Last reviewed: 13 August 2026. An NRI property sale that goes wrong rarely goes wrong at the registrar's office — it goes wrong six weeks earlier, when nobody applied for the lower-TDS certificate, or six weeks later, when the repatriation paperwork stalls at the bank. The tax law itself is covered in our Section 195 and lower-TDS deep-dive; this page is the other thing you need — the journey checklist, in the order the steps actually happen.
Phase 1 — sixty days before you sign anything
- PAN operative? An inoperative PAN (Aadhaar-linkage issues are common for NRIs) triggers higher TDS and blocks certificates. Fix first.
- Assemble the title file: purchase deed, chain documents, society NOC/share certificate, tax receipts, loan closure if any.
- Compute the real gain: indexed/unindexed cost as applicable to your purchase date, improvement costs with proofs, transfer expenses. This number drives everything.
- Decide on exemptions before the sale: reinvestment routes (Section 54/54F-type, carried into the 2025 Act) need timing discipline — the decision belongs here, not at ITR time.
- File Form 13 on TRACES for the Section 197 lower/nil deduction certificate — 30 to 45 days of processing is normal, so T-60 is when the clock starts. Without it, the buyer deducts on the full sale value, not your gain, and lakhs sit with the department for a year.
- Treaty check where relevant: TRC + Form 10F in hand if a treaty position affects the computation — see our DTAA relief guide.
Phase 2 — agreement and sale day
- The buyer needs a TAN. Buying from an NRI is not the 1%/194-IA resident drill — the buyer deducts under section 195 and files through the TDS system, which needs a TAN. Buyers discover this late; sellers should raise it early because the deal timeline is yours to protect.
- Certificate into the agreement: quote the 197 certificate number and rate in the agreement; the buyer deducts exactly per certificate.
- Money path: sale proceeds via banking channels into your NRO account — cash components are a FEMA and tax problem you decline politely.
- Documents at registration: the usual registrar set plus your PAN, and the buyer's TDS arrangement documented in writing.
Phase 3 — after the registration
- Buyer's side (chase it): TDS deposit, statement filing, and your TDS certificate — your refund and credit depend on the buyer completing this correctly.
- Your ITR: report the gain, claim the certificate-backed TDS credit, apply exemptions with their proofs. Refund arises where TDS still exceeded the true tax.
- Repatriation: the bank moves funds abroad against Form 15CA and (where applicable) a CA-certified 15CB, within the applicable FEMA limits for NRO-sourced funds (the USD 1 million per financial year route for eligible remittances). Sequence: ITR position clear → 15CB → 15CA → bank processing.
- Keep the file: deed, certificate, TDS proofs, ITR, 15CA/CB — the complete pack answers any later notice in one attachment.
The mistakes that cost the most
- Starting Form 13 after the buyer is ready — the certificate arrives after the sale, and TDS hits the full value.
- A buyer without a TAN discovering it in the week of registration — deals slip a month.
- Selling with an inoperative PAN — everything downstream jams.
- Deciding reinvestment exemptions at ITR time, after the reinvestment windows have quietly run.
- Treating repatriation as a formality — banks reject incomplete 15CA/CB sets without sentiment.
Frequently asked questions
How much TDS applies when an NRI sells property?
The buyer deducts under section 195 — for long-term property (held over 24 months), at 12.5% plus surcharge and cess on the gains where a Section 197 certificate authorises it, but on the FULL sale value where no certificate exists. The lower-TDS certificate is what keeps the deduction proportionate to the real gain.
When should I apply for the lower-TDS certificate?
File Form 13 on TRACES 45–60 days before the expected sale — processing commonly runs 30–45 days and the certificate must exist before the buyer pays. It specifies the rate the buyer applies; quote it in the agreement to sell.
Does the buyer really need a TAN to buy my property?
Yes — purchases from NRI sellers run through section 195, which requires the buyer to obtain a TAN, deposit the TDS and file the statement. It is the buyer’s obligation, but the seller has the strongest incentive to raise it early because certificate credits and deal timelines depend on it.
How do I take the sale money abroad?
Through your bank under FEMA — NRO-sourced remittances (up to USD 1 million per financial year for eligible cases) move against Form 15CA and, where applicable, a chartered accountant’s Form 15CB certifying the taxes on the remittance. A clear ITR position makes the certification straightforward.
Can I save the capital gains tax by reinvesting?
Reinvestment-based exemptions (the Section 54 family, carried into the Income-tax Act, 2025) are available to NRIs for eligible reinvestments within the statutory windows — but the decision and the timeline discipline belong BEFORE the sale, not at return-filing. The exemption workings also reduce the gain the lower-TDS certificate is computed on.
What exactly does the firm handle in an NRI sale?
The full journey: gain computation and exemption planning, Form 13/197 certificate on TRACES, buyer-side TAN and TDS guidance, ITR with certificate credits, and the 15CB certification and 15CA sequencing for repatriation — one desk, one consistent file, coordinated over WhatsApp and email across time zones.
We run the whole journey — certificate, computation, buyer coordination, ITR and repatriation — so the only surprise is how smooth it was.
NRI Lower TDS Certificate Form 15CA/15CB Certification Talk to usThis article is general information as on 13 August 2026. Rates follow the site’s verified position for the current regime (12.5% without indexation for post-23-July-2024 purchases; grandfathering rules apply to earlier purchases); surcharge varies with income. Facts decide everything in property matters — take advice on your case.