NRI property TDS calculator (s.195)
A buyer purchasing immovable property from a non-resident must deduct tax under s.195 (NOT s.194-IA). Without a s.197 lower-deduction certificate, the deduction is on the FULL sale consideration at 12.5% + surcharge + cess (long-term). With a s.197 certificate, deduction is on the GAIN only.
Without s.197 certificate
Full consideration × 12.5% + 0% surcharge (CG-capped at 15%) + 4% cess
₹0
tax ₹0 + surcharge ₹0 + cess ₹0 (effective ≈ 13.00% on consideration)
With s.197 certificate
Gain × 12.5% + 0% surcharge (CG-capped at 15%) + 4% cess
₹0
tax ₹0 + surcharge ₹0 + cess ₹0
Cash tied up without a 197
₹0
Difference between deducting on full consideration vs on the gain. This is recoverable only through a refund after filing — usually 12-18 months locked up.
NOT financial advice - seek advice from a professional for your specific situation
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