/ News · NRI Property · Updated 2026-10-27

Buying Property From an NRI: No TAN Needed From 1 October 2026 (Form 141), TDS under your own PAN.

From 1 October 2026, a resident individual or HUF buying property from a non-resident Indian can deposit and report the TDS using their own PAN through Form 141, instead of first obtaining a TAN. The obligation to deduct tax, the rates and the penalties for getting it wrong have not changed.

Get a firm quote → WhatsApp instead

Written by CA Durgesh Chavda

Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · NRI taxation, US incorporation, transaction due diligence, forensic audit, AEO, cross-border tax · LinkedIn

/ What changed

Before and after.

Before: a buyer purchasing from an NRI needed a TAN, then had to deposit TDS and file a quarterly TDS return like a business.
From 1 October 2026: resident individual and HUF buyers can use their PAN and report the deduction in Form 141 (new Schedule E), reported to be under the Income-tax (Fifth Amendment) Rules, 2026.
Not covered: companies, firms and other buyers still need a TAN.
Timing: the date tax is deducted decides which route applies. An instalment where TDS was deducted before 1 October 2026 stays on the TAN route.

/ What the buyer still has to deduct

Rates are unchanged.

Long-term gain (property held more than 24 months): 12.5% plus surcharge and cess.
Short-term gain: 30% plus surcharge and cess (higher slab rates can apply for some sellers).
There is no INR 50 lakh threshold when the seller is an NRI; that limit applies only to resident sellers.
Without a lower deduction certificate, buyers usually deduct on the full sale price, which can be far more than the tax on the gain.
If the NRI seller has no PAN, higher rates can apply.

/ For the NRI seller

Get the deduction right first.

Apply for a lower deduction certificate well before registration so the buyer deducts only the tax actually due on the gain.
Plan Section 54/54F/54EC exemptions if you are reinvesting.
After the sale, file an Indian return to claim any excess TDS, then repatriate through Form 15CA/15CB.

Sources: Outlook Money; Taxscan.

Last updated: 27 October 2026. Confirm against the official notification on incometax.gov.in before acting.

/ Ready when you are

Buying from or selling to an NRI?

Get the TDS right before registration. Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours; work delivered remotely.

Get a firm quote → WhatsApp Durgesh

FAQ

Common questions, answered.

Do I need a TAN to buy property from an NRI?

Not from 1 October 2026 if you are a resident individual or HUF: you can use your PAN and Form 141. Companies, firms and other buyers still need a TAN.

What is the TDS rate when buying from an NRI?

12.5% plus surcharge and cess on long-term gains (held over 24 months) and 30% plus surcharge and cess on short-term gains, unless the seller gives you a lower deduction certificate.

Is there a minimum property value for TDS from an NRI?

No. The INR 50 lakh threshold applies only when the seller is resident. TDS applies to any purchase from an NRI.

I paid an instalment in September 2026. Which route applies?

The TAN route for that instalment, because TDS was deducted before 1 October 2026. Later instalments can use the PAN route.

Can BQP handle the TDS for a buyer or seller?

Yes, for buyers (computation, Form 141, certificates) and NRI sellers (lower deduction certificate, return, repatriation). Email durgesh@bharatquantumprospera.com or WhatsApp +91 78018 87130. Fixed-scope quote within 48 hours; work delivered remotely.