TDS on NRI Property Sale — Form 27Q
When a resident Indian buys property from a Non-Resident Indian (NRI), TDS must be deducted under Section 195 at 20% on long-term capital gains or 30% on short-term capital gains — not on the full sale price. This is significantly different from the 1% under Section 194IA for resident sellers. The buyer must file Form 27Q quarterly and issue Form 16A to the NRI seller. BSP Associate handles the TDS computation on the actual capital gains, assists in obtaining a lower deduction certificate if eligible, and ensures full Section 195 compliance.
What's Included
Everything you get when you engage BSP Associate for TDS on NRI Property Sale — Form 27Q.
- Capital gains computation for NRI seller to determine correct TDS base
- TDS rate determination — LTCG at 20%, STCG at 30% (plus surcharge and cess)
- Assistance in obtaining lower TDS certificate (Form 13) from IT department
- Challan deposit and Form 27Q quarterly return filing
- Form 16A issuance to NRI seller for claiming refund
- DTAA benefit assessment for NRI sellers from treaty countries
- Coordination with NRI seller's tax advisor if required
Documents Required
Have these ready before you reach out — it speeds things up considerably.
Documents You'll Need
Please arrange these before your consultation
- PAN of the resident buyer
- PAN or tax identification details of the NRI seller
- Sale agreement with full consideration amount
- Original property purchase deed of NRI seller (to compute capital gains)
- Cost of improvement records if any
- TAN of the buyer (or application for TAN if not yet obtained)
- Passport copy and NRI status confirmation of the seller
Don't have these? We'll prepare them for you.
BSP Associate can draft and file all of the following
- Capital gains computation for NRI seller
- TDS computation on capital gains (not full sale price)
- Form 27Q TDS return
- Form 16A for NRI seller
- Lower deduction certificate application (Form 13) if eligible
Frequently Asked Questions
Common questions about TDS on NRI Property Sale — Form 27Q.
When buying from a resident Indian, TDS is a simple 1% of the sale consideration under Section 194IA. When buying from an NRI, Section 195 applies — TDS is on the capital gains component at 20% for LTCG or 30% for STCG, plus surcharge and cess. This requires computing the NRI's capital gains first, which involves the original purchase price, cost of improvement, and indexation. Getting this wrong can result in significant over-deduction or under-deduction.
BS Balaji
Founder & Principal Consultant
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