Selling Property in Mumbai as an NRI: GPA, PoA & Legal Documentation Explained

If you’re a Non-Resident Indian (NRI) with property in Mumbai (residential or commercial), and you’re considering selling it, you’re navigating a landscape of legal, tax and procedural nuances. This guide walks you through what you need to know in October 2025 — specifically focusing on the role of a General Power of Attorney (GPA), a Special Power of Attorney (PoA/SPA), and the legal documentation required under Indian law including the latest tax, TDS, repatriation and regulatory rules.

1. Can an NRI sell property in India and what types of property?

NRIs can sell residential and commercial properties in India.
However, there are restrictions: for example agricultural land, plantation property or farmhouses (if acquired as an NRI) often cannot be sold to another NRI/OCI.
In the Mumbai / Maharashtra context, you must ensure clear title, proper registration, stamp duty paid and compliance with the state sub-registrar norms (which may have local peculiarities).

2. Why a GPA or PoA matters for NRIs

Since you may not be physically present in India, appointing a reliable representative becomes critical.

A GPA (General Power of Attorney) gives broad authority to a representative.
A SPA/Specific PoA restricts the authority to a particular task — say the sale of one property only.
For property sale, you’ll often see a PoA executed abroad by the NRI, notarised/Apostilled/Indian Consulate attested, then sent to India for stamping/registration.
Important caution: A PoA by itself does not transfer title. A sale deed executed by the seller (or authorised attorney) and registered with the Sub-Registrar is mandatory.
If you delegate via a PoA, ensure the scope is clearly defined (which property, what powers, sale price threshold etc.) and you trust the appointed person.

3. Step-by-step: Using a GPA/PoA for property sale in Mumbai

Here’s a typical workflow relevant for an NRI seller:

Select your attorney/agent in India – someone you trust (family member/close associate).
Draft the PoA: specify exact property (address, survey/flat no.), powers granted, duration, revocation clause. Use legal counsel.
Execute abroad: In your country of residence sign the PoA, get notarised + attested by Indian Consulate/Apostille if relevant.
Send original PoA to India: via secure courier.
Stamp duty and registration in India: The attorney will visit the Sub-Registrar’s office (in Maharashtra) to register the PoA (though sometimes registration of PoA is optional, but for immovable property sale it is strongly advisable and in many states mandatory).
Buyer diligence & sale deed: The buyer will perform due diligence (title search, encumbrance-check etc) and then execute agreement for sale + sale deed. Once sale deed is executed and registered, ownership transfers.
Tax/TDS & repatriation compliance: Ensure that tax liabilities (capital gains, TDS) are addressed, and funds repatriated via proper banking channels (if applicable).
Revoke PoA: After sale, revoke the PoA so no residual authority remains.

4. Legal Documentation Checklist

Here are the key documents you’ll need:

Title deed / ownership proof (purchase deed, previous sale deed)
Encumbrance certificate (covering past ~13 years)
Property tax receipts up to date
No outstanding dues on the property (maintenance, society, utilities)
Your PAN, Aadhaar (if applicable) and overseas address proof
NRI status proof (passport, overseas residence)
PoA document (original), duly executed & registered
Sale agreement (if applicable) & Sale deed registered at Sub-Registrar
Buyer’s payment proof via banking channel
TDS certificate (if buyer deducts TDS)
For repatriation: Form 15CA/15CB (if funds leaving India) etc.
compliance with Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) norms for NRIs.

5. Taxation & TDS: What NRIs must know (2025 update)

As of October 2025, if you are an NRI selling property in India: the capital gains tax rules have new contours.
If property is held more than 24 months → qualifies as Long-Term Capital Gain (LTCG).
For transfers on or after 23 July 2024: LTCG tax rate for NRIs is 12.5% flat (plus surcharge/cess) without indexation benefit.
For transfers before that date: you may have option of 20% with indexation benefit depending on context.
Short-Term Capital Gain (STCG): If held ≤ 24 months, taxed at applicable slab rate; TDS generally at higher rate (~30%).
TDS: Buyer (resident Indian) must deduct TDS before payment to you. For NRIs: if LTCG after July 23 2024, TDS at ~12.5%.
Repatriation: NRIs can repatriate proceeds up to USD 1 million per financial year under certain conditions.
Double Taxation: If you live abroad (e.g., U.S.) you must report capital gains in your resident country too; check DTAA (Double Taxation Avoidance Agreement).
Important: Keep all sale and TDS evidence safe — improper TDS deduction can cause huge hassles (see recent case).

6. Repatriation & FEMA/RBI Rules

The sale proceeds should move through banking channels: your NRO/NRE account or as per the bank’s guidance.
FEMA rules: For NRIs, any repatriation must comply with RBI regulations and proof of tax paid must be provided.
Up to USD 1 million per financial year can be repatriated (subject to conditions) without separate RBI approval in many cases.
Maintain audit trail: sale deed, TDS certificate, bank remittances, Form 15CA/15CB if required — because any deficiency can block outward remittance.

7. Mumbai / Maharashtra-specific considerations

Stamp duty and registration fees in Maharashtra must be accounted for when executing sale deed.
The Sub-Registrar office in Mumbai will insist on original documents, ID proofs, etc; ensure your PoA / attorney has full authority and registration done.
Given high property values in Mumbai, due diligence is vital (title search, encumbrance certificate etc).
Market value often compared with the Ready Reckoner rate; undervaluation may trigger additional stamp duty/penalties — important especially for the buyer side.
Local municipal transfer and society clearance (if flat) also matter.

8. Common pitfalls & how to avoid them

Poorly-drafted PoA: vague scope, no registration, leads to disputes.
Unregistered PoA: For property sale it may be challenged.
Travel & presence assumption: Even though you’re abroad, certain steps may require presence of your attorney locally — keep communication strong.
Missing TDS deduction or wrong certificate: Buyer fails to deduct correct TDS or uses wrong form → you may lose credit.
Ignoring tax changes: The change in LTCG rules (12.5% without indexation) means you could face higher tax if you’re unaware.
Repatriation non-compliance: Funds stuck in India due to paperwork missing.
Title issues: Encumbrance or ownership disputes are more likely in old Mumbai properties — get legal support.
Under-valuation of sale: To avoid higher stamp duty, but this can invite scrutiny and penalties.

Conclusion

Selling property in Mumbai as an NRI is absolutely feasible — but it demands care, documentation, and compliance. With the changes in tax rules (especially LTCG from July 2024) and repatriation + PoA complexities, being proactive is key. Use a trusted attorney in India, get your PoA/registration right, stay on top of tax/TDS, and you’ll greatly reduce risks and delays.

If you’d like a downloadable checklist / PoA draft template or specific state-wise stamp duty info for Maharashtra, I can prepare that next. Would you like me to put that together?