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.
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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