Budget 2026: Experts Urge Simplified TDS Rules for NRI Property Sales

• Experts are calling for simplified Tax Deduction at Source (TDS) rules for property transactions involving Non-Resident Indians (NRIs) in the upcoming Union Budget 2026.
• Current TDS rates for NRI sellers range from 12.5% to 31.2%, significantly higher than the 1% for resident sellers, locking up large sums of money.
• The process for NRI sellers requires buyers to obtain a Tax Deduction and Collection Account Number (TAN) and file e-TDS returns, adding complexity to one-time transactions.
• Deloitte India highlights that this complex process creates hesitation among buyers and an administrative burden due to inactive TANs.
• While NRIs can apply for a lower TDS certificate under Section 197, the approval process is often time-consuming and unpredictable, leading to stalled transactions.

Why It Matters: Simplified TDS rules for NRI property sales are crucial to boost liquidity and streamline India's real estate market.