Because a seller living in Oman is a non-resident, the buyer must deduct tax at source on the capital gains, at the rates for non-residents plus surcharge and cess, and deposit it with a TAN. If no lower deduction certificate is produced, buyers often deduct on the whole sale price. Applying to the Assessing Officer for a lower or nil deduction certificate before closing, and filing a return afterwards, keeps the deduction close to the real liability.
- Document route
- Omani notary public (Ministry of Justice and Legal Affairs), then apostille from the Omani Ministry of Foreign Affairs
- Time difference
- IST is 1h30 ahead of Oman time all year (no daylight saving)
- Who deducts
- The buyer, before paying you
- Long-term rate
- 12.5% plus surcharge and cess
TDS on Property Sale from Oman: how it works
We calculate the expected gain from your purchase cost, improvement costs and holding period. Long-term gains on property held for more than two years are now taxed at 12.5 per cent without indexation, plus surcharge and cess, and short-term gains at the normal rates. With that computation, the purchase deed and the sale agreement, we apply online for a lower deduction certificate. You can sign the application digitally from Oman, and the certificate is issued to you and given to the buyer.
At closing, the buyer deducts at the certified rate, deposits the tax and issues a certificate of deduction. You then file an Indian return to settle the final tax and claim any refund. Proceeds go to your NRO account and can be repatriated to Oman with Forms 15CA and 15CB. Reinvestment in another residential house or specified bonds may reduce the gain, subject to conditions. Note that the Income-tax Act 2025 governs from 1 April 2026, so forms carry new names.
What clients in Oman should know
- Under the India-Oman treaty, gains on immovable property in India are taxable in India, so the deduction is a real Indian tax, not a temporary withholding.
- A tax residency certificate from the Oman Tax Authority does not reduce tax on property gains, but it can help with interest earned on the sale proceeds while they sit in India.
- Buyers sometimes refuse a lower deduction certificate route out of caution; agree in the sale agreement that you will provide one and that the buyer will deduct accordingly.
Step by step from Oman
Video consultation
A call at a time that suits Oman, after we have read your documents.
Documents signed in Oman
Omani notary public (Ministry of Justice and Legal Affairs), then apostille from the Omani Ministry of Foreign Affairs
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Oman where needed.
The full guide
This page covers what changes when you are in Oman. For the law, the documents and the step-by-step procedure, read our main page on TDS on Property Sale, or see all services for clients in Oman and the Cross-Border Tax & Money practice area.
Questions from clients in Oman
How long does a lower deduction certificate take?
Often several weeks, so apply as soon as the sale terms are agreed and before the registration date.
The buyer deducted tax on the full price. Can I get it back?
Yes. File an Indian return showing the actual gain and claim a refund of the excess deduction.
Do I need a PAN to sell my flat from Oman?
Yes. Without a PAN, deduction is made at a higher rate, and you cannot easily claim credit or a refund.