Home › Selling property in India as an NRI: tax, TDS and sending the money abroad

Selling property in India as an NRI: tax, TDS and sending the money abroad

Updated 22 Oct 2026

How much tax does an NRI pay when selling property in India?

From 1 April 2026 an NRI pays 12.5% tax plus surcharge and 4% cess on a long-term gain on property held more than 24 months, with no indexation (Income-tax Act 2025, section 197). The buyer must deduct 12.5% plus surcharge and cess — 13% on a sale up to ₹50 lakh — under section 393(2), unless you get a lower-deduction certificate (Finance Act 2026, checked 21 Oct 2026).

Official rule: Long-term capital gains on property are taxed at 12.5% (s.197(1)(b); earlier law s.112). (source, checked 2026-10-21)

Information only — not financial, tax or legal advice. Rules from the Reserve Bank of India, the Income Tax Department and the other official sources at the bottom of the page, last checked 21 Oct 2026. For sales from 1 April 2026 (Income-tax Act 2025).

Date you bought it

What you paid (₹)With stamp duty and registration you paid.

Improvements (₹)Building work that added to the property.

Date you sell

Sale price (₹)

Selling costs (₹)Brokerage, legal fees for the sale.

New house in India bought or built with the gain (₹, optional)Section 82 (earlier law 54): one year before to two years after, or built within three years.

Specified bonds bought within six months (₹, optional)Section 85 (earlier law 54EC): at most ₹50 lakh.

Your total income in India this tax year

Up to ₹50 lakh₹50 lakh–₹1 croreAbove ₹1 crore

The buyer deducts tax on

The whole priceThe gain only

You choose the base: the whole price, or the gain shown in a lower-deduction certificate (the law says "the sum chargeable").

Exchange rate: rupees for 1 US dollar (optional)To check the USD 1 million a year limit.

Tax on the gain (estimate)₹6,37,000

Buyer's deduction at source₹12,87,000

Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.

Is the gain long-term or short-term?

Held more than 24 months, the gain is long-term (source, checked 2026-10-21) and taxed at 12.5% (section 197; earlier law section 112) (source, checked 2026-10-21), plus surcharge and 4% cess. The 20%-with-indexation relief for property bought before 23 July 2024 is only for residents (source, checked 2026-10-21). Held 24 months or less, the gain is added to your income and taxed at your normal rates (source, checked 2026-10-21).

Is the gain long-term or short-term — Indians abroad (NRI) · amounts in ₹
Long-term gain	All-in rate	Tax
₹20 lakh, income up to ₹50 lakh	13.00%	₹2,60,000
₹20 lakh, income ₹50 lakh–₹1 crore	14.30%	₹2,86,000
₹20 lakh, income above ₹1 crore	14.95%	₹2,99,000

12.5% (source, checked 2026-10-21) + surcharge (capped at 15% on capital gains (source, checked 2026-10-21)) + 4% cess (source, checked 2026-10-21). Buyer's deduction at source on a long-term gain: 13.00% / 14.30% / 14.95% of the base by the same bands.

How much TDS does the buyer deduct when an NRI sells?

The buyer deducts tax under section 393(2) (earlier law section 195), not the 1% that applies to resident sellers (source, checked 2026-10-21): 12.5% on a long-term gain (source, checked 2026-10-21) or 30% on other income (source, checked 2026-10-21), plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore, never more than 15% on capital gains) (source, checked 2026-10-21) and 4% cess. You or the buyer can apply for a lower or nil deduction certificate (section 395) (source, checked 2026-10-21); the buyer needs a TAN (source, checked 2026-10-21) and files Form No. 145 (source, checked 2026-10-21).

How can an NRI save capital gains tax on property?

