Selling property in India can be a rewarding financial decision for Non-Resident Indians (NRIs), but it also comes with a complex web of tax rules that can significantly impact the final proceeds.One of the biggest pain points is the tax deducted at source (TDS), which is often withheld on the entire sale consideration rather than the actual capital gains, resulting in excess tax deductions and lengthy refund timelines.In this edition of ETMarkets Smart Talk, Himanshu Sinha, Partner – Tax Practice at Trilegal, explains how NRIs can navigate the tax implications of property transactions, avoid unnecessary TDS through a Lower/Nil TDS certificate, and make the most of available exemptions under the Income-tax Act.He also discusses the latest changes in capital gains taxation, repatriation rules, and common tax mistakes that every NRI investor should avoid.
Edited Excerpts –Q) What are the key tax considerations NRIs should keep in mind before investing in India?A) Before an NRI puts money to work in India, the first thing to sort out is residential status.
This is governed by Section 6 of the Income-tax Act, 2025 (ITA 2025), which took over from the 1961 Act on 1 April 2026 and carries forward the same residency framework rather than rewriting it.Basic conditions for residence, Section 6(1).
