From October 2026, resident individuals and Hindu Undivided Families buying property from non-resident sellers will be able to use their PAN for TDS compliance, streamlining the process while maintaining tax obligations.
From 1 October 2026, resident individuals and Hindu Undivided Families buying property in India from non-resident sellers will be able to complete TDS compliance using their PAN rather than first securing a Tax Deduction and Collection Account Number, according to reporting on the Central Board of Direct Taxes’ latest amendment rules. The change is designed to reduce paperwork for individual buyers and simplify a process that previously required a separate tax registration before the tax could be deducted and paid.
The new facility is limited to resident individuals and HUFs. Companies and firms buying immovable property from non-residents will still need a TAN for TDS compliance, so the relief is not a blanket change for all property purchasers. The updated system also does not alter the underlying tax obligation: buyers must still work out the correct TDS amount, deduct it and remit it to the tax authorities.
The reporting process will now run through a revised Form 141, which is described as a challan-cum-statement mechanism. According to the notifications and subsequent reporting, the form has been expanded to capture details of the property, the seller and the transaction more fully, including information intended to improve traceability and administrative efficiency. Industry reports say a new schedule has been added to the form for property and seller particulars.
One point that remains unchanged is that the familiar ₹50 lakh threshold and the 1% TDS rule apply only where the seller is resident. In transactions involving a non-resident seller, the tax treatment follows the rules for capital gains, with the rate depending on whether the gain is long-term or short-term. For many homebuyers, the main practical effect of the amendment will be procedural: less time spent on tax registration, but no reduction in the obligation to withhold tax correctly and file the required statement.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