A new house in India (section 82, earlier law 54): buy one within one year before or two years after the sale, or build one within three years (source, checked 2026-10-21); cost above ₹10 crore is ignored (source, checked 2026-10-21); a gain of up to ₹2 crore may go into two houses, once in a lifetime (source, checked 2026-10-21).
Specified bonds (section 85, earlier law 54EC): invest within 6 months (source, checked 2026-10-21), at most ₹50 lakh (source, checked 2026-10-21), held 5 years (source, checked 2026-10-21).

How much of the sale money can an NRI send abroad?

Up to USD 1,000,000 per financial year from sale proceeds and NRO balances, after tax (source, checked 2026-10-21). For a home bought with foreign exchange (or NRE/FCNR(B) money, or a loan repaid from them), the amount paid in that way can go back for at most 2 residential properties (source, checked 2026-10-21). Who you may sell to: anyone resident; another NRI or OCI only if it is not farmland (source, checked 2026-10-21).

Questions people ask

Is TDS for NRIs deducted on the whole sale price?

In India, the law says the buyer deducts on the sum chargeable to tax. The Assessing Officer can fix a lower amount or rate in a certificate (section 395); the calculator lets you choose the base: the whole price or the gain.

Can an NRI claim indexation on property sold in India?

No — in India, the 20%-with-indexation relief for land or buildings bought before 23 July 2024 is only for resident individuals and HUFs.

Does a buyer need a TAN to buy from an NRI?

Yes — in India, the exemption from getting a TAN (section 397(1)(c)(i)) covers only deductions under section 393(1), such as a buyer paying a resident seller; a buyer paying an NRI deducts under section 393(2), so needs a TAN and files Form No. 145.

Can an NRI send all the sale money abroad?

In India, up to USD 1,000,000 each financial year from sale proceeds and NRO balances after tax; a home bought with foreign money can be repatriated for at most two residential properties.

Sources (14)

Rules this page uses: 31, from 14 source documents. Each rule shows the date we last checked it.

