Buying from an NRI seller? From 1 October 2026 you can pay the TDS with your PAN
Resident individual and HUF buyers no longer need a separate TAN to deduct and deposit tax on a purchase from a non-resident. The rates and the buyer’s responsibility don’t change — here is the checklist.
- • 1 Oct 2026 — Effective
- • Individual & HUF buyers — Who benefits
- • No (PAN instead) — TAN needed
- • What it means for you: This makes buying resale homes from NRIs in Bengaluru simpler, but the money at stake hasn’t shrunk: getting the TDS wrong can cost the buyer interest and penalties. If an NRI seller is offering a “quick close”, slow…
When you buy property in India from a non-resident Indian, you — the buyer — must deduct tax at source (TDS) from what you pay the seller and deposit it with the government. Until now that meant first obtaining a Tax Deduction Account Number (TAN) and filing a quarterly TDS return, a hurdle for one-time buyers that often delayed registrations.
The Union Budget 2026-27 proposed removing the TAN requirement for resident buyers in these transactions. Reports from tax and property publications say the change applies from 1 October 2026: a resident individual or HUF buyer can deduct and deposit the TDS using their PAN through a challan-cum-statement, much like the simpler process already used when buying from a resident seller. Companies and firms buying from NRIs still need a TAN.
What has not changed
- The TDS rates on payments to non-residents are unchanged — they depend on whether the gain is long-term or short-term, plus surcharge and cess.
- TDS is calculated on the full sale consideration unless the seller gives you a lower-deduction certificate from the tax department — not just on the seller’s gain.
- The ₹50 lakh threshold that applies to purchases from resident sellers does not apply to NRI sellers; deduction applies from the first rupee.
- The buyer remains responsible for deducting correctly and on time — interest and penalties fall on the buyer if it goes wrong.
Your checklist as a buyer
- Confirm the seller’s residential status in writing before you agree the payment schedule.
- Ask whether the seller has a lower or nil deduction certificate; if not, budget for TDS on the full price.
- Deduct at each instalment, including the token and advance, not only at registration.
- Deposit through the PAN-based route within the due date and download the TDS certificate to give the seller.
- Keep the sale agreement, payment proofs and TDS challans together — your lawyer and the seller’s CA will need them.
- Because sources describe the new form details slightly differently, ask your CA to confirm the exact form and due dates before your first payment.
This makes buying resale homes from NRIs in Bengaluru simpler, but the money at stake hasn’t shrunk: getting the TDS wrong can cost the buyer interest and penalties. If an NRI seller is offering a “quick close”, slow down long enough to settle the TDS amount, the deduction certificate and the repatriation paperwork in writing.
Sources
- NRI property sale rules to change from October 1, 2026 — Square Yards
- Selling property in India just got easier from October 1, 2026 — The Realty Today
- TDS on NRI property sale: PAN replaces TAN from 1 October 2026 — Vakilsearch
- Union Budget 2026-27: TDS compliance changes for NRI property sellers — Integrated India
- How new TDS rules will simplify buying property from NRI sellers — The CSR Journal
Figures are as reported by the sources above on or before the AlphaDesk publication date. “AlphaDesk take” sections are our analysis, not advice. Verify details before making decisions.
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