Withholding tax is the final barrier for funds leaving India. In 2026, the focus has shifted toward encouraging long-term capital while maintaining high transparency on “repatriated profits.”
The 2025–26 WHT Breakdown:
Health and Education Cess: Every withholding rate is further increased by a 4% cess, and applicable surcharges if the income exceeds ₹1 Crore.
Capital Gains: Long-term capital gains (LTCG) on property and unlisted shares are now taxed at a unified rate of 12.5% for non-residents, simplifying the complex old multi-rate system.
Property Sale TDS: When an NRI sells property, the buyer is legally bound to withhold tax at 12.5% (for long-term) or 30% (for short-term).
Strategic Tip: Don’t let your liquidity get locked up. We help NRIs file Lower Deduction Certificate (LDC) applications to reduce this withholding based on actual capital gains rather than the total sale value.