KEY: “Knowledge Empowers You!” to make informed decisions. For a NRI, the capital gains on sale of immovable property would be taxable in India. It’s critical that Non Resident Indians (NRIs) understand the complexities involved in this process. It becomes challenging for all the NRIs to sell a property in India as the buyer of such properties is required to withhold TDS as per provisions of Section 195 of the Income Tax Act, 1961.

For Long term capital Assets, TDS is deducted @ 20% plus applicable surcharge and cess and in case of Short term the TDS rate is around 30% plus applicable surcharge and cess. NRIs can either claim a refund of excess TDS deducted while filing the tax returns in next financial year or make an online application in Form 13 to issue a Lower TDS certificate (a walk-through of this Lower TDS process has been shared as another resource). This document on NRI taxation is a good read to acquire a basic understanding of NRI TDS process.

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