A lower or nil TDS certificate in Form 128 (earlier Form 13) under section 395 of the Income-tax Act, 2025 (earlier section 197) lets the buyer deduct TDS on the tax actually due instead of the full sale price. Apply on TRACES before the agreement with the capital gains computation; approval is not automatic, and the final return and any refund are separate steps.
Last reviewed: · Reviewed by Regi Tom Antony, FCA · NRI property sale services
Without a certificate, the buyer deducts TDS on the full sale price under section 393 (earlier section 195): about 13% to 15% for property held more than 24 months, and 30% plus surcharge and cess for short-term property. The real tax is usually far lower, and the excess is locked up until your refund. Estimate the gap with the NRI property TDS calculator.
File Form 128 (earlier Form 13) on TRACES with your PAN, the capital gains computation, the draft agreement, the buyer's details, purchase documents and your reinvestment plan, if any. The officer issues a certificate directing the buyer to deduct at a lower or nil rate.
Apply before the agreement and the first payment; processing usually takes a few weeks and approval is not automatic. Each co-owner applies separately. See the 30-day pre-sale checklist.
A 15-minute NRI Tax Discovery Call to scope your situation and the right next step.
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