India eases TDS rules for NRI property buyers from October

India's tax authorities have relaxed compliance procedures governing property purchases by non-resident Indians, effective from October 1. The amendment eliminates the requirement for resident individuals and Hindu Undivided Families (HUFs) to obtain a Tax Account Number (TAN) solely for Tax Deducted at Source (TDS) compliance purposes.

TDS regulations mandate that sellers or specified intermediaries deduct tax when transacting property with NRIs. Previously, buyers needed to secure a TAN to facilitate this deduction process, creating additional administrative burden. The revised framework removes this prerequisite while maintaining the underlying tax collection mechanism.

Tax experts view the measure as a significant simplification for Indian residents engaged in property transactions with overseas investors. "The amendment streamlines documentation requirements without compromising tax compliance," according to industry analysts. The change applies specifically to resident individuals and HUFs, categories that frequently participate in property transactions.

The modification aligns with the government's broader initiative to reduce procedural friction in real estate transactions while strengthening compliance frameworks. Property stakeholders in India have welcomed the step as conducive to facilitating smoother cross-border transactions and domestic property acquisitions involving non-resident investors.

Buyers and sellers are advised to familiarize themselves with the revised provisions to ensure proper compliance under the new guidelines effective from the October implementation date.