Updated for the Income-tax Act, 2025 · Tax year 2026-27 (1 April 2026 – 31 March 2027)

Capital Gains Tax Calculator for NRIs Selling Property

Work out the tax on selling a flat, house or plot in India as an NRI, including surcharge, cess and the new-house and bond exemptions.

By NRI Tax Calculator editorial team · Updated

Calculate capital gains tax on property

Example figures, replace with yours
Include stamp duty and registration
Brokerage, legal fees
Long-term only (old s.54). Buy within 2 years or build within 3.
Long-term only (old s.54EC). Up to ₹50 lakh, within 6 months.
Rent, NRO interest, etc.
Tax regime

Enter your figures and your result appears here.

Key points

  • Property held for more than 24 months is long-term and taxed at 12.5% with no indexation.
  • The option of 20% with indexation for property bought before 23 July 2024 is for residents only.
  • Short-term gains are added to your income and taxed at slab rates.
  • Reinvesting in a house in India, or up to ₹50 lakh in specified bonds, can reduce long-term gains.

How NRIs are taxed on property sales in 2026-27

Long-termShort-term
Holding periodMore than 24 months24 months or less
Tax rate12.5% flat, no indexationYour slab rate (up to 30%)
Surcharge10% above ₹50 lakh, 15% above ₹1 crore (capped at 15%)10% / 15% / 25%
Cess4% on tax plus surcharge
ExemptionsNew house (old s.54), capital gains bonds (old s.54EC)None

No indexation for NRIs

Since 23 July 2024, long-term gains on property are taxed at 12.5% without indexation. Residents who bought before that date can choose the old method (20% with indexation) if it works out cheaper. That choice is not available to NRIs. For an NRI, the gain is simply sale price minus purchase cost, improvements and sale expenses.

Property bought before 1 April 2001

If you inherited or bought property before 1 April 2001, you can use its fair market value on 1 April 2001 (from a registered valuer, capped at the stamp duty value) as your cost. This often cuts the gain sharply. For inherited property, the holding period includes the time the previous owner held it.

Ways to reduce the tax

  • Buy or build a house in India (old s.54): buy within 1 year before or 2 years after the sale, or build within 3 years. The exemption covers up to ₹10 crore. If you can't invest before your return is due, park the money in a Capital Gains Account Scheme.
  • Capital gains bonds (old s.54EC, now s.85): up to ₹50 lakh in NHAI, REC, PFC or IRFC bonds within 6 months, with a 5-year lock-in.
  • Use the treaty: under most tax treaties, India keeps the right to tax gains on Indian property. Your country of residence may tax the gain too, but usually gives credit for Indian tax.

Example

Anita, an NRI in Toronto, bought a Bengaluru flat in January 2025 for ₹60 lakh. She sells it in September 2026 for ₹1.2 crore, paying ₹1 lakh in brokerage. She has ₹3 lakh of other Indian income.

She held it for 20 months, so it's short-term. Her ₹59 lakh gain is added to her ₹3 lakh other income and taxed at slab rates. Total tax comes to about ₹16.5 lakh. Waiting four more months would make it long-term, and the tax on the gain would drop to around ₹8.4 lakh.

Frequently asked questions

What is the capital gains tax rate for NRIs on property in 2026-27?
Long-term gains (property held more than 24 months) are taxed at 12.5% without indexation, plus surcharge and 4% cess. Short-term gains are added to your income and taxed at slab rates.
Can NRIs claim indexation on property bought before July 2024?
No. The option to pay 20% with indexation on property bought before 23 July 2024 is only for resident individuals and HUFs.
Can an NRI claim the section 54 exemption?
Yes. NRIs can claim the exemption (old section 54) by reinvesting long-term gains in a residential house in India within the time limits, up to ₹10 crore.
Can NRIs invest in 54EC bonds?
Yes. NRIs can invest up to ₹50 lakh in specified capital gains bonds within 6 months of the sale. Check with the issuer, as some only accept investment from NRO accounts.
Does the ₹1.25 lakh exemption apply to property?
No. The ₹1.25 lakh annual exemption applies only to long-term gains on listed shares and equity mutual funds, not to property.
Can I use my basic exemption limit against long-term capital gains?
Not as an NRI. Residents can reduce LTCG by any unused basic exemption, but non-residents cannot. NRIs pay 12.5% on the full taxable long-term gain.
Selling property or owed a refund?

A chartered accountant who works with NRIs can get a lower-TDS certificate, file your return and handle repatriation paperwork.

Sources

Important: This calculator gives an estimate based on the Income-tax Act, 2025 as we understand it on 25 October 2026. It doesn't replace advice from a chartered accountant. See our disclaimer.