Indexed cost
We index your original purchase price (and eligible improvement costs) by the CII for the year of sale, shrinking the taxable gain on older property holdings.
India · Capital gains
Sold property or shares in India? File it right.
When an NRI sells Indian property, shares or mutual funds, the gain is taxable in India — and the buyer or your broker has usually already withheld TDS, often far more than you actually owe. A qualified CA computes your short- and long-term gains, applies indexation and the Section 54 / 54EC / 54F exemptions, claims DTAA relief, and recovers the excess TDS as a refund.
§ Short vs long term
First, how long you held it.
The holding period decides whether your gain is short-term (STCG) or long-term (LTCG), and that in turn sets the rate. The thresholds differ by asset, and the rates changed for transfers on or after 23 July 2024. We classify every transaction to the correct bucket before computing a single rupee.
| Asset | Long-term if held | STCG rate | LTCG rate |
|---|---|---|---|
| Listed shares & equity mutual funds | over 12 months | 20% | 12.5% above ₹1.25 lakh / year |
| Immovable property (land & buildings) | over 24 months | slab rate | 12.5% without indexation |
| Unlisted shares, debt funds, gold & other assets | over 24 months | slab rate | 12.5% |
Equity has its own rules
Listed equity and equity mutual funds carry STT, so LTCG is taxed at 12.5% only on gains above ₹1.25 lakh in the year, and pre-31-January-2018 gains are protected by grandfathering. We apply the correct cost-of-acquisition rule rather than a blanket purchase price.
§ Indexation & cost
Getting the cost base right.
For property bought before 23 July 2024, resident and NRI sellers can often still choose the older method — 20% with indexation, which inflates your purchase cost by the Cost Inflation Index — where it produces a lower bill than the new flat 12.5%. We compute both and pick the one that costs you less.
Cost of improvement
Capital improvements, stamp duty, registration and brokerage are added to your cost base — provided they are documented. We help you assemble the proof.
Grandfathering for equity
For listed shares and equity funds bought before 1 February 2018, the cost is stepped up to the highest of actual cost or the fair market value on 31 January 2018.
§ TDS & Section 197
The TDS trap on NRI property sales.
When an NRI sells Indian property, the buyer must deduct TDS on the whole sale value — not on the gain — at rates that are far higher than for resident sellers. Left alone, that locks up a large slice of your sale proceeds until you file and claim it back. There is a better way.
| Scenario | TDS deducted on | Typical rate (plus surcharge & cess) |
|---|---|---|
| NRI sells long-term property | full sale consideration | 12.5% |
| NRI sells short-term property | full sale consideration | 30% |
| With a Section 197 lower-deduction certificate | the actual capital gain only | rate set by the Assessing Officer |
Apply for the Section 197 certificate before you sell
A lower-deduction certificate under Section 197 lets the buyer withhold TDS on your real gain rather than the gross sale price — freeing up cash at completion instead of waiting a year for a refund. It must be obtained before the sale, so plan early. We prepare and file the application for you.
§ Exemptions & relief
Reinvest, and cut the bill.
Long-term gains can be reduced or eliminated by reinvesting within strict timelines, and DTAA relief stops you being taxed twice on the same gain in your country of residence. Both need to be filed correctly — and on time.
Section 54
Reinvest a long-term gain from one residential house into another within the prescribed window to exempt that gain. We track the timelines and the Capital Gains Account Scheme deposit if you have not yet bought.
Section 54EC
Invest the gain on property into NHAI / REC bonds within 6 months — up to ₹50 lakh a year — to exempt it, with a 5-year lock-in. We map the deadline against your sale date.
Section 54F
Sell any long-term asset other than a house and reinvest the net consideration into a residential property to claim a proportionate exemption, subject to the one-house condition.
DTAA relief
India’s double-tax treaties let you avoid being taxed twice on the same capital gain. We apply the correct treaty article, file Form 67 for foreign tax credit where relevant, and reconcile against your Form 26AS and AIS so the figures match what the department already holds.
§ How it works
From sale deed to filed return.
- 1
Share the deal
Sale and purchase deeds, broker or demat statements, TDS certificates, and improvement-cost proofs — securely in the portal. - 2
We compute the gain
Your CA classifies STCG vs LTCG, applies indexation or grandfathering, and tests every eligible exemption under Sections 54, 54EC and 54F. - 3
Lower TDS & reclaim
Where it helps, we file the Section 197 certificate before completion, and reconcile all TDS against Form 26AS and the AIS to claim your refund. - 4
You approve, we e-file
Review the return with DTAA relief applied, confirm, and we e-file with the Income Tax Department and track the refund through to credit.
Plan before you complete
The biggest savings — a Section 197 certificate and the reinvestment windows under 54 / 54EC / 54F — turn on dates. Talk to us before the sale closes, not after, and we can keep far more of your proceeds working.