Holding period and rate (on/after 23 July 2024)
| Asset | Long-term after | LTCG | STCG |
|---|---|---|---|
| Listed equity / equity MF | 12 months | 12.5% over ₹1.25 L/yr | 20% |
| Immovable property | 24 months | 12.5% (no indexation for NRI) | Slab rate |
| Unlisted shares | 24 months | 12.5% | Slab rate |
| Debt MF (post-Apr 2023) | Always short-term | — | Slab rate |
A 4% health & education cess applies on top of every rate above. Surcharge (10–25%) applies at higher income levels; on listed equity gains surcharge is capped at 15%.
TDS — the NRI difference
| Asset sold by NRI | TDS is deducted on | Rate |
|---|---|---|
| Listed equity / equity MF | The gain | 12.5% LTCG / 20% STCG + cess |
| Property | Full sale consideration | 12.5% + surcharge + cess (LT) or slab (ST) |
| Unlisted shares / debt MF | The gain | 12.5% LT / slab ST + cess |
For property, deduction on the full value usually overshoots the real tax. File Form 13 for a Section 197 lower-deduction certificate before the sale, or claim the excess as a refund in your return.
Exemptions available to NRIs
- Section 54: reinvest a long-term residential-house gain into another house in India (1 year before / 2 years after purchase, or 3 years to construct).
- Section 54EC: invest up to ₹50 lakh of a long-term land/building gain in NHAI or REC bonds within 6 months (5-year lock-in).
- Section 54F: reinvest the net consideration from any other long-term asset into one residential house.
Repatriation
Sale proceeds of assets bought with funds in an NRE account or through inward remittance are freely repatriable (with Form 15CA/15CB). Proceeds from assets bought with rupee funds (NRO route) are repatriable up to USD 1 million per financial year.
Questions
Same rates as residents?
Yes for the tax rate. The difference is TDS at source and, for property, TDS on the full sale value.
Property TDS?
12.5% + surcharge + cess on the entire consideration for a long-term holding. Use Section 197 to reduce it.
Indexation on old property?
No — the 20%-with-indexation option is for residents only. NRIs pay 12.5% without indexation.
Can NRIs claim 54EC bonds?
Yes. Section 54, 54EC and 54F all apply to NRIs.