Another lesser-noticed but game-changing budget tweak will spare home-buyers mountains of paperwork when purchasing property from non-resident Indians. Starting 1 October 2026, resident individuals and Hindu Undivided Families buying immovable property from an NRI will deduct and deposit Tax at Source using their permanent account number (PAN) instead of first obtaining a Tax Deduction Account Number (TAN).
Under the current law, even a one-time property deal obliges buyers to apply for a TAN, file quarterly TDS returns and face penalties for errors—a process that discourages many from transacting with overseas sellers. The change aligns such transactions with resident-to-resident deals, where quoting PAN is sufficient.
From a mobility perspective, the amendment should unlock liquidity for NRIs repatriating funds after selling property, often to finance business moves or education abroad. Real-estate lawyers predict faster deal cycles of eight to ten weeks versus the current 12-14.
![Property purchases from NRIs simplified—TAN requirement scrapped from 1 October]()
Developers in Bangalore and Pune—markets with high expatriate ownership—expect secondary-market volumes to rise.
For NRIs and resident buyers who need to juggle travel documentation while closing property deals, VisaHQ can shoulder much of the administrative burden. Through its India portal (https://www.visahq.com/india/), the platform helps secure visas, apostilles, police clearances and other cross-border paperwork, so clients can focus on negotiations instead of queuing at consulates.
Buyers must still deduct TDS at 20 per cent (plus surcharge and cess) on the sale consideration unless the NRI obtains a lower-withholding certificate. Tax advisers recommend that NRIs file returns promptly to claim any refund and avoid double taxation in their country of residence under DTAA provisions.
Companies administering relocation packages should update policy handbooks: employees moving overseas who plan to sell Indian real estate post-October will find the procedure simpler and cheaper.
Under the current law, even a one-time property deal obliges buyers to apply for a TAN, file quarterly TDS returns and face penalties for errors—a process that discourages many from transacting with overseas sellers. The change aligns such transactions with resident-to-resident deals, where quoting PAN is sufficient.
From a mobility perspective, the amendment should unlock liquidity for NRIs repatriating funds after selling property, often to finance business moves or education abroad. Real-estate lawyers predict faster deal cycles of eight to ten weeks versus the current 12-14.
Developers in Bangalore and Pune—markets with high expatriate ownership—expect secondary-market volumes to rise.
For NRIs and resident buyers who need to juggle travel documentation while closing property deals, VisaHQ can shoulder much of the administrative burden. Through its India portal (https://www.visahq.com/india/), the platform helps secure visas, apostilles, police clearances and other cross-border paperwork, so clients can focus on negotiations instead of queuing at consulates.
Buyers must still deduct TDS at 20 per cent (plus surcharge and cess) on the sale consideration unless the NRI obtains a lower-withholding certificate. Tax advisers recommend that NRIs file returns promptly to claim any refund and avoid double taxation in their country of residence under DTAA provisions.
Companies administering relocation packages should update policy handbooks: employees moving overseas who plan to sell Indian real estate post-October will find the procedure simpler and cheaper.
