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NRI Property Sale & Capital Gains

Selling property in India from abroad, planned before you sign. Capital gains, TDS, lower deduction certificates, reinvestment exemptions, and repatriation of proceeds — handled end to end by Chartered Accountants.

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?Quick Answer

How much tax does an NRI pay on selling property in India?

If you held the property for more than 24 months, the gain is taxed at 12.5% without indexation, plus surcharge and cess. The catch is TDS: the buyer deducts it on the full sale value, not your gain, which often locks up far more than you actually owe. A lower deduction certificate (Form 13), obtained before the sale, brings TDS in line with your real tax.

Long-term rate
12.5%
Holding period
24 months
54EC bond cap
₹50 lakh
Key Facts at a Glance
Long-term gains (held over 24 months)12.5%, no indexation
Short-term gains (held up to 24 months)Slab rates
TDS calculated onFull sale value, not the gain
Minimum TDS thresholdNone for NRI sellers
Indexation option (pre-July 2024 property)Residents only, not NRIs
Repatriation from NROUp to USD 1 million per year
What we handle

Selling from abroad, without losing lakhs to timing.

Most NRIs discover the real cost of a property sale after the buyer has already withheld it. We plan the sale before the deed is signed, so your money is not stuck with the tax department for a year.

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01
Capital Gains Computation

We work out your gain from the correct cost, improvement costs, and transfer expenses. For inherited property, we use the previous owner's cost and holding period, as the law requires.

02
Lower Deduction Certificate (Form 13)

We apply to the tax department before the sale, so the buyer deducts TDS on your actual tax liability instead of the full sale value.

03
Exemption Planning

We assess whether reinvesting in a new house in India (Section 54), buying specified bonds within six months (Section 54EC, up to ₹50 lakh), or the Capital Gains Account Scheme can reduce or remove your tax.

04
Buyer-Side TDS Coordination

We guide your buyer on the correct TDS form and deposit, so the credit actually appears against your PAN. The resident-seller form (26QB) cannot be used for an NRI sale.

05
ITR Filing & Refund

We report the gain in your Indian return, claim credit for TDS deducted, and recover any excess as a refund.

06
Repatriation of Proceeds

We route proceeds through your NRO account and handle Form 15CA and 15CB, so the money moves abroad within the USD 1 million annual limit without bank queries.

Selling property in India?

Book a 20-minute consultation. We will estimate your capital gains and TDS, and tell you whether a lower deduction certificate is worth applying for, before you sign anything.

Schedule a call
Frequently Asked Questions

NRI Property Sale — answered by CAs.

How much TDS is deducted when an NRI sells property in India?+
For long-term gains, the buyer deducts TDS at 12.5% plus surcharge and 4% cess, roughly 13% to 15% in practice. For short-term gains, TDS is 30% plus surcharge and cess. In both cases it is calculated on the full sale value, not your gain, unless you obtain a lower deduction certificate before the sale.
Can NRIs claim indexation on property bought before July 2024?+
No. The option to pay 20% with indexation on property acquired before 23 July 2024 is available only to resident individuals and HUFs. NRIs pay 12.5% without indexation on long-term gains, regardless of when the property was bought. Several widely read guides still say otherwise, but the law limits this option to residents explicitly.
What is a lower TDS certificate, and when should I apply?+
It is a certificate from the tax department (applied for using Form 13) that directs the buyer to deduct TDS at a lower rate based on your actual tax liability. Apply before the sale is registered. Once the buyer has deducted TDS at the full rate, the only way to recover the excess is by filing a return and waiting for a refund.
Is there a ₹50 lakh threshold for TDS when buying from an NRI?+
No. The ₹50 lakh threshold applies only when the seller is a resident. When the seller is an NRI, TDS applies to every sale, whatever the value.
Can I avoid capital gains tax by reinvesting the money?+
Often, yes. Section 54 exempts long-term gains reinvested in one residential house in India, bought within one year before or two years after the sale, or constructed within three years, subject to a ₹10 crore cap. Section 54EC exempts gains invested in specified bonds within six months, up to ₹50 lakh, with a five-year lock-in. Section 54F covers sale of assets other than a house.
How is inherited property taxed when I sell it?+
Inheriting property is not taxable. When you sell it, your gain is calculated using the previous owner's cost of acquisition, and your holding period includes the time the previous owner held it, so most inherited property qualifies as long-term.
Can the sale proceeds go straight into my NRE account?+
No. Proceeds must first be credited to your NRO account. From there, you can repatriate up to USD 1 million per financial year with Form 15CA and a CA's Form 15CB. If the property was originally bought with NRE or FCNR funds, the original investment can be repatriated separately, for up to two residential properties.
Do I need to file an income tax return after selling?+
Yes. You must report the capital gain in your Indian return. Filing is also the only way to claim credit for the TDS deducted and to receive a refund of any excess.
Does the October 2026 no-TAN change affect NRI sellers?+
From 1 October 2026, resident individual and HUF buyers can deposit TDS using their PAN instead of a TAN. The TDS rate, the full-sale-value base, and the buyer's liability are unchanged. Read our full breakdown: the no-TAN rule, explained properly.
Can I sell through a power of attorney?+
Yes. A registered power of attorney holder can execute the sale on your behalf, and the tax and TDS rules are the same. Drafting and registering the power of attorney is legal work handled by an advocate; we manage the tax side and coordinate with your advocate.
Related Services

Often combined with this service

Repatriation of Funds

Move property-sale proceeds abroad with Forms 15CA and 15CB and bank coordination.

Learn more →
NRI Taxation & ITR

Report capital gains, claim TDS credit, and recover excess deduction through your return.

Learn more →
DTAA Advisory

Coordinate Indian gains and tax credits with your country of residence.

Learn more →
Related

Related services & tools

Tool
Property TDS Calculator

TDS on sale or purchase of Indian property by an NRI.

Tool
Capital Gains Planner

Model gains, indexation and exemptions before you sell.

Guide
Buying property from an NRI: a 'no TAN' rule

What October 2026 TAN relief changes — and what it doesn't.

Service
Repatriation of Funds

Move up to USD 1M a year out of India, correctly documented.

Service
NRI Taxation & ITR

Residency-correct ITR filing and year-round tax planning for NRIs.

Section references are to the Income-tax Act, 1961. Under the Income-tax Act, 2025 (effective 1 April 2026), these provisions are renumbered — for example, Section 54 is now Section 82, Section 54EC is Section 85, Section 54F is Section 86, and Section 195 is Section 393(2). The substantive rules described here are unchanged. Last reviewed September 2026.

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