NRI Property Sale TDS & Capital Gains Advisory in South Delhi

When a Non-Resident Indian (NRI) sells property in India, Tax Deducted at Source (TDS) is mandatory under Section 195 of the Income Tax Act, 1961.

Unlike resident sellers (where TDS is 1%), NRI property transactions attract significantly higher TDS rates — often 20% to 30% or more including surcharge and cess.

If not structured correctly, the seller may face:

• Excess TDS deduction

• Blocked funds

• Refund delays

• Interest liability

• Buyer non-compliance risk

We provide structured advisory and end-to-end compliance support for NRI property transactions in South Delhi.

Why NRI Property TDS Is Complicated

TDS rate depends on:

• Residential status under Section 6

• Holding period (short-term vs long-term capital gains)

• Indexed cost computation

• Applicable surcharge slab

• DTAA eligibility

• PAN availability

• Lower deduction certificate (Section 197)

Many buyers wrongly deduct 20% flat without capital gain computation — leading to excess tax deduction.

TDS Rates on NRI Property Sale (Indicative)

Effective rate can go beyond 30% depending on transaction value.

Professional computation is essential before execution.

Our NRI Property Sale Services

We provide:

✔ Residential status determination
✔ Capital gains computation with indexation
✔ Cost inflation adjustment
✔ DTAA evaluation
✔ Section 54 / 54F exemption planning
✔ Lower TDS certificate application (Form 13)
✔ Buyer TDS compliance advisory
✔ Return filing & refund assistance
✔ Repatriation documentation guidance

Lower TDS Certificate – Section 197

In most cases, actual capital gain is much lower than total sale value.

We assist NRIs in obtaining a Lower Deduction Certificate so that:

• TDS is deducted only on actual gain

• Cash flow is protected

• Refund cycle is minimized

This is critical for high-value South Delhi property transactions.

Common Mistakes in NRI Property Sale

• Buyer deducts 1% instead of Section 195 rate

• No PAN provided

• Ignoring surcharge slab

• Not applying for lower certificate

• No capital gain computation

• Delayed Form 15CA / 15CB compliance

• FEMA documentation gaps

Each mistake can trigger notices or delays.

Why Choose CA Shiwali – South Delhi

• Structured documentation approach

• Experience with high-value transactions

• Capital gains precision computation

• End-to-end compliance support

• Coordination with buyer & legal teams

• Timely filing & refund management

📞 Consultation: 9266032777
📍 Serving South Delhi including Greater Kailash, Defence Colony, Saket, Nehru Place, and surrounding areas.

Who Needs This Service?

• NRIs selling inherited property

• NRIs selling investment property

• Buyers purchasing from NRIs

• Families handling estate liquidation

• NRI clients planning repatriation

Timeline Overview

1. Document review

2. Capital gain computation

3. Lower TDS application (if applicable)

4. Buyer compliance advisory

5. Return filing

6. Refund processing.

   Frequently Asked Questions – NRI Property Sale TDS

   What is the TDS rate on property sale by an NRI?

   TDS is deducted under Section 195. Long-term capital gains attract 20% plus surcharge and cess. Short-term gains are taxed at applicable slab rates plus surcharge and cess.

   Is 1% TDS applicable on NRI property sale?

   No. The 1% rate applies only to resident sellers. NRI transactions require TDS under Section 195 at higher rates.

   Can an NRI apply for lower TDS?

   Yes. An application under Section 197 (Form 13) can be made to obtain a Lower Deduction Certificate so that TDS is deducted only on actual capital gains.

   Who deducts TDS in an NRI property sale?

   The buyer is responsible for deducting and depositing TDS under Section 195.

   Is surcharge applicable?

   Yes. Depending on capital gains amount, surcharge and cess may increase effective TDS rate.

   Are Form 15CA and 15CB required?

   They may be required for repatriation of sale proceeds outside India under FEMA regulations.