NRI Property Sale in Delhi: Lower TDS and 15CA/15CB
What an NRI selling a flat or plot in India should arrange before the registry: the buyer’s TDS, a lower or nil deduction certificate in Form 128, treaty relief and repatriation of the proceeds.
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Quick answers
How much TDS is deducted when an NRI sells property?
Without a certificate, tax on the full sale price at the rate for the gain: for a long-term gain (property held over 24 months), 12.5% plus surcharge and 4% cess, which is about 13% to 14.95% depending on the amount. For a short-term gain, the rate in force for the NRI, generally 30% plus surcharge and cess.
How does an NRI get a lower TDS certificate?
By applying online on the TRACES portal in Form 128 (Form 13 before 1 April 2026) to the Assessing Officer with jurisdiction, with the sale agreement, purchase deed, capital gains computation and the buyer’s details. If approved, the certificate names the buyer, the amount and the lower rate, and the buyer deducts at that rate.
How much can an NRI repatriate from property sale proceeds?
Up to USD 1 million per financial year from the NRO account, including sale proceeds of assets, after tax is paid or deducted, under the RBI Master Direction on Remittance of Assets. Transfers to an NRE account within this limit are expressly included in the FEMA Deposit Regulations from June 2026. More than that needs RBI approval through the bank.
What our NRI Property Sale TDS service covers
How the engagement works
How to start
Send these three things first:
- The purchase deed (or allotment letter and payment receipts) for the property
- The draft agreement to sell, with the buyer’s name, PAN and the price
- Your PAN, passport pages showing residential status, and your overseas address
What happens next: The scope and the remaining documents are confirmed in an engagement letter, and a timeline is drawn up against the registry date.
Documents required
- → Seller’s PAN and passport (with visa / residence permit)
- → Purchase deed or allotment letter, and payment proofs
- → Agreement to sell with the buyer’s name, PAN / TAN and price
- → Stamp duty (circle rate) value of the property
- → Tax residency certificate and Form 10F (Form 41)
- → NRO account statement and bank details
- → Details of reinvestment planned (new house or bonds)
- → Power of attorney, if a relative in India is acting
For a specific NRI Property Sale TDS matter, you may send the details through the contact form, call +91 88022 54567 or write on WhatsApp (Mon–Sat, 10:00 AM–7:00 PM). Please do not send passwords or OTPs.
TDS, the Form 128 certificate and repatriation: how it works
Why the buyer deducts on the full price
Any person paying a non-resident a sum chargeable to tax must deduct tax under Section 195 of the 1961 Act, which from 1 April 2026 is Section 393(2) of the Income-tax Act, 2025. On a Rs 1.5 crore sale where the actual gain is Rs 30 lakh, that can mean over Rs 20 lakh deducted against a real tax of about Rs 4 lakh, with the balance recoverable only as a refund after the return is processed. The 1% TDS for resident sellers (old Section 194-IA) does not apply when the seller is a non-resident.
| Gain | Rate on which TDS is based | Effective rate with surcharge and 4% cess |
|---|---|---|
| Long-term (held over 24 months) | 12.5%, no indexation for non-residents | 13.0% (payment up to Rs 50 lakh), 14.3% (over Rs 50 lakh to Rs 1 crore), 14.95% (over Rs 1 crore) |
| Short-term (24 months or less) | Rate in force for the NRI, generally 30% | Higher, depending on surcharge |
The TDS on property calculator shows the figures for resident and non-resident sellers.
Lower or nil deduction certificate: Form 128
- Who applies: the NRI seller, online on TRACES, to the Assessing Officer (TDS) with jurisdiction. From 1 April 2026 the application is Form 128 under Section 395(1); until 31 March 2026 it was Form 13 under Section 197. A Section 197 certificate already issued for the projected receipts of Tax Year 2026-27 remains valid for payments from 1 April 2026.
- What it contains: the buyer’s name and PAN or TAN, the amount, the rate and the validity period. The buyer deducts at that rate only for that transaction.
- What the officer looks at: the computation of the gain (cost, indexation where allowed, improvement), the stamp duty value, any exemption claimed for reinvestment, earlier returns and outstanding demands.
- When to apply: as soon as the buyer and price are agreed and a draft agreement exists, and well before the registry. The certificate must be available before the buyer pays; a certificate issued after payment does not reduce TDS already deducted. Processing time varies, so allow several weeks.
- Electronic route: the Finance Act 2026 added Section 395(6): the application may also be filed before a prescribed income-tax authority, which issues or rejects the certificate on electronic verification of its contents, subject to conditions to be prescribed. The TRACES portal shows whether this route is open for a particular case.
A starting format for the covering application is in the Section 197 / 395 application template.
