Union Budget 2026-27 - Finance Bill, 2026

Section 397(1)(a) of the Act provides that every person, deducting or collecting tax shall apply to the Assessing Officer for the allotment of a "tax deduction and collection account number" (TAN). Clause (c) of the said sub-section provides for cases where a person is not required to obtain TAN.

2. Presently, if a person buys an immovable property from a resident seller, the person is not required to obtain (TAN) to deduct tax at source. However, where seller of the immovable property is a non-resident, the buyer is required to obtain TAN to deduct tax at source. This creates unnecessary compliance burden for the buyer, as he would need TAN for a single transaction.

3. In order to reduce compliance burden for the resident individual and Hindu undivided family, it is proposed to amend section 397(1)(c) of the Act to provide that resident individual or Hindu undivided family, is not required to obtain TAN to deduct tax at source in respect of any consideration on transfer of any immovable property under section 393(2) [Table Sl. No. 17].

4. The amendment will take effect from the 1st day of October, 2026.

[Clause 75]

 

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Full Text:

Union Budget 2026-27 - Finance Bill, 2026

TAN requirement relaxed for resident individuals and HUFs acquiring property from non-resident sellers, effective October 1, 2026. The Finance Bill, 2026 amends section 397(1)(c) to provide that resident individuals and Hindu undivided families are not required to obtain a tax deduction and collection account number (TAN) to deduct tax at source on any consideration for transfer of immovable property under section 393(2); the amendment takes effect from 1 October 2026.