NRI taxes: Budget 2026 proposes simplification of TDS process for inland property sales
FM Sitharaman also proposed a six-month disclosure window for small taxpayers—such as students, technology professionals and relocated NRIs—to voluntarily declare foreign assets and regularise their tax compliance.
- Feb 1, 2026,
- Updated Feb 1, 2026 12:35 PM IST
The government has proposed a key simplification in property transactions involving non-residents by allowing resident buyers to deduct and deposit TDS using a PAN-based challan, removing the requirement to obtain a separate Tax Deduction and Collection Account Number (TAN). The change is aimed at easing compliance and reducing procedural hurdles in such transactions.
Rajarshi Dasgupta, Executive Director – Tax at AQUILAW, said the proposal is a welcome rationalisation of the compliance framework. “Permitting resident buyers to deduct and deposit TDS on property purchases from non-resident sellers through a PAN-based challan addresses a long-standing pain point. The earlier requirement of obtaining a TAN for what is often a one-time transaction led to delays and confusion. This move aligns non-resident property transactions with those involving resident sellers, improves ease of compliance and significantly cuts administrative friction without compromising tax oversight,” he said.
FM Sitharaman also proposed a six-month disclosure window for small taxpayers—such as students, technology professionals and relocated NRIs—to voluntarily declare foreign assets and regularise their tax compliance.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
The government has proposed a key simplification in property transactions involving non-residents by allowing resident buyers to deduct and deposit TDS using a PAN-based challan, removing the requirement to obtain a separate Tax Deduction and Collection Account Number (TAN). The change is aimed at easing compliance and reducing procedural hurdles in such transactions.
Rajarshi Dasgupta, Executive Director – Tax at AQUILAW, said the proposal is a welcome rationalisation of the compliance framework. “Permitting resident buyers to deduct and deposit TDS on property purchases from non-resident sellers through a PAN-based challan addresses a long-standing pain point. The earlier requirement of obtaining a TAN for what is often a one-time transaction led to delays and confusion. This move aligns non-resident property transactions with those involving resident sellers, improves ease of compliance and significantly cuts administrative friction without compromising tax oversight,” he said.
FM Sitharaman also proposed a six-month disclosure window for small taxpayers—such as students, technology professionals and relocated NRIs—to voluntarily declare foreign assets and regularise their tax compliance.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in