Property & InheritanceProperty sale, lower-TDS certificate, capital gains and repatriation under FEMA.
When an NRI sells Indian property the buyer must deduct TDS at 12.5% (LTCG) or 30%+ (STCG) on the full sale value unless a Section 197 lower-deduction certificate is obtained first. Capital gains can be sheltered under Section 54, 54F or 54EC. Repatriation routes through NRO and Form 145/146 (formerly 15CA/15CB).
Last reviewed: June 2026 · Updated for AY 2026-27
Regi Tom Antony, FCA — a practicing Chartered Accountant who advises NRIs, OCIs and returning founders on the same questions every week. Every page here is drawn from the book and live engagements, not stock copy.
Background reading Pair this engagement with the educational hub:
Property & Repatriation hub→Every deliverable, in writing.
Engagements end with a single document: your blueprint. It maps each action, the form it needs, the deadline, and who owns it.
- 01TDS on sale of property by NRI (Sec. 195)
- 02Lower-deduction certificate to release blocked TDS
- 03Capital gains exemption — Sec. 54 / 54F / 54EC
- 04Repatriation of sale proceeds via Form 145/146 (formerly 15CA/15CB)
- 05Inheritance, gift and Power of Attorney planning
- 06Builder dispute and clean-title coordination
From sale agreement to money abroad
An NRI property sale has three moving parts: tax deducted by the buyer, the capital gains computation, and moving the money out of India. Under Section 195 the buyer must deduct tax on the amount chargeable — in practice usually the full sale price — which is why a lower-deduction certificate under Section 197, applied for on Form 13 through TRACES before the sale closes, is often the most valuable step. A buyer paying a non-resident seller also needs a TAN.
Long-term gains on property held more than 24 months are taxed at 12.5% without indexation for transfers on or after 23 July 2024; short-term gains are taxed at slab rates. Gains can be reduced by reinvesting in a residential house in India under Section 54 (capped at ₹10 crore), in specified bonds within six months under Section 54EC (up to ₹50 lakh), or, for other long-term assets, under Section 54F.
Repatriating the proceeds
Sale proceeds usually land in your NRO account. Under FEMA, NRIs and OCIs can remit up to USD 1 million per financial year from NRO balances, supported by Form 145 (formerly 15CA) and, where required, a chartered accountant's certificate in Form 146 (formerly 15CB). Where the property was originally bought with foreign exchange or from NRE/FCNR funds, sale proceeds up to the amount paid in foreign exchange can be repatriated for up to two residential properties.
Inherited property
Inherited property follows the same tax and remittance path, with extra documents: proof of inheritance (a will with probate where required, or a succession certificate) and evidence of the previous owner's cost. For capital gains, the previous owner's cost and holding period carry over to the heir.
Keep exploring.
Step-by-step ITR filing: forms, residential status, Schedule FA and refunds.
Slabs, capital-gains rates and the TDS that applies to NRI income.
Browse every NRI tax, FEMA and return guide.
Use the transition window before full Indian residency.
Tell us the situation. We'll send back the next step.
Two sentences is plenty for the first reply. Direct, written, by Regi.
Answered, candidly.
- The buyer wants to deduct 12.5%+ TDS — can I lower it?
- Short answer: depends on residency, corridor and timing. Long answer is in the engagement — book a call to walk it through.
- Can I reinvest in another Indian property to save tax?
- Short answer: depends on residency, corridor and timing. Long answer is in the engagement — book a call to walk it through.
- Inherited property — what's the cost basis for capital gains?
- Short answer: depends on residency, corridor and timing. Long answer is in the engagement — book a call to walk it through.
- Can I gift my Indian flat to my parents tax-free?
- Short answer: depends on residency, corridor and timing. Long answer is in the engagement — book a call to walk it through.
Next: Return Planning & RNOR
OCI status, PAN/Aadhaar, NRE-NRO routing and FEMA compliance for everyday moves.
NRI Taxation
Residency, ITR filing, TDS, DTAA, Schedule FA — for NRIs and OCIs based overseas.
Open →OCI / FEMA & Repatriation
RNOR window, the 182-day test, asset migration and timing from your actual move date.
Open →Return Planning & RNOR
OCI status, PAN/Aadhaar, NRE-NRO routing and FEMA compliance for everyday moves.
Open →Ready to plan? Book a consultation with Regi.
A 15-minute NRI Tax Discovery Call to scope your situation and the right next step.
The NRI Blueprint briefing.
One email a fortnight. Corridor updates, deadline alerts, and one written framework worth your inbox.