New Delhi, Aug. 26 -- NRIs must follow special tax rules when selling property in India. These differ from the rules for resident Indian sellers.

For NRI sellers, there is no minimum amount for TDS deduction. Resident sellers get a Rs.50 lakh limit before TDS applies. Their property sales usually attract TDS of 1%under Section 194-IA.

However, TDS on property sold by an NRI can be much higher. Buyers must understand three main issues before completing the purchase. These cover capital gains, TAN requirements and proof of TDS payment.

The first issue is the type of capital gain. The gain can be long-term or short-term. This classification decides the applicable TDS rate. A sale after two years creates long-term capital gains. A sale wit...