CBDT Eases TDS Rules For NRI Property Purchases, TAN Requirement Removed

Individuals and Hindu Undivided Families (HUFs) buying immovable property from non-resident Indians (NRIs) will no longer need to obtain a separate Tax Deduction and Collection Account Number (TAN) for reporting TDS from October 1, 2026.

The Central Board of Direct Taxes (CBDT) has introduced a simplified, PAN-based mechanism through Form 141, reducing the compliance burden for resident buyers involved in property transactions with non-resident sellers. The Income Tax Department has confirmed that Form 141 is the unified challan-cum-statement for specified PAN-based TDS transactions under the Income-tax Act, 2025.

Form 141 To Replace Multiple TDS Forms

Under the new system, Form 141 consolidates earlier forms used for specified TDS transactions. For property transactions, Schedule B covers TDS on the transfer of immovable property. The form is filed through the buyer's PAN login on the Income Tax e-filing portal.

The move is aimed at making compliance easier for individuals who may otherwise have had to obtain a TAN specifically for a property transaction.

TDS Still Applicable On Property Transactions

The removal of the TAN requirement does not mean that TDS obligations on property purchases have been removed. Form 141 provides for reporting the property transaction, the amount on which tax is to be deducted, the applicable TDS rate and the tax deducted.

For immovable property transactions covered by the provision, the Income Tax Department states that TDS is required when the value of the property exceeds ₹50 lakh.

New System Effective From October 1

The simplified mechanism will come into effect from October 1, 2026, allowing eligible resident buyers to complete the relevant TDS reporting through their PAN without separately obtaining a TAN for the transaction.

The Income Tax Department has also made Form 141 available through its e-Pay Tax facility for filing the challan-cum-statement.