How much TDS is withheld when an NRI sells property in India?

When an NRI sells Indian property, the buyer must withhold TDS (tax deducted at source) on the sale value — and the rates are steep. For long-term gains (property held over two years), TDS is generally 20% plus applicable surcharge and cess; for short-term, it's withheld at slab rates that can reach roughly 30% plus surcharge. Crucially, TDS is often applied to the full sale price, not just the gain, unless you obtain a Lower Deduction Certificate (Form 13) from the Indian tax authorities in advance. That certificate can dramatically reduce the cash tied up. After filing your Indian return you reclaim any excess, but the refund can take many months. On the US side, you claim a foreign tax credit for the Indian tax ultimately paid. Plan the Lower Deduction Certificate before closing to avoid a large cash crunch.