NRI Property Tax Services

Selling or Buying Property in India? Get the Tax Right First.

Capital gains computation, TDS management, lower-deduction certificates and repatriation support for NRIs — so you keep more of what you earn.

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Property TDS Snapshot

Long-term (24m+)~12.5% of gain

Short-term (under 24m)Slab rate, up to 30%

Repatriation limitUSD 1M / year (NRO)

Quick Answer

NRI property tax refers to the capital gains tax and TDS that apply when an NRI sells property in India. Long-term gains (property held 24+ months) are taxed at 12.5% without indexation, while short-term gains are taxed at the individual's applicable slab rate — with TDS deducted by the buyer at the time of sale.

Why Property Tax Trips Up So Many NRIs

The biggest surprise for NRIs selling Indian property is TDS: buyers are legally required to withhold tax on the full sale value at rates as high as 20-30%, not just on the profit — unless you proactively apply for a lower-deduction certificate. Combined with FEMA repatriation limits and Form 15CA/15CB certification requirements for moving funds abroad, property transactions are one of the most compliance-heavy events an NRI will face.

India Easy manages the entire lifecycle — from pre-sale tax planning and TDS certificate applications, through capital gains computation and exemption claims, to the final repatriation paperwork.

Key Takeaways

Property held 24+ months qualifies for lower long-term capital gains tax.
Buyers must deduct TDS on the sale value — apply for a lower-TDS certificate in advance to reduce this.
Section 54 and 54EC allow you to reduce or defer capital gains tax through reinvestment.
Excess TDS is refundable by filing an income tax return.
Repatriation of proceeds requires CA certification (Form 15CA/15CB).

Our Process

How We Manage Your Property Transaction

Pre-Sale Planning

Structure the sale to legally minimize tax exposure before you sign anything.

Lower-TDS Certificate

We apply to the tax department to cap TDS at the actual gain, not sale value.

Sale & Documentation

We coordinate with your buyer/registrar on TDS deduction and Form 26QB.

Repatriation

15CA/15CB certification prepared so funds move abroad without delay.

Feature	NRE Account	NRO Account
Holds	Foreign income remitted to India	Income earned in India (rent, sale proceeds)
Taxability	Tax-free in India	Taxable in India
Repatriation	Fully & freely repatriable	Up to USD 1M/year, with CA certification
Best For	Salary, foreign savings	Property sale proceeds, rental income

Case Study

Reducing Upfront TDS from ₹22L to ₹6L for a Dubai-Based Seller

Without a lower-TDS certificate, a Dubai-based client would have had ₹22 lakh withheld on a property sale — nearly the entire sale value's TDS exposure. We secured a Section 197 certificate capping TDS at the actual capital gain, reducing the withholding to ₹6 lakh and freeing up capital immediately at settlement.

FAQs

Frequently Asked Questions

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

NRIs pay 12.5% LTCG tax (without indexation, for property held over 24 months) or slab-rate STCG tax (under 24 months) on the capital gain. TDS is typically deducted by the buyer at the time of sale.

What is TDS on property sale by NRI?

The buyer must deduct TDS at approximately 12.5-20% (long-term) or up to 30% (short-term) of the sale value, not just the gain, unless the seller obtains a lower-deduction certificate in advance.

Can an NRI get a lower TDS certificate?

Yes, under Section 197, an NRI can apply for a certificate authorizing the buyer to deduct TDS only on the actual capital gain rather than the full sale value.

Can NRIs claim exemption on capital gains from property sale?

Yes — Section 54 allows exemption by reinvesting gains into another residential property, and Section 54EC allows exemption by investing up to ₹50 lakh in specified capital gains bonds within 6 months.

Can an NRI sell agricultural land in India?

NRIs generally cannot purchase agricultural land, plantation property or farmhouses, but can sell inherited agricultural land, typically only to an Indian resident, subject to state-specific rules.

How does an NRI repatriate sale proceeds abroad?

Sale proceeds can be repatriated up to USD 1 million per financial year from an NRO account, subject to tax clearance (Form 15CA/15CB certification) and FEMA compliance.

Is TDS refundable if it exceeds actual tax liability?

Yes — if TDS deducted exceeds the actual capital gains tax owed, the excess is refundable by filing an income tax return and claiming the refund.

Can NRIs buy residential property in India?

Yes, NRIs can freely purchase residential and commercial property in India under FEMA regulations, using funds routed through normal banking channels or NRE/NRO/FCNR accounts.