1. Service Title TDS on Property Sale in India (NRI): Expert CA Advisory on Section 195 Compliance and Lower TDS Certification for US & UK Residents 

2. Short Authority Introduction
Navigating the Tax Deducted at Source (TDS) mandates for property transactions in India requires specialized technical knowledge to prevent the unnecessary blockage of capital. At Finnotive Advisory Solutions (FAS), our NRI property taxation vertical is led by Lakshman Kumar G (FCA), a Fellow Chartered Accountant with 12+ years of experience in audit, finance, and international taxation. Having previously served at global “Big 4” and top-tier firms including Deloitte, Grant Thornton, and BDO, our leadership brings a structured, institutional-grade approach to NRI compliance. Established on July 10, 2018, FAS is committed to high standards of integrity and regulatory excellence, ensuring that your property exit strategy is managed with professional accountability. 

3. Who This Service Is For
Our TDS advisory services are specifically designed for Non-Resident Indians (NRIs) residing in the United States and United Kingdom who are:
● Selling Indian Real Estate: Individuals currently in the process of selling residential or commercial property in India.
● Facing High Tax Withholding: NRIs whose buyers are insisting on deducting a flat 20.8% or 23.9% TDS on the gross sale value rather than the actual capital gains.
● Seeking Capital Repatriation: Sellers who need to move their sale proceeds from an NRO account to their bank accounts in the US or UK [Conversation History].
● Managing Inherited Assets: NRIs selling ancestral property who need to establish a clear cost-basis to minimize the TDS burden. 

4. Technical Overview of the Law
Under the Indian Income Tax Act, 1961, the responsibility of collecting tax on a property sale involving a non-resident falls squarely on the buyer. 

Section 195: The Withholding Mandate
For a payment made to a non-resident, the buyer is required under Section 195 to deduct tax at the “rates in force”. Unlike transactions between Indian residents where TDS is often 1% of the sale value, an NRI seller is subject to TDS based on the nature of the capital gain. For Long-Term Capital Gains (LTCG), this rate is typically 20%, which is then increased by applicable surcharges and a 4% health and education cess.

Section 197: Lower TDS Certificate (Form 13)
To avoid the significant blockage of funds, the law allows NRIs to apply for a Lower or Nil TDS Certificate under Section 197 by filing Form 13 with the Income Tax Department. As your CA, we represent you before the Assessing Officer to prove the actual tax liability. Once issued, this certificate authorizes the buyer to deduct tax only on the calculated profit, preserving your liquidity. 

15CA & 15CB: Remittance Requirements
Following the sale, moving funds outside of India requires statutory certification. As Chartered Accountants, we provide the mandatory Form 15CB (an audit-level certificate) and assist in filing Form 15CA. These forms certify to the bank that all taxes on the transaction have been settled according to the law. 

FEMA/RBI and NRO Accounts
The Foreign Exchange Management Act (FEMA) dictates that sale proceeds for NRIs must be credited to an NRO account. We ensure your transaction adheres to the USD 1 million annual repatriation limit set by the RBI.

DTAA Relief (India-US / India-UK)
We leverage the Double Taxation Avoidance Agreement (DTAA) to ensure you are not taxed twice. By obtaining a Tax Residency Certificate (TRC) from the US (IRS) or UK (HMRC), we can help you claim Foreign Tax Credits in your home country for taxes paid in India during the final ITR-2 filing. 

5. Common Compliance Mistakes NRIs Make
● TDS on Gross Consideration: Allowing the buyer to deduct 20% tax on the total sale price instead of the gains, which can block lakhs of rupees for over a year.
● Missing the Surcharge: NRIs often overlook the surcharge (which can range from 10% to 37% depending on the gain amount), leading to “short-deduction” notices from the Tax Department.
● Incorrect Holding Period: Failing to correctly categorize the asset as Long-Term (held>24 months) or Short-Term, resulting in incorrect TDS applications.
● Ignoring 15CA/15CB: Attempting to repatriate funds without the mandatory CA certification, leading to rejections by the authorized dealer banks. 

6. Step-by-Step Process We Follow
1. Capital Gains Computation: We prepare a precise computation using indexation benefits to determine your actual tax liability.
2. Form 13 Filing: We file the application for a Lower TDS Certificate on the TRACES portal and follow up with the jurisdictional Tax Officer.
3. Buyer Coordination: We provide the necessary technical guidance to the buyer to ensure they deposit the TDS correctly and issue the Form 16A (TDS Certificate).
4. Statutory Certification: Our partners conduct an audit and issue the 15CB certificate required for your bank to remit the funds to the US or UK.
5. ITR Filing: At the end of the financial year, we file your Income Tax Return (ITR) to formally close the transaction and ensure no further notices are issued. 

7. Documentation Required
● Purchase & Sale Deeds: Registered documents for the property being sold.
● Cost of Improvement: Proof of any capital expenditures (renovations) made on the property.
● Passport Copies: To verify your duration of stay in India and confirm NRI status.
● Tax Residency Certificate (TRC): From the US (IRS) or UK (HMRC) to apply for treaty benefits.
● NRO Bank Details: Where the sale proceeds will be credited. 

8. Why Professional CA Certification Matters
Under Indian law, a Chartered Accountant is the only authorized professional registered with the ICAI to file Audit Reports and issue statutory certifications like Form 15CB. Entrusting your
property sale to FAS ensures Quality Control and Regulatory Excellence. Professional oversight protects you from:
● Penalties: For incorrect TDS withholding or FEMA violations.
● Reporting Errors: Ensuring your ITR matches the data in the Annual Information Statement (AIS).
● Liquidity Loss: Obtaining the Lower TDS Certificate to keep more of your money during the transaction. 

9. Why Choose Finnotive Advisory Solutions (FAS)?
● Big 4 Pedigree: Our lead partner, Lakshman Kumar G (FCA), applies the rigorous standards he practiced at Deloitte, Grant Thornton, and BDO to your property tax matters.
● Expert Leadership: Our team includes Ravuri Durga Karthik (CMA), who brings 12+ years of experience from organizations like IBM and TATA Trusts, ensuring a holistic view of your financial compliance.
● 24/7 Global Support: We provide reliable 24/7 customer support to assist our US and UK clients across different time zones.
● Integrity and Professionalism: Established in 2018, our firm of 13 professionals operates with high standards of integrity and provides Saving Strategies that focus on maximizing your value while ensuring compliance.
● Structured Compliance: We don’t just file forms; we provide a Business Strategy for your Indian assets to achieve long-term success.