TDS u/s 195 on sale of property by NRI

Yes, Section 195 is the correct provision — 194-IA does not apply when the seller is a non-resident. The 14.95% rate = 12.5% (LTCG post 23 July 2024) + 15% surcharge + 4% cess, which fits a sale consideration in the ₹1 cr–₹2 cr band.

However, the bigger issue is that TDS u/s 195 is required only on the income chargeable to tax (i.e., capital gains), not on gross sale consideration. Since the buyer has deducted on the entire sale value, your brother's funds are unnecessarily blocked. The remedy now is to file ITR-2 for AY 2026-27 and claim refund, ideally after computing capital gains with indexation/grandfathering benefit where applicable, and exploring exemption u/s 54 / 54EC / 54F.

Going forward (for any NRI client/relative), always apply for a Lower Deduction Certificate u/s 197 in Form 13 before execution of sale deed — this is the only clean way to avoid the refund-blockage cycle.

Also confirm the buyer has a TAN, has filed Form 27Q, and issued Form 16A — these are mandatory under 195 (Form 26QB does not apply here).