DTAA Foreign Tax Credit Calculator

What is DTAA? India has signed tax treaties with 90+ countries called Double Taxation Avoidance Agreements (DTAA). These treaties decide which country has the right to tax your property sale profit — and whether you can offset the Indian tax you paid against your foreign country's tax bill. The rules are different for every country — and for the US, they differ by state too.

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Your Property Sale Details

Enter your numbers — we handle the cross-border tax maths

Step 1 — Your Sale

Sale price Total agreed consideration (₹ in Lakhs)

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Original purchase price What you paid when you bought it (₹ in Lakhs)

₹

Indian tax already paid (TDS deducted) The amount your buyer deducted as TDS — check your Form 16A (₹ in Lakhs)

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USD / INR exchange rate Used to convert your gain to foreign currency for comparison

Step 2 — Your Country

Which country do you live in? This determines whether your country will also tax this gain, and whether you can offset the Indian tax

Select your country to see how the DTAA treaty works for you.

Step 3 — Your US State (Important)

Which state do you live in? US states tax income separately — and rules on foreign tax credits vary significantly by state

Select your state to see the state-level impact.

Your approximate US annual income (excluding this gain) Determines your federal capital gains tax rate (0% / 15% / 20%)

🌐 Your cross-border tax summary

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—India tax paid

—Foreign tax owed

—FTC credit used

—Extra tax to pay abroad

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India — Tax at Source

Income Tax Act · Section 195

Capital gain (sale − purchase)—

LTCG rate (12.5% flat, no indexation)12.5%

Gross tax on gain—

TDS already deducted by buyer—

Balance tax / refund due—

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Your Country — Tax Position

Based on DTAA treaty with India

Capital gain (in foreign currency)—

Tax rate in your country—

Gross foreign tax on this gain—

Foreign tax credit (India tax paid)—

Net additional tax owed abroad—

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Your Complete Tax Picture

Both countries combined — what you actually pay in total

🇮🇳 India — TDS deducted at sale —

🇮🇳 India — Additional tax / refund after ITR —

🌍 Foreign tax owed (after FTC) —

💰 Foreign tax credit applied —

Total tax across both countries —

Effective total tax rate on your gain —

—

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What You Need to Do

Steps to claim your foreign tax credit and avoid paying twice

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Key Facts About DTAA & Property Sales

Things every NRI selling property in India should know

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India always has the first right to tax Indian property gains

Under virtually every DTAA treaty, when the asset is immovable property (land, flat, house) located in India, India gets to tax the gain first. Your country of residence then decides whether to tax it again — and whether to allow credit for what India already collected.

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You need a Tax Residency Certificate (TRC) — every year

To claim DTAA benefits in India, you must provide a TRC from your country's tax authority. US residents get it from the IRS (Form 8802). UK residents from HMRC. Australian residents from ATO. Without a TRC, benefits may be denied.

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Filing deadlines in both countries must be met

India: ITR due by July 31 (or October 31 with audit). USA: Form 1040 due April 15 (can file for extension). UK: Self Assessment due January 31. Missing either deadline can result in losing FTC benefits — plan ahead.

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TDS ≠ final tax. You must still file and reconcile

The TDS deducted by your buyer at the time of sale is just a withholding. Your actual tax liability is calculated when you file your Indian ITR. If TDS was more than your actual tax, you get a refund. If less, you pay the balance. The foreign country's FTC calculation uses your actual final Indian tax — not the TDS amount.

Get Your Cross-Border Tax Right

Mistakes in FTC claims — wrong forms, wrong amounts, wrong currency conversion dates — can cost you more than the tax itself. NRiSimplify coordinates your India ITR, Form 15CA/15CB, and brief for your foreign country's CA.

Enquire now →

Disclaimer: This calculator provides estimates based on DTAA treaty provisions, ITA 1961, and publicly available foreign tax rates as of FY 2025–26. US figures use 2024 IRS brackets; state rates are maximum marginal rates. DTAA application depends on residency status, treaty year, specific article interpretation, and individual circumstances. This is not tax advice — consult a qualified CA in India and a licensed tax advisor in your country of residence before filing.

Will You Pay Tax Twiceon Your Property Sale?