NRI OCI Property Sale Lower TDS Certificate Form 128

If the assessing officer issues a valid lower-deduction certificate, give the certificate details to the buyer or the person responsible for deducting tax before the relevant payment is made. The buyer should follow the rate and conditions specified in the certificate rather than assuming the rate is automatically zero.

Keep a copy of the certificate, the sale agreement, TDS records, and proof of payments. Also check the certificate’s validity period and whether it covers the full transaction or only specified receipts.

Remember that a lower TDS certificate changes the amount deducted upfront; it does not by itself settle your final capital-gains tax liability. You may still need to file the applicable Indian tax return and pay any remaining tax due.

Start by gathering the original purchase deed, proposed sale agreement, property ownership and possession documents, and evidence of the amount paid when you bought the property. Also collect details of improvements or other costs that may be relevant to the capital-gains calculation, along with your PAN, passport, proof of overseas residence, and details of your estimated Indian income and tax payments.

The tax officer may request additional evidence, such as a valuation report, stamp-duty valuation, bank statements showing purchase payments, or details of payments already received from the buyer. The exact list depends on the property and the application.

Don’t assume that uploading the documents automatically guarantees approval. The assessing officer evaluates the estimated tax liability and other prescribed factors before deciding whether to issue the certificate.

An OCI cardholder may apply if they are a taxpayer seeking a lower or nil deduction certificate and their circumstances support the application. The important distinction is that OCI status alone does not determine Indian tax residency; your residential status under the applicable tax rules matters.

Form 128 is the successor to Form 13 for applications under Section 395(1) of the Income Tax Act, 2025. The Income Tax Department says the application should be made electronically and well before the transaction, because the certificate needs to reach the buyer before the relevant TDS deduction. Don’t wait until the entire sale consideration has been paid.

I would first ask a chartered accountant familiar with non-resident property sales to estimate the taxable capital gain and confirm the correct application route for your case.