Section 195 TDS & Form 13 Lower Deduction Certificate
When an NRI sells a property or earns rental income in India, buyers and tenants are required to deduct TDS under Section 195 at the maximum marginal rate (up to 23.92% on property sales or 31.2% on rent). Applying for a Section 195 Form 13 Lower Deduction Certificate allows you to reduce TDS to your actual tax liability.
Disclaimer: This content is for general informational purposes only and does not constitute personalized legal or financial advice. For specific tax filings or audits, consult our qualified accountants directly.
Why Form 13 is Critical for Property Sellers
When a resident buyer purchases property from an NRI, Section 195 requires deducting 20% + surcharge + cess on the **total sale price**, NOT on the capital gain. For example, if you sell property for ₹1 Crore with a capital gain of only ₹10 Lakhs, the buyer will withhold over ₹20 Lakhs in TDS!
By filing **Form 13** with the Assessing Officer (IT Department) before execution of the sale deed, the officer issues a certificate directing the buyer to deduct TDS only on the actual capital gain amount (or at zero rate if fully exempt under Section 54/54EC).
Selling Property in India?
Acharya handles end-to-end Form 13 applications, capital gains calculation, Form 15CA/CB remittance clearance, and ITR filings.
Apply for Lower TDS Certificate