How capital gains are taxed for NRIs.
A capital gain is the sale price less the cost of buying, improving and selling the asset. Whether it is short-term or long-term depends on how long you held it, and that decides the rate. Non-residents pay tax on gains from all Indian assets, whether or not the money stays in India.
| Asset | Long-term after | Long-term rate | Short-term rate |
|---|---|---|---|
| Land, flat or house | 24 months | 12.5%, no indexation | Slab rates, up to 30% |
| Listed shares and equity funds | 12 months | 12.5% above ₹1.25 lakh a year | 20% |
| Unlisted shares | 24 months | 12.5% | Slab rates |
| Debt funds bought after April 2023 | Always short-term | Not applicable | Slab rates |
| Gold and other assets | 24 months | 12.5% | Slab rates |
Surcharge and 4% cess are added. Resident individuals can choose 20% with indexation for land and buildings bought before 23 July 2024; that choice is not open to non-residents.
Why TDS is charged on the full sale price.
When a resident buys from an NRI, the buyer must deduct tax before paying you. Unless you hold a certificate, the buyer deducts at the capital gains rate on the whole sale amount, not just on your gain. On a long-term sale this is usually 13% to 14.95% once surcharge and cess are added.
A lower TDS certificate limits the TDS to the tax actually due on the gain. Without it, the excess comes back only as a refund after you file your return.
Exemptions that can reduce the tax.
NRIs can use the same reinvestment exemptions as residents. See Capital Gain Exemptions on Reinvestment for full conditions.
Buy another home in India
Reinvest a long-term gain from a residential house in another house in India, bought one year before or two years after the sale, or built within three years. Capped at ₹10 crore.
Invest in specified bonds
Invest up to ₹50 lakh of a long-term gain on land or buildings in specified bonds within six months. The bonds are locked in for five years.
Sell another asset, buy a house
Reinvest the net sale price of a long-term asset other than a house, such as land or shares, in a residential house in India.
Capital Gains Account Scheme
If you have not reinvested by the return due date, the amount can be parked in a special bank account to keep the exemption.
Inherited and older property.
- Inherited propertyThe previous owner's cost and holding period are used to work out your gain.
- Bought before April 2001Fair market value on 1 April 2001 can be used as the cost, supported by a valuer's report.
- Stamp duty valueIf the sale price is below the stamp duty value by more than the allowed margin, the stamp duty value is used.
- Joint ownersEach co-owner reports their own share of the gain and TDS.
See Inheritance and Capital Gain Computation for more detail.
Sending the sale proceeds to the UK.
Sale proceeds are paid into your NRO account. From there, you can repatriate up to USD 1 million each financial year, after tax, with Form 145 and Form 146 (previously 15CA and 15CB). Form 146 is the Chartered Accountant's certificate that tax has been paid.
For property bought with money from an NRE or FCNR account or from abroad, the original foreign currency invested can be repatriated for up to two residential properties.
How we handle your sale.
Compute the gain
We calculate the expected gain and tax and check every exemption.
Apply for lower TDS
We file the application so the buyer deducts only the tax actually due.
Guide the buyer
We explain the buyer's TDS obligations and check the deduction is made correctly.
Forms 145 and 146
We issue the certificate and help your bank send the money to the UK.
Report the gain
We report the sale in your Indian return and note it for your UK return.
Documents for a property sale.
- Purchase agreement and registration receipts
- Payment proofs and loan statements
- Bills for improvements
- Draft sale agreement
- Buyer's PAN and details
- Brokerage and legal bills
- PAN and passport
- NRO account details
- UK address and Tax Residency Certificate
Why NRIs in the UK choose us for India tax.
We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.
Every computation is checked by a second Chartered Accountant before anything is filed.
A written scope and fee before work starts, with no surprise charges later.
Encrypted document sharing and e-verification, so nothing needs a trip to India.
Returns, TDS refunds, FEMA questions and property sales handled by the same team.
Clear explanations of what you owe, why, and what to keep for next year.
Capital gains advice for NRIs selling from the UK.
We help NRIs living across the UK sell property, shares and mutual funds in India, from the tax computation to sending the money back to their UK bank account.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Capital gain on sale FAQs.
Selling property or shares in India?
Contact us before you sign. We will compute the gain, reduce the TDS and help bring the money to the UK.
This page is general guidance based on Indian income-tax and FEMA rules as they stand, including the Income-tax Act, 2025 that applies from 1 April 2026. It is not legal or financial advice for your situation. Rates, limits and deadlines can change, so please speak to us before acting on it.