{"id":90929,"date":"2026-10-26T23:33:45","date_gmt":"2026-10-26T18:03:45","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/us-nri-selling-property-hyderabad-tds-form-128\/"},"modified":"2026-10-26T23:33:45","modified_gmt":"2026-10-26T18:03:45","slug":"us-nri-selling-property-hyderabad-tds-form-128","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/us-nri-selling-property-hyderabad-tds-form-128\/","title":{"rendered":"US NRI Selling Property in Hyderabad: TDS, Form 128, Telangana Charges and US Tax (2026)"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>A US-based NRI or OCI selling a flat, house or plot in Hyderabad deals with three systems. India taxes the gain: the buyer must deduct TDS of about 13% to 15% of the full price under section 393 of the Income-tax Act, 2025, unless the seller first gets a lower deduction certificate in Form 128. Telangana charges the buyer 7.5% in stamp duty, transfer duty and registration on the higher of the price and the market value, which rose by 25% to 100% from 5 June 2026. And the US taxes the same gain again for citizens and green-card holders, with a credit for the Indian tax.<\/strong> This guide takes a US seller through each step, including the power of attorney if you cannot travel.<\/p>\n<h2 class=\"wp-block-heading\">The sale step by step<\/h2>\n<ol class=\"wp-block-list\">\n<li>Check the title, the encumbrance certificate and that GHMC property tax and land records are in your name.<\/li>\n<li>Apply for a lower deduction certificate in Form 128 on TRACES, four to six weeks before the agreement.<\/li>\n<li>If you will not travel, sign a specific power of attorney in the US, get it notarised and apostilled, and stamp it in Telangana within three months of it reaching India.<\/li>\n<li>Sign and register the sale deed at the Sub-Registrar&#8217;s office after booking a slot.<\/li>\n<li>The buyer deducts and deposits TDS and gives you the TDS certificate.<\/li>\n<li>File the Indian return for the tax year, claiming any refund or exemption.<\/li>\n<li>Get Forms 145 and 146 and remit the money to the US.<\/li>\n<li>Report the sale on your US return and claim the foreign tax credit.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\">Indian tax and TDS<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>Rate:<\/strong> long-term gains on property held over 24 months are taxed at 12.5% without indexation. The option of 20% with indexation for property bought before 23 July 2024 is for resident individuals only.<\/li>\n<li><strong>TDS:<\/strong> without a certificate, the buyer deducts on the whole price, at about 13% up to \u20b950 lakh, 14.3% from \u20b950 lakh to \u20b91 crore and 14.95% above \u20b91 crore, including surcharge and cess.<\/li>\n<li><strong>Buyer&#8217;s filing:<\/strong> from 1 October 2026, a resident individual buyer can deduct with their PAN in Form 141 Schedule E, without a TAN. Companies and firms use Form 144.<\/li>\n<li><strong>Form 128:<\/strong> the certificate brings TDS down to the tax on the actual gain. You need a PAN to apply, and it cannot be issued once the sale is complete.<\/li>\n<li><strong>Exemptions:<\/strong> reinvesting in a house in India (section 82) or in specified bonds up to \u20b950 lakh (section 85) reduces the Indian tax.<\/li>\n<li><strong>Stamp duty value:<\/strong> if the price is below the Telangana market value by more than 10%, the market value is taken as the sale price for your capital gains (section 78).<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Telangana costs and paperwork<\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Charge (paid by the buyer)<\/th>\n<th>GHMC and municipal areas<\/th>\n<th>Gram panchayat areas<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Stamp duty<\/td>\n<td>5.5%<\/td>\n<td>5.5%<\/td>\n<\/tr>\n<tr>\n<td>Transfer duty<\/td>\n<td>1.5%<\/td>\n<td>None<\/td>\n<\/tr>\n<tr>\n<td>Registration fee<\/td>\n<td>0.5%<\/td>\n<td>2%<\/td>\n<\/tr>\n<tr>\n<td>Total<\/td>\n<td>7.5%<\/td>\n<td>7.