2026-27
₹1 Cr sale: TDS = ?
TDS on NRI Property Sale Calculator
What a buyer must deduct from an NRI seller — and how much could come back.
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NRI selling property in India: your dated step-by-step plan
To sell property in India as an NRI, get the land record into your name, agree a price with an eligible buyer, apply for a lower TDS certificate (Form 128, formerly Form 13), sign and register the sale deed in person or through a stamped power of attorney, then file your Indian return and send the money abroad with Forms 145 and 146. This planner turns that into a dated timeline working back from your sale date, with the documents you need and the risks in your case.
Free · No sign-up · Runs privately in your browser· Figures checked 28 October 2026
Add the price to estimate TDS held back vs real tax (optional)
₹
e.g. 1.2 crore or 85 lakh₹
Purchase price, or 1 April 2001 value if older12.5% plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore, capped at 15%) and 4% cess, for an individual NRI with no other Indian income. For the full breakdown use the TDS calculator.
Your sale plan
Working out your dates…
Plot, inherited, record status unknown, signing by POA from USA, money going abroad.
- Selling before the record is in your name is the most common reason NRI sales stall. Buyers and banks rely on the mutated record, so do mutation first.
- Keep the POA narrow and revoke it formally once the sale is done. A general POA can be used to sign other deeds in your name.
Start now· You
Find out whose name the record shows
Download the current land record (fard, khatauni, 7/12, RTC or khatian) from your state’s portal or ask the patwari for a certified copy. If it still shows the previous owner, start mutation straight away; it often takes weeks to months.
Find your state’s record →Start now· You
Check your PAN and NRO account
You need a PAN for the buyer’s TDS, the lower-TDS certificate and your Indian return; make sure the name matches your passport and title papers. The sale money is normally paid into your NRO account, so open one or check it is active.
What an NRO account is for →3 months before· You + family
Line up every co-heir
Each co-owner must either sign the sale deed (in person or through their own POA) or first give up their share by a registered relinquishment deed. Settle who gets what in writing before you talk to buyers.
Work out each heir’s share →3 months before· You
Check the circle rate before you agree a price
If the price is below the state’s circle rate (stamp-duty value) by more than 10%, the seller is taxed as if the sale were at the circle rate (section 78 of the Income-tax Act, 2025, old section 50C), and the buyer can be taxed on the gap too.
Check a price below circle rate →3 months before· You + lawyer
Have a lawyer draft a special power of attorney for this one sale
Name the property by survey or khasra number, village and district, list only the acts needed (sign the agreement and sale deed, receive payment into your NRO account), add an end date, and bar the agent from appointing anyone else. A POA is never the sale itself: the sale must still be a registered sale deed.
Build a narrow POA →2 months before· You
Find a buyer and agree the price
A house, flat or plot can be sold to a resident, an NRI or an OCI. Agree the price, who pays stamp duty and registration (usually the buyer), and the payment dates in writing.
2 months before· You
Sign the POA abroad
Sign it before a local notary and get an apostille from the Secretary of State of the US state where the notary is commissioned, or sign it at the Indian embassy or consulate. Both are accepted in India.
Apostille or consulate? →2 months before· You
Courier the original to India and note the date it arrives
Use tracked post. The stamping clock starts when it is first received in India.
2 months before· You + buyer
Sign the agreement to sell and take the advance
The agreement fixes the price, the advance (bayana), the sale date and who pays which costs. The advance is also a payment to a non-resident, so the buyer must deduct TDS on it too. In some states the agreement itself must be stamped or registered.
2 months before· You + CA
Apply for a lower TDS certificate (Form 128, formerly Form 13)
Without it, the buyer usually deducts TDS on the full price, not your gain. Your CA files Form 128 under section 395 of the Income-tax Act, 2025 (old section 197) with the agreement, your title papers and a computation of the gain. Expect several weeks; it only covers payments made after it is issued.
How the certificate works →8 weeks before· Your agent + lawyer
Get the POA stamped within three months of arrival
A POA signed abroad has to be stamped in India within three months after it is first received there (Section 18 of the Indian Stamp Act, or the matching state law). Late stamping means a penalty, and an unstamped POA is refused at the registry.
