Selling Property as an NRI? Here’s How to Control TDS Legally
If you’re an NRI selling property in India, one thing can instantly ruin your cash flow - TDS . Many NRIs are shocked to see 20–30% of the sale amount deducted upfront , even when their actual tax liability is much lower. This happens not because the tax is unavoidable, but because the process is misunderstood or handled late. So the real question is: How to avoid TDS on sale of property by NRI? Not illegally. Not by shortcuts. But legally and smartly . This guide explains exactly how NRIs reduce or avoid excess TDS - step by step. First, Understand Why TDS Is So High for NRIs When a buyer purchases property from an NRI: TDS is mandatory It is not 1% (like resident Indians) It is deducted under Section 195 Key point: 👉 TDS is deducted on capital gains , not blindly on sale value - but only if you plan in advance . Most NRIs don’t - and that’s where money gets stuck. What Is the Actual TDS Rate for NRIs? There is no flat number, but typically: Long-term capital gains → ~20% + su...