A buyer of Indian property from a non-resident must deduct tax at source on the sale consideration at the rates applicable to non-residents, including surcharge and cess. The seller can apply to the Income Tax Department for a lower or nil deduction certificate based on the actual capital gain. Gains on Indian immovable property are taxable in India under the India-Singapore treaty, and Singapore generally does not tax capital gains.
- Document route
- Singapore notary public, then apostille from the Singapore Academy of Law
- Time difference
- Singapore is 2h30 ahead of IST all year
- Who deducts
- The buyer, before paying you
- Long-term rate
- 12.5% plus surcharge and cess
TDS on Property Sale from Singapore: how it works
We first compute the likely capital gain: the cost of acquisition, improvement costs and the holding period, which decides whether the gain is long-term or short-term. We then prepare the application for a lower deduction certificate, with the sale agreement, purchase deed, valuation and evidence of costs. Processing takes several weeks, so the application should be filed as soon as the sale terms are agreed. Meanwhile, the buyer obtains a TAN and prepares to deduct and deposit tax.
At completion, the buyer deducts tax at the certified rate, deposits it and issues a TDS certificate. Your attorney holder collects the balance into your NRO account. You file an Indian return for the year, claiming credit for the tax deducted and, where there is an excess, a refund. Repatriation to Singapore requires Forms 15CA and 15CB, within the annual limit for NRO funds. Reinvestment exemptions may reduce the gain if you buy another Indian residential property or invest in specified bonds within the time limits.
What clients in Singapore should know
- Singapore does not generally tax capital gains, so the Indian tax is usually the final cost, which makes the lower deduction certificate especially valuable.
- Buyers often try to deduct only the resident rate of one percent, which is wrong for a non-resident seller and can expose both parties to interest and penalties.
- If the property was inherited, the cost of the previous owner and their holding period can count, which often reduces the gain substantially.
Step by step from Singapore
Video consultation
A call at a time that suits Singapore, after we have read your documents.
Documents signed in Singapore
Singapore notary public, then apostille from the Singapore Academy of Law
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 Singapore where needed.
The full guide
This page covers what changes when you are in Singapore. 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 Singapore and the Cross-Border Tax & Money practice area.
Questions from clients in Singapore
Can I avoid TDS by selling as a resident?
No. If you are a non-resident in the year of sale, the buyer must deduct tax under the non-resident provisions. Claiming resident status falsely creates serious problems.
How long does a lower deduction certificate take?
It typically takes several weeks after a complete application. Plan the sale timeline around it.
Do I need to file an Indian tax return after the sale?
Yes, to report the gain, claim credit for the tax deducted and obtain any refund.