6 weeks before· Your agent + lawyer
Register the POA if your state requires it
A POA that authorises a sale of land often has to be registered at the sub-registrar’s office. Your lawyer will confirm the rule in the district where the property is.
3 weeks before· You + CA
Certificate in hand? Decide now
Give a copy to the buyer. If it has not been issued yet, either move the sale date or accept TDS on the full price and claim the excess back as a refund in your return.
2 weeks before· Lawyer + buyer
Finalise the sale deed and the buyer’s TDS set-up
Check names, shares, survey numbers and area against the record word for word. The buyer arranges stamp duty and must be ready to deposit TDS: from 1 October 2026 a resident individual or HUF buyer can pay it with their PAN on Form 141 instead of getting a TAN; companies and firms still need a TAN.
Estimate stamp duty →Sale day· Your agent + buyer
Register the sale deed
At the sub-registrar’s office, your agent signs using the stamped POA, the deed is registered and the buyer pays the balance into your NRO account by bank transfer, after deducting TDS. Get a copy of the registered deed the same day if you can.
3 weeks after· You + CA + bank
Send the money abroad (Forms 145 and 146)
Your CA certifies in Form 146 that tax has been dealt with, you file Form 145 online (these replaced Forms 15CB and 15CA from 1 April 2026), and your bank sends the money. From your NRO account you can send up to USD 1 million per financial year (April–March), which covers sale proceeds of inherited property.
How many years to send it all →4 weeks after· Buyer → you
Get the TDS certificate from the buyer
The buyer deposits the TDS, files the TDS statement and gives you a TDS certificate. Check that the TDS shows against your PAN in your tax statement on the income-tax portal; you can only claim credit or a refund for TDS that appears there.
2 months after· Buyer, then you
Check the record now shows the buyer
The buyer applies for mutation into their name. Once it is done, download the record again and keep a copy with your sale papers, so your name is off the property for tax and liability.
6 months after· You + CA
Last date for capital gains bonds, if you choose them
A long-term gain can be cut by investing in specified bonds within six months of the sale, or by buying or building a house in India within set periods. Ask your CA before the money leaves India, because exemptions and repatriation compete for the same funds.
Compare exemptions →9 months after· You + CA
File your Indian income tax return
Report the sale and claim the TDS as credit; any excess comes back as a refund. For most individuals the due date is 31 July after the tax year (April–March) ends.
Your documents checklist
- Passport, and OCI card if you have oneName exactly as on the title papers; carry an affidavit if spellings differ.
- PAN cardNeeded for TDS, Form 128 and your return.
- NRO account detailsThe buyer pays the sale money into it.
- Latest land record (fard, khatauni, 7/12, RTC or khatian) showing your namePlus the mutation order once it is passed.
- Death certificate of the previous owner
- Will (and probate where required), or legal heir / succession papers
- Relinquishment deeds or consent of every co-heir who is not selling
- The previous owner’s purchase deed or other title papersAlso needed to work out the cost for tax.
- Property tax or land revenue receipts and a site planA recent demarcation report helps if boundaries are unclear.
- Encumbrance certificateShows there is no registered loan or charge on the property.
- Proof of cost and improvementsIf the original owner acquired it before 1 April 2001, a valuer’s report of its value on that date.
- Special POA, attested or apostilled, stamped in India and registered if required
- Signed agreement to sell and advance receipt
- Lower TDS certificate (Form 128) issued for this buyer
- TDS certificate from the buyer and the registered sale deed copy
- Form 146 from your CA and Form 145 acknowledgement
A planning guide, not legal or tax advice. Timings at tehsils, tax offices and consulates vary widely, and rules on stamp duty, POA registration and who may buy farmland differ by state. Tax figures use rates for tax year 2026-27 under the Income-tax Act, 2025, last checked on 28 Oct 2026. Confirm each step with a property lawyer in the district and a chartered accountant before you sign.
How to use it
- Choose what you are selling, how you got it, whether the record is in your name and whether you will travel or use a power of attorney.
