NRI property sale guide
NRI Selling Property in India: Tax, TDS, FEMA and Repatriation Guide
A practical guide for NRIs selling property in India, covering buyer TDS, lower TDS certificate planning, capital gains, bank documentation and repatriation of sale proceeds.
Quick summary
NRIs should plan tax and documentation before the sale closes.
When an NRI sells property in India, the transaction can involve tax deduction by the buyer, capital gains calculation, lower TDS certificate planning, bank documentation and FEMA-facing repatriation requirements. Waiting until after the sale can create excess deduction, incomplete paperwork and delays in moving eligible funds abroad.
TDS on NRI property sale
In many NRI property sale cases, the buyer is required to deduct tax before making payment to the seller. The deduction can feel high because it may be applied on the sale consideration unless the transaction is reviewed and a lower deduction route is available.
Before finalising the payment schedule, the NRI seller should review the sale value, purchase cost, holding period, improvements, expected capital gains, PAN details and buyer documentation.
Lower TDS certificate planning
A lower TDS certificate may help reduce excess deduction where the expected capital gains tax is lower than the amount otherwise deducted. This should be reviewed before buyer payment, because once tax is deducted, the seller may need to wait for return filing and refund processing.
Capital gains and valuation issues
The actual tax position depends on the purchase date, purchase cost, indexed cost where applicable, improvement cost, sale value and valuation-related issues such as circle rate. If the property was inherited, additional ownership and cost history documents may be needed. For a detailed explanation, read our capital gains tax guide for NRIs selling property in India.
NRIs should also check how the transaction will appear in Form 26AS, AIS/TIS and the income tax return.
Repatriation of sale proceeds
Eligible sale proceeds can generally be moved from India to an overseas account subject to tax compliance, FEMA documentation, bank checks and applicable limits. Banks may ask for the sale deed, tax documents, source of funds, Form 15CA/15CB where applicable and other supporting records.
Planning the documentation early reduces the chance of last-minute bank queries.
Documents to keep ready
- PAN and identity documents
- Passport, visa, OCI, or residential status proof
- Purchase deed and sale deed draft
- Cost improvement records, if any
- Buyer details and payment timeline
- Bank account and repatriation details
- Past ITR and tax records where relevant
- Form 15CA/15CB documents where applicable
You can estimate the buyer-side deduction before payment using the NRI Property Sale TDS Calculator.
Watch overview
NRI selling property in India?
This video explains the key tax, TDS, FEMA and repatriation points NRIs should review before completing a property sale in India.
FAQs
Common questions
Can NRIs apply for lower TDS before selling property in India?
Yes, where eligible. The review depends on sale value, cost records, holding period, expected capital gains and available documentation.
Can an NRI send property sale proceeds abroad?
Eligible sale proceeds can generally be repatriated abroad subject to tax compliance, FEMA documentation, bank checks and applicable limits.
Should planning happen before or after the sale?
Before the sale. Waiting until after TDS is deducted or after money reaches the bank can create avoidable delays and excess deduction.
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Disclaimer: This guide is for general informational purposes only and should not be treated as legal, tax, FEMA, accounting, investment or professional advice. The correct treatment depends on facts, documents, jurisdiction and applicable law.