Budget 2026 Streamlines NRI Property Transactions: TAN Requirement Eliminated for Enhanced Market Efficiency

The Union Budget 2026 has introduced a significant regulatory simplification for cross-border real estate transactions, specifically targeting property purchases from Non-Resident Indians (NRIs). The key reform eliminates the mandatory Tax Deduction and Collection Account Number (TAN) requirement for buyers, allowing compliance solely through Permanent Account Numbers (PAN). This strategic move addresses a longstanding administrative bottleneck that often delayed transactions and increased procedural complexity. Analysis indicates this change will accelerate transaction timelines, reduce compliance burdens on domestic buyers, and potentially stimulate NRI investment inflows by enhancing market accessibility. The streamlined process aligns with broader economic objectives to facilitate capital mobility and integrate global Indian capital into the domestic real estate sector. Market observers note that while TDS obligations remain, the reduced documentation and verification steps represent a pragmatic shift toward more efficient regulatory frameworks. This development is expected to bolster confidence among both buyers and NRIs, fostering a more dynamic and responsive property market. Further implications may include increased liquidity and standardized transaction protocols, positioning India's real estate market for greater international engagement.