Property buyers purchasing property from Non-Resident Indians (NRIs) will face less paperwork from October 1, following changes announced by the Central Board of Direct Taxes (CBDT).
Under the new system, buyers will no longer need to obtain a separate Tax Deduction Account Number (TAN) for deducting TDS on property purchases from NRIs. The move is aimed at simplifying the compliance process and reducing paperwork.
Form 16 and Form 144 merged
The CBDT has revised Form 16 to include details related to non-resident sellers. Earlier, Form 144 was used for transactions involving non-residents, while Form 16 was used for resident sellers. The two processes have now been brought together through the revised form.
What changes for property buyers
Under the earlier system, a buyer purchasing property worth more than ₹50 lakh from a resident seller was required to deduct TDS at 1%. In the case of a property purchased from an NRI, the buyer had to follow a separate TDS procedure and file the required forms and challans.
The revised system will allow buyers to provide details of both resident and non-resident sellers through the same form. The separate TAN requirement for such property transactions will also be removed.
The new system will be implemented across the country from October 1.