TDS on NRI Property Sales: Current Forms and Certificates

For payments or credits from 1 April 2026, use the relevant non-resident table entry in section 393 of the Income-tax Act, 2025. Earlier transactions use the corresponding 1961 Act provisions, including section 195. Confirm the relevant trigger date and current rate with a Chartered Accountant before payment.

Do not treat a headline capital-gains rate as a universal TDS rate, or assume that every sale must be withheld on its entire price. The chargeable amount, applicable rate, treaty position and any Assessing Officer determination or certificate require transaction-specific review. The buyer should not independently substitute the seller’s estimated profit for the required withholding.

For tax year 2026–27, apply in Form 128 under section 395(1), replacing the earlier Form 13 / section 197 route. Approval depends on the Assessing Officer’s assessment; the certificate controls the rate and validity. Apply early enough to obtain it before the relevant payment or credit. Approval and timing are not guaranteed.

Agree the payment schedule, applicable TAN requirements, deposit deadlines, reporting and deduction certificate with your Chartered Accountant before funds move. Use the forms required for the transaction date, rather than automatically reusing old form numbers.

• NRI guide to buying property in India
• Selling property in India as an NRI
• TDS on sale of property by NRI
• NRI capital gains tax
• Repatriating sale proceeds
• NRE vs NRO vs FCNR
• Power of Attorney for NRI property
• Can NRIs buy agricultural land?
• NRI home loans
• Talk to our NRI desk

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Which law applies from April 2026?

Use the applicable section 393 table entry of the Income-tax Act, 2025 for payments or credits from 1 April 2026; confirm transition cases before paying.

Does a lower-withholding certificate guarantee TDS only on my gain?

No. Follow the rate, scope and validity specified in the Assessing Officer’s certificate.

Which form replaces Form 13?

Form 128 is the lower or nil withholding application for tax year 2026–27 under section 395(1).

General information. Ask your bank and Chartered Accountant to confirm the rules for your transaction.