Why does NRI Desk show mid-market rates?

Mid-market rates are a neutral benchmark. The amount you actually receive is usually lower after bank or remittance provider spreads and fees.

Can I rely on the remittance comparison as a quote?

No. The comparison is indicative and helps shortlist providers. Always confirm the live quote in the provider app before transferring money.

Are NRI loan calculations exact?

The EMI formula matches the standard reducing-balance method, but banks may add fees, insurance, prepayment rules or eligibility conditions.

NRI property sale in India: complete guide to tax, TDS and repatriation

NRIs selling Indian property face LTCG tax at 12.5% (post-Budget 2024, without indexation), buyer TDS at 12.5% on sale consideration, and must repatriate proceeds via NRO within the USD 1 million annual limit. Exemptions are available via Section 54EC (reinvest in bonds) or Section 54F (reinvest in new home). All steps must be sequenced correctly to avoid tax penalties.

Buyer must deduct TDS at 12.5% before handing over the property

When an NRI sells Indian property: the buyer deducts TDS at 12.5% on the full sale consideration (not just the gain) and deposits it before registration. The NRI's net gain is taxable at 12.5% LTCG (property held 24+ months). Gains can be exempted by investing in 54EC bonds within 6 months or in a new residential property under Section 54F. Net proceeds go to NRO and can be repatriated after tax compliance.

Key points

Buyer TDS at 12.5% on full sale value — The buyer deducts TDS at 12.5% on the entire sale consideration — not just the gain — before registering the property.
LTCG at 12.5% without indexation — From FY 2024-25 (Budget 2024), property LTCG is taxed at 12.5% without indexation for properties held 24+ months.
Repatriation via NRO: USD 1 million/year limit — Sale proceeds flow to NRO account; repatriation requires tax clearance, Form 15CA/15CB and is capped at USD 1 million per year.

Step-by-step: NRI property sale process

Step 1: Calculate LTCG — Sale consideration minus cost of acquisition (or indexed cost if acquired before April 1, 2001 using FMV as cost) minus improvement costs. For post-July 23, 2024 sales, indexation is not available.

Step 2: Assess exemption options — If reinvesting gains in 54EC bonds (within 6 months, up to ₹50 lakh) or the full sale consideration in a new home under 54F (within 2 years/3 years for construction), plan before executing the sale.

Step 3: Buyer deducts TDS at 12.5% on the full sale consideration and deposits it to the government (Form 26QB) before the sale is registered. Buyer needs TAN for this.

Step 4: Ensure Form 26AS reflects the TDS credit after registration.

Step 5: Sale proceeds (net of TDS) are credited to NRO account.

Step 6: File ITR-2 in the year of sale. Report LTCG in Schedule CG. Claim TDS credit and any exemptions (54EC or 54F).

Step 7: Apply for lower TDS certificate via Form 13 in advance if the actual LTCG tax is lower than 12.5% of the sale consideration (e.g. gain is much less than sale value).

Step 8: Repatriate proceeds from NRO within USD 1 million per year — submit Form 15CA/15CB to the bank.

Budget 2024 change: no indexation from FY 2024-25

Before July 23, 2024: LTCG tax was 20% with indexation. For long-held properties (15–20+ years), indexed cost was much higher, reducing the taxable gain significantly.

From July 23, 2024: LTCG is 12.5% without indexation. The effective tax may be higher for long-held properties despite the lower rate.

Grandfathering: for properties acquired before FMV-as-of-2001 date, the FMV as of April 1, 2001 is used as the cost base (no indexation from that date for new regime).

Practical advice: for properties bought in the 2000s or earlier, model both scenarios and discuss with a CA before the sale.

Frequently asked questions

Can a lower TDS certificate reduce the 12.5% buyer TDS?

Yes. Apply via Form 13 on the Income Tax portal before the sale. If approved, the AO issues a certificate specifying a lower TDS rate (e.g. 5% or nil). Provide this to the buyer so they deduct at the lower rate.

What if the buyer does not deduct TDS?

The default for TDS non-deduction lies with the buyer. The NRI may still owe LTCG tax, which can be paid directly. Interest and penalties apply for TDS default on the buyer side.

Is there a capital gains account if I cannot invest in 54EC or 54F before ITR deadline?

Yes. Deposit the unutilised exemption amount in a Capital Gains Account Scheme (CGAS) at a bank before the ITR filing deadline. You have up to 3 years (for 54F) to invest from CGAS, though 54EC bonds have a strict 6-month post-sale window.