Key takeaways
- India: 12.5% on long-term gains; TDS on the full price unless you get a Form 128 certificate.
- Australia: taxed again at home, with credit for the Indian tax.
- Plan the certificate, exemptions and US$1 million repatriation route before signing.
Quick answer: India taxes the gain first (12.5% on long-term gains plus surcharge and cess) and the buyer deducts TDS, usually on the whole price unless you get a lower TDS certificate. Australia may also tax the gain, with credit for the Indian tax. Plan the certificate and the transfer before you sign.
The India side (same wherever you live)
| Point | Rule for NRIs (2026-27) |
|---|---|
| Long-term gain (held over 24 months) | 12.5% without indexation, plus surcharge and 4% cess. The 20%-with-indexation option for older property is only for resident individuals. |
| Short-term gain | Taxed at your slab rates |
| TDS | The buyer deducts TDS, normally on the whole sale price, unless you get a lower-deduction certificate first. Surcharge adds 10% above ₹50 lakh and 15% above ₹1 crore |
| Lower TDS certificate | Apply online (TRACES) for a Lower/Nil Deduction Certificate (LDC) in Form 128 (formerly Form 13) before the sale, based on your actual gain |
| Exemptions | Reinvest in a house in India (capped at ₹10 crore) or in specified bonds within 6 months (up to ₹50 lakh, 5-year lock-in) |
| Getting money out | From your NRO account, up to US$1 million a financial year with Forms 15CA and 15CB. If you bought with foreign exchange, that amount can go back for up to two homes |
| Refund | File an Indian return to get back TDS that was more than your actual tax |
Mechanics in detail: TDS on sale of property by NRI, the Form 128 certificate and the property capital gains calculator.
The Australia side
- Temporary residents: if you hold a temporary visa and are a temporary resident for tax, capital gains on assets outside Australia, like property in India, are generally not taxed in Australia.
- Permanent residents and citizens: the gain is taxed at your marginal rate, with a 50% CGT discount if you held the property for at least 12 months (reduced for periods you were a foreign resident).
- Foreign income tax offset: Indian tax on the gain reduces your Australian tax on the same gain, within the limit.
- Convert costs and proceeds to Australian dollars using the rates at the relevant dates, and report the gain in your tax return.
The order that saves the most
- Before you sign: work out the real gain (purchase cost, improvement costs, transfer expenses) and decide on any reinvestment.
- Apply for the lower TDS certificate so the buyer deducts on your gain, not the full price. It takes a few weeks, so start early.
- At the sale: make sure the buyer deposits the TDS correctly and gives you the TDS certificate.
- Move the money: Forms 15CA/15CB and your bank for the transfer abroad.
- File returns: in India (for any refund) and in your country of residence, claiming credit for the Indian tax.
Need it handled end to end? NRI property sale service. Other countries: UAE · UK · USA · Canada · Singapore.
Sources
- Income Tax Department: TDS on sale of property by non-residents (section 195 / new Act equivalent)
- RBI: FAQs on remittance of assets by NRIs (USD 1 million facility)
- ATO: foreign residents and capital gains tax
Frequently asked questions
Do I pay Australian tax on selling property in India?
Australian tax residents who are not temporary residents pay capital gains tax on the gain, with a 50% discount if held at least 12 months, and a foreign income tax offset for Indian tax. Temporary residents are generally not taxed in Australia on gains from assets outside Australia.
Is Indian tax credited in Australia on a property sale?
Yes. Indian tax paid on the gain can be claimed as a foreign income tax offset against Australian tax on the same gain, within the offset limit.
How much TDS does a buyer deduct when an NRI sells property in India?
For long-term property (held over 24 months), 12.5% plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore) and 4% cess, normally on the whole sale price unless the NRI has a lower-deduction certificate.
How much money can an NRI send abroad after selling property in India?
Up to US$1 million per financial year from the NRO account, with Forms 15CA and 15CB. If the property was bought with foreign exchange, that amount can be repatriated for up to two residential properties.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.