Until now, a buyer paying a non-resident seller had to get a Tax Deduction Account Number (TAN) before deducting and depositing the tax, even for a single purchase. The Union Budget 2026 proposed removing that step for individuals. The change was notified on 22 September 2026 and applies from 1 October 2026: resident individual and HUF buyers now use their PAN and a new schedule in Form 141. Companies and firms still need a TAN.
The tax to deduct has not changed. It is worked out at the rates that apply to the seller’s capital gain, which are much higher than the 1% on purchases from residents. See TDS on a property purchase.
Sources
Official sources are marked. Where no official page could be read, we used news reports and law firms’ notes.
- Buying a home from an NRI? You no longer need a TAN for TDS (opens in a new tab) · Outlook Money · 4 Oct 2026
- Union Budget 2026: government eases compliance for individuals buying property from non-residents (opens in a new tab) · Deccan Herald · 1 Feb 2026
- Form No. 141: challan-cum-statement for TDS (opens in a new tab) · Income Tax DepartmentOfficial