Free tool · property sale
What you'll owe vs what gets deducted.
When an NRI sells property, TDS comes off the full sale price — not the gain. See the tax you actually owe, the TDS the buyer must deduct by default, and the cash that gets needlessly locked up.
Indicative estimate. Surcharge is applied by income/consideration band and capped at 15% on long-term gains; short-term uses the top slab as a conservative figure. Reliefs (Section 54 / 54EC / 54F) and your exact position are confirmed in your free review.
Why the gap exists
TDS ≠ your tax
The rate for long-term sales
For property held more than 24 months and sold on or after 23 July 2024, the gain is taxed at a flat 12.5% without indexation. Unlike resident sellers, NRIs don't get the 20%-with-indexation option — it's 12.5% flat.
But TDS is on the whole sale value
The buyer must deduct on the entire sale price, not your gain — effectively about 13% (up to ₹50L), 14.3% (₹50L–1cr) or 14.95% (above ₹1cr) once surcharge and 4% cess are added. On a large sale that's many times your real tax.
Short-term is harsher
Sold within 24 months? The gain is taxed at your slab rate (around 30% for most NRIs) plus surcharge and cess — and TDS is deducted at that higher rate on the full value.
How you get the cash back — or keep it
Either claim the excess as a refund when you file (6–18 months later), or get a lower-TDS certificate (Form 13) before the sale so TDS is taken on your gain, not the gross value.
Questions
Capital gains & TDS, answered
How much TDS is deducted when an NRI sells property?
By default, on the full sale value — roughly 13% up to ₹50L, 14.3% up to ₹1cr, and 14.95% above ₹1cr for long-term sales (12.5% + surcharge + 4% cess). Short-term is deducted at slab rates (around 30%+). A lower-TDS certificate reduces it to your actual gain.
Why is TDS so much more than my real tax?
Because TDS is charged on the sale price, while tax is only on your gain. If you sell for ₹1.5cr with a ₹40L gain, TDS can be ~₹22L while your tax is ~₹5L — the rest is your money, locked up until you claim it back.
Can I avoid the over-deduction?
Yes — apply for a lower-TDS certificate before you sell, and the buyer deducts on your gain instead of the gross value. Miss that window and your only route is a refund via your return.
Do NRIs get indexation?
No. For sales on or after 23 July 2024, NRIs pay a flat 12.5% without indexation. The 20%-with-indexation choice applies to resident individuals and HUFs only.
Start free
Get the exact number — and keep the cash.
Send us your purchase and sale details. We'll compute your real gain, apply every relief, and get you a lower-TDS certificate so your money isn't locked up. Free review first.
We reply within 1 working day — by a real relationship manager, not an auto-reply.
Thank you — we've got it.
A relationship manager will reply within 1 working day. Prefer to talk now?
Chat on WhatsApp