Selling a house, flat or plot in India while you live abroad? We are Chartered Accountants in Kochi who have handled 350+ NRI property transactions in the last 10 years. We plan the capital gains before you sign, obtain a lower TDS certificate (Form 128, earlier Form 13), have our in-house lawyer draft a sale agreement that protects you from the buyer, file your return to recover excess TDS, and certify and repatriate the proceeds with Form 146 (earlier Form 15CB). Online, for NRIs in the Gulf, UK, USA and worldwide.
Led by Regi Tom Antony, FCA, MBA (Australia), ACMA (UK), CGMA (USA), CISA (USA), former Group CFO/COO (OSRAM/Siemens, Westcon Group; Middle East & Africa).
An NRI who sells property in India pays capital gains tax in India, and the buyer must deduct TDS from the full sale price under section 393 of the Income-tax Act, 2025 (earlier section 195): about 13% to 15% of the price for property held over 24 months, and more for a short-term sale, unless you hold a lower TDS certificate. Long-term gains are taxed at 12.5% without indexation under section 197 (earlier section 112), and can be reduced or eliminated by reinvesting in a house under section 82 (earlier section 54), in capital gains bonds under section 85 (earlier section 54EC), or through the Capital Gains Account Scheme. Regi Tom Antony & Associates, Chartered Accountants in Kochi since 1997, has handled more than 350 NRI property transactions in the last 10 years. The firm plans the gain before you sign, applies for the lower TDS certificate in Form 128 (earlier Form 13), drafts a protective sale agreement through its in-house lawyer, files the return for your TDS refund, and certifies the repatriation in Form 146 (earlier Form 15CB).
Most of the money an NRI loses on a property sale is lost before the sale deed: in the price, the structure, the payment terms and the TDS. By the time the buyer has deducted tax, the choices have narrowed.
Without a certificate, a buyer deducts TDS on the whole sale price. On a ₹1 crore sale with a ₹30 lakh gain, that can lock up about ₹14.3 lakh when the real tax may be under ₹4 lakh, or nil after reinvestment.
Bonds must be bought within six months of the sale, and a new house within one to three years. Miss a date and the exemption is lost.
Excess deductions, TDS deducted but never deposited, cash demands and misused powers of attorney are common when the seller is abroad.
The US, UK, Canada and Australia may tax the same gain; the DTAA and foreign tax credit decide where you finally pay.
An NRI sells a flat held for six years for ₹1 crore. Cost, improvements and transfer costs come to ₹70 lakh, so the long-term gain is ₹30 lakh. The route chosen before the agreement decides how much cash is locked up, and for how long.
| ROUTE | TDS AT SALE | FINAL TAX | CASH LOCKED UP |
|---|---|---|---|
| No certificate, no reinvestment | ₹14,30,000 (14.3%) | ₹3,90,000 | ₹10,40,000 until the refund |
| Lower TDS certificate, Form 128 (earlier Form 13) | About ₹3,90,000 | ₹3,90,000 | Nil |
| Certificate + ₹30 lakh in capital gains bonds, section 85 (earlier 54EC) | Lower or nil, if the officer accepts the plan | Nil | ₹30 lakh in bonds for 5 years |
| Certificate + a new house in India of ₹30 lakh or more, section 82 (earlier 54) | Lower or nil, if the officer accepts the plan | Nil | Money in the new house |
Arithmetic: 12.5% of ₹30 lakh is ₹3,75,000; with 4% cess, ₹3,90,000 (no surcharge, as income is below ₹50 lakh). TDS on a ₹1 crore price is 12.5% plus 10% surcharge plus 4% cess = 14.3%; above ₹1 crore the surcharge is 15% (14.95%). Try your own figures in the NRI property TDS and capital gains calculator on NRI Blueprint.
Our premium planning engagement starts as soon as you think about selling, and before the agreement is signed. Regi Tom Antony leads it personally, with a written plan for each owner.
