New Delhi, April 26 -- For many Non-Resident Indians (NRIs), property in India remains one of the most valuable long-term investments. However, selling that property can come with significant tax implications, often much higher than what resident Indians pay. With revised capital gains tax rules and higher TDS requirements, NRIs need to plan carefully before finalising a sale.

The biggest reason NRIs may face higher taxes is the Tax Deducted at Source (TDS) rule under Section 195 of the Income Tax Act. Unlike resident sellers, where TDS is usually 1% if the property value exceeds Rs.50 lakh, buyers purchasing property from an NRI must deduct TDS at much higher rates depending on the type of capital gain.

If the property is sold after be...