NRIs are taxed at the same rate as non NRIs. If property is owned for more than two years, then they fall under the 20% tax slab. If it’s a short term sale (owned for less than 2 years) then NRIs are taxed at the applicable tax rate based on total income taxable in India.

NRIs should also be aware of TDS on sale of property. There’s a 22.8% TDS that the buyer has to deduct for a property owned for more than 2 years. For ownership of less than 2 years, buyer has to deduct TDS of 30%. This TDS can be reduced through a special request to the Income tax department.