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Learn more →Lower / Nil TDS · Form 13 · Section 197
Stop lakhs of your money getting locked up in TDS.
When an NRI sells property or earns income in India, tax is deducted on the gross amount — routinely far more than you actually owe, refundable only months later. A lower-TDS certificate under Section 197 fixes it at source, so tax is deducted on your real gain instead of the full value.
₹ lakhs kept liquid, not lockedSec 197 lower / nil rate at sourceEnd-to-end we file Form 13 & follow up
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The problem
Why NRIs lose so much cash to TDS
When you sell property in India as an NRI, the buyer is legally required to deduct TDS on the entire sale value — not on your profit. The rate follows the capital-gains rules (for a long-term holding, 12.5% on the gain plus surcharge and cess; short-term is taxed at slab rates), but because it is applied to the gross consideration, the amount withheld is often many times your actual liability.
On a sizeable sale, that gap is routinely tens of lakhs of your own money sitting with the tax department — recoverable only by filing a return and waiting 12–18 months for a refund. The same over-deduction hits NRI rental income (a tenant must deduct under Section 195) and other India income.
A certificate of lower or nil deduction under Section 197 — obtained by filing Form 13 — tells the payer to deduct against your actual gain or income. Done before the deal closes, it keeps that cash in your hands instead of locking it up for a year. See the gap for yourself with our capital-gains & TDS calculator. A property valuation strengthens the application.
Free review & computation
We assess your sale or income, compute the real capital gain (factoring in indexation history, 54/54EC/54F reliefs and acquisition cost), and tell you the rate worth applying for.
Prepare & file Form 13
We file the Form 13 application on the income-tax portal with the supporting documents — sale agreement, purchase proof, PAN and gain computation — under your Assessing Officer.
Liaise with the Assessing Officer
We respond to queries and follow up until the AO issues the certificate specifying the lower (or nil) rate — typically a few weeks, so we start early.
Coordinate with your buyer / tenant
We hand the certificate to the deductor and confirm they apply the right rate, hold a TAN, and file Form 27Q correctly — so nothing bounces back on you.
Reconcile at filing
At year-end we reconcile the TDS in your Form 26AS/AIS and file your ITR, closing the loop and claiming any small balance still due.
Key things to know
Lower-TDS certificate — the essentials
The mechanics that decide how much cash you keep, and when.
TDS is on the sale value, not your gain
This is the heart of it. By default the buyer deducts on the full consideration. The Section 197 certificate is what re-bases the deduction onto your actual capital gain — which is usually a fraction of the sale price.
Apply before the sale deed
The certificate has to be in the buyer’s hands at closing for them to deduct at the lower rate. Once the deed is executed at the higher rate, your only route is a refund via ITR. Plan a few weeks ahead.
It is not just for property
Lower-TDS certificates apply to rental income, interest, professional fees and other India income where TDS would otherwise be over-deducted at the headline rate. Recurring income is best handled at the start of the financial year.
Reliefs reduce the certified rate
If you are reinvesting the gain — a new house under Section 54, or 54EC bonds within six months — that lower net gain can be reflected in the application, reducing what is withheld.
The buyer has duties too
For an NRI seller, the buyer needs a TAN and must deposit the TDS and file Form 27Q (not the resident-only Form 26QB). We coordinate this so the buyer is comfortable and your sale isn’t held up.
Knowledge
Related guides
Related
Other things we handle for NRIs
NRI tax filing (ITR)
Reconcile your TDS and claim what you’re owed back at year-end.
Learn more →Repatriation 15CA/15CB
Move the proceeds out of India cleanly, fully FEMA-compliant.
Learn more →Questions
Lower-TDS certificate questions, answered
What is a lower TDS certificate for an NRI?
It is a certificate issued under Section 197 of the Income-tax Act, obtained by filing Form 13, that authorises a payer (a property buyer, tenant or bank) to deduct TDS at a reduced or nil rate that reflects your actual tax liability rather than the gross amount. It is the standard way NRIs avoid having far too much withheld.
How much can it save me?
On a property sale, default TDS is calculated on the full sale value, while your real tax is only on the gain. The difference is commonly tens of lakhs in locked-up cash on a large transaction. The exact saving depends on your cost of acquisition, holding period and any reinvestment relief — we compute it in your free review.
When should I apply?
Before the transaction completes. For a property sale, the certificate must reach the buyer before the sale deed is executed; for rent or interest, apply at the start of the financial year. The application takes a few weeks to be processed, so the earlier the better.
What if the sale has already happened?
Then TDS has been deducted at the higher rate and you recover the excess by filing your India tax return and claiming a refund — which can take 12–18 months. A lower-TDS certificate avoids that wait; reconciliation via ITR is the fallback.
What documents are needed?
Typically your PAN, the sale agreement and earlier purchase deed (for property), proof of cost, a computation of the capital gain, and details of the deductor. For income like rent, the relevant agreement and income details. We prepare the computation and the full Form 13 package for you.
Does the certificate guarantee a particular rate?
No — the Assessing Officer sets the rate after reviewing your computation, and it is specific to that transaction and payer. What we control is a clean, well-supported application that gives the AO no reason to withhold more than your real liability. Figures are indicative and confirmed in your review.
Start free
Find out your real TDS rate — free.
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