TDS norms eased for buying NRI property

NEW DELHI: The Central Board of Direct Taxes (CBDT) has eased tax deducted at source (TDS) compliance for resident individuals and Hindu undivided families (HUFs) buying immovable property from non-residents, doing away with the need to obtain a separate Tax Deduction and Collection Account Number (TAN) for such transactions.

The CBDT has amended Income-tax Rules, 2026, allowing buyers to deposit and report TDS under Section 393(2) of the Income-tax Act, 2025 through a PAN-based challan-cum-statement in Form 141. The changes will take effect from October 1, 2026. The move, which follows the Budget 2026 announcement, is aimed at simplifying compliance for property buyers, particularly in transactions that may be one-off in nature.

The CBDT has introduced a new Schedule E in Form 141 specifically for purchases of immovable property from non-resident sellers. Form 132 has also been amended to align with the new reporting mechanism. “The most significant relief is the removal of the requirement for a resident individual or HUF to obtain a separate TAN for what is often a one-time property transaction,” said Neeraj Agarwala, Senior Partner, Nangia & Co LLP.