NRI Property Sale TDS Calculator - Capital Gain Based 2026

If you're an NRI selling property in India, the NRI property sale TDS calculator capital gain based tool on this page works out exactly what your buyer should deduct — on your actual profit, not your entire sale price.

What Is NRI Property Sale TDS Calculator Capital Gain Based?

This free tool calculates TDS on the sale of Indian property using the actual capital gain (sale value minus cost of acquisition, taxed at the 12.5% LTCG rate confirmed by CBDT), instead of a flat percentage on the full sale consideration. It serves NRI sellers, resident buyers purchasing from an NRI, and CAs preparing lower-deduction certificate applications.

Most online calculators apply TDS on the gross sale price, which is what buyers default to when they can't verify your cost basis. This tool shows you the correct, capital-gain-based number instead — the figure you'd get if a Lower Deduction Certificate under Section 197 (Income Tax Act, 2025) were in place.

Want to see the standard NRI property-sale TDS calculation on the full sale consideration? Use our [NRI Property Sale TDS Calculator (Section 195)].

NRI Property Sale TDS Calculator Capital Gain Based Formula (as per Section 393(2), Income Tax Act, 2025)

TDS on payments made to non-residents is governed by Section 393(2) of the Income Tax Act, 2025, which replaced the old Section 195 of the 1961 Act for any sum paid or credited on or after 1 April 2026.

Capital Gain = Sale Value − (Cost of Acquisition + Cost of Improvement)

If holding period > 24 months (LTCG):
 Base Tax = Capital Gain × 12.5%

If holding period ≤ 24 months (STCG):
 Base Tax = Capital Gain × applicable slab rate (30% used as standard)

Surcharge = Base Tax × surcharge rate (slab-based; [capped at 15% for LTCG](https://www.incometaxindia.gov.in/w/tax-rates%E2%80%8B) under Sections 111A, 112, 112A)
Cess = (Base Tax + Surcharge) × 4%

Total TDS = Base Tax + Surcharge + Cess

There is no minimum sale-value threshold for NRI sellers — TDS applies from ₹1 of consideration, unlike the ₹50 lakh threshold that applies to resident-to-resident deals under Section 393(1).

How This Calculator Works

1. Enter the total sale value of the property and your cost of acquisition (add any improvement cost to this figure).
2. Enter the purchase date and sale date — the tool works out your holding period automatically.
3. Based on the holding period, it classifies the gain as long-term (over 24 months) or short-term (24 months or less).
4. It applies the correct base rate, adds slab-based surcharge, then adds 4% cess.
5. It shows your total TDS liability and the effective TDS rate as a percentage of the full sale value, so you can compare it against what a buyer might otherwise withhold.

Step-by-Step Example Calculation

Rajesh, an NRI based in the UAE, bought a flat in Pune in March 2015 for ₹45,00,000. He sells it in July 2026 for ₹1,20,00,000.

• Holding period: March 2015 to July 2026 = 136 months → over 24 months → Long-Term Capital Gain
• Capital Gain = ₹1,20,00,000 − ₹45,00,000 = ₹75,00,000
• Base Tax = ₹75,00,000 × 12.5% = ₹9,37,500
• Surcharge (gain between ₹50 lakh–₹1 crore, LTCG slab) = ₹9,37,500 × 10% = ₹93,750
• Cess = (₹9,37,500 + ₹93,750) × 4% = ₹41,250
• Total TDS = ₹10,72,500
• Effective rate on sale value = 10,72,500 ÷ 1,20,00,000 = 8.94%

Compare this to what a buyer might deduct without verifying his cost basis: 12.5% + surcharge + cess applied to the entire ₹1,20,00,000 sale value, which comes to roughly ₹16,74,000 — nearly ₹6 lakh more than his actual liability. This gap is exactly why applying for a Lower Deduction Certificate matters.

