TDS on Sale of Property by NRI in Goa: Builders & Brokers

Are you an NRI (Non-Resident Indian) planning to sell your property in Goa? One crucial aspect of the process is understanding how TDS (Tax Deducted at Source) applies to your sale. Navigating property transactions as an NRI can be complex, especially with ever-changing tax regulations. At Builders & Brokers, we’ve guided dozens of NRI clients in selling their Goan properties efficiently—and ensuring they don’t lose out to unnecessary tax deductions or compliance errors. Here’s a complete, Goa-oriented guide to TDS on property sales by NRIs.

What is TDS?

TDS, in the context of an NRI property sale, is an amount that the buyer of your property is legally required to deduct and deposit with the Indian government before making payment to you. The underlying principle is to ensure the tax authorities collect taxes before funds leave India, especially when sellers may reside elsewhere.

TDS Rates for Sale of Property by NRI:

TDS rates differ based on how long you’ve held the property:

Long-Term Capital Gains (property held more than 2 years):
- As per the latest amendments, TDS is deducted at 12.5% on the sale value (plus surcharge and cess), with no indexation benefit from July 2024 onward.
- The effective rate including surcharges may range from about 13% to 15% depending on the value and your total income.
Short-Term Capital Gains (property held less than 2 years):
- TDS is deducted at rates as per your income tax slab—typically 30% plus surcharge and cess for most NRIs.

Example Calculation: How Much TDS Will Be Deducted?

Suppose you’re an NRI selling your fully furnished studio apartment in North Goa for ₹1 crore, owned for 3 years (long-term):

TDS @ 12.5%: Buyer must deduct ₹12,50,000 from the sale proceeds and deposit it to the Income Tax Department.
You’ll receive ₹87,50,000 and a TDS certificate (Form 16A) as proof.

If your actual taxable capital gain (after indexed costs, improvements, broker fees, etc.) is less, you can claim a refund or obtain a lower TDS certificate (explained below).

Step-by-Step Process: TDS Compliance for Goa Property Sales

Buyer’s Preparation:

The buyer must obtain a TAN (Tax Deduction Account Number) and deduct applicable TDS from each payment made to you.

TDS Deduction and Deposit:

TDS must be deposited with the government within 7 days of the following month after the deduction.

TDS Return Filing:

Buyer files TDS return (Form 27Q) online and issues you a TDS certificate (Form 16A), which is crucial for your tax records or any refund claim.

Obtain Lower/Nil TDS Certificate

As an NRI seller, if your actual capital gains are lower than the gross sale value, you can apply to the Income Tax Department (using Form 13) for a certificate authorizing a lower or NIL TDS deduction.

How Can You Reduce Excess TDS Deduction?

Goa’s property market often sees significant appreciation. If your actual taxable capital gains are much less than the total sale value, consider:

Applying for a Lower or Nil TDS Certificate:
File Form 13 online with supporting documents (agreement, cost of purchase, improvement receipts). It can take a few weeks, so initiate the process early in your sale.
Claiming Refunds:
If excess TDS is deducted, file your income tax return for that year to claim a refund. Typically, this refund is processed after assessment by the Income Tax Department.

Common Mistakes Sellers and Buyers Should Avoid

Not deducting or depositing TDS properly

Can result in steep penalties for buyers and complications for sellers.

Deducting TDS on wrong value

TDS must be on total sale value (unless a lower certificate is submitted), not just on gains.

Missing compliance deadlines:

Both deduction and government deposit deadlines are strict.

Your NRI Sale in Goa: How Builders & Brokers Makes It Simple

Navigating the legal and tax landscape as an NRI owner in Goa is challenging, but that’s where we come in.

Legal Guidance & Documentation:

We walk you and your buyer through all regulatory requirements, help coordinate TDS compliance, and ensure all agreements and forms are correct.

Connecting You to Certified CA/Tax Experts:

We have trusted partners who can help you calculate capital gains, apply for lower/nil deduction certificates, and file your returns.

Property Sale Support:

From evaluating the correct market price to managing paperwork, negotiation, and smooth closing, Builders & Brokers is with you every step.

End-to-End Support:

Need a quick sale? Have questions about remitting funds abroad after your sale? We offer ongoing support beyond just the paperwork.

Also, check our blog on Can I Buy Property In Goa If I’m Not A Resident?

Ready to Sell Your Goa Property Effortlessly?

Selling a property in Goa as an NRI doesn’t have to be stressful—especially when you have experts who care about your interests. Contact Builders & Brokers today for a confidential consultation, or submit an online inquiry for personalized support with every aspect of your NRI property sale. Let us handle the details so you can enjoy the rewards of your Goan investment!

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