NRI Selling Property in India? How a Lower TDS Certificate (Sec 197) Saves You Money

When a Non-Resident Indian sells property in India, the buyer must deduct TDS — and it is deducted on the sale consideration, not on the actual capital gain. This often locks up far more money than the real tax liability, recoverable only later as a refund. A lower / nil TDS certificate under Section 197 fixes this at the source.

Why default TDS hurts NRIs

Because TDS applies to the full sale value, an NRI seller can see a large sum withheld even when the taxable gain is modest. That money then sits with the department until the return is processed and a refund is issued.

How Section 197 helps

• You apply to the Assessing Officer for a certificate authorising TDS at a lower or nil rate.
• The rate is based on your estimated actual capital gain, not the gross sale value.
• Applied for before the sale, it prevents excess deduction rather than chasing a refund later.

Don't forget repatriation compliance

Moving sale proceeds abroad also involves Form 15CA / 15CB. Planning the certificate and repatriation together makes the whole sale smoother.

Check your eligibility with our NRI Lower TDS Benefit Checker. For the statutory basis, see the Income Tax e-filing portal.

Selling Indian property as an NRI? Book an NRI consultation before you finalise the sale.