Now Reading: NRIs face higher TDS, mandatory TAN for property sales until Oct 2026
-
01
NRIs face higher TDS, mandatory TAN for property sales until Oct 2026
NRIs selling property in India face higher Tax Deducted at Source (TDS) than resident sellers. Long-term capital gains attract TDS at 12.5% plus surcharge and cess, while short-term gains are taxed at the seller's slab rate. Resident buyers must obtain a Tax Deduction Account Number (TAN) before purchasing property from an NRI, and TDS applies from the first rupee of the sale consideration, with no Rs 50 lakh threshold that applies in resident-to-resident deals.
The TAN requirement for resident individuals and Hindu Undivided Families buying property from NRIs ends on 1 October 2026 under the Finance Act 2026 amendment. After this date, eligible buyers can deposit TDS using their Permanent Account Number (PAN). Companies, firms, and LLPs will still need a TAN. Buyers should obtain the TAN early for transactions before the deadline, as the process involves application, waiting for allotment, and quarterly return filing under Form 144 (renumbered Form 27Q).
Indian Opinion Analysis
All three sources are from Livemint, which consistently delivers neutral-report style copy. The coverage is uniform straight reporting: each article explains the same core facts about TDS obligations for NRIs selling property, the mandatory TAN requirement until 1 October 2026, and the procedural change allowing PAN-based TDS deposit from that date. No source adopts a critical or pro-government stance. There is no disagreement or ideological framing to analyse. The material is purely advisory, aimed at helping NRIs and buyers comply with tax rules. The implication for readers is clear: anyone planning an NRI property transaction before the October 2026 deadline must account for the additional TAN compliance, and delaying the sale could simplify the process. The timeline itself is the concrete watch item.
Coverage: 3 sources, 3 neutral
Sources (3): livemint.com (neutral report), livemint.com (2) (neutral report), livemint.com (3) (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 3 sources.
