A TDS TAN Change Is Coming for Buyers of NRI-Owned Property

When a buyer purchases property from an NRI seller, the buyer is required to deduct TDS on the sale and deposit it against a TAN (Tax Deduction Account Number) — a separate registration from the PAN most buyers already have, and one many first-time buyers in this situation don't expect to need.

A change to how this TAN requirement works takes effect from 1 October 2026. This page exists specifically because the deadline is time-sensitive: transactions that straddle this date may need different handling depending on which side of it the TDS deduction falls.

This change is specific to transactions where the seller is an NRI. It does not change anything about a standard resident-to-resident sale. It also does not extend relief to NRIs who are themselves buying property from a resident seller — that remains a separate TDS scenario.

If you're an NRI seller, or a buyer purchasing from one, and your transaction is likely to close near 1 October 2026, raise it with your CA now rather than at the point of registration — a TAN application, once needed, isn't something to leave until the last step of a sale.