NRI Selling Indian Property? — Aug 2026
If you live abroad and sell Indian property or shares, India will tax your gains. But your country of residence — US, UK, Canada, UAE, Singapore, or Australia — can also tax the same income, making your total tax bill very different depending on where you live.
An NRI in UAE pays zero local tax on Indian gains — a US-based NRI may owe the IRS too, on the same sale.
Your Indian property sale could attract this even as an NRI abroad
Key Takeaways
Check India's DTAA treaty with your country of residence on the Income Tax India portal to understand which country has the primary right to tax your asset sale.
Apply for a lower TDS certificate (Form 13) with the Indian Income Tax Department before the sale closes — this can reduce the 20-22% TDS deducted by the buyer upfront.
File your Indian ITR even as an NRI after the sale to claim refunds on excess TDS and then declare the gain in your resident country's tax return to claim the foreign tax credit.
If you live abroad and sell Indian property or shares, India will tax your gains. But your country of residence — US, UK, Canada, UAE, Singapore, or Australia — can also tax the same income, making your total tax bill very different depending on where you live.
Here's what happened: India taxes NRIs at 20% on long-term capital gains from Indian property and mutual funds, with TDS deducted at source before repatriation.. Double Taxation Avoidance Agreements (DTAAs) between India and countries like the US, UK, Canada, Australia, Singapore, and UAE determine how much foreign tax relief NRIs can claim.. UAE and Singapore have no personal capital gains tax, making them the most tax-efficient residencies for NRIs selling Indian assets, while US and Canadian residents face worldwide income tax on the same gains..
What you should do: Check India's DTAA treaty with your country of residence on the Income Tax India portal to understand which country has the primary right to tax your asset sale.. Apply for a lower TDS certificate (Form 13) with the Indian Income Tax Department before the sale closes — this can reduce the 20-22% TDS deducted by the buyer upfront.. File your Indian ITR even as an NRI after the sale to claim refunds on excess TDS and then declare the gain in your resident country's tax return to claim the foreign tax credit..
Pro tip: Holding Indian property for over 24 months before selling qualifies it as a long-term asset — this unlocks the 20% indexed rate instead of your slab rate, which can save NRIs several lakhs on a single sale.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
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- [1]“NRI selling Indian assets? US, UK, UAE, Canada, Australia or Singapore - how your country of residence could decide the income tax bill” Wealth-Economic Times · 20 Aug 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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