Buying property from NRIs? Time to lose the TAN – The Times of India

Shopping for property from an NRI? Anxious about acquiring TAN? Not anymore. To loosen up the compliance burden, the Price range has proposed that resident people and HUFs needn’t have a Tax Deduction and Assortment Account Quantity (TAN) if they’re buying a property from a non-resident Indian (NRI). The modification will take impact from Oct 1, 2026.Below the proposed framework, resident people or HUFs can report the tax deducted at supply (TDS) by quoting PAN, as is finished when the transactions are between two residents. Presently, if an individual buys an immovable property from a resident vendor, the particular person just isn’t required to acquire TAN to deduct tax at supply. Nevertheless, the place the vendor of the immovable property is a non-resident, the customer is required to acquire TAN to deduct tax at supply.Ameet Patel, associate at Manohar Chowdhry & Associates, mentioned this was once an in depth course of. “At current, if a resident have been to buy an immovable property from an NRI, there is no such thing as a separate rest relating to compliance with TDS duties. Because of this, in such instances, the customer must get hold of a TAN, register on the portal, after which deduct TDS u/s. 195, and pay to the government. Below part 195, as with all different common TDS sections, a quarterly e-TDS assertion is required. A purchaser would want skilled assist for all this.”Hinesh Doshi, CA, welcomed the transfer. “There was once an pointless compliance burden resulting from this. Whereas the method to acquire TAN is straightforward, folks used to acquire TAN for only one transaction. So, it is a good riddance.”