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

NRI Property Sale TDS Calculator 2026-27

Find out how much TDS your buyer will deduct, how it compares with your actual capital gains tax, and how much a lower-deduction certificate could save you.

By NRI Tax Calculator editorial team · Updated

Calculate TDS on your property sale

Example figures, replace with yours
The full amount the buyer will pay
Include stamp duty and registration you paid
Renovations and additions with bills
Brokerage, legal fees
Rent, NRO interest, etc.

Enter your figures and your result appears here.

Key points

  • Buyers must deduct TDS under section 393(2), which replaced section 195 from 1 April 2026.
  • Long-term property: 12.5% plus surcharge and cess (13% to 14.95%). Short-term: 30% plus surcharge and cess (31.2% to 39%).
  • Buyers usually deduct on the full sale price, which often means far more TDS than your real tax.
  • A lower-deduction certificate on Form 128 brings TDS down to your actual liability.

How TDS works when an NRI sells property

When you sell property in India as an NRI, the buyer has to deduct tax at source (TDS) before paying you and deposit it with the government. Under the Income-tax Act, 2025 this is section 393(2), which replaced the familiar section 195 from 1 April 2026. The 1% TDS that applies when a resident sells property does not apply to NRI sellers.

TDS rates for tax year 2026-27

Type of gainBase rateEffective rate with surcharge and 4% cess
Long-term (held more than 24 months)12.5%13% (sale up to ₹50 lakh) · 14.3% (₹50 lakh–₹1 crore) · 14.95% (above ₹1 crore, surcharge capped at 15%)
Short-term (held 24 months or less)30%31.2% (up to ₹50 lakh) · 34.32% (₹50 lakh–₹1 crore) · 35.88% (₹1–2 crore) · 39% (above ₹2 crore)

The big catch: TDS on the full sale price

Tax is only due on your gain, but buyers usually deduct TDS on the entire sale price. They don't know your purchase cost and don't want to risk a penalty. On a ₹1.2 crore sale with a ₹60 lakh gain, that can lock up around ₹9 lakh more than your actual tax until you file a return and get a refund.

How to avoid excess TDS: the lower-deduction certificate

Before the sale, apply to the Income Tax Department for a certificate allowing TDS on your actual gain. Under the new Act this is section 395, Form 128 (previously section 197, Form 13). Apply online through TRACES with your sale agreement, purchase documents and computation. It typically takes a few weeks, so apply as soon as you have a buyer.

Recent changes

  • New forms: Form 15CA/15CB, used to repatriate sale money abroad, are now Forms 145 and 146.
  • Budget 2026: Resident individual buyers may no longer need a TAN to deduct TDS for an NRI seller and can use their PAN instead. This is reported to apply from 1 October 2026, so confirm the current procedure with your buyer's CA.

Example

Rahul, an NRI in Sydney, sells a Pune flat for ₹1.2 crore. He bought it in 2015 for ₹60 lakh.

  • Long-term, sale above ₹1 crore → effective TDS 14.95% × ₹1.2 crore = ₹17.94 lakh
  • Actual tax: ₹60 lakh gain × 12.5% + 10% surcharge + 4% cess = ₹8.58 lakh
  • Without a certificate, Rahul waits for a refund of about ₹9.36 lakh. With one, he keeps it from day one.

Frequently asked questions

What is the TDS rate on property sold by an NRI in 2026-27?
12.5% plus surcharge and 4% cess for long-term property (held more than 24 months), giving 13% to 14.95%. Short-term property is 30% plus surcharge and cess, giving 31.2% to 39%.
Is TDS deducted on the sale price or the capital gain?
In law, TDS applies to the taxable portion. In practice, buyers deduct on the full sale price unless you give them a lower-deduction certificate (Form 128, previously Form 13).
Who deposits the TDS?
The buyer. They deposit it, file a TDS return, and give you a TDS certificate. Make sure your PAN is correct so the credit shows in your Form 26AS/AIS.
Can I get excess TDS back?
Yes. File an Indian income tax return for the tax year of sale and claim the refund. Refunds can go to your NRO or Indian bank account.
Is the 1% TDS under the old section 194-IA applicable to NRIs?
No. That 1% rate is only for resident sellers. NRI sales fall under the non-resident TDS provision, now section 393(2).
Does a jointly owned property change the TDS?
TDS is calculated for each NRI co-owner on their share of the sale price. The surcharge is based on each person's share, which can reduce the rate.
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.