Tools · Tool 04
TDS on property sale
by an NRI
When an NRI sells property in India the buyer deducts tax on the whole sale price, not on the gain. This works out the gap between the two — which is the money a Section 395 order is worth.
What is the property selling for?
The whole consideration in the agreement. The buyer deducts against this, not against your gain.
What did it cost you?
What you paid, plus stamp duty, registration and any improvement you can evidence. Leave it blank if you do not know.
How long did you hold it?
Twenty-four months is the line for property, and the two are taxed differently.
Do you know the exact rate?
The base rate comes off the holding period above.
Optional. The buyer adds surcharge and cess on top, and that depends on your income. If they have given you their rate, or a treaty gives you a lower one, put it here.
Arithmetic, not advice. It applies one rate to two numbers — the sale price and the gain — and shows the gap. The base rate is 12.5% on a long-term gain and 20% on a short-term one, for a non-resident who is not a company. It cannot know your surcharge, so the buyer will withhold more than this. Enter their figure and the tool uses it.
The deduction is Section 393(2) [Table S. No. 17] of the Income-tax Act, 2025 — not the 1% rule between residents, which the Department says does not apply to a non-resident seller. Section 395 is the order that reduces it. From 1 October 2026 a resident individual or HUF buying from a non-resident may use their PAN instead of a TAN. Anything over-deducted comes back only by filing a return.
Source: Income Tax Department, FAQs on Tax Deducted at Source, tax year 2026-27 under the Income-tax Act, 2025 as amended by the Finance Act, 2026. Checked 20 September 2026. Rates move with every Finance Act.
Sending money home regularly?
A standing instruction, a property payment, a pension — the account it lands in matters more than the rate.