- Pick your country (for the apostille or consulate route) and a target sale date; the default is four months from today.
- Optionally add the price and your cost to see the TDS a buyer would hold back against your likely real tax.
- Read the dated plan, the documents checklist and the warnings, then print it for your lawyer, CA and family.
What is the procedure for an NRI selling property in India?
Five stages: clean title (the record mutated into your name and every co-owner on board), a buyer and a written agreement to sell, a lower TDS certificate if there is a taxable gain, registration of the sale deed at the sub-registrar’s office with payment into your NRO account after TDS, and afterwards your Indian tax return and repatriation.
Most delays come from the first stage. If the property was inherited and the record still shows a parent, mutation can take weeks to months, and buyers rarely sign until it is done. Start there.
What documents does an NRI need to sell property in India?
Your passport (and OCI card if you have one), PAN, NRO account details, the title papers (your sale deed, or the will, legal heir papers and death certificate for inherited property, or the registered gift deed), the latest land record showing your name, an encumbrance certificate, and tax and revenue receipts.
For tax you also need proof of cost: the purchase deed and stamp-duty receipt, or, if the original owner acquired the property before 1 April 2001, a valuer’s report of its value on that date. The planner builds the list for your case.
Can an NRI sell property in India through a power of attorney?
Yes. Sign a special power of attorney for this one sale, either at an Indian embassy or consulate or before a local notary with an apostille if your country is in the Hague Apostille Convention (the USA, UK, Australia, New Zealand, Singapore and, since 11 January 2024, Canada are; the UAE, Qatar and Kuwait are not).
Once it reaches India it must generally be stamped within three months of arrival, and a POA for the sale of land often has to be registered. The POA lets your agent sign a registered sale deed for you; it never transfers the property by itself.
How much TDS is deducted when an NRI sells property, and how does a lower TDS certificate help?
For property held over 24 months, the buyer deducts 12.5% plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore) and 4% cess, about 13% to 14.95%, usually on the full price. Held 24 months or less, buyers usually deduct 30% plus surcharge and cess.
A lower or nil TDS certificate under section 395 of the Income-tax Act, 2025 (old section 197), applied for on Form 128 (formerly Form 13), tells the buyer to deduct only on your real gain. It takes several weeks, so apply as soon as the agreement is signed. Without it, the excess comes back only as a refund after you file your return.
How does an NRI repatriate the sale proceeds, and what about agricultural land?
The buyer pays into your NRO account. From there you can send up to USD 1 million per financial year (April–March) abroad, covering sale proceeds including those of inherited property, once your CA certifies the tax position in Form 146 and you file Form 145 (formerly 15CB and 15CA). If you bought the property with money from abroad or NRE/FCNR funds, up to the amount you paid in foreign exchange can usually go back outside that limit, for homes up to two residential properties.
Agricultural land, a plantation or a farmhouse can be sold by an NRI or OCI only to a person resident in India, and many states limit farmland buyers further. Rural agricultural land is not a capital asset, so it carries no capital gains tax; ask for a nil TDS certificate so the buyer does not deduct anyway.
Questions people ask
Get the land record mutated into your name, line up any co-heirs, find an eligible buyer and sign an agreement to sell, apply for a lower TDS certificate (Form 128), then register the sale deed in person or through a stamped POA. The buyer pays into your NRO account after TDS. Afterwards, file your Indian return and repatriate with Forms 145 and 146.
Yes. Houses, flats and plots can be sold to a resident, an NRI or an OCI. Make sure the record has been mutated into the heirs’ names first, and that every co-heir either signs or has given up their share by a registered relinquishment deed.
Yes, but only to a person resident in India under FEMA, never to another NRI, OCI or foreign citizen. State laws may restrict buyers further, for example to agriculturists, so check with a local lawyer before taking an advance.
As soon as you have a buyer and a signed agreement, and ideally two months before the sale. Processing usually takes several weeks, and the certificate only covers payments made after it is issued.
Up to USD 1 million per financial year from an NRO account, including sale proceeds of inherited property, after tax and with Forms 145 and 146. Larger amounts are sent over more than one year, or with RBI approval.
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