Understand NRI property tax, TDS and capital gains rules in India while comparing three RERA-registered Lucknow residential projects. Educational guide for UAE, UK and US buyers—no tax advice.
Introduction
Non-Resident Indians (NRIs) and Overseas Citizen of India (OCI) cardholders face distinct tax rules when buying, holding or selling property in India. The Indian tax framework covers house-property income, capital gains and tax deducted at source (TDS). Residency status, transaction facts and payment dates determine the correct treatment, making professional verification essential.
The Income Tax Department has clarified a transition: payments up to 31 March 2026 follow the Income‑tax Act 1961, while payments from 1 April 2026 follow the Income‑tax Act 2025. This affects withholding, filing and exemption claims.
This article explains broad tax themes and introduces three Lucknow residential projects from Brickly for comparison only. No price, possession, availability, rental return or infrastructure benefit is guaranteed. Always verify the live RERA record and obtain transaction-specific advice from a qualified tax professional.
Key Tax Concepts for NRI Property Owners
### House-Property Income
If a residential property is not self-occupied, its annual value may be taxed under “Income from house property.” The taxable amount allows standard deductions, municipal taxes and home loan interest where applicable. The computation for NRIs mirrors that for residents, but tax rate, deductions and filing obligations can differ, depending on the applicable Act.
For let-out property, rental income is taxable. Tenants may need to deduct TDS under Section 195 of the 1961 Act (or the corresponding 2025 provision) before remitting rent to an NRI landlord. The rate and threshold depend on the payment year and lease terms.
### Capital Gains on Sale
Profit from selling a residential property is classified as short-term or long-term capital gains based on the holding period. Tax rates, indexation and exemptions—such as reinvestment in another residential property or specified bonds—are governed by the law at transfer. The payment schedule and dates of sale and acquisition determine which Act applies, especially around the 31 March 2026 transition.
The buyer usually deducts TDS on capital gains, requiring a Tax Deduction and Collection Account Number (TAN), depositing the amount and issuing a TDS certificate. The NRI seller claims credit when filing. Rates and procedures change periodically; relying on generic online guidance is risky. Obtain a current written opinion from a qualified tax professional.
### TDS for NRIs
TDS requires the payer to withhold a portion of payment and remit it to the government. For NRIs, TDS can apply to rent, sale proceeds, professional fees and interest, often at higher rates and lower thresholds than for residents. Double Taxation Avoidance Agreements (DTAAs) with countries like the UAE, UK and US can influence the final obligation, but claiming treaty benefits requires careful documentation, often a Tax Residency Certificate.
The 1 April 2026 transition affects TDS rates, forms and compliance. NRIs planning a purchase, lease or sale must confirm the exact payment date and seek professional advice on the applicable Act.
Comparing Lucknow Projects
### Methodology
The three projects below come from Brickly’s Lucknow listings, selected only for having a recorded RERA number, promoter, locality, status and cover image. They are ordered by data completeness then alphabetically; paid or featured status is ignored. No price, possession, rental yield or appreciation potential is implied.
All are labelled “under construction.” Confirmed possession dates are factual data points, not delivery promises. Verify the latest status on the Uttar Pradesh RERA portal. For one project, the recorded possession date is in the past, highlighting the need for independent verification.
### Project 1: 1OAK ATMOS
- Location: Gomti Nagar Extension, Lucknow
- Promoter: ONEOAK REALTORS INDIA PRIVATE LIMITED
- RERA Number: UPRERAPRJ263280
- Status: Under construction
- Confirmed possession date (Brickly record): 2023-12-30
1OAK ATMOS is a 22‑storey project on 1.28 acres with 76 units, offering 3 BHK (1600.00 sq. ft. carpet) and 4 BHK (2239.00 sq. ft.) configurations. Price label: ₹1.6 crore onwards. Amenities include a swimming pool, yoga center, restaurants, jogging tracks, kids play area, senior citizen area, gym and CCTV surveillance.
Consideration: The 30 December 2023 possession date appears to be an originally projected milestone, not actual handover, as the status remains “under construction.” Verify occupancy‑certificate status and RERA progress independently. Tax implications of income or capital gains depend on actual completion, allotment and possession dates.
