If you own a property in India and your residential status is non-resident, then there are some income tax considerations you should be aware of when selling that property. For NRIs, the TDS rules state that there is no minimum limit for TDS deduction, while resident Indians have a threshold of Rs 50 lakh before TDS needs to be deducted. Also the TDS rate for NRIs depends on three factors.
First off, whether property sale results in long term capital gain (LTCG) or short-term capital gain (STCG) determines the TDS deduction rate. The buyer must deduct TDS at a specified rate for LTCG and at the slab rate for STCG. For property transactions, if it is sold two years after acquiring, it is LTCG.
