Selling Property in India as an NRI? Don’t Lose 12.5% to Excess TDS
When a Non-Resident Indian (NRI) sells property in India, Tax Deducted at Source (TDS) can become a major cash-flow issue if not planned correctly.
Under Indian tax law, the buyer is required to deduct 12.5% TDS (plus surcharge and cess, where applicable) on the sale value, regardless of whether your actual capital gains are much lower—or even nil.
Without proper planning, this can mean lakhs of rupees blocked for months.
The Smart Solution: Apply for a Lower or Nil TDS Certificate (Form 13)
NRIs can legally reduce or eliminate excess TDS by applying for a Lower / Nil TDS Certificate under Form 13 before the property registration.
Why This Matters
- TDS is deducted on the full sale value, not on actual gains
- Refunds take months to process after filing the tax return
- Once deducted, your funds remain blocked with the tax department
Recommended Approach
· Apply for Form 13 before signing or registration
· Ensure TDS reflects actual capital gains, not gross value
· Avoid unnecessary refunds and liquidity issues
Process Overview
· Assessment of capital gains and eligibility
· Preparation and submission of Form 13 with supporting documents
· Application filed through a Chartered Accountant
· Approval typically received within 2–4 weeks
· Buyer deducts TDS as per the approved lower rate
Plan Early. Save More.
TDS planning must be done before registry—not after. Late action can result in significant funds being locked in refunds for extended periods.
NS Global Consultants Pte Ltd specializes in NRI property sale taxation, helping clients legally reduce or eliminate excess TDS through Form 13 (Lower / Nil TDS Certificate) and end-to-end Indian tax compliance.
