Two different payers get confused on this file. The buyer (often a resident) must withhold on the credit or payment to the NRI seller — section 195 of the 1961 Act, table under section 393(2) of the 2025 Act. The remittance of proceeds to a foreign account is a bank 15CA question, frequently Part C plus 15CB if the sum is chargeable and above the 15CB threshold. Doing only the ITR at year-end does not undo a buyer who withheld nothing in March.
We do not publish a “standard NRI property TDS rate” because characterisation (capital gains versus adventure in the nature of trade), indexation / grand-fathering where the law still gives it, and DTAA articles are fact-specific. Lower deduction under section 197 (2025: 395) exists so the buyer does not withhold as if the entire consideration were income.
How this page differs
- Splits buyer-195 from remitter-15CA — most NRI property blogs merge them.
- Points to Part C vs D instead of always issuing 15CB on capital-account stories.
- No invented TDS percentage for “NRI flat in Dwarka.”
Who this is for
- NRI sellers of Delhi NCR or other Indian property
- Resident buyers who have been told to “just deduct 20%” without a computation
- Power-of-attorney holders running the bank file in India
- CAs who need a second opinion before 15CB on a joint-family or under-construction fact pattern
How we work
- 01
Build the capital-gains working
Cost, improvement, year of acquisition, consideration, brokerage, and whether the asset is a capital asset. Agreement vs registered deed dates matter.
- 02
Set the buyer’s withholding
Full 195 on consideration is often excessive. A 197/395 certificate, where granted, tells the buyer what to deduct. Without it, the buyer’s risk sits on them.
- 03
Pack the remittance
If proceeds go abroad, pick 15CA Part C or D from chargeability — not from “it is my house.” File the NRI ITR on the same workings.
What you receive
- Capital-gains computation with source documents
- Support for lower-deduction application where appropriate
- Form 15CB and 15CA when the remittance part requires them
- NRI ITR coordination (see /guides/nri-tax-itr-delhi)
Buyer TDS is not the 15CB
Form 26QB is the resident-seller / specified-person property TDS route. An NRI seller is not that route. The buyer withholds under 195, deposits with the correct challan, and the NRI takes credit in the ITR. 15CB is the CA’s certificate for certain outward remittances — often signed when the NRI (or their banker) remits the net proceeds. Same gain, two forms, two clocks.
Who files what on an NRI property sale — typical, not universal.
| Actor | Obligation | Usual form / section | Clock |
|---|---|---|---|
| Resident buyer | Withhold on payment/credit to NRI | §195 / §393(2); 197/395 if granted | At credit or payment — whichever is earlier |
| NRI seller / AD bank | Inform tax on outward remittance | 15CA Part C + 15CB, or Part D if not chargeable | Before the outward |
| NRI seller | Report the gain | ITR (typically ITR-2) with capital-gains schedules | Return due date for the year of transfer |
Facts that break a templated 15CB
Joint owners with different residential status. Consideration partly paid in earlier years. Under-construction assignment versus completed property. Agricultural land tests. Use of a resident POA who is not the beneficial owner. DTAA with a country that taxes immovable property in the situs State (India) — which is the usual article — so “I am tax resident of UAE” does not make Part D automatic.
Common questions
Direct answers for searchers and answer engines
26QB is not the NRI-seller machinery. NRI sellers are a section 195 file. Mixing the two is how challans fail to credit.
No. The Assessing Officer grants it on the computation and documents. We prepare a defensible application; we do not sell a grant.
If the remittance is not chargeable, Part D may apply. Chargeable remittances above the 15CB threshold need Part C and 15CB. See Part C vs D.