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TDS on Property Sale (NRI)
When a Non-Resident Indian (NRI) sells a property in India, the tax deduction rules are significantly different—and much more complex—than when a resident sells a property.
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TDS on Property Sale (NRI)
TDS Management
₹3,499
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TDS on Property Sale (NRI) SUPPORT
File Your TDS on Property Sale (NRI) With Confidence
When a Non-Resident Indian (NRI) sells a property in India, the tax deduction rules are significantly different—and much more complex—than when a resident sells a property.
TDS return filing
Challan and certificate
Documentation support
NRI expert support
Quick payment advice
File TDS on Property Sale (NRI)
Share your details for expert CA-assisted review and instant tax filing assistance.
How our TDS on Property Sale (NRI) Process Works
A simple, guided process to help you move from document collection to filing confirmation.
01
Expert Case Review
Our CA checks applicable TDS sections, rates, and details.
02
03
Prepare TDS Returns
We calculate TDS, prepare challans, and complete return data.
File & Confirm
We file TDS returns and share confirmation with you.
04
Understanding TDS on Property Sale (NRI)
Governed primarily by Section 195 of the Income Tax Act, the buyer is legally obligated to deduct Tax at Source (TDS) before making the payment to the NRI seller. Because NRIs are taxed on their Indian capital gains, the tax department requires a higher level of security to ensure the tax is collected. Consequently, the TDS rate is not a flat 1% (like it is for residents); it is based on the estimated capital gains from the sale, which can result in a massive deduction if not planned correctly.
The Critical Difference: How Tax is Calculated
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Resident Seller: The buyer deducts a flat 1% of the total sale value (if the property is worth ₹50 Lakhs or more) under Section 194-IA.
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NRI Seller: The buyer must deduct tax under Section 195. The tax is calculated on the Capital Gains (the profit made on the sale), not the total sale value.
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Long-Term Capital Gains (LTCG): If the property was held for more than 24 months, the tax is typically 20% (after applying indexation benefits).
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Short-Term Capital Gains (STCG): If held for less than 24 months, the tax is based on the seller's income tax slab rate.
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Surcharge and Cess: Health and Education Cess (4%) and applicable surcharges are added to these rates.
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No PAN Penalty: If the NRI seller does not have a valid PAN, the buyer must deduct a punitive 20% of the ENTIRE sale value (not just the profit).
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Frequently Asked Questions on TDS on Property Sale (NRI)
Get clear answers to the most common questions regarding TDS on Property Sale (NRI), required documents, and timeline.
The plan you choose depends entirely on the nature of the payment you are making. Choose TDS on Salary if you are an employer deducting tax from employee paychecks. Choose TDS on Other Payments for vendor or contractor invoices. Select TDS on Rent if you are paying rent. Finally, use the TDS on Property Sale or TDS on Property Sale (NRI) plans if you are a buyer purchasing property.
The TDS on Salary plan and the TDS on Other Payments plan both have a stated limit of a maximum of 20 employees/transactions covered. If your business exceeds these limits, you will likely require a customized enterprise plan. We recommend contacting support (via the WhatsApp icon) to discuss pricing for higher volumes.
While both are priced at ₹999 and ₹2,999 respectively, the NRI plan is more expensive due to the complexity involved. The NRI plan includes specific documentation support, which is crucial because property transactions involving Non-Resident Indians require additional regulatory compliance (like obtaining a Lower Deduction Certificate or dealing with special rates under Section 195) compared to standard resident transactions.
The plan explicitly lists "Generate form 130 for employee" (Note: this likely refers to the tax computation/Form 16 generation utility on the TRACES portal). It also includes TRACES registration and TDS return filing, ensuring your employees have the necessary documents for their own income tax filing.
The plans include "Challan preparation" (for Rent and Property Sale plans). This means our experts will calculate the tax and prepare the necessary challan details for you to make the payment. However, the actual transfer of funds (tax payment) must be made by you through your bank. Once paid, we handle the return filing and certificate generation.
For the standard Property Sale plan, "end to end support" means we handle the entire compliance cycle. This includes preparing the challan for the 1% TDS deduction, filing the Form 26QB return, generating the TDS certificate for the seller, and ensuring you have all the necessary documents to prove compliance to the tax department.
TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the official portal for managing TDS. Registering on TRACES is mandatory for employers to download the necessary returns, track deductions, and generate crucial documents like Form 16 and Form 16A for their employees. The ₹2,998.98 plan includes setting this up for you.