NRI Property TDS Calculator — Section 393 TDS on Sale of Property by an NRI
Selling property in India as an NRI? The buyer must deduct TDS on the full sale price, not the profit. See your deduction, your actual tax, and what a Form 13 certificate saves.
| Income-tax Act, 1961 | Income-tax Act, 2025 | Provision |
|---|---|---|
| Section 195 | Section 393 (non-resident table) | Buyer's TDS on payment to NRI seller |
| Section 197 / Form 13 | Section 395 | Lower-deduction certificate route — continues |
| Section 194-IA (residents only) | Section 393(1) Table | The 1% deduction that does NOT apply to NRI sellers |
| Section 54 | Section 82 | Reinvestment in a residential house |
| Section 54EC | Section 85 | Capital-gains bonds |
| Section 50C | Section 78 | Stamp-duty value as deemed consideration |
📋 Buyer's Compliance Checklist (Section 393)
🌍 NRI Seller's Action Items
NRI Selling Property in India?
We handle Lower TDS certificates (Form 13), capital gains computation, ITR filing, Form 15CA/15CB certification, and DTAA advisory — end to end.
Book Free NRI Tax Consultation →When an NRI sells property in India, the buyer must deduct TDS under Section 393 — on the full sale price, not the profit — at effective rates of roughly 13% to 14.95%. This calculator shows the deduction, and the legal route to cut it down to tax on the actual gain.
This is the single most misunderstood transaction in NRI taxation — by buyers, sellers and often their banks. The numbers below explain what the calculator computes.
TDS rates when an NRI sells property — FY 2025-26
For property held over 24 months (long-term), tax is 12.5% on the gain — but TDS applies to the entire sale consideration at 12.5% plus surcharge and cess:
| Sale consideration | Surcharge | Effective TDS rate |
|---|---|---|
| Up to ₹50 lakh | Nil | 13.00% |
| ₹50 lakh – ₹1 crore | 10% | 14.30% |
| Above ₹1 crore | 15% (capped for LTCG) | 14.95% |
- Rates include Health and Education Cess of 4%. The surcharge on long-term capital gains is capped at 15%, so the effective rate tops out at 14.95% even on very large sales.
- Short-term (held 24 months or less): gains are taxed at slab rates, so TDS runs at 30%-plus on the consideration.
- No indexation for NRIs: for transfers on or after 23 July 2024, the 12.5%-without-indexation rate applies. The option to instead pay 20% with indexation on pre-23-Jul-2024 property is available only to resident individuals and HUFs — an NRI seller cannot take it.
The 1% mistake that triggers notices
Buyers routinely deduct 1% under Section 393(1) Table (resident purchases) (Form 26QB) because that is what happens in every resident-to-resident deal. Section 393(1) Table (resident purchases) does not apply when the seller is an NRI. The correct law is Section 393 — full rates, and a different compliance trail: the buyer needs a TAN, deposits the TDS by the 7th of the next month, files Form 27Q quarterly, and issues Form 16A to the seller. A buyer who deducted 1% is treated as an assessee-in-default for the shortfall, with interest.
Worked example: ₹2 crore sale by a US-based NRI
Flat in Mumbai bought in 2015 for ₹1.2 crore, sold in FY 2025-26 for ₹2 crore (held long-term):
| Route | TDS deducted |
|---|---|
| Default: TDS on full consideration (₹2,00,00,000 × 14.95%) | ₹29,90,000 |
| With Section 395 certificate: tax on actual gain (₹80,00,000 × 14.30% — surcharge follows the gain, not the sale price) | ₹11,44,000 |
| Cash NOT locked up with the department | ₹18,46,000 |
That is the entire case for the Form 13 application: the seller applies on TRACES for a lower-deduction certificate under Section 395, the Assessing Officer certifies TDS limited to the tax on the actual gain, and the buyer deducts only that. Without it, the excess sits with the department until the seller files an ITR and waits for the refund — often a year or more. Apply before the sale agreement is executed; the certificate typically takes a few weeks.
Which Act applies to your sale?
India changed its income-tax law on 1 April 2026. Which statute governs the TDS depends on when your sale happens:
- Sale up to 31 March 2026: the Income-tax Act, 1961 — TDS under Section 393, lower-deduction certificate under Section 395.
- Sale on or after 1 April 2026 (tax year 2026-27): the Income-tax Act, 2025 — TDS on payments to non-residents now sits in the Section 393 tables, with the lower-deduction certificate route continuing under the corresponding provision. The mechanics — deduction on the full consideration, the certificate to limit it to tax on the gain — carry forward.
The rates shown above apply for FY 2025-26; the 2025 Act carries the same rate structure into tax year 2026-27.
After the sale: repatriating the money
Sale proceeds land in the NRO account. Moving them abroad needs Form 15CA/15CB (CA certification), and repatriation is allowed up to USD 1 million per financial year from NRO balances under FEMA. The full sequence — TDS, ITR, refund, 15CA/15CB, NRO-to-NRE — is in our complete Section 393 property-sale guide.
Frequently asked questions
What is the TDS rate when an NRI sells property in India?
For property held over 24 months, the buyer deducts under Section 393 at 12.5% plus surcharge and 4% cess on the full sale consideration - effectively 13% up to Rs 50 lakh, 14.30% between Rs 50 lakh and Rs 1 crore, and 14.95% above Rs 1 crore (the LTCG surcharge is capped at 15%). Short-term sales attract TDS at slab rates, 30%-plus.
Does the 1% TDS under Section 393(1) Table (resident purchases) apply to NRI sellers?
No. Section 393(1) Table (resident purchases) (Form 26QB, 1%) applies only when the seller is a resident. With an NRI seller, Section 393 applies - full rates on the consideration, and the buyer needs a TAN, deposits TDS monthly, files Form 27Q quarterly and issues Form 16A.
How can an NRI reduce TDS on a property sale?
Apply in Form 13 on TRACES for a lower-deduction certificate under Section 395 before executing the sale. The certificate limits TDS to the tax on the actual capital gain instead of the full sale price - in a typical case this releases lakhs that would otherwise wait in the refund queue.
Can an NRI use indexation on a property sale?
No. For transfers on or after 23 July 2024, long-term gains are taxed at 12.5% without indexation. The alternative of 20% with indexation for property acquired before that date is available only to resident individuals and HUFs - NRI sellers are outside that option.
Can the sale money be sent abroad?
Yes. Proceeds are credited to the NRO account, and repatriation of up to USD 1 million per financial year is permitted under FEMA with Form 15CA and a CA-certified Form 15CB. Amounts beyond that need RBI approval.
Does the new Income-tax Act 2025 change TDS on NRI property sales?
The law moves, the mechanics do not. For sales from 1 April 2026 the Income-tax Act 2025 applies - TDS on payments to non-residents sits in the Section 393 tables instead of Section 393 - but the buyer still deducts on the full sale consideration, and the lower-deduction certificate route continues under the corresponding provision.
What happens if excess TDS was already deducted?
The seller claims the refund by filing an ITR for that year - capital gains computed on actual figures, TDS credited from Form 26AS. The refund route works but ties the money up until processing; the Form 13 route avoids the lock-up entirely.
Rates as applicable to FY 2025-26 (AY 2026-27), Income-tax Act, 1961; Income-tax Act, 2025 for sales from 1-Apr-2026; FEMA 1999 for repatriation. General information, not tax advice - the right course depends on your facts. Vijay R Singh & Co., Chartered Accountants · FRN 136869W · ICAI M.No. 153926 · Mumbai.