How much TDS will the buyer deduct?

When an NRI sells property in India, the buyer is legally required to deduct TDS before paying — and it is often 20 percent or more of the full sale price, not just the profit. This calculator shows the exact TDS under Section 195 for flats, plots, and commercial property. It covers both long-term and short-term capital gains, and shows the reduced rate available if you have applied for a Lower Deduction Certificate using Form 13 from the income tax department.

• ·Long-term capital gain: property held >24 months. Post-23 July 2024, taxed at 12.5% without indexation. Pre-July: 20% with indexation.
• ·Short-term capital gain: holding ≤24 months. Taxed at applicable slab rate — buyer typically deducts at 30% maximum slab.
• ·TDS is on FULL sale consideration, not just the gain — this is the #1 issue for NRI sellers. Only an LDC u/s 197 (Form 13) fixes it.
• ·LDC processing: file Form 13 with the jurisdictional TDS officer; typically takes 30–45 days. Apply BEFORE the sale agreement.
• ·Surcharge on LTCG is capped at 15% even if sale value triggers higher bracket.
• ·Health & Education Cess of 4% is applied on (tax + surcharge).
• ·Excess TDS can be claimed as refund by filing ITR in India — but money is blocked for 9–12 months.

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