Tax · 8 min read
Taxation for NRIs Buying Property in Kochi — 2026 Update
TDS, rental tax, capital gains, DTAA relief — a practical primer for NRI buyers.
Buying: TDS of 1% (u/s 194IA) applies if the property value is ₹50 lakh or above — deducted by the buyer, not by the developer. GST is 5% (without ITC) for under-construction; ready-to-move is GST-free.
Renting: rental income is taxable in India. 30% standard deduction plus municipal taxes paid. Slab rates apply, minus DTAA relief you can claim in your home country.
Selling: Long-term capital gains (holding > 24 months) are taxed at 12.5% (with indexation removed post-2024). TDS of 20% applies on the sale value — lower deduction certificate (Form 13) can bring this down to actual tax outgo.