TDS on your property sale — what you'll actually pay
Enter the sale and purchase details and we'll show the TDS under Section 195, the actual tax you owe, and how much a lower-TDS certificate saves you.
How this works
We apply Section 195 of the Income Tax Act for the TDS the buyer must deduct on a sale to an NRI. The TDS rate is calculated on the gross sale consideration, not the gain — which is why NRIs often see huge up-front deductions even when the actual tax is far less.
For LTCG (holding > 24 months), TDS is 12.5% + surcharge + 4% cess on the sale value. Your actual tax is 12.5% × gain. If you bought the property before July 23 2024 we also compute the old-regime option (20% with CII indexation) and pick the lower total tax automatically.
For STCG (holding ≤ 24 months), TDS is 30% + surcharge + cess on gross sale; actual tax is 30% × gain. This is exactly the scenario where a lower-TDS certificate (Form 13 under Section 197) is most valuable — a ₹24 lakh TDS can drop to under ₹3 lakh if your actual liability is ₹3 lakh.
Sources & References
Frequently Asked Questions
- Why is TDS on sale value, not profit?
- Section 195 mandates TDS on the gross payment to a non-resident, not the net gain. You recover the difference as a refund when you file ITR.
- Can I reduce TDS before sale?
- Yes — apply for Form 13 under Section 197. Approval takes 2-4 weeks. The certificate specifies the reduced rate based on your expected actual tax.
- What is 15CA/15CB?
- Forms required before the bank releases funds abroad. 15CB is a CA certificate of tax compliance; 15CA is your own declaration on the Income Tax portal.
- Can I claim DTAA on a property sale?
- For most treaties, immovable-property gains are taxable in the country of property (Article 13). India retains the taxing right. UAE's 1992 treaty has a specific position — consult a CA.
- Old vs new LTCG regime after Budget 2024 — which is better?
- Depends on your holding period and CII inflation. This tool computes both (if eligible) and picks the lower-tax option automatically.
- Is agricultural land taxed?
- Rural agricultural land is exempt. Urban agricultural land (within municipal limits or specified distance) is taxable. Section 2(14) defines the test.
- Do I need a PAN to sell?
- Yes — mandatory. Without your PAN the buyer cannot deposit TDS.