28 Aug 2026Selling property in India as an NRI can involve significant tax deductions. Under Section 195 of the Income Tax Act, buyers generally deduct TDS from payments made to NRIs for property purchases. However, if the actual tax liability is lower than the prescribed TDS, an NRI can apply for a Lower TDS Certificate under Section 197 to reduce the amount deducted.
What Is a Lower TDS Certificate Under Section 197?
A Section 197 certificate allows the Income Tax Department to authorize deduction of tax at a lower rate or, in eligible cases, at nil rate. For an NRI selling property, this can help avoid excessive TDS deductions and improve cash flow. The application considers factors such as the property's sale value, purchase cost, holding period, capital gains and applicable tax provisions.
How Can an NRI Apply?
The NRI seller can apply to the Assessing Officer using the prescribed online procedure and provide supporting documents. These may include the sale agreement, property purchase documents, cost details, previous tax returns, PAN, estimated capital gains and other relevant information. The Assessing Officer reviews the application and determines an appropriate lower deduction rate.
Obtaining professional assistance can make the process easier, particularly when the transaction involves NRI property taxation, capital gains, TDS compliance and repatriation requirements.
Regitom Antony & Associates provides professional NRI taxation services in Kochi, assisting NRIs with property-sale taxation and related compliance. Their services include NRI tax return filing, capital gains tax computation, TDS compliance, tax planning, lower TDS certificate assistance and property transaction advisory. As an experienced tax consultant in Kochi, the firm helps NRIs understand their tax obligations and manage documentation efficiently.
For NRIs based abroad or managing property in Kerala, professional guidance from an NRI tax consultant in Kochi can help reduce compliance risks and ensure appropriate tax treatment.
Frequently Asked Questions
Can an NRI apply for a lower TDS certificate for property sale?
Yes. An eligible NRI property seller can apply under Section 197 when the expected tax liability is lower than the normal TDS deduction.
Who issues the Section 197 certificate?
The certificate is issued by the Income Tax Department's Assessing Officer after reviewing the application and supporting information.
Does a lower TDS certificate eliminate capital gains tax?
No. It only determines the applicable TDS deduction. The final tax liability is calculated separately based on the applicable tax rules.
Can Regitom Antony & Associates help with the application?
Yes. Regitom Antony & Associates can assist with NRI taxation services in Kochi, documentation, tax computation, TDS compliance and related property-sale tax matters.
Why should NRIs consult a tax professional?
Professional NRI tax services in Kochi can help ensure accurate calculations, proper documentation and compliance with Indian tax requirements.