CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerAs an NRI you have the same main routes a resident has: reinvest the gain in another house (Section 54), put up to ₹50 lakh into 54EC bonds, or — to stop excess TDS being blocked at sale — get a lower/nil TDS certificate so deduction is only on the net gain. Used together, these cut both your tax and the cash locked up.
Reinvest in a house — Section 54
Sell a long-term residential house and buy or build another residential house in India within the time limits, and the gain is exempt. Full conditions are in our Section 54 answer.
Capital-gains bonds — Section 54EC
Invest the gain (up to ₹50 lakh) in NHAI or REC bonds within 6 months of the sale. They carry a 5-year lock-in. Useful when you don’t want to buy another property.
Stop TDS blocking your money — Section 197
Even with an exemption, the buyer must otherwise deduct TDS on the full price. A Section 197 certificate fixes that so little or nothing is held back. Model the numbers with our TDS calculator, and our NRI property service handles the filings.