CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerThe buyer deducts TDS under Section 195 on the full sale value, not just your gain. For a long-term sale (property held over 24 months) the base rate is 12.5% (without indexation, from 23 July 2024) plus surcharge and 4% cess — roughly 13–15% all-in. A short-term sale follows slab rates, with TDS taken at the maximum 30% plus surcharge and cess.
The rates, plainly
- Long-term (held more than 24 months): 12.5% without indexation, plus surcharge and 4% cess — about 13–15% of the gain once surcharge is added.
- Short-term (24 months or less): taxed at your slab rate, with the buyer deducting at the maximum 30% plus surcharge and cess.
Surcharge depends on the sale value and rates change each Finance Act — confirm the current figures for your sale. Estimate yours with our NRI property TDS calculator.
Remember: it's on the price, not your profit
The rate is applied to the whole sale consideration, so the amount held back is usually far more than your real tax. You get the excess back as a refund when you file your return, or you reduce it upfront with a lower TDS certificate under Section 197.
What pushes your rate higher
Surcharge rises with the sale value (it kicks in above ₹50 lakh and steps up for higher values), though surcharge on long-term capital gains is capped at 15%. So a high-value sale carries a higher effective rate. Confirm the exact surcharge slab for your value. See our NRI property sale & TDS guide.