Archive · 23 Jul 2025
NRI Property Sales Tax: Budget 2024-25 Changes Explained
If you're an NRI selling property in India, the tax rules changed.
Now, long-term gains are taxed at 12.5% without inflation adjustments.
The tax is taken out upfront from the entire sale amount, which may be too much.
You might need to file a tax return to get some money back.
It is crucial to follow tax rules, keep all paperwork, and get help from experts to avoid problems.
Budget 2024-25 changed capital gains tax for NRIs selling property in India.
LTCG is now taxed at 12.5% without indexation, a change from the previous 20% with indexation.
TDS is deducted at 12.5% of the sale value for LTCG, and 30% for STCG, potentially exceeding the actual tax liability.
NRIs should file ITRs to reclaim excess TDS deductions.
Experts advise strict compliance with tax regulations, including obtaining Form 13 and consulting professionals.
- Who
- Non-Resident Indians (NRIs) selling property in India.
- What
- Changes in capital gains tax for NRIs selling property in India.
- When
- The changes were introduced in Budget 2024-25, effective July 23, 2024.
- Where
- India
- Why
- To understand the tax implications and ensure compliance with the updated tax regulations.
Impact on NRIs
Compliance and Planning
Tax Burden
Impact on NRIs
Potential for higher upfront tax deductions due to TDS on the full sale value.
Compliance and Planning
Tax liability is potentially higher than before.
- LTCG Tax Rate (after July 23, 2024)
- 12.5% (without indexation)
- LTCG Tax Rate (before July 23, 2024)
- 20% (with indexation)
- STCG Tax Rate
- Applicable slab rates
- TDS Rate for LTCG
- 12.5% of sale value
- TDS Rate for STCG
- 30% of sale value
- Repatriation Limit
- USD 1 million per financial year