{"id":7056,"date":"2026-02-01T17:51:24","date_gmt":"2026-02-01T12:21:24","guid":{"rendered":"https:\/\/1finance.co.in\/1f-dashboard\/?post_type=blog&p=7056"},"modified":"2026-03-07T16:27:34","modified_gmt":"2026-03-07T10:57:34","slug":"budget-2026-property-purchase-nri-made-easier","status":"publish","type":"blog","link":"https:\/\/1finance.co.in\/1f-dashboard\/blog\/budget-2026-property-purchase-nri-made-easier\/","title":{"rendered":"NRI property transactions: Budget 2026 scraps mandatory TAN requirement for homebuyers"},"content":{"rendered":"\n

If you have bought a property from an NRI, or even just thought about it, you probably know that it involves a lot of extra forms and tax rules. In the Union Budget 2026, the Centre has made one big part of this process easier: Buyers can pay this TDS using a normal PAN-based challan, and they do not need to apply for a separate TAN number just. when purchasing a property valued at over \u20b950 lakh. This may look like a small change on paper, but it can save a lot of time, effort, and stress for regular homebuyers.<\/p>\n\n\n\n

What was the old process and why was it complicated?<\/h2>\n\n\n\n

To see why this change is so helpful, let’s first look at how buying property from NRIs used to work before.<\/p>\n\n\n\n

When an Indian resident wanted to buy a property worth more than \u20b950 lakh from an NRI seller, the tax rules made the buyer responsible for collecting and paying tax on the seller’s behalf. The idea was to make sure the government got its share of tax from the NRI’s property sale. But in practice, it puts a heavy load on the buyer.<\/p>\n\n\n\n

The buyer had to get a special number called a Tax Deduction Account Number, or TAN. This TAN was just for deducting and paying taxes like this. For most people buying a home, this is a once-in-a-lifetime purchase. Still, they had to go through a lot of government paperwork\u2014filling forms, submitting documents, and waiting for approval from tax offices resulting in delays and headaches.<\/p>\n\n\n\n

Let’s consider an example. Suppose you, a resident of Mumbai, decide to purchase a flat worth \u20b91.5 crore from your cousin who is an NRI working in Dubai. Under the old rules, you would need to:<\/p>\n\n\n\n

    \n
  1. Apply for a TAN from the Income Tax Department<\/li>\n\n\n\n
  2. Wait for approval and receive your TAN<\/li>\n\n\n\n
  3. Use this TAN to file the TDS challan<\/li>\n\n\n\n
  4. Submit the challan with the required documentation<\/li>\n\n\n\n
  5. Finally, after all these steps, complete your property transaction<\/li>\n<\/ol>\n\n\n\n

    This administrative maze was especially frustrating because you were not a business or a regular property dealer. <\/p>\n\n\n\n

    Budget 2026 for NRIs: Higher equity investment limits and simplified property tax rules announced<\/a><\/p>\n\n\n\n

    Budget 2026 makes buying properties from NRIs simple <\/h2>\n\n\n\n

    Under the new Budget proposal, the entire process becomes significantly simpler. Buyers can now deposit TDS using a PAN-based challan,which means there\u2019s no longer need to have TAN.<\/p>\n\n\n\n

    Using our earlier example, if you purchase that \u20b91.5 crore flat from your NRI cousin, here’s what you now do:<\/p>\n\n\n\n

      \n
    1. You calculate the TDS amount based on the applicable rate (20% of the sale consideration, unless your seller has a lower deduction certificate)<\/li>\n\n\n\n
    2. You prepare a TDS challan using your existing PAN<\/li>\n\n\n\n
    3. You deposit the TDS amount through this challan<\/li>\n\n\n\n
    4. File the return alongwith submission of documents and Challan details<\/li>\n<\/ol>\n\n\n\n

      No separate TAN application. The process is now as straightforward as filing your regular income tax forms.<\/p>\n\n\n\n

      The beauty of this reform lies in aligning NRI property transactions with the system already used for resident-to-resident property purchases. When you buy property from another resident Indian, the TDS requirement exists, but it has always been manageable through PAN-based challans. Now, transactions with NRI sellers follow the same simplified path.<\/p>\n\n\n\n

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      \"cta-avatar\"\/<\/div>

      Planning to buy a property? <\/h3>

      Consult our Qualified Financial Advisor for free!<\/p><\/div>