INCOME TAX20 Sept 2026
Property sale in India: NRI sellers face different TDS rules from residents—here's what to know | Mint
Selling property in India can mean very different TDS—tax deducted at source—rules for residents and non-resident Indians. Buyers usually deduct 1% from resident sellers, but for NRI sellers the rate follows their capital gains tax, often on the full sale value. So an NRI may see more tax cut upfront. A lower deduction certificate or a refund claim can help.
Key Statutory Highlights
- A buyer purchasing immovable property other than agricultural land has to deduct TDS if the consideration or stamp duty value is ₹50 lakh or more.
- For NRI sellers, TDS is linked to the applicable capital gains tax rate in force, not the 1% rate used for resident sellers.
- In practice, buyers often deduct TDS on the gross sale value unless the NRI seller gets a lower or nil deduction certificate from the income-tax department.
Actionable Advice for Taxpayers / Founders:If you are an NRI planning to sell property, consider applying for a lower or nil deduction certificate before the sale, and remember you can claim a refund while filing your return if the tax deducted turns out to be higher than your actual liability.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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