Buying property from an NRI? Know these dos and don'ts applicable from October 1
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓From October 1, 2026, resident individuals buying property from an NRI no longer need a TAN.
- ✓Buyers can now use their PAN to report TDS.
- ✓Sudhir Kaushik said, "The removal of TAN requirement simplifies compliance for eligible buyers, but it does not reduce the buyer's responsibility to deduct the correct TDS."
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
From October 1, 2026, eligible resident individuals and Hindu Undivided Families (HUFs) buying immovable property from an NRI do not need to obtain a separate Tax Deduction and Collection Account Number (TAN) for the transaction. Instead, they can use their PAN and report the TDS through the prescribed mechanism, including Form 141 and its relevant schedule. However, the removal of TAN does not mean that the buyer's TDS responsibility has gone away. TAN removed, but TDS obligation remains The buyer still has to determine the correct TDS rate, deduct the tax at the applicable stage, deposit it with the government and report the transaction.
Form 141 provides the PAN-based mechanism for eligible buyers to report and deposit TDS on such transactions. The buyer also needs to issue the prescribed TDS certificate to the NRI seller. Companies and firms continue to require TAN.
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