Budget 2026: No TAN needed for NRI property deals from October 2026

The Union budget for FY27 has proposed that residents buying properties from non-resident Indians (NRIs) are not required to obtain TAN (tax deduction and collection account number), a move that will ease such transactions.

According to experts, this simplifies the process for buying NRI-owned properties. “The new proposals will make the property buying simpler when the seller is an NRI,” said Gautam Nayak, partner at CNK & Associates LLP.

Presently, to buy an immovable property from a resident seller, a person does not need TAN, which is required to deduct tax at source. However, if the seller is an NRI, the buyer needs TAN to deduct tax at source. This creates an unnecessary compliance burden for the buyer, as he would need TAN for a single transaction.

From 1 October 2026, there will be no TAN requirement for such transactions.

Finance minister Nirmala Sitharaman on Sunday clarified in her Budget speech, “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.”

Simpler Form 15G, 15H filing

In another move to ease compliance, the budget proposed that investors holding securities of multiple companies—and earning dividend income or interest income—will now just have to submit form 15G or form 15H to the depository, rather than each of the companies.

Form 15H is required to be submitted by senior citizens seeking exemption on tax deduction at source (TDS) on dividend income. It is a self-declaration form stating that their total income is below the taxable limit and hence TDS can be exempted. Form 15G is required to be submitted by non-senior citizens for the same exemption.