For Non-Resident Indians, the single biggest cash-flow shock in any India transaction is TDS deducted on the gross amount — not on what you actually owe. Sell a property, and the buyer is legally required to deduct tax on the entire sale value. Earn rent, and your tenant deducts at a high flat rate. The fix is a lower or nil TDS certificate under Section 197, applied for using Form 13.
Why TDS is so high for NRIs
NRIs don’t get the basic exemption threshold that residents enjoy on these payments, so tax is withheld from the first rupee. On a property sale, the deduction is on the full consideration unless you intervene — which routinely means lakhs more is withheld than your real liability, recoverable only by filing a return and waiting months for a refund.
What a Section 197 certificate does
A lower-TDS certificate tells the payer (a property buyer, a tenant, a bank) to deduct tax at a reduced rate that reflects your actual gain or income, rather than the gross amount. You apply with Form 13 to the Assessing Officer, who reviews your computation and issues a certificate specifying the rate.
When to apply
- Before a property sale deed is signed — the certificate must be in the buyer’s hands at closing. Plan 45–60 days ahead.
- At the start of the financial year for recurring income like rent.
The numbers, illustratively
On a large property sale, the gap between gross-value TDS and your real liability can be tens of lakhs of locked-up cash. A correctly obtained certificate keeps that money in your hands instead of with the tax department for 12–18 months.
How NRI360 helps
We compute your real gain, prepare and file Form 13, and follow it through the Assessing Officer — then coordinate with your buyer or tenant so the right rate is applied. It’s a core part of how we handle an NRI property sale, and it ties directly into filing the return that reconciles everything.
Figures and rules are indicative and current as of FY 2025–26; your exact position is confirmed in your free review.