Can an NRI reduce TDS on their property sale?

Yes - since default TDS can otherwise apply to the whole sale price, not just the gain, NRI sellers commonly apply in Form 13 to the AO for a certificate letting the buyer deduct at a lower or nil rate. NRI seller applies online in Form 13 to the International Taxation Assessing Officer AO examines actual likely gains and issues a certificate specifying the correct rate Without it, buyers often default to deducting on the full sale value, locking up NRI funds until refund Processing takes several weeks - apply well before the intended registration date

How does an NRI avoid excess TDS?

Yes - since default TDS can otherwise apply to the whole sale price, not just the gain, NRI sellers commonly apply in Form 13 to the AO for a certificate letting the buyer deduct at a lower or nil rate. NRI seller applies online in Form 13 to the International Taxation Assessing Officer AO examines actual likely gains and issues a certificate specifying the correct rate Without it, buyers often default to deducting on the full sale value, locking up NRI funds until refund Processing takes several weeks - apply well before the intended registration date

CAPGAIN › Answers › Capital gains & TDS on property › Can an NRI Seller Get a Lower TDS Rate Instead of Full Deduction?

Can an NRI Seller Get a Lower TDS Rate Instead of Full Deduction?

Short answer: Yes - since default TDS can otherwise apply to the whole sale price, not just the gain, NRI sellers commonly apply in Form 13 to the AO for a certificate letting the buyer deduct at a lower or nil rate.

Law: Section 197 / Section 195(2), Income-tax Act 1961 · Authority: CBDT · Status: in force · Checked 25 Sept 2026

What you need to know

NRI seller applies online in Form 13 to the International Taxation Assessing Officer
AO examines actual likely gains and issues a certificate specifying the correct rate
Without it, buyers often default to deducting on the full sale value, locking up NRI funds until refund
Processing takes several weeks - apply well before the intended registration date

Who this applies to: NRI sellers, buyers, CAs

Official / primary source: tdscpc.gov.in (government source)

The law behind it

Section 197 - Certificate for Lower or Nil TDS Deduction

If default TDS would deduct far more than your real liability - very common for NRI sellers, since it often applies to the whole price not just the gain - you can apply in Form 13 to the Assessing Officer for a lower/nil deduction certificate.

Section 197, Income-tax Act 1961 · in force · source

Lower or Nil TDS Deduction Certificate - Section 197

An NRI seller can apply to the Assessing Officer for a certificate allowing the buyer to deduct TDS only on the actual capital gain rather than the entire sale price, which avoids locking up large sums until refund. This is filed online well before the sale closes.

Section 197, Income-tax Act 1961 · in force · source

Form 13 - application for lower/nil TDS deduction certificate

A seller (especially an NRI, for whom TDS would otherwise be deducted on the full sale price rather than just the gain) can apply online via Form 13 to the Assessing Officer for a certificate allowing the buyer to deduct TDS at a lower rate, or nil, based on the seller's actual expected tax liability. This avoids large sums getting locked up as excess TDS, refundable only after filing a return.

Form 13 (Section 197); renumbered Form 128 under Income-tax Act 2025 · amended · source

Section 80C (1961) / Section 100 (2025) - Home Loan Principal Repayment Deduction

The principal portion of your home loan EMI, plus stamp duty/registration charges in the year paid, is deductible up to Rs 1.5 lakh/year, combined with other 80C items. Old regime only. Continues as Section 100 under the new Act.

Section 80C, Income-tax Act 1961; Section 100, Income-tax Act 2025 · in force · source

Work out your own numbers

CAPGAIN's free calculators cover capital gains (12.5% and 20%-indexed side by side), TDS on property, stamp duty and registration by state, home-loan EMI and prepayment.

Open the CAPGAIN calculators