Holding period past 24 months for long-term rates; the financial year of sale; and, if you are returning to India, whether selling before or after you become resident changes the TDS (resident sellers face 1% TDS, NRIs about 13% to 15%).
Cost of acquisition and improvement, brokerage and legal costs, inherited cost and holding period of the previous owner, and the stamp duty value rule (earlier section 50C) where the agreed price is below the government value.
Each co-owner has a separate gain, TDS, surcharge slab, bond limit and USD 1 million repatriation limit, so the split matters.
An after-tax comparison of reinvesting in India against paying the tax and taking the money abroad, including your home-country tax.
India keeps the right to tax gains on Indian property under the DTAA; we plan the foreign tax credit in your country of residence with your overseas adviser.
Form 128 (earlier Form 13) filed on TRACES under section 395 (earlier section 197) before the agreement, so the buyer deducts only the tax actually due.
Background reading: NRI capital gains tax on property in 2026 · how NRIs can reduce TDS on a property sale · 6 legal ways to reduce TDS on NRI Blueprint
The Income-tax Act, 2025 carries forward the familiar capital gains exemptions under new section numbers. The table shows the main options for an NRI selling residential property or land held for more than 24 months (Income Tax Department: capital gains exemptions).
| OPTION | WHAT YOU DO | LIMIT AND TIME | BEST FOR |
|---|---|---|---|
| Section 82 (earlier section 54) | Buy or build a residential house in India with the gain from selling a house | Buy 1 year before or 2 years after the sale, or build within 3 years; exemption capped at ₹10 crore | Sellers who want a home in India, or are returning |
| Section 86 (earlier section 54F) | Invest the net sale price of a plot or commercial property in a residential house | Same time limits; whole price must be invested for full exemption; conditions on owning other houses | Plot and land sellers |
| Section 85 (earlier section 54EC) | Invest the gain from land or building in notified capital gains bonds | Within 6 months of the sale; up to ₹50 lakh; 5-year lock-in | Sellers who do not want another property |
| Capital Gains Account Scheme | Park the amount in a CGAS account at a bank until you buy or build | Deposit before your return due date | When the new house is not yet chosen |
| Combination | Bonds for part of the gain, a house for the rest, tax on the balance | Each limit applies separately | Larger gains |
Short-term gains (property held 24 months or less) are taxed at slab rates and do not qualify for these exemptions. NRIs cannot use the indexation option that resident individuals have for property bought before 23 July 2024. Sale proceeds reinvested in India stay subject to FEMA; we plan this alongside repatriation.
NRIs are an easy target because they are abroad and in a hurry. Our in-house lawyer drafts or reviews the agreement for sale, the power of attorney and the deed, and we build the tax and TDS terms into them.
We also check title documents, the encumbrance certificate and tax receipts, and confirm the buyer's TDS appears in your annual tax statement (Form 26AS / AIS). Where a dispute has to go to court, we work alongside your advocate. Related: powers of attorney for NRIs on NRI Blueprint.
Avoid them with the 30-day pre-sale checklist. Detail on NRI Blueprint: stamp duty value rule · joint owners and TDS · house vs bonds · selling through a power of attorney · when the buyer does not deposit TDS.
Illustrative scenarios of the situations we handle, not accounts of named clients. Facts are simplified; your own position depends on your documents and residence.
Cost and holding period taken from the parent, each sibling taxed on their own share with a separate Form 128 (earlier Form 13), and the Indian tax claimed as a foreign tax credit on the US return.
Proceeds up to the original foreign-exchange investment repatriated in full, the balance through the USD 1 million NRO route with Form 146 (earlier Form 15CB), and the India–UK DTAA used for UK credit.
Section 86 (earlier 54F) would have needed the whole sale price reinvested, so the gain went into capital gains bonds under section 85 (earlier 54EC) within six months instead.
A power of attorney limited to the one sale, apostilled in Germany and stamped in Kerala within three months, with payment allowed only into the NRO account.
The credit was missing from Form 26AS; the buyer filed a correction statement and the refund was released. With no capital gains tax in Singapore, the Indian tax was the final cost, so reinvestment mattered.
