Find
Buyers deduct tax under Sec 195 on payments to NRIs, often on a high base. If your actual tax on the gain is lower, filing ITR-2 gets the excess refunded. NRIs do not fill Schedule FA.
ITR
NRI claiming excess capital gains TDS through ITR-2
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 195 (now Sec 393); Sec 112 (now Sec 197); Sec 54 (now Sec 82)
Analysis
If the buyer deducted ₹15 lakh but your gain after indexation or Sec 54 investment gives tax of ₹6 lakh, the ₹9 lakh excess is refunded after processing. Report the sale in Schedule CG, claim TDS from Form 26AS, and give an Indian bank account that is validated for refunds. NRIs cannot use the basic exemption limit against special rate gains. A lower TDS certificate before the next sale can avoid this.
Close
- Get Form 16A from the buyer and check Form 26AS.
- Compute the actual capital gain and tax.
- File ITR-2 with the sale and TDS credit.
- Validate an Indian bank account for the refund.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.