Sell the property.
Bring the money home, lawfully.
Capital gains, section 195 TDS, the lower-deduction certificate, the sale, the reinvestment and the remittance — one engagement, run entirely over video. You never fly down for paperwork.
WhatsApp the details → Book a 15-minute callThe journey, stage by stage
Tap any stage. The clocks matter: the certificate that saves you the most is the one that must be applied for earliest.
Before you list — plan the TDS, not just the price
START 8–12 WEEKS BEFORE CLOSING
When a buyer purchases from an NRI, tax is deducted under section 195 on the gross sale consideration, not on your actual gain: 12.5% for long-term gains on transfers on or after 23-Jul-2024 (20% for earlier transfers), 30% where the gain is short-term — plus surcharge and cess. On a ₹2 crore flat that is lakhs locked up for a year unless you plan.
- The fix is a lower or nil deduction certificate — until 31 March 2026, Form 13 under section 197; from 1 April 2026, Form 128 under section 395(1) of the Income-tax Act 2025, read with Rule 213 of the Income-tax Rules 2026 — applied for on the TRACES portal, so TDS is matched to the real tax on your computed gain.
- The certificate must be in hand before the sale deed. File 8–12 weeks ahead of the expected closing.
- Both co-owners need their own certificate (Form 13, now Form 128) where the property is jointly held.
Sellers who come to us after signing the agreement lose the certificate window. Come when you are thinking of selling, not when you have sold.
Computing the gain — the 23-Jul-2024 split decides your rate
HOLDING: 24 MONTHS = LONG-TERM
Property held over 24 months is long-term. Transfers on or after 23-Jul-2024 are taxed at 12.5% without indexation; transfers before that date at 20% with indexation. The option to pay 20% with indexation on property acquired before 23-Jul-2024 is available only to resident individuals and HUFs — an NRI seller cannot take it.
- Inherited property: your cost is the previous owner's cost under section 49(1), and their holding period counts in yours.
- Acquired before 01-Apr-2001? Fair market value on that date can step up the cost base — a valuation report is worth real money here.
- Short-term gains (24 months or less) are taxed at slab rates.
The single most common error we correct: NRI computations still built on 20%-with-indexation for sales made after 23-Jul-2024. The rate is 12.5%, flat, no indexation.
Closing day — the buyer's compliance is your problem too
PER CLOSING
Buying from an NRI puts real obligations on your buyer: they need a TAN, must deposit the deducted tax by challan, file Form 27Q quarterly and issue you Form 16A (Forms 144 and 131 for payments from 1 April 2026). From 1 October 2026 (CBDT Notification 121/2026), an individual or HUF buyer needs no TAN at all: the deposit happens through Form 141, a challan-cum-statement with its NRI-specific Schedule E, and the buyer issues Form 132; companies and firms stay on the TAN route, filing the quarterly statement in Form 144, which replaced 27Q from 1 April 2026. The resident-to-resident shortcut — Form 26QB and Form 16B — does not apply when the seller is an NRI. If your buyer files the wrong form, your tax credit goes missing.
- We brief the buyer's side in writing so the deduction, deposit and filing happen correctly and your 26AS (Form 168 from tax year 2026-27) shows the credit.
- Sale consideration into your NRO account; keep the deed, challans and 16A (Form 131 from 1 April 2026) together — the repatriation pack needs all of them.
Half the internet tells buyers to file 26QB. For an NRI seller that is the wrong form — it belongs to resident sales under section 194-IA. Insist on the right trail: TAN + 27Q (Form 144 from 1 April 2026) — or Form 141 with Schedule E for individual and HUF buyers from 1 October 2026.
Reinvest or pay — the exemption clocks
54EC: 6 MONTHS · 54/54F: PER SECTION
Tax on the gain can be lawfully reduced to nil if the reinvestment rules are met: a new residential house under section 54 (or 54F where you sold a non-residential asset), or capital-gain bonds under section 54EC — up to ₹50 lakh, within six months of transfer.
- Not buying immediately? Park the gain in a Capital Gains Account Scheme deposit before your return due date, or the exemption lapses.
- Each route has its own lock-ins and conditions; the right one depends on your plans, not on a thumb rule.
The 54EC six-month clock runs from the transfer date, not the money's arrival. Late bond purchases fail quietly and surface two years later in scrutiny.
Repatriation — moving the proceeds abroad
USD 1 MILLION PER FY · NRO ROUTE
Sale proceeds sitting in your NRO account can be remitted abroad under the USD 1 million per financial year scheme, through your bank, on a chartered accountant's certificate of taxes paid — Form 15CB (Form 146 for remittances from 1 April 2026) — with your Form 15CA (now Form 145) filed on the portal.
- The bank's checklist is its own animal: deed, tax computation, challans, 16A/131, PAN, sometimes the s.197/395(1) certificate. We assemble the pack once, correctly.
