10 hrs ago
Buying Property From NRIs Gets Simpler Without TAN Requirement
People who buy property from someone living outside the country currently need an extra tax number called a TAN.
From October 1, 2026, resident individuals and HUFs will not need to get that extra number.
They can use their PAN instead.
They will report the tax using a new challan-cum-statement process.
Form 141 will be used for this reporting.
The buyer must still calculate and deduct the required TDS.
The deducted tax must still be deposited and reported.
The change makes the paperwork simpler, but it does not remove the tax requirement.
From October 1, 2026, resident individuals and HUFs buying property from NRIs will no longer need to obtain a TAN.
Buyers will use their PAN to report and deposit TDS on the transaction.
The transaction will be reported through a PAN-based challan-cum-statement mechanism.
Form 141 will be used to furnish the challan-cum-statement under the new income-tax framework.
The TDS obligation remains; only the compliance procedure is changing.
- Who
- Resident individuals and Hindu Undivided Families buying immovable property from non-resident sellers.
- What
- The requirement to obtain a TAN for deducting TDS will be removed, while the TDS obligation will continue.
- Where
- For immovable-property transactions covered by the income-tax framework.
- When
- The change takes effect on October 1, 2026.
- Why
- To simplify TDS compliance for resident buyers dealing with non-resident sellers.
Key facts
- Effective date
- October 1, 2026
- Affected buyers
- Resident individuals and Hindu Undivided Families
- Affected transactions
- Purchases of immovable property from non-resident sellers
- TAN requirement
- No longer required for the transaction
- Alternative identification
- Buyers can use their PAN
- Reporting form
- Form 141
- TDS status
- TDS remains applicable and must still be deducted, deposited, and reported
Sources
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