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NRI Property Sale Tax Calculator

Selling property in India from abroad: 12.5% LTCG without indexation, the TDS the buyer withholds, and how Section 54 or 54F can bring both down.

Updated · By Niraj Kumar · 16 sources

What you sold

The asset you sold wasThe asset you sold was
₹

₹1.5 Cr

₹
₹

₹50 L

₹

Held 135 months: long-term.

You

Resident in IndiaResident in India
₹

Sets the surcharge band: 15% on this gain.

The house you are buying

₹

₹90 L

₹

Duty is charged on this instead when it is higher than the price.

In whose nameIn whose name
TDS the buyer withholds₹14,72,575Tax due after Section 54: ₹41,860
Stamp duty
₹5,40,000
6% of ₹90,00,000
Registration
₹30,000
1%, capped at ₹30,000
Saved by a woman's name
₹90,000
Against a man buying alone
Long-term capital gain
₹98,50,000
12.5% without indexation
Section 54 exemption
₹95,70,000
On ₹95,70,000 reinvested, stamp duty included
Tax payable
₹41,860
On ₹2,80,000, with 15% surcharge and 4% cess
Tax saved
₹14,30,715
TDS by the buyer (NRI)
₹14,72,575
Tax on the gain; a lower-deduction certificate can cut it

How much of the gain the new house covers

97% of the gain is exempt. Investing ₹98,50,000 in all, ₹2,80,000 more, would exempt all of it.

Not bought yet? Deposit the amount in a Capital Gains Account Scheme account before your return's due date to keep the exemption, and buy within 2 years or build within 3.

How is tax on an NRI property sale calculated?

An NRI pays 12.5% on the long-term gain, plus surcharge and 4% cess, with no indexation. The buyer must withhold that tax before paying. On a ₹1,08,50,000 gain that comes to about ₹16,22,075. Reinvesting under Section 54 or 54F, and getting a lower-deduction certificate from the tax department, cuts both.

stamp = max(price, circle value) × duty% (+ cess on duty); registration = value × reg% (capped in some states); new house cost C = price + stamp + registration, counted up to ₹10 crore; net consideration N = sale price − transfer costs; LTCG = N − cost (or N − indexed cost); Section 54 (82): exemption = min(LTCG, C); Section 54F (86): exemption = LTCG × C ÷ N, at most LTCG; tax = (LTCG − exemption) × 12.5% (or 20% indexed) × (1 + surcharge) × 1.04

This page uses the same method as the Stamp Duty & Capital Gains Planner (India), which explains each term and assumption in full.

Worked example

An NRI sells a flat bought in 2012 for ₹40 L for ₹1.5 Cr, with ₹18 L of other Indian income.

  1. 1Gain: ₹1,48,50,000 − ₹40,00,000 = ₹1,08,50,000 (no indexation for non-residents)
  2. 2Rate: 12.5% plus 15% surcharge and 4% cess
  3. 3TDS withheld by the buyer: ₹16,22,075

Without reinvestment the tax is ₹16,22,075. Reinvesting the gain in an Indian house under Section 54 would exempt all of it.

Frequently asked questions

How much TDS does a buyer deduct when an NRI sells property?

Tax on the capital gain at the NRI rate: 12.5% for long-term gains plus surcharge and 4% cess. Many buyers withhold on the whole sale price to be safe. The seller can apply for a lower or nil deduction certificate, based on the actual gain and any planned Section 54 or 54F investment, before the sale.

Can an NRI claim Section 54 or 54F?

Yes, on the same terms as a resident, provided the new house is in India. What an NRI cannot do is choose 20% with indexation for property bought before 23 July 2024. That option is for residents only, so NRIs always pay 12.5% on the unindexed gain.

Sources

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