Client details have been anonymised. Published with client permission.
The Situation
In January 2026, we were contacted by R.S., a software engineer living in Melbourne, Australia, who had inherited a flat in Pune from his father. The flat was purchased by his father in 2003 for ₹18 lakhs. R.S. had found a buyer willing to pay ₹95 lakhs.
His buyer’s lawyer informed him that TDS would be deducted at 20% on the entire sale value — that is ₹19 lakhs withheld from his sale proceeds. R.S. would receive only ₹76 lakhs at registration and would need to wait months for a refund after filing an ITR.
R.S. searched online, found our site, and emailed us asking if there was any way to reduce this TDS. Our response came within 2 hours.
Our Assessment
After reviewing the property details, we ran the capital gains computation:
| Item | Amount |
|---|---|
| Sale value | ₹95,00,000 |
| Original purchase price (2003) | ₹18,00,000 |
| Indexed cost of acquisition (CII 2025-26) | ₹52,20,000 |
| Long-term capital gain | ₹42,80,000 |
| Tax at 12.5% (post removal of indexation, new regime) | ₹5,35,000 |
| TDS being demanded (20% on ₹95L) | ₹19,00,000 |
| Excess TDS vs actual tax | ₹13,65,000 |
R.S.’s actual tax liability was approximately ₹5.35 lakhs — but without a Lower TDS Certificate, ₹19 lakhs would be deducted. That is ₹13.65 lakhs of excess deduction that would sit with the Income Tax Department for 12–18 months.
We confirmed he was eligible for a Lower TDS Certificate (Form 128, erstwhile Form 13) under Section 395 of the Income Tax Act 2025.
What We Did
We sent R.S. a document checklist. He shared his PAN, passport, sale agreement, father’s original purchase deed, and his Australian Tax Residency Certificate from the ATO. We also assisted him with electronically filing Form 10F on the Indian Income Tax portal.
Within 48 hours of receiving his documents, we prepared and filed the Form 128 application with the Jurisdictional Income Tax Officer in Pune, including a detailed capital gains computation, DTAA analysis under the India-Australia treaty, and a covering letter explaining the basis for the lower deduction request.
The Income Tax Officer issued the Lower TDS Certificate within 22 days — instructing the buyer to deduct TDS only on the actual capital gain of ₹42.8 lakhs, at the applicable rate of 12.5%.
The Result
| Outcome | Without Certificate | With Certificate |
|---|---|---|
| TDS deducted | ₹19,00,000 | ₹5,35,000 |
| Amount received at registration | ₹76,00,000 | ₹89,65,000 |
| Refund wait required | 12–18 months | None required |
| Net savings | — | ₹13,65,000 |
R.S. received ₹89.65 lakhs at registration instead of ₹76 lakhs. He then remitted the proceeds to his ANZ Bank account in Melbourne using Form 145 and Form 146, which we also handled — with the DTAA provisions correctly applied so he could claim the Indian tax paid as a foreign tax credit in his Australian ITR.
What R.S. Said
“I had no idea I could reduce the TDS before the sale. My local accountant in Melbourne had no clue about Indian tax law. NRI Tax CA handled everything over email — I didn’t visit a single office. The certificate came through in 22 days and I saved over ₹13 lakhs. Worth every rupee of the fee.”
— R.S., Melbourne, Australia (name changed for privacy)
Key Lessons for NRIs Selling Indian Property
- Apply for the Lower TDS Certificate early — before signing the sale agreement. The process takes 15–30 days and cannot be done retroactively after registration.
- Your Australian accountant cannot help with Indian TDS — you need an ICAI-registered CA who specialises in NRI taxation.
- The India-Australia DTAA matters — correct DTAA application in Form 146 ensures you can claim the Indian tax as a foreign tax credit in Australia without disputes from the ATO.
- 100% online process — no office visits required anywhere. Everything was handled by email between Melbourne and our team.
Our Service for NRI Property Sales
We handle the complete NRI property sale compliance package: Lower TDS Certificate (Form 128), capital gains computation, Form 145 + Form 146 for repatriation, and NRI ITR filing. Each case is reviewed personally by our CA team — nothing is auto-generated.
Email us at hello@nritaxca.com with your property details for a free eligibility check. We will confirm within 2 hours whether a Lower TDS Certificate applies to your situation and what it could save you.
Use our free NRI Tax Calculator to instantly estimate your property TDS, refund amount and ITR obligation → Calculate Now
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