TDS For NRIs: Section 195 – Complete Guide

Table of Contents

1. TDS on NRI Property Sale 

NRIs Selling property in India? While capital gains tax has been reduced, deductions of TDS For NRIs remain high! 

  • LTCG tax on property sales is reduced from 20% (with indexation) to 12.5% (without indexation)
  • STCG tax remain the same on property sales, as per applicable income tax slabs. 

Note: Plan your sale wisely to optimize tax savings! 

2. TDS on Rental Income For NRIs

NRIs earning rental income from property in India, TDS is deducted by the tenant at 30% under section 194-I

  • Now, TDS applies only if monthly rent exceeds ₹50,000
  • Previously, TDS was deducted if annual rent exceeded ₹2.4 lakh

Note: Ensure your tenant deducts and deposits TDS on time to avoid penalties! 

3. TDS on NRO Fixed Deposits & Other Income 

  • No TDS on NRI on Interest earned from NRE/FCNR accounts. 
  • 30% TDS (exclusive of surcharge and cess) on interest earned from NRO accounts
  • Other Income (Rent, Dividends, Capital Gains): TDS varies based on the nature of income. 

4. How to Claim TDS Refund? 

If TDS deducted exceeds your actual tax liability, you must file an income tax return (ITR) to claim a refund

  • Filing deadline: July 31 every year, For NRIs, ITR-2 or ITR-3 is usually required, depending on the nature of income.  
  • Essential Requirements: 
  • A valid PAN and required tax documents. 
  • An account on the Income Tax e-Filing portal

NRI Taxation Services in India: Easy TDS Solutions for NRIs

If you’re an NRI earning income in India, you must pay Tax Deducted at Source (TDS) on things like rent, property sales, bank interest, and capital gains. The good news? With the right NRI taxation services, you can lower your tax burden, claim refunds, and stay compliant with Indian tax laws. Experts help with TDS calculation, filing tax returns, and getting lower TDS certificates (Form 13) to reduce deductions. Whether you’re selling property or earning rental income, professional guidance ensures you avoid penalties and maximize savings. Stay stress-free and let tax experts handle your NRI taxation needs!

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