# NRI property sale TDS rules differ from resident sellers 2026-09-20T18:16:55+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Buyers in India deduct TDS at different rates depending on whether the seller is a resident or a non-resident Indian (NRI). Livemint reports that under the Income Tax Act, 2025, a buyer deducts 1% TDS on property purchases from residents when the consideration or stamp duty value is Rs 50 lakh or more, calculated on the higher of the two amounts. For NRI sellers, the buyer must deduct TDS at rates applicable to the seller's capital gains, not the flat 1%. Long-term capital gains (property held over 24 months) are taxed at 12.5%, while short-term gains attract 30% for individuals or firms and 35% for foreign companies, plus a 4% cess and surcharges that can raise the effective rate. In practice, buyers often deduct on the gross sale value unless the seller obtains a lower or nil deduction certificate. In a separate advisory, Livemint notes that an India resident selling an inherited overseas property is taxed on capital gains in India, with the acquisition cost and holding period traced to the previous owner. The gain is computed in foreign currency and converted using SBI's TT buying rate. Tax may be reduced by opting for reinvestment exemptions in qualifying Indian assets. Separately, for inherited overseas property, the cost of acquisition is the previous owner's cost, and the holding period includes the previous owner's tenure. If the property was acquired before 1 April 2001, the seller can adopt the fair market value as on that date, subject to stamp duty value. The taxpayer can compare tax at 20% with indexation against 12.5% without indexation and choose the lower liability. ## Indian Opinion Analysis The two Livemint pieces are straight advisory journalism, uniform in tone and structure, with no political or ideological slant. The first explains the TDS mechanics for NRI versus resident sellers, led with the 1% resident rate and the higher NRI rates, and closed with a worked example showing a 14.3% effective rate. The second addresses an inherited overseas property, emphasising the grandfathering option and the comparison between indexed and non-indexed rates. Neither article critiques or endorses government policy, both simply parse the law. The practical takeaway for readers is that TDS deducted on the gross value can exceed the final tax liability, so claiming a lower deduction certificate or filing for a refund is the concrete next step. For NRI sellers, the practical risk is over-deduction at the gross value, so obtaining a lower or nil deduction certificate from the income-tax department is the concrete next step. ## Coverage - livemint.com - livemint.com Tags: Capital gains, Income Tax Act, Livemint, NRI, TDS Canonical: https://indianopinion.org/nri-property-sellers-face-higher-tds-than-residents/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nri-property-sellers-face-higher-tds-than-residents/#story-in-brief