TDS

TDS Section 197 lower-deduction certificate

How NRIs use a Section 197 (Form 13) lower-deduction certificate to release the excess TDS blocked on property sales and large NRO receipts — filing, timing and refunds.

Last reviewed: June 2026 · Updated for AY 2026-27

01

Why it matters

Default TDS on NRI property sale is 12.5% (LTCG) or 30% (STCG) on full sale value — often several times the actual tax. The cash is blocked until refund (12-18 months).

02

How to file

Form 13 to the jurisdictional AO with computation of estimated tax, PAN, sale agreement and buyer's TAN. Approval issued as a certificate the buyer applies at source.

03

Timing

File before the sale completes. Typical processing 3-6 weeks. We routinely file these for NRI sellers.

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Important information

This guide is general information published by RTA & Associates. It is not tax, legal, financial or investment advice, and it does not create a client relationship. It does not take account of your personal circumstances, and you should not act or refrain from acting on the basis of anything here.

Cross-border outcomes turn on the specific facts — your day-counts, the timing of your move, the wrappers you hold and the treaty position between the two countries. A small change in any of those can change the answer completely.

References to the law, rules or practice of countries other than India are included for general orientation only. They are not advice on the law of that country, and they should be confirmed with a qualified adviser in that jurisdiction before you act.

Tax law, exchange-control rules and treaty positions change, and they change often. This page reflects our understanding as at the date shown above. We do not undertake to update it.

To the extent permitted by law, RTA & Associates and its partners and staff accept no liability for any loss arising from reliance on this page. For advice on your own position, book a consultation.

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