TDS ON THE SALE OF PROPERTY BY NRI’S : Explained

If you are an NRI and sell a property in India then the buyer deducts 20.8 % as tax deducted at source (TDS) as Long term capital gains tax (LTCG) for properties sold after two years of buying it .

In case the property is sold within 2 years of buying it then the TDS will depend on your income tax slab rate .

The deduction includes TDS plus surcharge, health and education cess .

LTCG TDS rates

• Properties valued less than INR 50 lakh: Total tax 20.8% (including surcharge and cess)

• Properties valued between INR 50 lakh and INR 1 crore: Total tax 22.88%

• Properties valued above INR 1 crore: Total tax 23.92%

•  Properties valued above INR 2 crores : Total Tax 25 %

• Properties valued above INR 5 crores : Total Tax 37 %