Free Tool • Income-tax Act 2025
NRI Property SaleTDS Calculator
Selling property in India as an NRI? The buyer must deduct TDS on the full sale price — not on your profit. Find out exactly how much, and how much of your money gets blocked.
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Total agreed sale price of the property
What you originally paid for it
When you acquired the property
Expected or actual registry date
Optional — construction or major renovation
Optional — brokerage, legal fees
Fill in the sale price, purchase price and both dates to see your result.
Why NRIs lose money on property sales
When a resident sells property, the buyer deducts a modest 1% TDS, and only if the sale value is ₹50 lakh or more. When an NRI sells, the rules are completely different: the buyer must deduct tax under Section 393(2) of the Income-tax Act, 2025 (Section 195 under the old Act) on the entire sale consideration, from the very first rupee.
Suppose an NRI bought a flat for ₹40 lakh in 2012 and sells it today for ₹1.5 crore. The real taxable gain is about ₹1.08 crore, on which the tax works out to roughly ₹16 lakh. But the buyer must deduct 14.95% of the full ₹1.5 crore — about ₹22.4 lakh. That leaves roughly ₹6.3 lakh of the seller's own money sitting with the department, recoverable only after filing a return and waiting for the refund to be processed.
This is avoidable. Section 395 allows you to apply in Form 128 for a Lower or Nil TDS Certificate, so the buyer deducts an amount close to your genuine liability instead. The catch is timing — a certificate cannot undo tax already deducted, so the application has to be made and approved before the payment and registry. The department typically takes 4 to 8 weeks to process it — see our Form 128 document checklist to see exactly what to prepare.
All of this rests on one prior question: are you actually a non-resident in the year of sale? The rules turn on day counts, not on your passport — and a borderline year changes the TDS treatment entirely. If you are not certain, check first with our NRI Residential Status Calculator.
How we help NRI sellers
- • Computing your correct capital gain and tax liability
- • Preparing and filing the Form 128 application under Section 395
- • Following up with the Assessing Officer until the certificate is issued
- • Guiding the buyer on TAN, challan, Form 144 return and Form 131 certificate
- • Filing your Indian income tax return and claiming any refund due
- • Form 145/146 (earlier 15CA/15CB) certification for repatriating the sale proceeds abroad
Frequently Asked Questions
How much TDS is deducted when an NRI sells property in India?
For a long-term sale (property held more than 24 months), TDS is 12.5% plus surcharge and 4% cess — an effective 13% if the sale value is up to ₹50 lakh, 14.30% between ₹50 lakh and ₹1 crore, and 14.95% above ₹1 crore. Crucially, this is deducted on the full sale consideration, not on your profit.
Is TDS deducted on the sale price or only on the capital gain?
On the entire sale price. This is the single biggest reason NRIs end up with large amounts locked with the Income Tax Department. Your actual tax is only on the gain, so the excess has to be claimed back as a refund by filing a return — unless you obtain a Lower TDS Certificate before the sale.
Is there a ₹50 lakh threshold like there is for resident sellers?
No. When the seller is a resident, TDS applies only if the sale value is ₹50 lakh or more. When the seller is an NRI, TDS under Section 393(2) applies from the very first rupee, whatever the sale value.
What is a Lower TDS Certificate and how does it help?
Under Section 395 of the Income-tax Act 2025, you can apply in Form 128 (which replaced the old Form 13) for a certificate directing the buyer to deduct TDS at a lower rate matching your actual liability. It must be obtained before the payment is made — a certificate cannot reverse tax already deducted, so it needs to be started well before the registry date.
Can NRIs use the 20% with indexation option on property?
No. For transfers on or after 23 July 2024, long-term capital gains on property are taxed at a flat 12.5% without indexation. The option to instead pay 20% with indexation was retained only for resident individuals and HUFs, so it is not available to NRIs.
Does the buyer need a TAN to buy property from an NRI?
Yes, a buyer deducting TDS under Section 393(2) has needed a TAN, and files the quarterly return in Form 144 (earlier Form 27Q) and issues the seller a certificate in Form 131 (earlier Form 16A). Budget 2026-27 announced that from 1 October 2026 resident individual and HUF buyers may use their PAN instead; companies, LLPs and firms would still need a TAN. Please confirm the position applicable on your registry date before relying on it.
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