Land or a building held for 24 months or less is a short-term capital asset; held longer, the gain is long-term (Income-tax Act 2025, s.2(101)(a)). (source, checked 2026-10-21)
Long-term capital gains on property are taxed at 12.5% (s.197(1)(b); earlier law s.112). (source, checked 2026-10-21)
The relief that caps tax at 20% with indexation for land or buildings bought before 23 July 2024 (s.197(3)) is only for a resident individual or HUF — not for a non-resident. (source, checked 2026-10-21)
Short-term gains on land or buildings are added to income and taxed at the normal (slab) rates; the 20% short-term rate (s.196) is only for listed equity, units and business-trust units. (source, checked 2026-10-21)
On capital gains the surcharge for an individual never exceeds 15% (Finance Act 2026, First Schedule Part I-B, Paragraph F, Table 1 Sl. 1(vi)): 10% above ₹50 lakh total income, 15% above ₹1 crore. (source, checked 2026-10-21)
Exemption for a residential house sold after more than 24 months: buy one house in India within one year before or two years after the sale, or build one within three years (s.82; earlier law s.54). (source, checked 2026-10-21)
Under s.82, the cost of the new house above ₹10 crore is ignored (s.82(7)). (source, checked 2026-10-21)
If the long-term gain is not more than ₹2 crore, the seller may once in a lifetime use it for two houses in India instead of one (s.82(5), (6)). (source, checked 2026-10-21)
Exemption by investing the long-term gain on land or a building in specified bonds within six months: at most ₹50 lakh (s.85; earlier law s.54EC). (source, checked 2026-10-21)
The specified-bond investment must be made within six months after the sale (s.85(1)(b)). (source, checked 2026-10-21)
The bonds are redeemable after five years; selling or pledging them within five years brings the exemption back into tax (s.85(3), (6)). (source, checked 2026-10-21)
Tax deducted at source on other long-term capital gains of a non-resident Indian (property included): 12.5% (Part II, item 1(b)(i)(D)). (source, checked 2026-10-21)
Tax deducted at source on 'the whole of the other income' paid to a non-resident Indian — the line that covers interest on an NRO account: 30% (Finance Act 2026, First Schedule Part II, item 1(b)(i)(O); payer's duty under s.393(2), Table Sl. No. 17). (source, checked 2026-10-21)
Health and Education Cess: 4% on top of the tax and surcharge — it applies to tax deducted from payments to non-residents (Finance Act 2026, s.3(16), (17)). (source, checked 2026-10-21)
Surcharge on tax deducted from a non-resident individual: 10% when the payments subject to deduction exceed ₹50 lakh but not ₹1 crore (Part II, Surcharge table). (source, checked 2026-10-21)
Surcharge: 15% when the payments exceed ₹1 crore but not ₹2 crore. (source, checked 2026-10-21)
On capital gains (ss.196, 197, 198) and dividends the surcharge never exceeds 15% (Part II, Surcharge table; Part I-B Paragraph F). (source, checked 2026-10-21)
Surcharge starts when the payments subject to deduction exceed ₹50 lakh (₹5,000,000). (source, checked 2026-10-21)
Second surcharge band starts above ₹1 crore (₹10,000,000). (source, checked 2026-10-21)
When an NRI sells property in India, the buyer must deduct tax under s.393(2), Table Sl. No. 17, at the 'rates in force'; the 1% rule for property (s.393(1), Table Sl. No. 3(i), earlier law s.194-IA) is only for payments to a resident seller. (source, checked 2026-10-21)
A buyer who deducts tax must apply for a tax deduction and collection account number (TAN) (s.397(1)(a)); the exemption from that applies only to deductions under s.393(1) Table Sl. Nos. 2(i), 3(i) and 6(ii) — e.g. a buyer paying a resident seller (s.397(1)(c)(i)) — not to a buyer paying an NRI under s.393(2). (source, checked 2026-10-21)
For comparison: a buyer paying a resident seller deducts 1% of the price or the stamp-duty value, whichever is higher, when it is ₹50 lakh or more (s.393(1), Table Sl. No. 3(i)). (source, checked 2026-10-21)
The 1% resident-seller rule starts at ₹50 lakh (₹5,000,000). (source, checked 2026-10-21)
The seller (payee) may apply to the Assessing Officer for deduction at a lower rate or none (s.395(1)); the payer of a non-resident may apply to have only the taxable part of the sum fixed (s.395(2)). (source, checked 2026-10-21)
Before money is paid to a non-resident, the payer files Form No. 145 (earlier Form 15CA) under rule 220 of the Income-tax Rules, 2026; for taxable payments above ₹5 lakh in the tax year without an officer's certificate, an accountant's certificate in Form No. 146 (earlier 15CB) is also needed (Part C). (source, checked 2026-10-21)
From NRO balances and sale proceeds of assets in India, an NRI or PIO may send abroad up to USD 1 million per financial year (April–March), with documents, through one bank, after tax (Master Direction – Remittance of Assets, para 3.2). (source, checked 2026-10-21)
Money sent abroad from India under these rules is subject to payment of the applicable Indian taxes first (para 5). (source, checked 2026-10-21)
Sale proceeds of residential property bought with foreign exchange (or NRE/FCNR(B) money) may be sent abroad for at most two residential properties, up to the foreign exchange paid in (RBI Master Direction on immovable property, para 8.2). (source, checked 2026-10-21)
Home-loan instalments an NRI or OCI paid from abroad or from an NRE/FCNR(B) account count as foreign exchange when the sale money is sent abroad (para 8.2(ii)). (source, checked 2026-10-21)
An NRI or an OCI may sell or give any property to a resident; to another NRI or OCI only property other than agricultural land, farm house or plantation (rule 24(d), (e)). (source, checked 2026-10-21)
The Income-tax Act, 2025 (Act 30 of 2025) has been in force since 1 April 2026 and replaced the Income-tax Act, 1961; the current year is tax year 2026-27 (1 Apr 2026 – 31 Mar 2027). (source, checked 2026-10-21)

This page's sources on the sources page, with every other page in this section →