NRI Lower / Nil TDS Certificate Checklist
Selling property in India as an NRI? The buyer must deduct TDS u/s 195 on the whole sale value. A Form 13 application under Section 197 gets you a lower or nil TDS certificate so you don't lock up excess tax. Tick each step and track your progress live.
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Confirm you're the right candidate — and why Form 13 saves you from over-deduction.
Everything the Assessing Officer needs to verify your true tax liability.
File Form 13 online and take it through the jurisdictional TDS officer.
Put the certificate to work and close the loop in your return.
The 4 phases at a glance
| Phase | What it covers | Key output |
|---|---|---|
| 1 · Why & Eligibility | You're an NRI seller, buyer deducts under Sec 195, real gain tax is far lower, avoid locking up cash | Case to apply |
| 2 · Documents | PAN, passport, sale/purchase deeds, cost & improvement proofs, gains computation, indexation, buyer's TAN, bank, past ITRs | Application pack |
| 3 · Apply | TRACES login, Form 13 online, submit to the jurisdictional AO, answer queries, get the certificate | 197 certificate |
| 4 · After | Share with buyer, deduct at certified rate, buyer files Form 27Q, reconcile ITR & claim refund | Closed & refunded |
Get your NRI lower / nil TDS certificate
Our CAs compute your capital gains, file Form 13 on TRACES and follow up with the AO until the certificate is issued.
Disclaimer: Indicative checklist for an NRI selling immovable property in India under Sections 195 & 197 of the Income-tax Act. Actual documents, rates and jurisdiction depend on your facts and can change; verify current TRACES / income-tax requirements for your case.
How the Form 13 lower/nil TDS process works
When an NRI sells property in India, the buyer is legally bound to deduct TDS under Section 195 on the entire sale consideration — not on the actual gain. That deduction can be many times your real tax. A Form 13 application under Section 197 asks the Assessing Officer to certify a lower or nil rate based on your true capital gains, so the buyer withholds only what you actually owe.
Confirm the case
You're a non-resident seller, the buyer must deduct u/s 195, and your gain-based tax is well below the default TDS.
Build the file
Gather PAN, passport, sale & purchase deeds, cost/improvement proofs, a capital-gains computation and the buyer's TAN.
File Form 13
Apply on TRACES, submit to the jurisdictional AO, respond to queries and obtain the lower/nil TDS certificate.
Use & reconcile
Give it to the buyer, who deducts at the certified rate and files Form 27Q; then reconcile in your ITR and claim any refund.
Key terms explained
Section 195 vs Section 197
Section 195 is the TDS provision that forces the buyer to withhold tax on payments to a non-resident — here, on the full property sale value. Section 197 is the relief: it lets you apply for a certificate authorising deduction at a lower or nil rate that matches your actual tax.
Form 13
The prescribed application for a lower / nil TDS certificate under Section 197. Filed online on TRACES, it sets out your income, the capital gains on the sale and the reduced rate you're requesting from the Assessing Officer.
TRACES
TDS Reconciliation Analysis and Correction Enabling System — the income-tax department's TDS portal. NRIs file the Form 13 request here, and it also hosts Form 26AS where the deducted TDS is reflected.
Form 27Q & buyer's TAN
Form 27Q is the quarterly TDS return the buyer files for payments to non-residents. The buyer must hold a TAN (Tax Deduction Account Number) to deduct and deposit the TDS — and the Section 197 certificate is issued against that TAN.
Questions people ask
Short answers on NRI Lower-TDS (Form 13) Checklist. Tap a question to open it.
01Why does an NRI selling property need a lower-TDS certificate?
Because section 195 requires TDS on the whole sale consideration at the rate applicable to the gain, not on the gain itself. On a property that has appreciated modestly, the standard deduction can be several times the actual tax, and the excess comes back only as a refund a year later.
02How is the certificate obtained?
By filing Form 13 on the TRACES portal with the computation of expected capital gains, supported by the purchase and sale documents. The assessing officer issues a certificate under section 197 specifying the reduced rate for that buyer.
03What documents are needed?
PAN and passport of the seller, the purchase deed and proof of payment, the sale agreement, the computation of capital gains including improvement costs and brokerage, bank statements, and previous years' returns.
04How long does it take?
Typically four to eight weeks, sometimes longer where the officer seeks clarification. Because the certificate operates only prospectively, the application should be filed well before the sale is executed.
05What does the buyer have to do?
Obtain a TAN, deduct at the rate stated in the certificate, deposit the tax by the 7th of the following month, file Form 27Q quarterly and issue Form 16A. A buyer from an NRI cannot use the simpler Form 26QB route.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.