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NRI Selling Property in India — Complete Tax Guide 2026
Selling property in India as an NRI involves two tax systems, mandatory TDS on the entire sale value, strict FEMA repatriation rules, and a bank that won’t process your transfer without CA-certified documents. This guide covers the complete process for FY 2025-26.
The Biggest Problem — TDS on Full Sale Value, Not Just the Gain
Under Section 195, the buyer deducts TDS on the entire sale consideration — not just the profit. On a ₹1 crore property with actual gain of ₹35 lakh, TDS deducted is ₹12.5 lakh+ while actual tax is ₹4.4 lakh. The ₹8+ lakh difference sits with the Income Tax Department for 12-18 months.
| Gain Type | Holding Period | TDS Rate |
|---|---|---|
| Long Term | More than 24 months | 12.5% + surcharge + cess |
| Short Term | 24 months or less | 30% + surcharge + cess |
The Solution — Lower TDS Certificate (Section 197)
Apply via Form 13 on the Income Tax portal at least 8-10 weeks before the sale. The Assessing Officer then specifies a TDS rate matching your actual liability. This is the single most important step for any NRI property sale above ₹50 lakh.
Capital Gains Exemptions Available to NRIs
| Section | How to Claim | Deadline |
|---|---|---|
| Section 54 | Reinvest capital gains in new residential property | 2 yrs (buy) / 3 yrs (construct) |
| Section 54EC | Invest up to ₹50L in NHAI/REC bonds | 6 months from sale date |
| Section 54F | Selling non-residential asset, reinvest full consideration | 2 yrs (buy) / 3 yrs (construct) |
Warning: Section 54EC’s 6-month window runs from sale date, not refund date. Invest in bonds first, file ITR later.
Repatriation — Form 145 and Form 146 (Replaces 15CA/15CB)
From April 1, 2026, Form 15CA is replaced by Form 145 and Form 15CB by Form 146. Submit these to your bank to transfer sale proceeds abroad. Repatriation limit: USD 1 million per financial year.
5 Most Expensive Mistakes
1. Not applying Form 13 in time — ₹8-15 lakh stuck for 18 months.
2. Missing 54EC 6-month bond deadline — full tax applies.
3. Not filing ITR — TDS refund permanently lost.
4. Using old Form 15CA/15CB after April 2026 — bank rejects transfer.
5. No improvement cost receipts — legitimate deductions lost.
Our Fees
| Service | Price |
|---|---|
| ITR-2 with capital gains + Section 54/54EC | Starting ₹4,999 |
| Form 145 + 146 for repatriation | Starting ₹3,999 |
| Complete property sale package | Starting ₹6,999 |
Planning a sale? Start Form 13 now — waiting costs lakhs.
Email hello@nritaxca.com — quote in 2 hours.
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