Resident individuals and HUFs will be able to use PAN and the new Form 141 to report and deposit TDS on property purchases from non-resident sellers
PRAVASISAMWAD.COM
Buying immovable property from a non-resident Indian (NRI) is set to become simpler from October 1, 2026, as resident individuals and Hindu Undivided Families (HUFs) will no longer need to obtain a separate Tax Deduction and Collection Account Number (TAN) for the transaction.
Under the revised system, buyers can use their Permanent Account Number (PAN) to report and deposit tax deducted at source (TDS). The change forms part of the transition to the new income-tax framework and is intended to reduce the compliance burden on individual property buyers.
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The Central Board of Direct Taxes (CBDT) notified the relevant amendments on September 22, providing for a PAN-based challan-cum-statement mechanism through Form 141
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The amended form includes Schedule E for reporting TDS on purchases of immovable property from non-residents
The change affects the reporting procedure, but does not remove the buyer’s TDS obligation. Buyers must continue to determine the applicable tax, deduct it as required and deposit and report the amount through the prescribed process.
The revised arrangement brings these transactions closer to the simpler compliance process used for certain property purchases involving resident sellers. However, the relaxation is specifically for resident individuals and HUFs. Other entities, including companies, firms and LLPs, will continue to follow the applicable TAN-based requirements.
For transactions completed before October 1, buyers must continue with the existing procedure, including obtaining a TAN. The timing is therefore important for those planning property purchases from NRI sellers around the transition date.
The changes are expected to reduce paperwork and eliminate the need for individual buyers to obtain and maintain a separate TAN solely for such property transactions.
