NRI property-sale TDS & tax calculator

Here is the number most NRIs learn too late: when you sell your flat, the buyer does not deduct TDS on your profit. They deduct it on the entire sale price. Sell for a crore and the tax department can hold roughly fourteen lakh before anyone has worked out your actual gain.

The gap between that withholding and your real tax is your own money, parked with the government for the year or more it takes a refund to arrive. This calculator shows you all of it: the real capital-gains tax, the TDS the buyer must cut, the refund that gets stuck, and how much a Lower Deduction Certificate frees up if you file it before you sign.

What it does

• Real capital-gains tax at 12.5% (long-term, no indexation) with surcharge and 4% cess
• The TDS the buyer withholds under Section 195, on the full sale value
• The refund that locks up for 12 to 24 months without a certificate
• What a Section 197 Lower Deduction Certificate (Form 13, Form 128 from April 2026) saves you
• A downloadable report with the numbers, the checklist, and the documents

Common questions

Is TDS on an NRI property sale really deducted on the full sale value?

Yes. Under Section 195 the buyer withholds tax on the entire sale consideration, not on your capital gain, unless you obtain a Lower Deduction Certificate first. On a long-term sale the effective rate is about 13 to 15 percent of the whole price. The excess over your actual tax comes back only as a refund, which takes 12 to 24 months.

Can an NRI use indexation to reduce capital gains on property?

No. Since 23 July 2024, long-term capital gains on property are taxed at 12.5 percent without indexation. The option to instead pay 20 percent with indexation is available only to resident individuals and HUFs who bought before that date. NRIs do not get the choice.

How do I stop so much money being withheld?

Apply for a Lower or Nil Deduction Certificate under Section 197 (Form 13, becoming Form 128 from 1 April 2026) before the sale. It directs the buyer to deduct TDS on your actual gain rather than the full price, so you are not chasing a large refund for a year.

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

Yes. A buyer purchasing from an NRI must obtain a TAN, deduct under Section 195, deposit the TDS, file Form 27Q every quarter, and issue you Form 16A. This is different from buying from a resident, where the buyer deducts 1 percent under Section 194-IA with only a PAN.

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• NRI repatriation calculator (NRO to NRE) — How much you can send abroad, and the forms each transfer needs.
• Cost of managing property from abroad — The gap between the headline rent and what you keep.
• Retire-in-India corpus calculator — How much you need, and what to save each month to get there.
• NRI rental income tax & tenant-TDS calculator — Rent tax from both sides: what you owe, and who must deduct.

Related reading

• TDS on sale of property by an NRI, explained
• Capital gains tax on NRI property: the full guide
• Selling property in India as an NRI: the playbook
• Repatriating sale proceeds from your NRO account

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