🧾 Sold Property in India as an NRI?
Here's What You Need to Know About Taxes, TDS & Filing
If you’ve sold residential or commercial property in India in the last financial year - there are important tax rules and filing requirements you must know as an NRI.
At iNRI, we’ve helped hundreds of NRIs like you navigate the complex maze of capital gains tax, TDS, exemptions, and repatriation - and file their returns easily, 100% online.
Here’s your complete, easy-to-understand guide to what happens when an NRI sells property in India.
🏠 Is Capital Gains Tax Applicable to NRIs?
Yes. Whether it’s a flat you bought 10 years ago or a plot you inherited, any gains from the sale of immovable property in India is taxable.
The tax depends on how long you’ve held the property:
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📉 How TDS Works When an NRI Sells Property
Under Indian tax law, the buyer of your property is required to deduct Tax Deducted at Source (TDS) before making the payment to you.
Here’s how much TDS is usually deducted:
LTCG: 12.5% + surcharge + cess
STCG: 30% + surcharge + cess
This means even if your actual gain is small, a large amount may be deducted upfront, locking your capital until you file your return.
⚠️ What If the Buyer Doesn’t Deduct TDS?
This is a common and serious issue.
If the buyer fails to deduct TDS, they become liable to:
Pay the TDS amount with interest
Face penalties under Section 201 of the Income Tax Act
Risk being flagged by the Income Tax Department
For the NRI seller, this could result in:
Non-compliance records
Inability to repatriate funds
Additional notices or scrutiny from the IT Department
✅ This is why it’s critical for NRIs to ensure TDS is correctly deducted and documented at the time of sale.
✂️ Can You Reduce TDS? Yes — With a Lower Deduction Certificate
If you expect lower or zero capital gains due to exemptions or indexation, you can apply for a Lower or NIL TDS Certificate (Form 13) from the Indian Income Tax Department before the sale.
This certificate allows the buyer to deduct tax at a reduced rate — or not at all.
📝 Note: The process requires documentation and needs to be initiated at least 3–4 weeks in advance of the sale.
💸 Already Paid TDS? You Can Still Claim a Refund
If TDS was already deducted and deposited, you’ll need to file your Indian income tax return (ITR) to calculate your actual capital gains and:
✅ Apply indexation
✅ Claim exemptions (e.g., Sections 54, 54EC, or 54F)
✅ Get a refund for the excess TDS deducted
This process is time-sensitive, and a refund can only be issued if you file your return on time and accurately.
🛡️ Deductions & Exemptions That Can Save You Tax
NRIs are eligible for the same exemptions as resident Indians.
Here are the major ones:
🏡 Section 54
Reinvest capital gains in another residential property
Must reinvest within 1 year before or 2 years after the sale
Property must be in India
💼 Section 54EC
Invest up to ₹50 lakh in NHAI or REC bonds
Investment must be made within 6 months of sale
Bonds come with a 5-year lock-in
🏘️ Section 54F
Applicable if entire sale proceeds (not just gains) are reinvested in a home
Only applicable if you do not own more than one house property on the date of transfer
These exemptions can significantly reduce or eliminate your capital gains tax — and help maximize your refund if excess TDS was deducted.
🌍 Want to Repatriate the Sale Proceeds Abroad?
You can repatriate up to USD 1 million per financial year from your NRO account, subject to tax clearance.
The bank may ask for:
Form 15CA and 15CB (certified by a CA)
Documentary proof of the property transaction
Tax paid/TDS certificates
FEMA compliance documentation
💡 iNRI’s expert team can help you handle this end-to-end, ensuring proper documentation and smooth remittance.
✅ How iNRI Makes It All Simple
Filing taxes after selling property shouldn’t be a pain. That’s why we built iNRI to make it effortless for global Indians.
Here’s how we help:
🔹 100% Online Tax Filing – Just upload your docs and answer a few questions
🔹 Capital Gains Calculation – We apply indexation, compute exemptions
🔹 Expert Review – Real CAs review and file your returns
🔹 TDS Refund Handling – We help you claim every rupee you’re owed
🔹 Form 13 Assistance – Planning to sell? We help reduce future TDS
🔹 Repatriation Guidance – End-to-end support to send your money abroad
💰 Plans start at just $69.
No bank visits. No paperwork stress. No overpaying taxes.
Start Filing Today - https://app.goinri.com/india-tax-filing