Budget 2026-27: No TAN Needed For Resident Buyers To Deduct TDS On Property Purchases From NRIs
Manu Sharma
1 Feb 2026 4:13 PM IST
As per a proposal in the Union Budget 2026 tabled by Finance Minister Nirmala Sitharaman today, resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from a non-resident (NRI) will no longer be required to obtain a Tax Deduction and Collection Account Number (TAN) for the purpose of deducting tax at source.
Instead, the tax deducted can be deposited using the Permanent Account Number (PAN) of the buyer.
The proposal sought to amend Section 397(1)(c) of the Income Tax Act. Currently, while buyers of property from resident sellers are not required to obtain TAN for TDS purposes, buyers dealing with non-resident sellers must obtain TAN, even if the transaction is a one-time purchase.
The Memorandum acknowledged that this requirement creates an unnecessary compliance burden, particularly for individuals who are otherwise not regular tax deductors.
Under the proposed amendment under clause 75 of the Finance Bill, 2026, a resident individual or HUF will be exempted from the requirement of obtaining TAN for deducting tax at source on consideration paid for transfer of immovable property under Section 393(2), even where the seller is a non-resident.
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