NRI and family desk
Selling property as an NRI? See the TDS first.
When the seller is a non-resident, the buyer must deduct tax before paying. Without a certificate it is usually cut on the whole price, which can lock up a large sum.
Last updated: Reviewed by IndiaDigital editorsSources
Long-term gain: 12.5% plus surcharge and cess
A certificate under section 395(1) could keep ₹5,72,000 with you instead of waiting for a refund.
Indicative. The final tax depends on your return, indexation or exemptions and any tax treaty. Check with a CA.
More on the NRI and family desk
What to know, in order
- The buyer deducts tax under section 393(2), Table entry 17 of the Income-tax Act 2025 and needs a TAN, not just a PAN.
- Held more than 24 months: long-term gain, taxed at 12.5% plus surcharge and 4% cess. Held 24 months or less: short-term, deducted at 30% plus surcharge and cess.
- Surcharge: 10% above ₹50 lakh and 15% above ₹1 crore; for short-term gains 25% above ₹2 crore.
- Apply for a lower or nil deduction certificate (section 395(1)) before the sale, so tax is cut on the gain, not the full price.
- Moving the money abroad needs Form 15CA, and often Form 15CB from a CA. The NRO route allows up to USD 1 million a financial year.
- An explanation, not tax or legal advice. A chartered accountant is reviewing this page.
Questions people ask
Why is TDS cut on the full price?
The buyer cannot know your cost, so without an Assessing Officer certificate under section 395 they deduct on the whole amount to stay safe. You get the extra back only after filing your return.
How long does a lower deduction certificate take?
Apply on the TRACES portal with sale and purchase papers well before the sale date. Allow several weeks; your CA can track it.
Do I have to file a return in India?
Yes, to claim any excess TDS as a refund and to report the gain. Keep the buyer's TDS certificate.
Can I avoid tax by buying another house?
Reinvestment exemptions exist, with conditions and limits. Ask your CA before the sale.
Sources
Last checked:
Something looks wrong?
No text is sent: we only count reports. Experts in our reviewer network check the reported line; fixes go in the corrections log.