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NRI selling property in India: TDS, Form 13 and repatriation.

A non-resident selling Indian property faces TDS on the entire sale price, not the gain. Here is how a Form 13 certificate fixes that, with a worked example and the repatriation path.

2026 guideUpdated June 2026By the partnership

The problem: 20.8% TDS on the whole sale price

When a non-resident sells immovable property in India, the buyer must withhold TDS under the Income-tax Act, 2025 (erstwhile Section 195 of the 1961 Act) at 20.8% on the entire sale consideration for a long-term asset — not on the gain. On a ₹3 crore flat that is ₹62.4 lakh withheld, even if the real tax is a fraction of that. You reclaim the excess on your return, but the cash sits with the department for 8–14 months.

The fix: a Form 13 lower-deduction certificate

Form 13 (under erstwhile Section 197) asks the Assessing Officer to certify withholding at your actual capital-gains rate — or nil where Section 54 / 54EC reinvestment applies. Approved, you receive proceeds proportionate to real tax, not 20.8% of the headline price.

Worked example

Sale price ₹3,00,00,000 · indexed cost ₹2,20,00,000 · gain ₹80,00,000.
Section 195 TDS (default) ≈ ₹62,40,000 withheld.
Actual LTCG tax ≈ ₹10,40,000.
Cash locked up ≈ ₹52,00,000 — released up-front with an approved Form 13.

Estimate your own number → with our NRI TDS & Form 13 calculator.

Repatriating the proceeds

Net proceeds move from your NRO to NRE/overseas account up to USD 1 million per financial year, supported by Form 15CA/15CB. Plan the certificate and repatriation together so funds are not stranded.

What to file

Form 13 with the lower-rate computation, on TRACES.
Purchase deed and indexed-cost working; sale agreement.
Passport/visa and residency proof; NRO/NRE details.
Where reinvestment is claimed — the supporting undertaking.

Common questions

How much TDS is deducted when an NRI sells property in India?

For a long-term asset the buyer withholds about 20.8% of the full sale consideration under the Income-tax Act, 2025 (erstwhile Section 195 of the 1961 Act). A Form 13 certificate can reduce this to the actual capital-gains rate.

How long does a Form 13 certificate take?

Typically 4–8 weeks from a complete application, longer where cost of acquisition is hard to establish (inherited/gifted property) or there are multiple owners.

Can an NRI repatriate the sale proceeds?

Yes — up to USD 1 million per financial year from the NRO account, with Form 15CA/15CB, subject to taxes being paid or certified.

This guide is general information, not legal or tax advice; positions turn on the facts of each case and the notified Rules. Get in touch for advice on your situation.

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