Plan tax and exemptions before selling Indian property
Coordinate withholding, reinvestment deadlines, your return and the bank route.
Source snapshot: 5 September 2026. Check current requirements with the issuing authority.
Understand the issue
The buyer’s withholding and your final tax calculation are separate. Do not automatically use the resident-seller 1% route for a non-resident. A new home, eligible bonds or a CGAS deposit may be relevant only if their conditions are met. The 2025 Act applies from 1 April 2026; familiar older references such as 54 and 54EC need matching to the correct period.
Prepare your next steps
Prepare the calculation before taking payment
Give the CA the title, acquisition cost, improvement evidence, expected sale terms and your residency facts.
Resolve the buyer’s TDS obligations
Confirm the applicable withholding process and whether a lower or nil deduction certificate should be obtained before the relevant payment or credit.
Choose any relief and record its deadlines
For eligible bonds, verify the six-month deadline, ₹50 lakh limit and five-year restrictions. Residential-house relief has different investment and CGAS conditions.
Agree the permitted bank route
Ask the bank where the proceeds may be received and which documents and remittance facility match the property’s acquisition and funding history.
Reconcile and file
Match tax certificates and tax-account credits, claim only supported relief, complete the applicable return and retain evidence for the bank and any later review.
Documents to prepare
- Title deed and original cost records
- Sale agreement and payment schedule
- Residency records and withholding certificates
- Reinvestment, CGAS and bank correspondence
Questions for your adviser
- What withholding applies before the first instalment?
- Which relief fits this asset and what are my exact dates?
- What is my final tax, credit or potential refund after reconciliation?
Watch for
“CGAS itself makes the sale tax-free” or “TDS is always your final tax.” Ask for the calculation and the applicable provision.
Who can help
A CA with non-resident property-sale experience before signing an agreement or accepting payment, and the receiving bank for receipt and repatriation.
Original sources
- Income Tax Department: TDS when a non-resident sells Indian property
The non-resident seller withholding route differs from the resident-seller route. Check current law, rate components and any certificate.
- Income Tax Department: Section 82: residential-house reinvestment
Eligibility, reinvestment periods, CGAS timing and limits for qualifying residential-house gains.
- Income Tax Department: Income-tax Act, 2025, amended by Finance Act 2026
Effective from 1 April 2026. Sections 70, 92 and 99 address transfers, gifts and clubbing; sections 82 and 85 address specified reinvestment relief.
- Income Tax Department: Capital-gains guidance and exemption conditions
Asset classification and exemption overview. This page uses legacy 1961 Act section numbers; match the transaction period.
- Reserve Bank of India: Acquisition and transfer of property
National foreign-exchange rules for acquiring, transferring and repatriating proceeds from property.
- Reserve Bank of India: Remittance of assets
Eligibility, documents and conditions for the remittance-of-assets facility.
General information only. Verify your circumstances and current rules with the relevant authority and a qualified professional before acting.
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