When you sell property in India as an NRI, buyers usually deduct TDS on the full sale price because they cannot verify your cost. Rent and investment income paid to you also carry TDS. A Form 128 certificate under section 395 of the Income-tax Act, 2025 tells the payer to deduct at a lower or nil rate based on your estimated tax, so less of your money is held back until your return is processed.
Starting at
From ₹2,999
Lower TDS certificate for NRIs
NRIs selling property, earning rent or investment income in India
Timeline
Timeline set by the Assessing Officer
For payments from 1 April 2026, TDS on sums paid to a non-resident falls under section 393(2) of the Income-tax Act, 2025, which replaced section 195 of the 1961 Act. On a property sale, buyers usually deduct on the full price because they cannot verify your cost of purchase. You can apply under section 395 in Form 128 with your estimated income and tax, after treaty relief and exemptions such as reinvestment in a new house. The Assessing Officer then issues a certificate, and the payer deducts at the rate it specifies.
Reviewed by CA Ganpat Khemka · Last updated 21 September 2026
The form depends on whether the seller is resident and on the payment date. From 1 April 2026, the Income-tax Act, 2025 and the Income-tax Rules, 2026 renamed every TDS form.
| Situation | Up to 31 March 2026 (1961 Act) | From 1 April 2026 (2025 Act) |
|---|---|---|
| Buyer pays a resident seller | Form 26QB, section 194-IA | Form 141, section 393(1) |
| Buyer pays an NRI seller | Form 27Q, section 195 | Form 144 (quarterly statement), section 393(2) |
| Seller wants lower or nil TDS | Form 13, section 197 | Form 128, section 395 |
| NRI claims treaty relief | Form 10F with the TRC | Form 41 with the TRC |
Certificates issued earlier under section 197 remain valid for payments made on or after 1 April 2026, for the period stated in them.
TAN relief from 1 October 2026. Until now, a buyer from an NRI had to get a TAN, pay the TDS and file a quarterly statement. From 1 October 2026, under the Finance Act 2026, a resident individual or HUF buyer can deduct and pay through a PAN-based challan without a TAN. Other buyers, such as companies, should confirm their route before paying. Your certificate still sets the rate, so give the buyer a copy before the payment date. If the buyer needs a TAN for a payment before 1 October 2026, see TAN registration. The buyer's side is explained on TDS on property.
When to apply. Form 128 can be filed at any time during the tax year for which you want the certificate, but it only helps if it is issued before the payment. Apply once the sale price is agreed and you have your purchase papers. If TDS has already been deducted on the full price, the excess comes back only as a refund through your NRI income tax return. See the refund route if TDS was already deducted.
An example with round figures, before surcharge and cess. An NRI sells a flat for ₹1 crore, and her long-term gain works out to ₹20 lakh.
| Without a certificate | With a Form 128 certificate | |
|---|---|---|
| Amount the buyer usually deducts on | Full price, ₹1,00,00,000 | Rate set by the certificate |
| Basis | Buyer cannot verify cost | Estimated tax on ₹20,00,000 gain at 12.5% |
| TDS before surcharge and cess | ₹12,50,000 | Up to ₹2,50,000 |
| Money held back until refund | About ₹10,00,000 | Little or none |
This is an illustration, not advice for your sale. The Assessing Officer decides the rate on your application.
Our professional fee for a lower TDS certificate for an NRI starts at ₹2,999. There is no government fee to file Form 128.
| Fee | Amount |
|---|---|
| Regikart professional fee, Form 128 for an NRI (computation, filing and follow-up) | From ₹2,999 |
| Government fee for Form 128 | No government fee |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 21 September 2026.
The final fee depends on the number of payers, whether the income is a sale, rent or investment income, and how many treaty claims are involved. We confirm it in writing before we file. After the sale, if you need to send money abroad, see Form 145 and 146 (old 15CA and 15CB).
Not an NRI? See lower TDS certificate for residents and businesses. No PAN yet? Apply through PAN for NRIs.
Section 395
The Assessing Officer's power under the Income-tax Act, 2025 to issue a lower or nil TDS certificate on application. It replaced section 197 from 1 April 2026. The application is Form 128 (old Form 13), filed on TRACES.
TRC
Tax Residency Certificate from your country of residence. You need it to claim a treaty (DTAA) rate.
Form 41 (old Form 10F)
The details a non-resident gives, along with the TRC, to claim treaty benefits. Form 10F was renamed Form 41 under the Income-tax Rules, 2026.
Capital gains
Sale price minus the cost of purchase, improvement and transfer expenses. Long-term gains on property are taxed at 12.5% plus surcharge and cess.
Section 54 / 54F
Exemption for reinvesting long-term gains in a new residential house in India, capped at ₹10 crore, under the 1961 Act for FY 2025-26. For sales from 1 April 2026 we confirm the relief under the Income-tax Act, 2025.
Property sold in India: the buyer deducts TDS at the rate for your capital gain, usually on the full price unless you hold a certificate.
Rent received in India: the tenant deducts TDS on rent paid to a non-resident.
Mutual fund, share and NRO interest income: TDS applies at the rates in the Act, and a treaty may cap the rate on interest and dividends.
01
Map residency, DTAA partner, TRC validity and projected Indian tax against the statutory TDS rate.
02
Long-term or short-term gain, exemptions and the treaty article worked out, to arrive at your estimated tax and the rate to request.
03
Application on TRACES with your PAN, the payer's details, your estimated income and tax computation, the last four years' returns (or financial statements) and the sale agreement or rent contract. TRC and Form 41 support any treaty claim.
04
We answer the Assessing Officer's queries. The certificate names the payer, and we send a copy to the buyer or tenant and check the TDS they report against it.
Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.
Still unsure if Lower TDS certificate for NRIs is right for your case? Talk to our team and we will walk you through your specifics.
Our team will get on a call with you, confirm scope and start the work.
