On this page
Overview
Selling Indian property as an NRI involves capital gains tax, TDS deduction by the buyer, possible exemptions and FEMA-compliant repatriation. We plan the transaction so cash is not locked up in excess TDS.
Key rules to know
- Long-term gains (over 24 months) are taxed at 12.5%; short-term at slab rates; surcharge and cess apply.
- Buyers deduct TDS under section 195, often on full consideration without a lower deduction certificate.
- Section 54 and 54EC can reduce taxable gains.
- Repatriation generally requires Form 15CA/15CB and is subject to FEMA limits.
How GstMan helps
- Capital gains computation
- Form 13 lower/nil TDS certificate application
- Exemption planning (54/54EC)
- ITR filing and refund of excess TDS
- Form 15CA/15CB and repatriation coordination
Documents usually needed
- Sale deed and purchase deed
- Cost and improvement proofs
- PAN, passport, NRO account details
- Buyer details and TAN/PAN as applicable
Common mistakes to avoid
- Letting the buyer deduct TDS on full sale value
- Missing the Form 13 timeline
- Not reporting the sale in ITR
- Remitting before paying tax
NRI tax filing by country
NRI tax filing from UAENRI tax filing from Saudi ArabiaNRI tax filing from QatarNRI tax filing from KuwaitNRI tax filing from OmanNRI tax filing from BahrainNRI tax filing from UKNRI tax filing from USANRI tax filing from CanadaNRI tax filing from AustraliaNRI tax filing from SingaporeNRI tax filing from GermanyNRI tax filing from Malaysia
Frequently asked questions
How much TDS is deducted when an NRI sells property?
TDS under section 195 is deducted at the applicable rate; without a lower deduction certificate, buyers commonly deduct on the entire sale value.
Can sale proceeds be sent abroad?
Yes, within FEMA limits and with proper tax compliance and Form 15CA/15CB.
Related guides
NRI Tax
NRI Selling Property in India: Tax, TDS, Lower Deduction and Repatriation
Everything an NRI should know before selling property in India: capital gains, 195 TDS, Form 13, 54/54EC exemptions and repatriating funds.
Income Tax
Capital Gains Tax on Property, Shares and Mutual Funds in India
Long-term vs short-term gains, current rates and exemptions for property, listed shares and mutual funds.