A typical timeline
| When | Step |
|---|---|
| Before marketing | Gather the purchase deed and payment proofs; check the circle-rate value; estimate the gain. |
| Buyer and price agreed | Sign or draft the agreement; obtain the buyer’s PAN (and TAN, where needed); file Form 128. |
| Certificate issued | Share it with the buyer; fix the registry date. |
| Registry | Buyer deducts TDS at the certificate rate and pays the balance into the seller’s NRO account. |
| Following month | Buyer deposits the TDS and later files the TDS statement and issues the certificate. |
| Within 6 months / by the return due date | Invest in bonds or a house, or deposit in the Capital Gains Account Scheme, if exemption is planned. |
| Return season | NRI files the return and claims any refund. |
| After tax is settled | Remit the proceeds with Forms 15CA / 15CB (145 / 146). |
The buyer’s side: TAN and the TDS statement
A buyer deducting tax from a non-resident has traditionally needed a TAN, files the quarterly statement in Form 144 (Form 27Q before 1 April 2026) and issues a TDS certificate. For transactions from 1 October 2026, the Finance Act 2026 (new Section 397(1)(c)(iii)) lets a buyer who is a resident individual or HUF deduct and deposit this TDS using PAN, without a TAN. Companies, firms and non-resident buyers still need a TAN.
Tax treaties and the seller’s home country
Most of India’s tax treaties allow India to tax gains from immovable property situated in India, so a treaty rarely reduces the Indian tax on a property sale. Its use is usually in the country of residence, which may give credit for the Indian tax paid. To rely on any treaty provision, the NRI needs a tax residency certificate from that country and Form 10F (Form 41 from 1 April 2026); see the Form 10F / 41 template.
Can an NRI save the tax?
Yes: the house exemption (Section 54, now 82) and bonds up to Rs 50 lakh (Section 54EC, now 85) are open to NRIs, and planned reinvestment can be put before the officer in the Form 128 application. Only the indexation option for property bought before 23 July 2024 is limited to residents. See capital gains tax on property sale.
Repatriation of the sale proceeds
- NRO route: under the RBI Master Direction – Remittance of Assets, an NRI or PIO may remit up to USD 1 million per financial year from NRO balances and sale proceeds of assets, including transfers to an NRE account (expressly included in the Deposit Regulations from June 2026). Remittances above that need RBI approval through the bank.
- Property bought in foreign exchange: under Regulation 8 of the FEMA (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, the AD bank may allow the sale proceeds to be repatriated where the property (other than agricultural land, a farm house or a plantation) was acquired under the foreign exchange law and paid for in foreign exchange through banking channels or from an FCNR or NRE account; for residential property, this is limited to not more than two properties.
- Paperwork: the bank asks for Form 15CA and, where required, a CA certificate in Form 15CB (Forms 145 and 146 from 1 April 2026), proof of tax paid or deducted, the sale deed and the undertaking in the bank’s format. See the 15CA / 15CB template, the NRO to NRE transfer declaration and the repatriation checker.
The NRI property sale checklist lists the documents for each step, and NRI taxation covers residential status, returns and other Indian income.
Official sources
- Form No. 128 (application for lower or nil deduction, Income-tax Rules, 2026)
- Income-tax Act, 2025: Section 395 (certificates for lower deduction)
- Finance Act, 2026 (Section 395(6); TAN relief for resident individual and HUF buyers)
- RBI Master Direction – Remittance of Assets (USD 1 million per financial year)
- FEMA 5(R)(6)/2026-RB (18 June 2026: transfer to an NRE or SNRR account within the Remittance of Assets limit)
NRI Property Sale TDS for clients in New Delhi & Delhi NCR
SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. The firm handles NRI Property Sale TDS work and allied compliance for individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage it remotely.
Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).
Frequently asked questions
Is Form 13 still used for lower TDS on NRI property sales? +
For payments from 1 April 2026, the application is Form 128 under Section 395 of the Income-tax Act 2025. Form 13 under Section 197 applied up to 31 March 2026. A Section 197 certificate issued earlier for receipts of Tax Year 2026-27 remains valid.
Can the buyer deduct TDS only on the capital gain? +
Not on his own judgement. Without a certificate from the Assessing Officer, the buyer deducts on the full sale consideration. The lower or nil deduction certificate is how the deduction is limited to the tax actually expected on the gain.
Does the buyer need a TAN to buy property from an NRI? +
From 1 October 2026, not if the buyer is a resident individual or HUF; such a buyer can deduct and deposit the TDS using PAN under the Finance Act 2026 amendment. Companies, firms and non-resident buyers still need a TAN and file the statement in Form 144.
Can I sell my Delhi flat while abroad? +
Yes, through a power of attorney given to a relative or other person in India, executed abroad before the Indian embassy or a notary (with apostille or adjudication as required) and registered or adjudicated in India as the Sub-Registrar requires. The tax and repatriation rules are the same.
Do I need Form 15CB to send the sale money abroad? +
Usually yes. Banks ask for Form 15CA and a CA certificate in Form 15CB (Forms 145 and 146 from 1 April 2026) for remitting sale proceeds from an NRO account, showing that tax has been paid or deducted, together with an undertaking in their format.
Will a tax treaty reduce the tax on selling my Indian property? +
Generally no, because most treaties let India tax gains on immovable property located in India. The treaty mainly helps in your country of residence, which may give credit for the Indian tax. Check the treaty with that country.
Questions about NRI Property Sale TDS?
You may contact CA Gaurav Singh to discuss your specific facts and requirements.
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