TDS & Capital Gain Rules for NRI Property Sale in India 2025
✅ Capital Gain & TDS Rules on Sale of Property by NRI (2025 Updated Guide) When an NRI sells property in India, two key aspects determine the tax outcome: Capital Gain and TDS (Tax Deducted at Source) . Understanding these helps avoid excessive tax deductions, ensures compliance, and keeps the transaction smooth. ✅ What Is Capital Gain on Property? Capital Gain is the profit earned when you sell a property at a price higher than your purchase cost. Capital Gain Formula: Capital Gain = Sale Price – Purchase Cost – Improvement Cost – Selling Expenses – Exemptions ✅ Types of Capital Gains 1. Long-Term Capital Gain (LTCG) Property held for more than 24 months Taxed at 20% after indexation Indexation adjusts purchase cost as per inflation, lowering tax liability 2. Short-Term Capital Gain (STCG) Property sold within 24 months Taxed at income slab rate (typically 30% + surcharge + cess for NRIs) No indexation benefit ✅ TDS Rules for NRI Proper...
