Capital Gain on Sale
Table of Contents
Capital Gain on Sale/Transfer of Immovable Properties for NRIs – N.D. Savla & Associates
Selling immovable property in India — residential, commercial, or land — attracts capital gains tax under the Income-tax Act, 1961 for Non-Resident Indians (NRIs). Gains are classified as short-term or long-term, and buyers deduct TDS at source before making payment.
At N.D. Savla & Associates, our expert CAs help NRIs compute capital gains, optimize taxes, and repatriate funds abroad smoothly.
Overview of Capital Gains for NRI Property Sales
Short-Term Capital Gains (STCG):
Property held for less than 24 months is taxed according to the applicable slab rates.Long-Term Capital Gains (LTCG):
Property held for 24 months or more is taxed at 20% with indexation benefits.
NRIs can claim exemptions under Sections 54, 54EC, and 54F by reinvesting in eligible assets. The Double Taxation Avoidance Agreement (DTAA) ensures NRIs do not pay tax twice — in India and their country of residence.
Key Services for NRI Capital Gains
Computation of STCG & LTCG on NRI property sales
TDS advisory for NRI sellers (20% + surcharge + cess for LTCG)
Exemption planning under Sections 54, 54EC, 54F
DTAA advisory to reduce tax liability
Lower/Nil TDS certificates under Section 197
FEMA compliance and repatriation guidance
Documents Required
Passport & PAN card
Original purchase deed of property
Sale deed / draft agreement of sale
Bank account details (NRO/NRE)
TDS certificates (Form 16A / Form 26AS)
Property valuation report (if applicable)
Proof of reinvestment (new property or 54EC bonds)
Step-by-Step NRI Capital Gains Procedure
Property Review – Verify ownership, holding period, and transaction details.
Classification – Determine if the gain is short-term or long-term.
Computation – Apply indexation benefits and calculate tax liability.
Exemption Planning – Reinvest in residential property or 54EC bonds for savings.
TDS Reconciliation – Adjust TDS deducted by the buyer against your tax liability.
ITR Filing – File NRI income tax return with capital gains schedules.
Repatriation – Ensure FEMA compliance and transfer net proceeds abroad via Authorized Dealer Banks.
Why NRIs Should Choose N.D. Savla & Associates
Many NRIs face high TDS deductions, which can block excess tax in India. Without professional guidance, NRIs may lose exemptions or face delays in fund repatriation.
Our expert CAs manage NRI property capital gains efficiently, ensuring:
Full compliance with Income Tax & FEMA rules
Maximum exemptions under Sections 54, 54EC, and 54F
Smooth repatriation of sale proceeds abroad
Frequently Asked Questions
Short-term capital gains apply if the property is held less than 24 months and taxed as per slab rates.
Long-term capital gains apply for property held 24 months or more and taxed at 20% with indexation benefits.
Yes. Reinvest in residential property or 54EC bonds to reduce LTCG liability.
DTAA prevents double taxation, ensuring NRIs do not pay tax in both India and their country of residence.
Yes. We guide NRIs through FEMA compliance and secure fund transfers via Authorized Dealer Banks.
