Income type guide
Property Sale TDS
Sell a ₹2 crore flat as NRI: Section 195 makes the buyer deduct 12.5% TDS plus surcharge plus 4% cess on the FULL ₹2 crore (not your gain) — that's 13.0% to 14.95% depending on the sale-value band, roughly ₹26–₹30 lakh blocked for 6–12 months. Form 13 under Section 197, filed 6–8 weeks before registration (30–45 working days AO turnaround), cuts it to your actual tax on the gain.
For Gulf NRI on Property Sale
Default at-source TDS in India: 12.5%. The treaty rate matches India's 12.5% domestic — no DTAA reduction at source. UAE doesn't tax personal income, so there's no home-country tax to credit either. The Indian 12.5% IS your only tax.
Article 13(1)
How it works
What happens to your property sale as an NRI
Section 195 requires the buyer to deduct TDS on the FULL sale value at 12.5% × surcharge × 1.04 cess — 13.0% (sale ≤ ₹50L), 14.30% (₹50L to ₹1cr), 14.95% (> ₹1cr) — and deposit via Form 27Q within 7 days of month-end. Finance (No.2) Act 2024 set the LTCG rate at flat 12.5% (no indexation) for transfers on/after 23 July 2024. **Note for NRIs:** the 20%-with-indexation grandfathering option for pre-23-Jul-2024 acquisitions is reserved for residents only — NRIs pay 12.5% flat on the gain regardless of when the property was acquired. Form 13 is the only pre-sale remedy; post-sale you recover via ITR filing with Section 244A interest at 6% p.a.
12.5%
Default TDS rate
Varies
DTAA rate by country
Gulf NRI — what changes for you
Country-specific overlay on Property Sale
Article 13 / Article 6 — source-state taxation
Most India treaties give India the source-state taxing right on Indian immovable property (Article 13 for capital gains, Article 6 for rental income). The DTAA does NOT reduce India's tax on these. Your home country may also tax the same income, with FTC for the Indian tax paid. For NRI sellers, the Section 197 / Form 13 LDC mechanism is the cash-flow lever — covered in the Form 13 LDC guide.
Property Sale rates by country
What each country's treaty says
Sorted by savings potential. 0 countries with a DTAA benefit, 31 with the same rate.
Same rate under DTAA (31 countries)
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