Free Tool · Section 195 + Section 197
NRI Property TDS Refund Calculator
See exactly how much cash gets trapped when the buyer deducts ~20% TDS on the full sale value — and what your Section 197 lower-TDS certificate should target.
Total consideration as per sale deed.
Original cost. Indexation not modelled here.
>24 months = long-term.
Amount you plan to reinvest in a residential house.
Max ₹50 lakh per FY in NHAI/REC/IRFC/PFC bonds.
Capital Gain
₹90,00,000
Long-term (>24 mo)
Actual Tax Due
₹11,70,000
After exemptions, at applicable rate
Buyer-Deducted TDS
₹31,20,000
At ~20%+ on full sale value
Cash Flow Trapped Until Refund
₹19,50,000
A Section 197 lower-TDS certificate can fix this BEFORE sale. The AO would typically certify a TDS rate of approximately 7.80% instead of the default ~20-31%, freeing the trapped cash.
Estimate only. Indexation, surcharge marginal relief and short-term slab rate not fully modelled. Apply for Section 197 at least 6 weeks before sale — talk to Pujara & Co.
Why this is the most expensive NRI mistake
When an NRI sells immovable property in India, Section 195 requires the buyer to deduct TDS on the capital gains — not on the sale value. The actual rate after surcharge and cess is ~20.8% on LTCG and ~31.2% on STCG.
In practice, buyers (and their CAs) often play defensively and deduct on the entire sale value. The seller is then chasing a refund 12-18 months later — money that should have been in their hands at closing.
Section 197 — the fix BEFORE sale
Form 13 is filed by the seller to the Assessing Officer, computing the actual expected capital gains and the corresponding tax. The AO issues a certificate authorising the buyer to deduct TDS at a lower rate. Processing time: typically 4-6 weeks from a complete application. Plan it before signing the agreement to sell.
Exemptions that shrink the gain
- Section 54: Reinvest LTCG in another residential house in India (within 1 year before or 2 years after sale; 3 years for construction). Cap ₹10 crore.
- Section 54EC: Up to ₹50 lakh in NHAI/REC/IRFC/PFC bonds within 6 months of sale. 5-year lock-in.
- Section 54F: Available when selling non-residential property; subject to one-house condition.
Selling property as an NRI?
Section 197 application, capital gains computation with indexation choice, Section 54/54EC/54F structuring, Form 27Q reconciliation and ITR refund follow-up — handled end-to-end. From ₹14,999 for a single-property engagement.
Read the full guide