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Will my TDS be deducted as NRI?

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Mohan

21 Points Posted on 25 July 2026

I was working in India for the past 2 decades. I recently moved Outside India (from the beginning of this FY) under inter company transfer where parent company is same. The tenure of my transfer is not pre-defined, but I assume it'll be upto 2 years.

I am selling a property in India, and I want to know if I will be considered NRI for this FY today? Because till date only about 120 days have passed in this FY, and for all previous years I was a resident.

I plan to close the sale transaction by September 15, and I currently hold a regular savings account in India (not NRE/NRO).

Please guide.

Will the buyer deduct 1% or 14.95% TDS for my property sale transcation? And do I need to convert regular account to NRE/NRO account today?

Replies (1)

Aashok Kumar Sharma

Finance/Compliance Consultant

67398 Points Posted on 26 July 2026

Because your total stay in India during FY 2026-27 will be less than 182 days by September 15, you will be classified as a Non-Resident (NRI) for tax purposes, meaning the buyer must deduct NRI Capital Gains TDS (typically ~20%+ for LTCG under Section 195) rather than 1% resident TDS. To prevent excessive tax deduction, you should apply for a Lower Deduction Certificate under Section 197, and you must promptly convert your regular resident savings account into an NRO account to comply with FEMA regulations before receiving the sale proceeds.