NRI Property Sale TDS & Repatriation Estimator
Section 195, Form 13, NRO to abroad
See how much a buyer must deduct when you sell property in Kerala as an NRI, what a lower-deduction certificate saves, and how much of the proceeds you can take home this year.
When an NRI sells property in India the buyer deducts TDS under Section 195 on the full sale price — 12.5% plus surcharge and 4% cess (13% to 14.95%) if the property was held more than 24 months, 30% plus surcharge and cess if held 24 months or less — unless the seller first obtains a lower-deduction certificate (Form 13) that limits TDS to the tax on the actual gain. NRIs cannot use indexation. Proceeds go to an NRO account and up to USD 1 million per financial year can be repatriated with Forms 15CB and 15CA.
Rates for FY 2026-27 as they stand on 19 September 2026; reviewed by J Group Consultancy, Ernakulam. General information, not tax advice — your chartered accountant computes the final liability, exemptions and the certificate application.
Before Section 54 / 54EC / 54F exemptions, which can reduce the tax on the gain to nil if you reinvest in time; the certificate application is where those are claimed. Ignores TDS on the buyer’s side if the buyer is also an NRI, and any DTAA relief.
Effective TDS rates for NRI sellers, FY 2026-27
| Total income band | Long-term (12.5% base) | Short-term (30% base) |
|---|---|---|
| Up to ₹50 lakh | 13.00% (surcharge 0%) | 31.20% (surcharge 0%) |
| ₹50 lakh – ₹1 crore | 14.30% (surcharge 10%) | 34.32% (surcharge 10%) |
| ₹1 crore – ₹2 crore | 14.95% (surcharge 15%) | 35.88% (surcharge 15%) |
| ₹2 crore – ₹5 crore | 14.95% (surcharge 15%) | 39.00% (surcharge 25%) |
| Above ₹5 crore | 14.95% (surcharge 15%) | 42.74% (surcharge 37%) |
Surcharge on long-term gains is capped at 15%. Short-term gains are taxed at your slab rate in the return; the buyer deducts at the maximum marginal rate and the difference is refunded on assessment.
Selling from abroad without losing a year to refunds
- 01
Apply for a lower-deduction certificate before the sale agreement
File Form 13 online with the Assessing Officer (International Taxation) with the sale agreement draft, purchase deed, cost proofs and computation. It normally takes 30–45 days and fixes TDS at the tax on your actual gain instead of on the full price. Without it the buyer must deduct on the entire consideration and you claim the excess back only after filing your return.
- 02
Make sure the buyer has a TAN
A buyer paying an NRI seller deducts under Section 195, needs a Tax Deduction Account Number, deposits the tax by the 7th of the following month and files Form 27Q for the quarter; you get Form 16A. A buyer who deducts 1% under Section 194-IA as if you were resident has done it wrong and both sides face notices.
- 03
Route the proceeds correctly
Sale proceeds are credited to your NRO account (or NRE, only to the extent the property was bought from NRE funds and within the RBI limits). Keep the registered deed, the TDS certificate and the bank credit advice together — the bank will ask for all three before repatriation.
- 04
Repatriate with Form 15CB / 15CA
A chartered accountant certifies in Form 15CB that tax has been paid; you file Form 15CA online; the bank remits. The limit is USD 1 million per financial year from NRO balances, across all sources.
- 05
Plan the exemption before, not after
Long-term gains can be exempted by reinvesting in one residential house in India within the Section 54 windows (54F if the asset sold was not a house) or in Section 54EC bonds within six months (up to ₹50 lakh). Money not reinvested by the return-filing date must be parked in a Capital Gains Account Scheme deposit to keep the exemption alive.
Questions NRIs ask about TDS on a property sale
What is the TDS rate when an NRI sells property in India in 2026?
For property held more than 24 months the buyer deducts 12.5% plus surcharge and 4% cess — 13% up to ₹50 lakh, 14.3% between ₹50 lakh and ₹1 crore, 14.95% above ₹1 crore. For property held 24 months or less the deduction is at 30% plus surcharge and cess (31.2% to 42.74%). The deduction is on the full sale price unless you hold a lower-deduction certificate.
Is TDS deducted on the sale price or on my capital gain?
By default on the full sale consideration — Section 195 requires the buyer to deduct on the sum paid to a non-resident. To have it deducted only on the gain, apply to the Assessing Officer in Form 13 for a lower or nil deduction certificate before registration.
Can an NRI use indexation on property bought before July 2024?
No. The choice between 12.5% without indexation and 20% with indexation for property acquired before 23 July 2024 was given only to resident individuals and HUFs. NRIs pay 12.5% on the difference between the sale price and the actual cost of acquisition and improvement.
How much can an NRI repatriate after selling property in Kerala?
Up to USD 1 million per financial year from the NRO account, after tax, with a chartered accountant’s Form 15CB and your Form 15CA. Amounts originally paid from an NRE account for the purchase can be repatriated through NRE within RBI’s limits (generally for up to two residential properties).
What happens if the buyer deducted only 1% TDS?
Section 194-IA (1% above ₹50 lakh) applies only to resident sellers. If a buyer used it for an NRI seller, the buyer is an “assessee in default” for the shortfall with interest, and your return will show unpaid tax. It is fixed by the buyer depositing the balance under Section 195 and filing a correction — better to get it right in the sale agreement.
Which Kerala documents does the chartered accountant need for Form 15CB?
The registered sale deed, your purchase deed and cost proofs, the buyer’s TDS challan and Form 16A, the bank credit advice into the NRO account, PAN, passport and OCI/visa, and — if the sale was through a Power of Attorney — the adjudicated PoA. We collect and courier the Kerala-side documents for clients abroad.
Selling Kerala property from abroad?
We verify the title, handle the Power of Attorney, attend registration, and coordinate the Form 13, 15CB and 15CA paperwork with your chartered accountant so the money reaches you in weeks, not a year.