Buying property from a non resident Indian has always come with extra paperwork. Even when everything else in the deal was sorted, the tax part often made things messy. TDS, in particular, confused a lot of buyers and added unnecessary stress, especially for people buying a home for themselves and not as investors.
Budget 2026 makes a small but useful change here. Taxes haven’t been cut but the process has been made easier.
With Budget 2026, the government has taken a small but important step to simplify this process. The change does not reduce taxes but it does make compliance easier for buyers. For anyone planning to buy property from an NRI, this update is worth understanding.
Why Buying From an NRI Was Complicated Earlier
Earlier, buyers had to get a TAN just to handle TDS when buying from an NRI, which felt unnecessary for a one time purchase. Budget 2026 does away with that. Now, TDS can be deducted and paid using a PAN based process, similar to how regular property deals work between residents.
A lot of buyers weren’t even sure how to apply for a TAN, how much time it would take or if it was actually required in their case. This caused delays, confusion, and in many cases people ended up hiring a tax consultant just to get the deal done. The rule was meant for compliance, but for regular homebuyers it mostly turned into an extra hurdle.
What Budget 2026 Has Changed
Buyers don’t have to apply for a TAN anymore when buying property from an NRI. The TDS part can now be handled using PAN, similar to how normal property deals work.
This means:
- No separate TAN application for a one time purchase
- Fewer steps in the tax process
- Less paperwork and confusion
- Faster completion of property deals
The change is expected to kick in from October 1, 2026. After that, buyers should be able to handle TDS without having to register for a TAN.
From that point onward, buyers can complete TDS compliance without registering for a TAN.
What This Means
For most home buyers, property transactions are already overwhelming. There are site visits, legal checks, loan approvals, stamp duty and registration. Adding complex tax compliance on top of this only increases stress.
Dropping the TAN requirement makes things easier in real terms.
First, buyers don’t have to wait around for approvals anymore and can move ahead with payments without that extra step slowing things down.
Second, it reduces dependency on consultants. Many people hired tax professionals only to handle the TAN process. With this step removed, buyers can manage compliance more easily.
Third, it reduces the risk of errors. Fewer steps usually mean fewer chances of filing something incorrectly.
Does This Reduce the Tax Payable
No. This is an important point to be clear about.
Budget 2026 hasn’t changed how much tax needs to be paid when buying property from an NRI. Buyers still have to deduct TDS as per Section 195. The actual amount depends on things like whether the seller has a PAN and if the gains are long term or short term.
What’s different now is just the paperwork. The tax itself stays the same.
Impact on the Real Estate Market
This move is likely to make NRI owned properties slightly easier to transact. Earlier, some buyers avoided such properties simply because of the extra compliance involved. With a simpler process, buyers may feel more comfortable going ahead.
With fewer steps involved, buyers will to feel more confident about going ahead with the deal. For NRIs, this should mean smoother sales and fewer last minute hiccups caused by paperwork worries. Over time, this could make it easier to sell property in areas where NRI ownership is common.
Closing Notes
Budget 2026 hasn’t changed the tax rules for NRI property sales, but it does remove an extra step that made things harder than they needed to be. Using PAN for TDS instead of a mandatory TAN makes the process more practical for buyers.
If you’re planning to buy property from an NRI, the whole process should now feel a lot less intimidating. The tax still needs to be paid correctly but the road to completing the deal is a little smoother than before.