- Larger proceeds can travel across financial years, or with specific approvals — planned, not improvised.
Start the repatriation file the week the sale closes. The slowest step is never the tax — it is the bank's document queue.
The return — and your refund, if TDS ran heavy
ITR FOR THE YEAR OF SALE
The sale is reported in your Indian return for that year. If no lower-deduction certificate was taken and TDS was cut on the gross value, the excess comes back as a refund — but only through a correctly filed return with the credit visible in your 26AS (Form 168 from tax year 2026-27).
- Treaty positions (where relevant) and your residential status for the year are settled here, not guessed.
- We track the refund after filing; a missing 27Q/144 or Form 141 credit is chased with the buyer, not written off.
A refund delayed is usually a credit mismatch, and a credit mismatch is usually the buyer's filing. Stage 3 done right is what makes stage 6 boring.
What NRI property files teach
The tax is rarely the problem. The sequence is.
The certificate beats the refund
A section 197 / section 395(1) certificate keeps your money with you from day one. A refund returns it a year later. Same law, very different year.
Gross, not gain
Default TDS is computed on the full sale price. Sellers who budget on their gain get a cash-flow shock at closing.
The buyer can sink you
Wrong form, late deposit, no TAN — the buyer's mistakes become your missing credit. Brief them in writing, early.
Dates decide rates
One day either side of 23-Jul-2024 changes the regime. The transfer date on the deed is a tax decision, treat it like one.
Exemptions are clocks
54EC's six months, CGAS before the due date, 54's construction windows — every relief is a deadline wearing a discount.
Repatriation is paperwork, start early
15CB is quick when the file is complete. Assemble the pack from the day of closing and the bank leg stops being the bottleneck.
The forms, in one table
| Form / provision | What it is | The clock |
|---|---|---|
| s.195 | Buyer deducts TDS on gross consideration: LTCG 12.5% (transfers on/after 23-Jul-2024; 20% for earlier transfers), STCG 30% — plus surcharge and cess | At every payment / credit |
| Form 13/128 · s.197/395(1) | Lower or nil TDS certificate matched to your actual gain | File 8–12 weeks before closing; valid for the FY |
| TAN + 27Q/144 + 16A/131 / Form 141 | Buyer's registration, quarterly TDS return and your certificate (26QB/16B do not apply to NRI sellers) | Deposit by the 7th of the next month; 27Q (Form 144 from 1 April 2026) quarterly — or Form 141 with Schedule E for an individual/HUF buyer (from 1 Oct 2026) |
| s.54 / s.54F | Exemption by reinvesting in a residential house | Purchase within the section's window; CGAS deposit by return due date |
| s.54EC | Capital-gain bonds, up to ₹50 lakh | Within 6 months of transfer |
| 15CB + 15CA (now 146/145) | CA certificate and your portal filing for the remittance | Before the bank remits; USD 1M per FY from NRO |
Straight answers
How is my long-term gain taxed as an NRI?
Property held over 24 months is long-term. Transfers on or after 23-Jul-2024 are taxed at 12.5% without indexation; transfers before that date at 20% with indexation. The 20%-with-indexation option on older property is for resident individuals and HUFs only — it is not available to NRI sellers.
Can the TDS really be reduced before the sale?
Yes. A certificate under section 197 — from 1 April 2026, Form 128 under section 395(1) of the Income-tax Act 2025, which replaces Form 13 — instructs the buyer to deduct at a rate matched to your actual computed gain instead of the gross sale price. It must be obtained before closing — that is why the engagement starts 8–12 weeks ahead.
My buyer wants to file Form 26QB. Is that right?
No. 26QB belongs to purchases from resident sellers under section 194-IA. Buying from an NRI falls under section 195: the buyer needs a TAN, deposits the tax by challan, files Form 27Q and issues you Form 16A (Forms 144 and 131 for payments from 1 April 2026). From 1 October 2026, an individual or HUF buyer instead files Form 141 with its Schedule E — no TAN — and issues Form 132 (CBDT Notification 121/2026). The wrong form means your tax credit does not reach your 26AS (Form 168 from tax year 2026-27).
How much can I repatriate after the sale?
Up to USD 1 million per financial year from your NRO account under the remittance scheme, on a Form 15CB certificate with Form 15CA filed (Forms 146 and 145 for remittances from 1 April 2026). Larger amounts are planned across years or through specific approvals.
The property is jointly owned with a resident. What changes?
Each co-owner's share is taxed in their own hands: the buyer deducts under section 195 for the NRI share and section 194-IA for the resident share, with separate forms for each. Certificates and computations are done per owner.
Section references are to the Income-tax Act, 1961 as applicable to the relevant year; corresponding provisions of the Income-tax Act, 2025 apply from tax year 2026-27. Rates stated are base rates — surcharge and cess apply. This page explains process and is not advice on any specific transaction; FEMA limits and bank requirements are as current on the date of remittance.