Letโs say an NRI bought a property in 2010 for โน1 crore and is selling it in 2025 for โน2 crore. Thatโs a profit of โน1 crore.
๐ธ ๐๐๐ ๐ต๐ฒ๐ฟ๐ฒโ๐ ๐๐ต๐ฒ ๐ฐ๐ฎ๐๐ฐ๐ต:
โขNRIs donโt get the benefit of indexation (adjusting the original price for inflation), unlike residents. So, the entire โน1 crore is taxable as long-term capital gain (LTCG).
๐ฐ ๐๐ผ๐ ๐๐ต๐ฒ ๐ง๐ฎ๐
๐๐ ๐๐ฎ๐น๐ฐ๐๐น๐ฎ๐๐ฒ๐ฑ:
1.LTCG Tax (12.5% of โน1 crore) = โน12,50,000
2.Surcharge (15% of above tax) = โน1,87,500
3.Subtotal (Tax + Surcharge) = โน14,37,500
4.Cess (4% on the above) = โน57,500
5.โ
Total Tax Payable by NRI = โน14,95,000
๐จ ๐๐๐ ๐๐ต๐ฒ๐ฟ๐ฒโ๐ ๐บ๐ผ๐ฟ๐ฒ: ๐ง๐๐ฆ (๐ง๐ฎ๐
๐๐ฒ๐ฑ๐๐ฐ๐๐ฒ๐ฑ ๐ฎ๐ ๐ฆ๐ผ๐๐ฟ๐ฐ๐ฒ)
The buyer has to deduct TDS at 12.5% on full sale value (not just the gain):
โข12.5% of โน2 crore = โน25,00,000
โขSurcharge (15%) = โน3,75,000
โขSubtotal = โน28,75,000
โขCess (4%) = โน1,15,000
โขโ
Total TDS deducted = โน29,90,000
๐งพ ๐ช๐ต๐ ๐ถ๐ ๐ง๐๐ฆ ๐บ๐ผ๐ฟ๐ฒ ๐๐ต๐ฎ๐ป ๐ฎ๐ฐ๐๐๐ฎ๐น ๐๐ฎ๐
?
โขThe buyer deducts tax on entire sale price (โน2 crore), not just the profit.
โขActual tax due is only on capital gain (โน1 crore).
โขHence, the NRI must file an Income Tax Return to claim the extra TDS refund.
โ ๏ธ ๐๐ฒ๐ ๐บ๐ผ๐ฟ๐ฒ ๐๐ต๐ฎ๐น๐น๐ฒ๐ป๐ด๐ฒ๐ ๐ณ๐ผ๐ฟ ๐ก๐ฅ๐๐:
โขTenant deducts 30% TDS on rent.
โขNRI may have to physically come to India for repairs or renewals unless they appoint a Power of Attorney (POA).
โขDelay in refund of excess TDS if return isnโt filed properly.
๐ ๐๐ถ๐ป๐ฎ๐น ๐ง๐ถ๐ฝ:
NRIs should apply to the Income Tax Officer for a certificate of lower TDS, so that the buyer deducts TDS only on gains, not the full sale value.
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