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<ul class=\"wp-block-list\">\n<li><strong>Market values rose from 5 June 2026<\/strong> by 25%, 50%, 75% or 100% depending on the area, with the 100% increase limited to a few premium areas such as the ORR corridor, Kokapet and Raidurg. Duty is charged on the higher of the price and the new value, which also affects your capital gains under section 78.<\/li>\n<li><strong>Slot booking<\/strong> on the Telangana registration portal has been compulsory at all Sub-Registrar offices since June 2025; the parties attend once for biometric verification.<\/li>\n<li><strong>Mutation:<\/strong> the Sub-Registrar collects the GHMC mutation fee at registration. Agricultural land records are updated through Bhu Bharati, which replaced Dharani in April 2025.<\/li>\n<li><strong>Plots in unapproved layouts<\/strong> can be registered only if the layout meets the Layout Regularisation Scheme conditions; the 25% LRS rebate runs to 30 November 2026.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Selling through a power of attorney from the US<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>Execution:<\/strong> sign before a US notary, then get the Secretary of State&#8217;s apostille. No further attestation by the Indian consulate is needed.<\/li>\n<li><strong>Stamping:<\/strong> pay Telangana stamp duty within three months of the document reaching India, before the District Registrar.<\/li>\n<li><strong>Duty:<\/strong> a power of attorney to sell in favour of a family member carries \u20b91,000 stamp duty; for anyone else it is 1% of the value.<\/li>\n<li><strong>Registration:<\/strong> register the power of attorney if the attorney will sign and present the sale deed. The Kerala High Court held in July 2026 that a power of attorney executed abroad must be registered before it is used to sell, and Sub-Registrars increasingly expect it.<\/li>\n<li><strong>Payment:<\/strong> the price should go to your NRO account, not to the attorney.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Taking the money to the US<\/h2>\n<ul class=\"wp-block-list\">\n<li>If you bought with money sent from abroad or from an NRE or FCNR account, you can repatriate up to that amount, for no more than two residential properties.<\/li>\n<li>Everything else, including the gain and inherited property, goes out within the USD 1 million a financial year limit from the NRO account, after tax.<\/li>\n<li>Your CA issues Form 146 (formerly 15CB) and you file Form 145 (formerly 15CA) before the bank remits.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">US tax on the same sale<\/h2>\n<ul class=\"wp-block-list\">\n<li><strong>The US taxes its citizens and green-card holders on worldwide gains.<\/strong> Under Article 13 of the India-US tax treaty, India may tax the gain under its own law, and Article 25 obliges the US to give a credit for the Indian tax.<\/li>\n<li><strong>Reporting:<\/strong> on Form 8949 and Schedule D, as a long-term gain if held over a year. The federal rate for 2026 is 0%, 15% or 20% depending on income, plus 3.8% net investment income tax above $200,000 (single) or $250,000 (joint). Depreciation claimed on a rented property is recaptured at up to 25%.<\/li>\n<li><strong>Cost in dollars:<\/strong> the US gain is worked out in dollars, converting the purchase cost at the exchange rate on the purchase date and the sale price at the rate on the sale date. Indian indexation plays no part, and rupee depreciation can make the US gain much smaller than the Indian one.<\/li>\n<li><strong>Foreign tax credit:<\/strong> claim the Indian tax on Form 1116, converted at the rate on the date it was withheld. Any TDS India later refunds is not creditable.<\/li>\n<li><strong>Account reporting:<\/strong> an NRO account holding the proceeds must be reported on the FBAR if your foreign accounts exceed $10,000 at any time in the year, and on Form 8938 above the higher FATCA thresholds.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">Common mistakes in Hyderabad sales<\/h2>\n<ol class=\"wp-block-list\">\n<li>The buyer deducts 1% TDS as if you were a resident.<\/li>\n<li>Applying for Form 128 after the agreement is signed, when it is too late.<\/li>\n<li>An unregistered agreement of sale: registration is compulsory in Telangana.