NRI in Dubai — Selling an Inherited Mumbai Property Without the TDS Trap
On a ₹3.1 crore sale, the buyer's bank wanted to deduct over ₹65 lakh as TDS at source. NDSA secured a lower deduction certificate before closing — freeing roughly ₹48 lakh.
A fast sale, and the standard NRI problem
An NRI based in Dubai inherited his late father's apartment in Bandra and found a buyer within weeks — but ran into the standard NRI property sale problem: the buyer's bank insisted on deducting TDS at 20% plus surcharge and cess on the entire sale value, not just the capital gain, since that's the default rule for property purchased from a non-resident.
On a ₹3.1 crore sale, that meant well over ₹65 lakh getting blocked at source, with no certainty about how long it would take to claim back through a refund.
We computed the real gain and applied under Section 197
We computed the actual capital gain — factoring in the inherited cost of acquisition, indexation, and the brokerage and improvement costs he could legitimately claim — and it came to a fraction of the sale value.
On that basis, we applied for a lower TDS deduction certificate under Section 197 directly with the assessing officer, with full supporting documentation on the inheritance, valuation, and cost basis.
"Most NRIs assume the 20% TDS deduction is unavoidable — it isn't, if the lower deduction certificate is applied for before the sale closes, not after. Timing is the whole game."
TDS capped at the actual liability
The certificate came through in three weeks, capping TDS at the actual tax liability instead of the default rate, which freed up roughly ₹48 lakh that would otherwise have sat blocked for a year or more awaiting refund.
We also filed his India tax return covering the capital gain and helped him remit the sale proceeds to Dubai under FEMA, with the Form 15CA/15CB certification handled end to end.
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