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How much of what the buyer holds back on my property sale is real tax?

Without a certificate the buyer deducts on the whole sale price, not on your gain. A lower-deduction certificate (Form 13, now Form 128) brings it down to the tax you owe. This shows the cash that stays with you.

₹

= ₹70 Lakh

₹

= ₹2 Crore

Your total Indian income this year, including this gainOptional: sets the surcharge on the tax you owe
Cash that stays with you at completion

Buyer's deduction without a certificate, minus the tax you actually owe

₹10,46,500

14.95% of the price without a certificate against 9.72% with one. The difference otherwise sits with the department until your return is processed, typically 4 to 8 months after you file.

Capital gain₹1,30,00,000
Buyer deducts without a certificate14.95% of the sale price-₹29,90,000
Tax you owe on the gain12.5% plus surcharge and cess-₹19,43,500
Buyer deducts with a certificateabout 9.72% of the sale price-₹19,43,500

Visual comparison

No cert
₹29,90,000
14.9%
With cert
₹19,43,500
9.7%

A CA files the application with your assessing officer before completion (30 to 45 days), so the buyer deducts on your gain, not on the price.

Get the certificate filed before the sale

What to do with this number

Get the lower-deduction certificate before you sign

We file with your tax officer (assessing officer); allow 30 to 45 days. Without it the excess sits with the department until your refund.

Bought before 2001? Your cost may be higher than you think

The 1 April 2001 fair value can replace the old cost and shrink the gain.

Send the sale proceeds abroad

Form 15CA/15CB (now Forms 145/146) and the USD 1 million route, once the tax side is settled.

How this is worked out

  • Buyer's deduction: 12.5% under Section 112 (no indexation for transfers on or after 23 July 2024) on the full sale price, plus surcharge for the band the sale price falls in and 4% cess: 14.95% here.
  • Tax you owe: 12.5% on the gain (sale price less what you paid), plus surcharge for the band your gain falls in and 4% cess. Surcharge on long-term gains is capped at 15%.
  • Reinvestment reliefs (Sections 54, 54F, 54EC) can cut the gain further; they are not modelled here.
  • Gains on Indian property are taxable in India under the India-UAE treaty, so the treaty does not lower this; the certificate does.
  • A sale within 24 months of purchase is short-term and taxed at slab instead; use the capital gains calculator for that case.

Checked against the Income-tax Act and Rules on 10 September 2026. An estimate, not advice: your return decides.

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