The Central Board of Direct Taxes has announced a streamlined process for resident buyers and Hindu undivided families purchasing property from non-residents, removing the need for a TAN and introducing a PAN-based reporting system from October 2026.
The Central Board of Direct Taxes has moved to reduce paperwork for resident individuals and Hindu undivided families buying immovable property from non-residents, ending the need for a separate tax deduction and collection account number for those transactions. Under the revised system, buyers will be able to use their permanent account number to deposit and report tax deducted at source through a challan-cum-statement, according to the reports and the notified rule changes.
The new procedure will take effect from October 1, 2026, giving property buyers a simpler route to comply with withholding-tax rules when they purchase assets from non-resident sellers. The Economic Times reported that the amendments were notified through changes to the Income-tax Rules, 2026, and that the move is intended to streamline compliance for individual buyers and Hindu undivided families.
Moneycontrol reported that the updated filing process will use Form 141, which has been revised to function as the PAN-based challan-cum-statement for these cases. That form is expected to collect more detailed information about the transaction, including property details, the buyer and the non-resident seller, as part of the effort to improve reporting and transparency.
Other tax-focused reports said the changes also introduce a new Schedule E to Form 141 and, in some cases, amendments to Form 132 for transfers involving non-resident sellers. Those additions appear designed to close reporting gaps in cross-border property deals, while still making compliance less cumbersome for resident buyers who previously had to obtain a TAN solely for this purpose.
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