New Delhi, Aug. 27 -- The requirement for resident individuals and HUFs buying immovable property from an NRI to obtain a Tax Deduction Account Number (TAN) will end from October 1, 2026. However, the tax obligation itself will not change. Buyers will still have to deduct and deposit TDS, but they will be able to use their PAN for the process instead of first obtaining a TAN.

According to Amit Prakash, CBO, Urban Money, from October 1, resident buyers purchasing property from NRI sellers will be able to deposit TDS through a PAN-based challan, similar to the mechanism already used for resident-to-resident property transactions. The obligation to deduct tax remains with the buyer; what changes is the account number used for reporting.

CA...