Buying property from an NRI seller just got simpler. From October 1, resident buyers no longer need a TAN (Tax Deduction Account Number) to deduct tax at source on such purchases — a PAN is enough.

Until now, anyone buying property from a non-resident Indian had to first obtain a TAN, a separate tax registration, before deducting the 20%-plus TDS on the transaction and depositing it with the government. The extra paperwork delayed deals and tripped up first-time buyers.

Under the new rule, the buyer’s PAN will serve as the identifier for the TDS deduction and payment. The change does not alter the tax rate or the seller’s obligations — it only removes a layer of compliance for the buyer.

Property lawyers say the simplification could speed up NRI property sales, a segment that has grown as more overseas Indians sell inherited homes. Buyers should still ensure the TDS is deducted at the correct rate and deposited on time, as penalties for short deduction remain steep.