### Project 2: 1OAK NATURA
- Location: Sushant Golf City, Lucknow
- Promoter: ONEOAK REALTORS INDIA PRIVATE LIMITED
- RERA Number: UPRERAPRJ132075
- Status: Under construction
- Confirmed possession date (Brickly record): 2026-03-01
1OAK NATURA has 272 units across 14 floors on 3.8 acres, with 2 BHK (908.00 sq. ft.) and 3 BHK (1471.20 sq. ft.) configurations. Price label: ₹75 lakh onwards. Amenities mirror 1OAK ATMOS.
Consideration: The projected possession date of 1 March 2026 is ahead, but delays are common. Payments completing in early 2026 may straddle the 1961 and 2025 Acts; consult a tax professional on the correct withholding and filing strategy for each instalment.
### Project 3: AJIT ORO COUNTY
- Location: Jankipuram Extension, Lucknow
- Promoter: ORO Group
- RERA Number: UPRERAPRJ716796
- Status: Under construction
- Confirmed possession date (Brickly record): 2026-12-30
AJIT ORO COUNTY is a low‑rise (2 floors) development on 15.909 acres with 205 units. Offerings: 3 BHK (772.00 sq. ft.) and plots (1234.00–2060.00 sq. ft.). Price label: ₹82 lakh onwards. Amenities: gym, guest room, home theatre, salon, basketball court, kids area.
Consideration: Possession in December 2026 places most payments under the 2025 Act, which may govern eventual capital gains. Tax treatment differs between apartments and plots—a vacant plot generates no house-property income but still triggers capital gains on sale. Verify with a qualified tax professional.
### Quick-Comparison Table
| Project | Locality | RERA Number | Promoter | Status | Recorded Possession | Configurations | Price Label | |---------|----------|-------------|----------|--------|---------------------|----------------|-------------| | 1OAK ATMOS | Gomti Nagar Extension | UPRERAPRJ263280 | ONEOAK REALTORS INDIA PRIVATE LIMITED | Under construction | 2023-12-30 | 3 BHK (1600.00 sq. ft.), 4 BHK (2239.00 sq. ft.) | ₹1.6 crore onwards | | 1OAK NATURA | Sushant Golf City | UPRERAPRJ132075 | ONEOAK REALTORS INDIA PRIVATE LIMITED | Under construction | 2026-03-01 | 2 BHK (908.00 sq. ft.), 3 BHK (1471.20 sq. ft.) | ₹75 lakh onwards | | AJIT ORO COUNTY | Jankipuram Extension | UPRERAPRJ716796 | ORO Group | Under construction | 2026-12-30 | 3 BHK (772.00 sq. ft.), Plots (1234.00–2060.00 sq. ft.) | ₹82 lakh onwards |
Methodology
- Source: Brickly’s published project records.
- Eligibility: Projects must have a recorded RERA number, promoter, locality, status and cover image.
- Ordering: By data completeness then alphabetically; no commercial influence.
- Tax content: Described in general terms using approved facts; no tax rate, exemption or return outcome is asserted.
- Verification date: Last verified 2026‑09‑06. Subsequent changes require independent re‑verification.
Limitations and Warnings
This is educational information only, not legal, tax, banking or investment advice. No price, possession, rent, appreciation, return, infrastructure impact or availability is guaranteed. All projects are “under construction”; recorded possession dates are data points, not promises. For 1OAK ATMOS, the past date does not confirm availability or completion. Consult the live RERA record, engage a qualified Indian tax professional, and independently verify all facts before transacting.
Next Steps for NRI Buyers
Shortlist projects including those above. Explore the Lucknow projects page and the NRI hub for resources, calculators and guides. Use NRI tools for scenario modelling.
Before paying any booking amount, obtain a detailed tax opinion covering your residency status, applicable DTAA, relevant Income‑tax Act, TDS obligations and repatriation rules. Rules differ for UAE, UK and US residents; generic guidance is insufficient.
Conclusion
Indian property tax, TDS and capital‑gains rules form a complex, time‑sensitive ecosystem. The 1 April 2026 transition adds a layer NRIs must manage. This article outlines broad concepts and presents three Lucknow projects for comparison—it cannot replace expert advice tailored to your situation. Use the project data as a starting point, verify every detail through official channels, and let a qualified tax professional guide your compliance and planning.