The Union Budget 2026-27 introduces a significant simplification in property transactions involving non-residents by eliminating the mandatory requirement for buyers to obtain a Tax Deduction Account Number (TAN). This change, effective October 1, 2026, addresses long-standing compliance burdens for individuals purchasing immovable property from Non-Resident Indians (NRIs) or foreign citizens. Previously, buyers were obligated to apply for and maintain a TAN to deduct and deposit Tax Deducted at Source (TDS) on payments exceeding certain thresholds, typically 1% on consideration above Rs 50 lakh under Section 195. The process involved additional paperwork, separate TDS returns, and potential penalties for non-compliance, deterring or complicating genuine transactions. The removal streamlines the process, reducing administrative hurdles while ensuring tax collection through other mechanisms like seller responsibilities or adjusted withholding.

This measure aligns with broader budget themes of ease of doing business and compliance reduction for ordinary citizens. Contextually, property deals with non-residents often involve inheritance, family settlements, or investments by overseas Indians, where TAN requirement added unnecessary friction. The October 1 effective date provides transition time for systems updates. No exceptions or conditions specified, suggesting blanket relief for individual buyers. Experts view it as positive for real estate liquidity and NRI investments. Broader budget includes other taxpayer-friendly steps like extended revised ITR deadlines and foreign asset disclosures. In my view, welcome relief—genuine buyers no longer penalized complex rules meant larger entities. Hoping complementary awareness campaigns smooth adoption preventing confusion interim period.

Vibe View: The vibe of this Budget 2026 change removing TAN for property buys from non-residents is straightforward relief, like cutting red tape that's been frustrating ordinary folks trying to buy family inheritance or NRI homes without jumping through extra hoops—it's got that "finally common sense" energy we've been waiting for in compliance rules, you know? Previously TAN requirement vibe unnecessary burden individuals not businesses vibe paperwork penalties deterring genuine deals. October 1 effective date vibe practical transition avoiding immediate chaos systems update. Overall vibe ease living doing business vibe positive ordinary citizens overseas Indians family settlements investments vibe smoother liquidity real estate. No exceptions vibe blanket simple fair. Broader vibe taxpayer-friendly procedural simplifications extended deadlines disclosures vibe trust-based reducing friction honest people. Positive vibe hope encourages NRI property flows family transactions without fear bureaucracy. Hoping vibe translates awareness smooth adoption no confusion interim benefiting diverse buyers sellers interconnected global Indian diaspora. It's that quiet win vibe making life little easier without fanfare but real impact daily transactions.