Selling after becoming resident cut TDS from about 14% of the price to 1%, and opened the choice between 12.5% without indexation and 20% with indexation for property bought before 23 July 2024.
From 1 April 2026 the buyer deducts TDS under section 393 of the Income-tax Act, 2025 (earlier section 195), on the sale price unless a lower TDS certificate is issued. Indicative effective rates, including 4% cess, for an individual seller:
| SALE PRICE (PER SELLER) | LONG-TERM (HELD OVER 24 MONTHS) | SHORT-TERM (24 MONTHS OR LESS) |
|---|---|---|
| Up to ₹50 lakh | 13.0% | 31.2% |
| ₹50 lakh to ₹1 crore | 14.3% (10% surcharge) | 34.32% (10% surcharge) |
| Above ₹1 crore | 14.95% (15% surcharge) | 35.88% or more (15% surcharge and above) |
Surcharge on long-term gains on property is capped at 15%. These are deduction rates, not your final tax: your return settles the actual tax and any refund. Step-by-step guides: TDS on sale of property by an NRI · TDS on NRI property sale on NRI Blueprint.
Capital gains estimate for each owner, exemption plan, and a deal structure before you agree the price.
Guide on NRI Blueprint: Selling property as an NRIForm 128 (earlier Form 13) on TRACES under section 395 (earlier section 197), with the computation and documents the officer needs.
Guide on NRI Blueprint: Lower TDS certificate guideDrafting and review by our in-house lawyer, with TDS and payment safeguards and a sale-specific power of attorney.
We check the buyer deposits the TDS correctly, that it reflects in your Form 26AS / AIS, and chase the TDS certificate.
Your income tax return with the capital gains, exemptions and DTAA position, and the refund of excess TDS.
Guide on NRI Blueprint: How NRIs file income taxOUR SERVICE →Form 146 (earlier Form 15CB) CA certificate, Form 145 (earlier Form 15CA), and the remittance from NRO within the USD 1 million a year limit.
Guide on NRI Blueprint: Repatriating sale proceedsOUR SERVICE →Selling inherited property? See inherited property for NRIs. Selling from the Gulf or the UK? Gulf guide · UK guide. Full walkthrough: NRI selling property in India: the complete guide.
If the buyer deducted more than your actual tax, the excess comes back only through your income tax return. We file the return with the capital gains, exemptions and DTAA position, respond to any query, and track the refund to your Indian bank account. Related: can NRIs claim a refund of excess TDS?
Under RBI rules (RBI Master Directions), NRIs can remit up to USD 1 million each financial year from NRO balances, including property sale proceeds, after tax. Property bought with foreign exchange or NRE funds can be repatriated up to the amount originally paid, for up to two residential properties. Agricultural land, plantations and farmhouses can be sold only to a resident Indian citizen. We certify the remittance in Form 146 (earlier Form 15CB) and file Form 145 (earlier Form 15CA).
Read more: NRI repatriation in 2026: Form 145 and Form 146 · repatriation of sale proceeds on NRI Blueprint · our Form 146 / 15CB certification service
A resident buyer who pays an NRI seller must deduct TDS under section 393 (earlier section 195) at the rates above, not the 1% that applies to resident sellers. Getting this wrong makes the buyer liable for the shortfall, with interest and penalty.
Confirm the seller is non-resident and ask for any Form 128 (earlier Form 13) lower TDS certificate.
On the full price, or as the certificate directs, for each NRI co-owner separately.
Deposit the TDS, file the quarterly TDS statement and issue the TDS certificate. Budget 2026 announced a PAN-based deposit route for resident buyers in place of a TAN; we confirm the current route on the day.
Agreement clauses, challans and certificates on file, in case the department asks later.
Buyer's guide: TDS on purchase of property from an NRI · buying property as an NRI on NRI Blueprint.
Tell us the property, the expected price, when you bought it and who owns it. We will reply with a short checklist, an initial view of the tax, and a call slot in your time zone.