is now Form 144. The process is the same; the numbers are new. Knowing the right form saves you a rejected filing.
The Income-tax Act 2025 and the Income-tax Rules 2026 renumbered large parts of the old framework. For NRI property sellers, two forms matter, and using the old number on a new portal is how a filing gets bounced.
What changed
- Form 13 is now Form 128. This is the application for a lower or nil TDS certificate, issued under Section 395(1) of the Income-tax Act 2025. It is the certificate that stops the full sale price being withheld at source. Filed on the TRACES portal with auto-populated data and validation checks.
- Form 27Q is now Form 144. This is the quarterly TDS return the buyer files for a purchase from an NRI.
- The TDS rate itself is unchanged: 12.5% on long-term gains plus surcharge and 4% cess, an effective maximum near 14.95% on higher-value sales, under Section 393(2).
What did not change
The mechanics are the same. The buyer still deducts on the full sale consideration, not on your gain. The lower-TDS certificate is still the tool that fixes that, and you still apply for it before the sale agreement, not after. Approval still takes time in practice, commonly a few weeks, so start early. And Form 15CA/15CB still gate the repatriation of proceeds, covered in the 15CA/15CB guide.
What to do
Use the new numbers on every filing from 2026. If a draftsperson or a portal still references Form 13 or Form 27Q, flag it. The substance of the process has not moved: compute the gain, apply for the lower-TDS certificate (now Form 128) before closing, and reconcile the buyer's deduction in your records. The how-to is in TDS on sale of property by an NRI and the gain calculation in capital gains tax for NRIs. This is news, not advice; confirm your specific filing with a CA.
FAQ
What replaced Form 13 for NRIs in 2026? Form 128. It is the application for a lower or nil TDS certificate under Section 395(1) of the Income-tax Act 2025, filed on TRACES. It does the same job Form 13 did: it reduces the TDS withheld on your sale to closer to your real liability.
Is it still Form 27Q for buying from an NRI? The quarterly TDS return for a purchase from an NRI is now numbered Form 144 under the new rules. It is still distinct from the resident-seller forms.
Did the TDS rate change with the new forms? No. The renumbering is administrative. Long-term gains are still taxed at 12.5% plus surcharge and cess, with an effective maximum near 14.95% on higher-value property.
Selling and want the filings handled correctly?
66 MG Road coordinates the lower-TDS certificate and the sale paperwork for NRI owners through vetted CA partners, on the current forms, with itemized billing. We operate in Mumbai, Pune, Bangalore, Hyderabad, Chennai, and Gurgaon. See TDS and lower-deduction certificates or request a proposal.
66 MG Road newsdesk
Sources
- Dinesh Aarjav & Associates, Lower/Nil TDS certificate and Form 128, 2026: https://www.dineshaarjav.com/blog-detail/lower-nil-tds-certificate-for-nris-selling-property-india-form
- Dinesh Aarjav & Associates, TDS on sale of property by NRI 2026 under the Income-tax Act: https://www.dineshaarjav.com/blog-detail/tds-on-sale-of-property-by-nri
- Taxes for Expats, NRI guide to selling property in India: https://www.taxesforexpats.com/country-guides/india/nri-guide-to-selling-property-in-india.html