The Union Budget 2026 has proposed an amendment to the Income Tax Act which would allow resident individuals to deduct and deposit tax deducted at source (TDS) in case of property transactions involving a Non-Resident Individuals (NRIs) seller, without a Tax Deduction and Collection Account Number(TAN).
Currently, when the seller of the immovable property is a non-resident, the buyer is required to obtain a TAN to deduct tax at source. This often delayed transactions and discouraged buyers as they had to collect TAN for even a single deal.
However, the Budget aims to reduce compliance burden of obtaining a TAN for a single transaction whenever residents buy properties from NRIs.
“TDS on the sale of immovable property by a non-resident is proposed to be deducted and deposited through resident buyer’s PAN based challan instead of requiring TAN,” the FM said her speech.
The amendment will take effect from the 1st day of October, 2026, a memorandum explaining the provisions of the budget said.
Published on February 1, 2026
