Archive · 30 Dec 2025
TDS Applicable on NRI Property Sales
If you're buying a house in India from another NRI, you must deduct TDS on the capital gains, even if the gains are below the tax exemption limit.
The seller, being a non-resident, doesn't get the benefit of the basic exemption limit.
So, the capital gains are fully taxable at 12.5% plus cess.
You, as the buyer, are responsible for deducting this tax at the time of payment.
If you don't, you could face penalties or even be held liable for the seller's unpaid taxes.
Non-resident sellers are fully taxable on capital gains from property sales in India, regardless of income level.
Buyers must deduct TDS at the time of payment, even if the gains are below the exemption limit.
The tax rate for long-term capital gains is 12.5% plus cess.
Failure to deduct TDS can result in penalties and potential liability for the buyer.
Buyers can be treated as representative assessees and held liable for the seller's unpaid taxes.
- Who
- Non-resident Indian (NRI) seller and buyer
- What
- Tax Deducted at Source (TDS) on capital gains from property sale
- When
- At the time of payment of sale consideration
- Where
- India
- Why
- Mandatory under Indian tax laws for non-residents
- Tax Applicability
- Taxable for non-residents, regardless of income level
- Tax Rate
- 12.5% plus cess
- TDS Requirement
- Mandatory for payments to non-residents
- Responsibility
- Buyer must deduct TDS
- Penalty Risk
- Buyer may be held liable for unpaid taxes