<\/li>\n<li>A power of attorney that was never stamped or registered.<\/li>\n<li>Property tax or land records still in a previous owner&#8217;s name.<\/li>\n<li>Agreeing a price below the new June 2026 market value without planning for the section 78 effect on your capital gains.<\/li>\n<li>Forgetting the FBAR and Form 8938 for the NRO account in the year of sale.<\/li>\n<\/ol>\n<h2 class=\"wp-block-heading\">Frequently asked questions<\/h2>\n<h3 class=\"wp-block-heading\">What TDS does a buyer deduct when a US NRI sells property in Hyderabad?<\/h3>\n<p class=\"wp-block-paragraph\">For property held over 24 months, about 13% to 14.95% of the full sale price, including surcharge and cess, unless you have a Form 128 certificate for a lower rate.<\/p>\n<h3 class=\"wp-block-heading\">Do I pay tax in both India and the US?<\/h3>\n<p class=\"wp-block-paragraph\">India taxes the gain first. The US also taxes it for citizens and green-card holders, but gives a foreign tax credit for the Indian tax under the treaty, so you usually pay only the higher of the two.<\/p>\n<h3 class=\"wp-block-heading\">Can I sell my Hyderabad flat without travelling to India?<\/h3>\n<p class=\"wp-block-paragraph\">Yes, through a specific power of attorney signed and apostilled in the US, stamped in Telangana within three months, and registered before your attorney signs the sale deed.<\/p>\n<h3 class=\"wp-block-heading\">What are the registration charges in Telangana?<\/h3>\n<p class=\"wp-block-paragraph\">7.5% in all: 5.5% stamp duty, 1.5% transfer duty and 0.5% registration in municipal areas, paid by the buyer on the higher of the price and the market value.<\/p>\n<p class=\"wp-block-paragraph\">TAXAJ handles Form 128 applications, capital gains returns, Forms 145 and 146 and repatriation for NRIs selling property in Hyderabad and across India. See our <a href=\"https:\/\/www.taxaj.com\/private-limited-company-registration-in-hyderabad\" target=\"_blank\" rel=\"noopener\">Hyderabad page<\/a>, our guide to <a href=\"https:\/\/www.taxaj.com\/learn\/stamp-duty-registration-charges-state-wise\/\" target=\"_blank\" rel=\"noopener\">stamp duty by state<\/a>, or our guide to <a href=\"https:\/\/www.taxaj.com\/learn\/nri-oci-selling-property-goa-tds-repatriation\/\" target=\"_blank\" rel=\"noopener\">NRIs selling property in Goa<\/a>.<\/p>\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/wa.me\/918802912345?text=I%20am%20a%20US%20NRI%20selling%20property%20in%20Hyderabad\" target=\"_blank\" rel=\"noopener\">WhatsApp our NRI team<\/a><\/div>\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+918802812345\">Call 88028 12345<\/a><\/div>\n<\/div>\n<p class=\"has-small-font-size wp-block-paragraph\"><em>Last updated 26 October 2026. Sources: Income-tax Act, 2025, sections 78, 82, 85, 197, 393 and 395; Income-tax Rules, 2026, Forms 128, 132, 141, 144, 145 and 146; RBI Master Direction on immovable property under FEMA; Telangana Registration and Stamps Department ready reckoner and stamp FAQs; reports on the Telangana market value revision of 5 June 2026; Bhu Bharathi (Record of Rights in Land) Act, 2025; India-US tax treaty, Articles 1, 13 and 25; IRS Topics 409 and 559, Publication 514 and Rev. Proc. 2025-32; Kerala High Court, W.A. 203\/2022 (July 2026). General information only; check your own facts with us and your US tax adviser.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How a US-based NRI or OCI sells property in Hyderabad: Indian TDS and the Form 128 certificate, Telangana&#8217;s 7.5% charges and the June 2026 market value revision, power of attorney from the US, repatriation, and the US tax and foreign tax credit.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-90929","post","type-post","status-publish","format-standard","hentry","category-income-tax"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=90929"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/90929\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=90929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=90929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=90929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}