Selling your property in India from abroad? Don't lose lakhs to excess TDS. We compute your capital gains, secure a Lower Deduction Certificate, claim exemptions, and repatriate your money — all handled remotely.
Section 197
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An NRI selling property in India held for more than 24 months pays long-term capital gains tax at 12.5% (plus applicable surcharge and 4% cess) on the gain. For property held 24 months or less, the gain is short-term and taxed at the NRI's applicable income slab rate, up to 30%.
The buyer must deduct TDS under Section 195 on the sale of an NRI's property. For long-term gains, the effective TDS ranges from 13.0% to 14.95% of the sale value depending on the amount, while short-term sales attract roughly 30% plus surcharge and cess — deducted on the full sale price, not just the profit.
An NRI can legally reduce TDS by applying for a Lower Deduction Certificate under Section 197 before the sale is registered. This directs the buyer to deduct TDS only on the actual capital gain instead of the full sale value, preventing large sums from being locked with the Income Tax Department for months.
Yes. An NRI can claim exemption on long-term capital gains by reinvesting in one residential house in India (Section 54), by investing up to Rs 50 lakh in NHAI or REC bonds within 6 months (Section 54EC), or by reinvesting the net sale proceeds in a house (Section 54F), subject to prescribed timelines.
| Holding Period | Nature of Gain | Effective TDS |
|---|---|---|
| More than 24 months (Long-Term) | LTCG @ 12.5% | 13.0% – 14.95%* |
| 24 months or less (Short-Term) | Slab rate (up to 30%) | ~30% + surcharge + cess |
*Effective rate includes surcharge and 4% cess, and varies with sale value. TDS is deducted on the full sale price unless a Lower Deduction Certificate is obtained. Figures are indicative for FY 2025-26 — consult us for your exact case.
Accurate calculation of your long-term or short-term capital gain, including indexation where applicable, so you know your exact tax liability before you sell.
We prepare and file your Section 197 application so the buyer deducts TDS only on your real gain — not the entire sale value — freeing up your capital.
Strategic reinvestment planning into residential property or capital gains bonds to legally minimise or eliminate your tax outgo within statutory timelines.
If excess TDS was already deducted, we file your Income Tax Return and pursue the refund with the department until the amount reaches your NRO account.
End-to-end assistance with Form 15CA/15CB certification and RBI norms to repatriate your sale proceeds abroad (up to USD 1 million per financial year).
Representation before the Income Tax Department for scrutiny, mismatch notices, or assessment relating to your property transaction in India.
Exempt your long-term gain by buying or constructing one residential house in India within the prescribed period (1 year before or 2 years after the sale; 3 years for construction).
Invest up to Rs 50 lakh of your gain in NHAI or REC bonds within 6 months of the sale. The bonds have a 5-year lock-in and are a simple, safe exemption route.
Applicable when you sell an asset other than a house. Reinvest the entire net sale consideration into a residential property to claim a proportionate exemption.
Exemption rules have strict timelines and conditions. Plan your reinvestment with us first →
Send us the purchase and sale details over WhatsApp — no office visit needed, from anywhere in the world.
We compute your exact capital gain and the ideal TDS position before your sale is registered.
We file your Section 197 application, ITR, and exemption claims, coordinating with your buyer and bank.
We track your refund and certify repatriation so your funds move abroad smoothly and compliantly.
For a long-term sale (property held more than 24 months), TDS under Section 195 is deducted at an effective 13.0% to 14.95% of the sale value, depending on the sale amount. For a short-term sale, TDS is around 30% plus surcharge and cess. Crucially, this TDS applies to the entire sale value, not only the profit — which is why a Lower Deduction Certificate is so valuable.
It is a certificate issued by the Income Tax Department that instructs the buyer to deduct TDS on your actual capital gain instead of the full sale price. For example, on a Rs 1 crore property with a Rs 20 lakh gain, TDS without the certificate could exceed Rs 14 lakh, whereas with the certificate it may be only a fraction of that. We recommend applying before the sale agreement is executed.
Yes. Under Section 54, you can reinvest the long-term capital gain in one residential house in India. Under Section 54EC, you can invest up to Rs 50 lakh in NHAI or REC bonds within 6 months. Under Section 54F, you can reinvest the entire net sale consideration in a house. Each has specific timelines and conditions that must be met to keep the exemption valid.
If TDS deducted was higher than your actual tax liability — which is common when no Lower Deduction Certificate was obtained — you claim the excess back by filing an Income Tax Return in India for that financial year. The refund is credited to your NRO bank account. We handle the entire filing and follow-up process.
Not necessarily. Many NRIs complete the sale through a trusted representative using a registered Power of Attorney (PoA). Our services are fully digital — we coordinate the tax computation, Section 197 filing, and returns remotely, so you can manage the entire transaction from abroad.
An NRI can repatriate up to USD 1 million per financial year from their NRO account, which includes property sale proceeds. This requires Form 15CA and a Form 15CB certificate from a tax professional confirming that applicable taxes have been paid. We prepare this certification as part of our repatriation support.
Yes. While our office is in Junagadh, Gujarat, our NRI property tax services are fully remote and used by clients in the USA, UK, Gulf countries, Africa, and Australia. We communicate over WhatsApp, email, and video call across time zones, so your location is never a barrier.
Ideally before signing the sale agreement. Engaging early lets us apply for a Lower Deduction Certificate, structure exemptions, and prevent a large TDS deduction that would otherwise lock your money with the department for a year or more. Involving us after the sale is still useful for refunds, but early planning saves the most.
Talk to our NRI tax desk before you finalise the sale — early planning saves the most tax.
Chat on WhatsAppFrom Lower Deduction Certificates to TDS refunds and repatriation, Gadhia Associate handles the entire tax side of your India property sale — remotely, accurately, and on your timeline abroad.
Scan to WhatsApp and chat directly with our tax experts.
