In brief
The buyer’s withholding and your final tax calculation are separate. Do not automatically use the resident-seller 1% route for a non-resident. A new home, eligible bonds or a CGAS deposit may be relevant only if their conditions are met. The 2025 Act applies from 1 April 2026; familiar older references such as 54 and 54EC need matching to the correct period.
Start with Income Tax Department: TDS when a non-resident sells Indian property (opens in a new tab)
Keep citizenship, tax residence and FEMA residence separate
These labels answer different questions. Your nationality or OCI card does not alone determine the year’s Indian tax treatment. Establish the relevant year, travel history, income sources and exceptions.
Your next steps
0 of 5 steps complete · Next: Prepare the calculation before taking payment
Prepare the calculation before taking payment
Next stepGive the CA the title, acquisition cost, improvement evidence, expected sale terms and your residency facts.
Resolve the buyer’s TDS obligations
Confirm the applicable withholding process and whether a lower or nil deduction certificate should be obtained before the relevant payment or credit.
Choose any relief and record its deadlines
For eligible bonds, verify the six-month deadline, ₹50 lakh limit and five-year restrictions. Residential-house relief has different investment and CGAS conditions.
Agree the permitted bank route
Ask the bank where the proceeds may be received and which documents and remittance facility match the property’s acquisition and funding history.
Reconcile and file
Match tax certificates and tax-account credits, claim only supported relief, complete the applicable return and retain evidence for the bank and any later review.
Suggested preparation sequence. Your authority may require a different order. Progress stays on this device.
What to have ready
0 of 4 preparedKeep documents in your own secure records. Tick what you have; nothing is uploaded.
Model the decision with your own figures
Prepare the dates, currencies, costs and amounts you know. Keep tax eligibility, provider access and uncertain assumptions on your adviser’s question list. The calculators show those assumptions explicitly.
For a return to India, add education, parents’ support, healthcare, partner income and locked funds to the household timeline. Bring supporting-tool figures into it only after reviewing timing, currency and overlap.
Questions to take to an adviser
- What withholding applies before the first instalment?
- Which relief fits this asset and what are my exact dates?
- What is my final tax, credit or potential refund after reconciliation?
Who can help
A CA with non-resident property-sale experience before signing an agreement or accepting payment, and the receiving bank for receipt and repatriation.
Check an adviser before paying or signingClaims, exceptions and the supporting evidence
Check what you may have heard
Source review: 5 September 2026 · Rules may change after this date.
An NRI property sale involves TDS, banking records and a tax return.
Plan the non-resident withholding route before the first payment. TDS is a credit against the final tax calculation, not necessarily the final liability. Confirm the permissible receipt and remittance route from the acquisition and funding history.
CGAS, a replacement home or 54EC bonds can reduce sale tax.
Each route has its own asset, amount and timing conditions. CGAS is a deposit mechanism for applicable relief, not an independent tax exemption. Eligible bond investment has a six-month window and ₹50 lakh limit; parking funds in CGAS does not extend that bond deadline.
Sources & review limits
Published by NRIdisha. Prepared with AI assistance. No individual author or qualified professional reviewer is credited for this guide.
Official sources support the statements they address. They do not certify this guide or your eligibility. Open the source and check current amendments before acting.
Income Tax Department (opens in a new tab) · Reserve Bank of India (opens in a new tab) · National Portal of India (opens in a new tab)
The non-resident seller withholding route differs from the resident-seller route. Check current law, rate components and any certificate.
Eligibility, reinvestment periods, CGAS timing and limits for qualifying residential-house gains.
Effective from 1 April 2026. Sections 70, 92 and 99 address transfers, gifts and clubbing; sections 82 and 85 address specified reinvestment relief.
Asset classification and exemption overview. This page uses legacy 1961 Act section numbers; match the transaction period.
National foreign-exchange rules for acquiring, transferring and repatriating proceeds from property.
Eligibility, documents and conditions for the remittance-of-assets facility.
Keep this page’s title, the exact statement and the official source. Email them to support@nridisha.com. Do not include personal documents.