NRI Capital Gains Tax on Property (2024 Regime)
How your gain is taxed changed materially on 23 July 2024. For NRIs selling Indian property, getting this right — and using the exemptions — is where real money is saved.
Long-term vs short-term
Immovable property held for more than 24 months is a long-term capital asset. Under the 2024 regime, LTCG is taxed at 12.5% without indexation (plus surcharge and cess). Held 24 months or less, the gain is short-term and taxed at slab rates.
Three legal ways to cut the tax
| Route | What you reinvest | Into |
|---|---|---|
| Section 54 | The capital gain | Another residential house (buy within 2 years / build within 3) |
| Section 54EC | The gain, up to ₹50 lakh | NHAI/REC bonds within 6 months, 5-year lock-in |
| Section 54F | The net sale consideration | A residential house (when selling a non-house asset) |
The CGAS safety net
If you cannot reinvest before your return is due, park the amount in a Capital Gains Account Scheme (CGAS) deposit to preserve the exemption while you complete the purchase within the window.
More NRI guides
FAQs
What is the capital gains tax rate for NRIs on property in 2026?
Long-term gains (property held over 24 months) are taxed at 12.5% without indexation under the 2024 regime, plus surcharge and cess. Short-term gains are taxed at slab rates.
Can NRIs claim Section 54 exemption?
Yes — NRIs can claim Sections 54, 54EC and 54F on Indian property gains, subject to the same conditions and time windows as residents.
What is the 54EC bond limit?
Up to ₹50 lakh of the gain can be invested in NHAI/REC (54EC) bonds within 6 months of sale, with a 5-year lock-in.
What if I can't reinvest before filing my return?
Park the amount in a Capital Gains Account Scheme (CGAS) deposit to preserve the exemption until you complete the qualifying reinvestment.
Related NRI services & guides
NRI Property Services hub · NRI buying guide · Selling as an NRI · NRIs & agricultural land · NRI home loans · TDS on NRI sale · Power of Attorney · Repatriating proceeds · NRE vs NRO vs FCNR · NRI property management · NRI consultant, Chandigarh
Explore our live directories
Every RERA-registered project and developer we facilitate — searchable, locality-tagged, cross-linked.