CBDT eases TDS compliance for property buyers dealing with non-residents

The Central Board of Direct Taxes (CBDT) has simplified tax deducted at source (TDS) compliance for resident individuals and Hindu undivided families (HUFs) purchasing immovable property from non-residents, removing the requirement to obtain a separate Tax Deduction and Collection Account Number (TAN) for such transactions.

The change, which will take effect from October 1, 2026, is aimed at making compliance easier for resident buyers who are required to deduct TDS when purchasing immovable property from non-residents. Under the amended rules, buyers can use their PAN to deposit and report the tax through a challan-cum-statement, eliminating the need for a separate TAN for these transactions.

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The changes have been notified through amendments to the Income-tax Rules, 2026.

Under the new framework, TDS deducted under Section 393(2) of the Income-tax Act, 2025 can be deposited and reported using Form 141, a PAN-based challan-cum-statement.

The move means eligible resident individuals and HUFs will no longer have to go through the separate process of obtaining a TAN solely for complying with TDS requirements arising from the purchase of immovable property from a non-resident.

The amended procedure will come into effect from October 1, 2026.