NRI DELHI PROPERTY • CAPITAL GAIN • LDC

The Section 197 LDC for a Delhi Inherited Property The Computation Behind the Application

For an NRI selling an inherited Delhi property, the valuation is not simply a question of today's sale price. The historical acquisition, the applicable valuation date, 1 April 2001 FMV, capital gain computation and the withholding position can all form part of the transaction planning.

NRI

ILLUSTRATIVE DELHI PROFILE Malviya Nagar • Builder Floor • 1984 Acquisition

STEP 01

Establish the 1 April 2001 FMV

A2Z Valuers establishes the relevant historical fair market value using available Sub-Registrar registered comparable transactions from the relevant Delhi locality and period.

ILLUSTRATIVE FMV RANGE ₹32–40 Lakh Subject to comparable evidence available

Illustrative computation: The figures on this page are a worked property-owner example based on the supplied profile. The applicable capital-gain method, indexation treatment, surcharge, cess, DTAA position and withholding rate must be confirmed for the specific NRI, transfer date and transaction by the seller's Chartered Accountant/tax adviser.

FROM VALUATION TO WITHHOLDING

How the Valuation Feeds the LDC Application

The valuer's historical FMV is one part of the wider computation prepared with the NRI's CA. The numbers below show the supplied illustrative pathway.

VALUATION

1 April 2001 FMV

₹36 lakh

Mid-range illustration from the ₹32–40 lakh FMV range.

COST COMPUTATION

Indexed Cost

₹1.307 crore

Supplied illustration: ₹36 lakh × 363 / 100.

ILLUSTRATIVE METHOD A

LTCG

₹2.893 crore

Supplied illustration: ₹4.2 crore − ₹1.307 crore.

ILLUSTRATIVE METHOD B

LTCG

₹3.84 crore

Supplied illustration: ₹4.2 crore − ₹36 lakh.

THE WITHHOLDING QUESTION

Why the Lower Deduction Certificate matters at closing

Where the expected tax liability is lower than the amount otherwise withheld, the lower/nil withholding certificate mechanism can become an important part of the NRI seller's transaction planning.

SUPPLIED ILLUSTRATIVE DEFAULT TDS ₹96.6 lakh

→

ILLUSTRATIVE TAX BASIS ₹53–58 lakh

POTENTIAL CASH-FLOW DIFFERENCE ₹38–44 lakh

Current-law note: For payments from 1 April 2026, the Income Tax Department identifies the corresponding lower/nil withholding provision under Section 395(1) of the Income Tax Act, 2025. Section 197 of the earlier Income Tax Act, 1961 remains relevant to certificates issued under that Act in specified circumstances. The applicable provision should therefore be confirmed with the NRI's CA for the transaction date.

BEFORE THE SALE

The NRI Documentation Checklist

A Delhi property sale becomes easier to coordinate when property, inheritance, acquisition and NRI documents are assembled before the valuation and tax computation are finalized.

Property Documents

Original sale deed / allotment letter
Building plan sanction
Property tax receipts
Society NOC, where applicable
DDA conveyance deed, where applicable

Deceased Parent's Documents

Death certificate
Legal heir certificate / succession certificate
Registered will, where available
Probate, where required
Documents requested by the buyer or buyer's bank

Acquisition Evidence

Original purchase consideration evidence
Old sale deed
Historical payment receipts
Other evidence supporting original acquisition
For older acquisitions, original documents may be critical

NRI Documentation

PAN card
Passport copy
Overseas address proof
NRO bank account details
Banking information required for post-sale proceeds

What the Delhi CA May Need From the Valuer

The valuation file can support the CA's wider transaction work with the relevant evidence and computations, including:

✓ Section 55(2)(b) FMV certificate ✓ Section 50C FMV check ✓ Applicable capital-gain computation ✓ Lower-deduction certificate support ✓ Historical comparable evidence

NRI SELLER SUPPORT

You Do Not Need to Be in Delhi to Start the Valuation.

A2Z Valuers works with the NRI directly and with the NRI's Delhi-based CA. Initial coordination can be handled through WhatsApp and email, while the physical property inspection is coordinated by the practice's team where required.

The engagement can therefore be managed remotely for NRI sellers across different time zones, while keeping the Delhi property, valuation evidence and CA requirements connected within one workflow.

01 Share Property Documents

02 Coordinate With Your CA

03 Comparable Evidence & Valuation

04 Support the Transaction Process

Get Expert Advice → NRI PROPERTY VALUATION +91-9999992343

DELHI NRI PROPERTY

PROPERTY Delhi Inherited Property

VALUATION Historical FMV & Comparables

CA COORDINATION Capital Gain & Withholding

TRANSACTION Sale & Closing Support

CONNAUGHT PLACE New Delhi 110001 info@a2zvaluers.com