Selling property in India as an NRI
This is where NRI clients lose the most money, and almost always to the same mistake. When an NRI sells property, the buyer must deduct TDS under Section 195 — and the default rate applies to the entire sale consideration, not to the gain.
On a property bought years ago for a fraction of its current value, the actual capital gains tax is often a small share of that deduction. The excess is recoverable only as a refund, after filing a return, typically many months later.
An application under Section 197 for a lower or nil deduction certificate, filed in Form 13, tells the buyer to deduct on the real gain instead. It has to be obtained before the transaction. Once the buyer has deducted and deposited at the full rate, the only route left is a refund claim.
We handle the Form 13 application, the computation supporting it, coordination with the buyer and their accountant, and the eventual return filing.
Remittances: Form 15CA and 15CB
Repatriating funds out of India generally requires Form 15CA from the remitter and, above the prescribed threshold, Form 15CB certified by a Chartered Accountant confirming the tax position on the remittance.
Banks will not process the transfer without them, and they will not tell you in advance which part of your documentation is inadequate. We prepare both, and where the remittance is from a property sale or an inheritance, the supporting trail the bank will ask for.
The rest of the NRI practice
- Residential status under Section 6, including the deemed residency provisions that catch high-income NRIs who assume they are outside the net
- DTAA relief — treaty positions, tax residency certificates, and Form 10F
- ITR filing for Indian-sourced income: rent, capital gains, interest and dividends
- NRO and NRE account questions, and repatriation limits
- Inherited property — cost of acquisition of the previous owner, holding period, and the documentation to establish both