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TDS on Residential Property sale by NRI

Ketan G (3 Points)

09 April 2025

Please guide
My cousin is NRI stays in Dubai
he has Residential property in Pune
Purchase = 40L
Year = 2013

Sale price = 55L
Year = 2025

As per indexation no tax to be paid

Purchaser is Residential Indian

Do the purchaser has to deduct TDS ?
if yes then how much ?

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5 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7300 Points)
Replied 09 April 2025

TDS on Sale of Property by NRI When an NRI sells a property in India, the buyer is responsible for deducting Tax Deducted at Source (TDS).

In your cousin's case, since he's an NRI selling a residential property in Pune, the buyer will need to deduct TDS.

TDS Rate The TDS rate depends on the type of capital gain: - *Long-term capital gains (property held for more than 2 years)*: 20% of the gross sale price -

*Short-term capital gains (property held for less than 2 years)*: 30% of the gross sale price Since your cousin's property was purchased in 2013 and sold in 2025, it's considered a long-term capital gain.

The TDS rate would be 20% of the gross sale price. Calculating TDS To calculate the TDS, multiply the sale price by the applicable TDS rate: -

Sale price: ₹55 lakhs - TDS rate: 20% - TDS amount: ₹55 lakhs x 20% = ₹11 lakhs Purchaser's Responsibility

The buyer, being a residential Indian, is responsible for deducting the TDS amount and depositing it with the Income Tax Department.

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Sachin Pandey (Student) (24 Points)
Replied 09 April 2025

Since the property holdings period is more than 2 year then the taxability will consider according to Long term property. TDS rate will be 20% Tax and 10% Surcharge and 4% HEC. Hence total TDS rate will be 22.88%. In other case, if seller have Lower deduction certificate of TDS, then rate will be as defined in Certificate.

Dhaval Kakadiya (Proprietor) (49 Points)
Replied 10 April 2025

Presuming date of sale after 23.07.2024, there is no indexation available for NRI. Tax rate for LT asset here would be 12.5%. Buyer has to deduct TDS on sales consideration or seller has to apply for lower TDS certificate.

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