Buying property from an NRI has become simpler for resident individual buyers and HUFs. From October 1, 2026, they no longer need to obtain a separate Tax Deduction and Collection Account Number (TAN) to deduct TDS when purchasing immovable property from a non-resident. Instead, buyers can use their PAN to deduct and report the tax through the newly expanded Form 141, which now includes Schedule E specifically for property transactions involving non-resident sellers. The change is aimed at reducing the compliance burden for what can often be a one-time property transaction. The important part, however, is that TDS itself has not been removed. The buyer still has to deduct tax at the applicable rate under the non-resident provisions. What changed from October 1, 2026? Earlier, a resident individual or HUF buying property from a non-resident had to obtain a TAN before complying with the TDS requirement. The buyer also had to follow the separate reporting and certificate requirements applicable to such transactions. The new framework removes that extra step. From October 1, eligible buyers can:
Use their PAN instead of TAN for the transaction. Deduct and deposit TDS through Form 141. Report the transaction under the newly introduced Schedule E. Provide the prescribed Form 132 TDS certificate to the seller.
The relief specifically applies to resident individuals and HUFs. It should not be read as a blanket removal of TAN requirements for every type of buyer. What does Schedule E require? The new Schedule E brings NRI property purchases into the PAN-based Form 141 framework, but it still requires detailed information about the transaction. Buyers need to provide details such as:
Property address and type Date of agreement and registration, where applicable Total sale consideration and stamp duty value Details of all buyers and their respective shares NRI seller’s PAN, where available Overseas address and contact details Foreign Tax Identification Number and Tax Residency Certificate details, where applicable Payment and instalment details TDS deducted and the applicable rate Details of any lower or nil deduction certificate.
Buyers should collect the seller’s tax and overseas details before making the first payment, rather than waiting until the registration stage. NRI seller vs resident seller: What changes? The new filing mechanism may look similar to the process used for resident-seller transactions, but the underlying TDS rules are different.
Parameter
Resident seller
NRI/non-resident seller
TAN for resident individual/HUF
Not required
Not required from Oct 1, 2026
Form
Form 141 – Schedule B
Form 141 – Schedule E
Rs 50 lakh threshold