Positive impactEconomy
CBDT eases TDS compliance for property buyers dealing with non-residents
Economic Times 1 hr ago·23 Sept 2026, 1:02 pm
The Central Board of Direct Taxes (CBDT) has announced a significant change to tax compliance rules for residents purchasing property from non-residents. Starting October 1, 2026, buyers will no longer need to obtain a Tax Deduction Account Number (TAN) for these transactions. Instead, they can use their existing Permanent Account Number (PAN) to report and deposit the required Tax Deducted at Source (TDS). This adjustment is designed to streamline the process and reduce administrative burdens for individuals and Hindu Undivided Families (HUFs) involved in such deals.
This policy shift is expected to make cross-border real estate transactions more accessible and less cumbersome for retail investors. By eliminating the need for a separate TAN, the government aims to encourage smoother compliance and reduce errors. For investors, this means a potentially simpler process when dealing with foreign sellers, though the full impact will depend on how effectively the new system is implemented over the coming years.
Investors should monitor the rollout of this rule and any subsequent circulars from the CBDT. While the change is aimed at easing compliance, it is important to ensure that all TDS filings are accurate to avoid penalties. As the deadline of October 1, 2026, approaches, staying updated on official guidelines will be key for anyone involved in property transactions with non-residents.
Excerpt from Economic Times
The Central Board of Direct Taxes is set to simplify TDS compliance requirements for residents buying property from non-residents. From October 1, 2026, residents can use their PAN instead of obtaining a TAN for taxing purposes. This change is aimed at making tax compliance easier in such real estate transactions.…Read the original at Economic Times
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