Buying from NRI? Your TDS Rules Just Changed

If you're buying property from an NRI seller, TDS rules have changed. No TAN needed anymore, but you must now share more details about the property, payments, and the NRI seller when filing. Here's what every buyer must do.

Here's what happened: India's TDS rules for property purchases from NRI sellers have been revised — buyers no longer need a TAN to comply, simplifying one key step in the process.. In exchange, buyers must now provide far more detailed disclosures in their TDS filing: full property details, NRI seller information, and a payment-by-payment breakdown.. The core deduction rates remain unchanged — 20% plus applicable surcharge and cess on the full sale consideration, reducible only if the NRI holds a valid lower-deduction certificate..

What you should do: Collect the NRI seller's valid PAN card and, if claimed, their Income Tax lower-deduction certificate before paying even a token advance.. Hire a CA familiar with Form 27Q to file the TDS return — the new disclosure requirements for property and payment details are detailed and penalties for errors fall on you as buyer.. Deposit the deducted TDS with the government within 30 days of the end of the month in which deduction was made, and issue Form 16A to the seller immediately after..

If the NRI seller delays giving you their PAN, deduct TDS at 20% anyway and deposit it — waiting exposes you to interest and penalty liability from day one of payment.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.