NRI Selling Property in India: TDS u/s 195 & Lower-Deduction Certificate

1TDS under Section 195

Unlike a resident seller (where the buyer deducts 1% under 194-IA), for an NRI seller the buyer deducts TDS under Section 195. If no lower-deduction certificate is obtained, TDS can be deducted on the full sale value at the rates applicable to capital gains (plus surcharge and cess), which is often far more than your actual tax. So the certificate below matters a lot.

2Reduce TDS with a Form 13 certificate

• Apply to the Income Tax Department for a Lower/Nil Deduction Certificate under Section 197 using Form 13 (online).
• It lets the buyer deduct TDS only on the actual capital gain (not the whole sale price).
• Apply well before the sale (allow several weeks for processing).
• (Note: the older 'Form 8A' some sites mention is not the route — it's Form 13 under Section 197.)

3Capital gains & repatriation

Your gain (long-term if held over 2 years) is taxed under the current capital-gains rules — rates changed in Budget 2024, so verify the current rate/indexation position with a CA. After paying tax and filing your ITR (to claim any excess TDS as a refund), sale proceeds can typically be repatriated through your NRO account within the permitted limit.