NRI Tools

NRI Property Sale Calculator (LTCG + TDS)

Sold or selling Indian property as an NRI? Compute your long-term capital gain, the TDS the buyer will deduct, and the refund you can expect after filing your ITR. Updated for Finance Act 2024.

Property details

Actual sale price or stamp-duty value, whichever is higher.

Reinvestment (optional)

Amount reinvested in one Indian residential property within 2 years.

Max ₹50 lakh per financial year. Bonds locked for 5 years.

Long-Term Capital Gain (taxable, after reinvestment)

LTCG tax

Net in hand

After LTCG tax

TDS the buyer will deduct

TDS is deducted on the full sale value (not the gain) unless you get a lower-deduction certificate under Section 197.

Refund expected on ITR filing

TDS − actual LTCG tax. File ITR after year-end to claim.

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Calculator uses cost-inflation-index (CII) figures published by the Income Tax Department for indexation. Post 23 July 2024, indexation benefit was removed for most property sales — only pre-July-2024 purchases retain the option to elect the old 20%-with-indexation regime. Results are indicative; a chartered accountant should validate the final numbers.

How NRI property sale tax works in 2026

When an NRI sells Indian immovable property held for more than 24 months, the gain is long-term capital gain (LTCG). The Finance Act 2024 (effective 23 July 2024) reworked how it is taxed:

  • Purchased on or after 23 July 2024: Flat 12.5% LTCG without indexation. No option to elect indexation.
  • Purchased before 23 July 2024: Taxpayer may elect either 12.5% without indexation or 20% with indexation — whichever is lower. This calculator picks the lower option automatically.
  • Surcharge and 4% health & education cess apply on top. Surcharge is capped at 15% for capital gains under the new regime.

TDS: what the buyer deducts

When the seller is an NRI, the buyer is legally required to deduct TDS on the full sale consideration, not just the capital gain. Under Section 195:

  • Base rate: 12.5% (long-term) or 30% (short-term, < 24 months).
  • Surcharge: 10% for sale value between ₹50 lakh and ₹1 crore, 15% above ₹1 crore (LTCG surcharge is capped at 15%).
  • Health & education cess: 4% on tax + surcharge.

This often results in TDS far higher than the actual tax due. The remedy is a Lower Deduction Certificate under Section 197 — apply before the sale, and the AO issues a certificate authorising TDS on the actual gain instead of the full sale value. Without it, you park a large refund with the government until you file your ITR.

How to reduce LTCG legally

Section 54 (residential property): Reinvest the capital gain in one new Indian residential property within 2 years (or construct within 3). The reinvested portion is exempt. Restricted to one property, and to gains up to ₹10 crore.

Section 54EC (bonds): Reinvest gain in NHAI or REC bonds within 6 months of sale. Capped at ₹50 lakh per financial year. Bonds are locked for 5 years and earn about 5.25% interest.

Section 54F (any capital asset → residential property): Available if the gain is from a non-residential asset. Similar reinvestment rule but exempt on a proportionate basis.

Section 54 and 54F cannot both be claimed on the same gain. Section 54EC can be combined with either.

Repatriation of sale proceeds

Sale proceeds must first be credited to your NRO account. From there, up to USD 1 million per financial year can be remitted abroad under the RBI's Liberalised Remittance Scheme, subject to a Form 15CA / 15CB certificate from a chartered accountant. Property inherited or gifted has an additional lock-in of 10 years before proceeds can be remitted (though this is rarely enforced strictly today).

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