Union Budget 2026-27 has simplified the process of NRI property transactions for Indian homebuyers. Now, an Indian resident buyer can deposit and declare TDS by using PAN alone. This eliminates the need for TAN registration in NRI property deals.
When a resident buyer purchases a property from an NRI, the process has been far more complicated than necessary. Until now, buyers were required to apply for a Tax Deduction and Collection Account Number (TAN), deduct tax under Section 195, and file regular TDS returns. These steps are normally meant for businesses, not individual homebuyers.
Most buyers are comfortable using their PAN but are not familiar with advanced tax procedures. As a result, they rely on consultants or agents to manage compliance. This adds extra cost and often delays the transaction. In many cases, buyers hesitate or even walk away because the process feels confusing and risky.
The difference becomes clear when compared to transactions between two resident Indians. In such cases, tax is managed through PAN itself, making the process simpler and faster. Extending the same system to NRI property purchases brings balance. It does not reduce compliance. It only makes it suitable for genuine homebuyers.
As Anupam Rastogi, Co-Founder and Chief Business Officer for NRI Real Estate at Square Yards, highlights in his article published by The Economic Times, the removal of the TAN requirement will allow resident buyers to pay and report TDS using their PAN alone. This will reduce errors, shorten deal timelines, and give buyers more confidence while completing the purchase.
NRIs hold a large number of completed homes across metro cities and growing Tier II and Tier III cities. When selling becomes difficult, this housing supply remains locked. A simpler system will help these homes return to the resale market.
Homebuyers look beyond prices and loan rates. They also value clarity and ease. When rules are easy to follow, people feel safer making long-term commitments. This change sends a clear signal that the system is designed to support real buyers, not burden them.
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The Economic Times: https://bit.ly/49WG0so
Published Date: Feb 05, 2026
