Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 12 October 2026
Why so much gets blocked
TDS on a payment to a non-resident runs on the sale consideration, not the profit — section 195 for payments up to 31 March 2026, section 393(2) of the 2025 Act after that. Your tax, though, is on the gain. Sell for ₹2 crore with a ₹30-lakh gain and the buyer deducts about ₹29.9 lakh while your actual tax is about ₹3.9 lakh: some ₹26 lakh locked with the department until your return is processed, often a year or more away.
The fix: a certificate, filed early
Apply on TRACES as soon as a buyer is in sight, with your gain computation and the sale papers; the TDS Assessing Officer (International Taxation, for NRIs) reviews it and certifies a rate matched to your estimated tax. Three rules decide whether it works: it names the buyer, so a new buyer means a fresh application; it protects only payments made after it is issued; and each co-owner applies for their own share. Certificates issued under the 1961 Act stay valid for the period they state.
When it helps most — and the rest of the trail
The certificate matters most when the price is high and the real gain small, or when the gain is being reinvested — under section 54 or 54EC the right rate can be nil. Get the buyer’s side right too: a buyer on the TAN route files Form 27Q (Form 144 from 1 April 2026), while from 1 October 2026 an individual or HUF buyer can use Form 141 with no TAN; the 1% resident-seller form never applies to an NRI. Model your numbers with our NRI property TDS calculator; our NRI property-sale practice files the certificate end to end.