TDS on Property Sale by NRIs in India

How TDS works when an NRI sells residential property in India, and how to minimise the cash flow impact.

When an NRI sells residential property in India, the buyer is required to deduct TDS (Tax Deducted at Source) under Section 195 of the Income Tax Act.

TDS is deducted on the sale consideration (not just the gain) and the applicable rate depends on whether the gain is short-term or long-term, plus applicable surcharge and cess.

Long-term capital gain (property held over 24 months) is currently taxed at concessional rates as notified — NRIs should consult a CA for the latest applicable rate and any indexation rules.

NRIs can apply for a Lower Deduction Certificate under Section 197 from the Income Tax Department to reduce TDS to the actual tax liability, which significantly improves cash flow at the time of sale.

For Janaharsha plot resale by NRIs in Ibrahimpatnam, RRP Realty coordinates with the buyer side on the TDS process during transaction closure.

RRP Realty assists buyers with Janaharsha plot selection, documentation review and resale within Janaharsha Dream City phases in Ibrahimpatnam.