No Need For TAN To Purchase Property From NRIs
The Union Budget 2026 proposes removal of Tax Deduction and Collection Account Number for purchases from Non-Resident Indians
HB Team
The Union Budget 2026 has removed a long-standing bottleneck in the resale of housing in India. The proposed change comes in the form of removal of Tax Deduction and Collection Account Number (TAN) for resident buyers when purchasing property from Non-Resident Indians (NRI).
What used to happen till now was that a resident buying property from an NRI had to obtain a TAN, pay tax under Section 195 and submit quarterly TDS returns, which is similar to corporations. The reality is that for most home-buyers, purchasing a property is a single window event, making regulatory requirements overly complex for this transaction.
Consequently, buyers are dependent on intermediaries, where pay advisory costs become disproportionate to the transaction value, and then there are delays that create uncertainty about the transaction closure. The complexity itself acts as a deterrent to otherwise eager buyers, wherein the demand is quietly diverting away from NRI’s resale inventory.
In the home-drawn system, a PAN-based TDS system is already in place. It can be applied to NRI transactions as well. Once implemented, the change will allow resident buyers to deposit and declare TDS using PAN only, without the need for TAN registration. The effect would make way for faster transaction times, fewer procedural mistakes, and greater confidence among buyers.
NRI’s have a substantial inventory in metros, Tier-2 and Tier-3 cities. The proposed change in the Union Budget is likely to move the industry from opacity to one of standardisation and data-driven ecosystems.
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