NRI Property Sale TDS Calculator

What this estimator shows

When the seller of an Indian property is a non-resident, the buyer deducts TDS under Section 195 (Section 393 of the Income-tax Act, 2025), at the seller's capital gains rate, applied to the entire sale consideration unless a certificate says otherwise. The estimator computes that default deduction, then computes the tax you would actually owe on the gain, and shows the difference: your own capital, locked with the tax department until a refund arrives a year or more later.

For a long-term sale (held over 24 months) the rate is 12.5% plus surcharge and cess, roughly 13% to 14.95% depending on the sale value. Short-term sales are taxed at your slab rate with TDS around 30% plus surcharge and cess, which is why sellers who can wait out the 24 months almost always do.

*Base 12.5% on the gain grossed up by the surcharge tier and 4% cess, applied to the full sale price when there is no lower-deduction certificate (Form 128, formerly Form 13); higher surcharge applies to very large gains. Rates change with each Finance Act.

The lock-up this creates is the real problem. On a ₹1.2 crore long-term sale the buyer must withhold about 14.95%, roughly ₹18 lakh, even if your actual gain is only ₹40 lakh. The tax truly due on that gain is nearer ₹6 lakh, so about ₹12 lakh of your own money sits with the tax department until you file and claim the refund, often a year or more later. A lower-deduction certificate is what closes that gap up front.

What to do about the number you just saw

If the sale hasn't completed yet, the fix is a lower-deduction certificate: Form 128 (Form 13 until 31 March 2026), applied for before registration, which instructs the buyer to deduct only the real tax. The full sequence, including why you need the buyer's details first and how long the certificate takes, is in our TDS guide. Reinvestment exemptions under Sections 54 and 54EC (now Sections 82 and 85) can shrink the gain itself, sometimes to nil; the capital gains guide covers those.

And once the tax side is settled, moving the proceeds abroad is its own process, Form 15CA/15CB (Forms 145/146 since April 2026) and the USD 1 million per year limit, explained in the repatriation guide.

Buying from an NRI seller rather than selling? This estimator and the guide above are written from the seller's side; our buyer's TDS guide covers your obligations, the TAN route, and the simpler PAN-based Form 141 route open to individual and HUF buyers since 1 October 2026.