NRI Property Purchase Gets Simpler From October 1, 2026
Resident buyers purchasing property from NRIs will no longer need a separate TAN for TDS compliance from October 1, 2026, but the TDS obligation will continue.
Buying property from a non-resident Indian (NRI) is set to become simpler for resident buyers from October 1, 2026, with a change in the tax deduction at source (TDS) compliance process.
Under the new system, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from an NRI will no longer need to obtain a separate Tax Deduction and Collection Account Number (TAN) for the transaction. Instead, buyers can use their Permanent Account Number (PAN) for deducting, depositing and reporting TDS.
The change is part of the transition to the new income-tax law and is intended to reduce the compliance burden for individuals involved in property transactions with non-resident sellers.
Earlier, obtaining a separate TAN added another administrative step for resident buyers. From October 1, buyers can use the PAN-based challan-cum-statement mechanism for the relevant TDS compliance instead.
However, the new rule does not remove TDS on property purchases from NRI sellers. Buyers will still have to determine the applicable tax, deduct it at the required stage and deposit and report it according to the prescribed procedure.
The key change is therefore the removal of the separate TAN requirement, not the TDS obligation itself. For property buyers, that means one less compliance hurdle in what is already a paperwork-heavy transaction. Basically, the property hunt remains complicated, but at least one form is finally getting evicted.
