Sell Indian Property Smartly — Minimise Tax, Maximise Proceeds
When an NRI sells a property in India, the transaction triggers multiple tax and compliance obligations: (a) Capital gains tax — Long-term (LTCG at 20% with indexation, or 12.5% without — post Budget 2024) if held over 2 years; Short-term (STCG at slab rates) if held under 2 years; (b) TDS by the buyer — 20% TDS (plus surcharge and cess) on the sale consideration for LTCG, or 30% for STCG — significantly higher than resident seller TDS; (c) Repatriation compliance — Form 145/146 [old Form 15CA/15CB] for moving proceeds abroad; (d) ITR filing to report the capital gain.
VITTAX's NRI property sale service covers pre-sale tax planning (exemptions under Section 82, 86, 85 - bonds [old sections 54, 54F, 54EC — bonds]), lower TDS certificate applications (Form 128 [old-13] to reduce buyer TDS from 20% to the actual tax rate), computation of capital gains, ITR filing, and repatriation assistance — ensuring you legally pay the minimum required tax and can move the proceeds out of India.
Who Needs This?
Our Process
Pre-Sale Tax Planning
Compute estimated capital gain; identify exemption eligibility (Sec 82,85,86 [old-54, 54EC]); advise on timing.
Form 128 [old-13] Application
Apply for lower/nil TDS certificate before sale so buyer deducts less TDS.
Sale Execution Support
Assist buyer with correct TDS compliance; provide CA certificate if needed.
Capital Gains ITR Filing [By July 31]
File ITR-2 with Schedule CG; claim exemptions if reinvestment made.
Repatriation
Form 145/146 [old-15CA/15CB] and bank coordination to move sale proceeds abroad.
Pricing
Pre-Sale Advisory
₹5,999
Tax planning + Form 128 [old-13] application
Ideal for: NRIs planning a sale — get this done BEFORE the sale
Full Property Sale Package
₹9,999
Pre-sale + ITR + Repatriation
Ideal for: NRIs wanting end-to-end property sale compliance
FAQs
Why is TDS on NRI property sale so high (20–30%)?
TDS is deducted at the maximum marginal rate applicable to capital gains for NRIs. This is often higher than the actual tax — which is why getting a Form 128 [old-13] lower TDS certificate before the sale is critical to avoid TDS blockage.
Can I reinvest the gain to save tax?
Yes — under Section 82 [old-54] (reinvest in another residential property within 2 years), Section 85 [old-54EC] (invest in NHAI/REC bonds within 6 months, up to ₹50 lakh), or Section 86 [old-54F] (if selling a non-residential asset). We advise on the best strategy.
What if the buyer already deducted excess TDS?
We file your ITR claiming the excess TDS as a refund. Income Tax refunds for NRIs are directly credited to the NRO/NRE account.
⚡ Exemption Sections
Form 128, exemption claims, ITR filing, repatriation — complete NRI property sale compliance under one roof