Govt eases compliance burden for individuals

To ease compliance burden, the Government on Sunday proposed that an individual purchasing immovable properties from non-residents will not be required to furnish TAN details for tax deduction.

Under the new framework proposed in the Union Budget 2026-27, resident individuals or Hindu Undivided family (HUF) can report the Tax Deducted at Source (TDS) by quoting PAN numbers, as it is done when the transactions are between two residents.The revised norm will be effective from October 1.Tax Deduction and Collection Account Number (TAN) are issued to corporate entities, while Permanent Account Number (PAN) are for individuals.

In her Budget speech, Finance Minister Nirmala Sitharaman said, “TDS on the sale of immovable property by a non-resident is proposed to be deducted and deposited through the resident buyer’s PAN-based challan instead of requiring TAN”.A resident individual or HUF would not be required to obtain a TAN to deduct tax at source in respect of any consideration on transfer of any immovable property by a non-resident under section 393(2), as per the annexure in the budget speech.