New Delhi, Feb. 1 -- Purchasing a property from a non-resident India would be a nightmare for resident Indians. But a Union Budget 2026 proposal has altered the scene for Indian buyers with a single regulatory tweak.

Finance Minister Nirmala Sitharaman has proposed that resident buyers acquiring property from NRIs can deduct and deposit tax deduction at source (TDS), a mandatory upfront 1% tax, through their own resident PAN-based challan.

Prior to the announcement, one would have to specially acquire a Tax Deduction and Collection Account Number (TAN) to pay this TDS, which is levied on all immovable property transactions and deposited by the buyer of the property.

"One had to acquire a TAN, which is usually issued only to corporates....