Who Should Use NRI Property Sale TDS Calculator Capital Gain Based

• NRIs and OCIs selling residential, commercial, or land property in India who want to know their real TDS liability before registration
• Resident buyers purchasing property from an NRI seller, who are legally responsible for deducting the correct TDS under Section 393(2)
• Chartered Accountants and tax consultants preparing supporting calculations for a Lower/Nil TDS Certificate application (Form 121)
• NRI bankers and wealth managers advising clients on repatriation planning after a property sale

Latest Rules You Should Know (2026)

• From 1 April 2026, TDS on payments to non-residents — including NRI property sales — moved from Section 195 of the Income-tax Act, 1961 to Section 393(2) of the Income-tax Act, 2025. Any sale that closed before 1 April 2026 still falls under the old Section 195.
• The LTCG base rate remains 12.5% without indexation for property sold on or after 23 July 2024, per the Finance (No. 2) Act, 2024.
• Surcharge on LTCG is capped at 15%, regardless of how large the gain is — this cap does not extend to short-term gains, which follow the regular surcharge slabs up to 37%.
• TAN continues to be required for buyers deducting TDS from an NRI seller until 30 September 2026 ; only resident-to-resident deals under Section 393(1) shift to a PAN-based challan from 1 October 2026.
• There's no ₹50 lakh threshold for NRI sellers — TDS under Section 393(2) applies irrespective of property value.
• Surcharge above 15% only applies to short-term gains, and only if you're on the old tax regime — under the new (default) regime, surcharge is capped at 25% even for gains above ₹5 crore, versus 37% under the old regime.

Common Mistakes People Make

• Assuming TDS is only 1%, like the resident-seller rate under Section 393(1) — the NRI rate is far higher and has no threshold.
• Letting the buyer deduct TDS on the full sale value by default, instead of applying for a Lower Deduction Certificate in advance.
• Forgetting that indexation benefit no longer applies to property sold after 23 July 2024 — cost of acquisition is used as-is.
• Miscounting the holding period from the agreement date instead of the registered purchase deed date, which can flip LTCG into STCG or vice versa.
• Ignoring that surcharge on short-term gains is not capped at 15% the way it is for long-term gains, leading to an understated estimate.
• Applying for the Lower Deduction Certificate too close to the registration date, causing payment delays.

FAQs

Is TDS on NRI property sale calculated on the sale value or the capital gain?

Legally, TDS under Section 393(2) should be based on the income actually chargeable to tax — the capital gain. In practice, buyers who can't verify your cost basis often deduct it on the full sale value instead, unless you hold a Lower Deduction Certificate.

What is the current TDS rate for NRIs selling property in India? 

For long-term capital gains (held over 24 months), it's 12.5% plus surcharge and 4% cess. For short-term gains, it's taxed at slab rates, effectively around 30% plus surcharge and cess.

Has Section 195 been replaced for NRI property sales? 

Yes. For any sale where payment is made on or after 1 April 2026, Section 195 has been replaced by Section 393(2) of the Income-tax Act, 2025. Sales settled before that date remain under the old Section 195.

How can an NRI reduce TDS on property sale?

By applying for a Lower or Nil TDS Certificate (Form 121) from the Income Tax Department before the sale closes, so the buyer deducts TDS on the actual capital gain rather than the full sale value.

Is there a minimum property value below which NRI TDS doesn't apply? 

No. Unlike the ₹50 lakh threshold for resident sellers under Section 393(1), there is no minimum threshold for TDS on payments to NRI sellers.

Can indexation still reduce my capital gain on property?

No, not for property sold on or after 23 July 2024. The 12.5% LTCG rate applies without indexation benefit under the current rules.

Related Tools on Toolisky

• Capital Gains Tax Calculator India
• Long-Term Capital Gains Tax Calculator
• Short-Term Capital Gains Tax Calculator
• Rental Income Tax Calculator India
• TDS on Property Purchase from NRI — Guide
• Section 393 Income Tax Act 2025 — TDS Rate Chart