The complex era of obtaining a *Tax Deduction and Collection Account Number (TAN)* for one-off property purchases from NRIs is finally over. 

Here is everything you need to know about this major procedural relief introduced in Budget 2026.

*1. Buying property from an NRI used to be a compliance nightmare*

Previously, even if you were an individual buyer making a one-time purchase, you were forced to apply for a TAN under Section 195. Failure to do so meant heavy penalties and a stuck registration process.

*2. What has changed in Budget 2026?*

The government has introduced a massive procedural relief. Individual and HUF buyers of NRI property can now deposit TDS (Tax Deducted at Source) via a simple PAN-based challan, aligning the process with domestic transactions.

*3. Mark the Date: October 1, 2026*

This new simplified mechanism is applicable for all such transactions executed on or after 1st October 2026. If you are closing a deal before this date, the old TAN-based rules still apply.

*4. Why is this a game-changer?*

➡️No more TAN registration: You don’t need to apply for a dedicated tax ID that you’ll never use again.

➡️Reduced Paperwork: No more mandatory quarterly TDS return filings (Form 27Q) for these individual buyers.

➡️Faster Closures: The transition to a PAN-based system speeds up the documentation required for property registration.

*5. The Procedural Shift*

Instead of the cumbersome Form 27Q, the process moves toward a unified, user-friendly digital form. 

This ensures that the tax is tracked directly against the buyer's and seller's *PAN* , making the "Audit Trail" cleaner for the Income Tax Department.

*6. The Rate remains the same*

While the procedure is simplified, *the rate of TDS is not.* You must still deduct tax at the applicable rates including applicable surcharge and cess.

*7. Who benefits the most?*

➡️Individual homebuyers looking at luxury or secondary market assets.

➡️NRIs wanting to liquidate Indian real estate without burdening the buyer with complex compliance.

*8. Pro-Tip for Buyers*

Always verify the residential status of the seller before signing the Agreement to Sell. If they are an NRI, ensure your CA calculates the exact TDS amount including surcharge to avoid " *Short Deduction* " notices later.