General information, not tax advice. Your numbers depend on your facts, so confirm with a qualified adviser before you sign.
Who this guide is for
- NRIs living in Canada (PR holders, work-permit holders, students) who own a flat, house or plot in India.
- Canadian citizens with an OCI card. For selling property, OCIs follow the same process as NRIs.
- Heirs in Canada who inherited a parent's property in India.
In the US or UK instead? See our guides to selling property in India from the USA, selling property in India from the UK selling property in India from the UAE and selling property in India from Australia.
Can a Canadian citizen or OCI sell property in India?
Yes. An NRI or OCI can sell residential or commercial property to a resident Indian, another NRI, or an OCI. The exception is agricultural land, a plantation or a farmhouse, which can only be sold to a resident Indian citizen.
For tax, residence matters, not passport. Living in Canada makes you a non-resident in India, so the buyer deducts non-resident TDS.
How to sell property in India from Canada: step by step
›1. Sign a specific Power of Attorney in Canada
Appoint a family member or trusted person in India. Use a specific PoA for this property and sale, not a general one, and sign it before a notary in Canada. Canada joined the Apostille Convention in January 2024, so you can now get it apostilled by the competent authority. That's Global Affairs Canada or your province's authentication office, depending on where you live. Attestation at the Indian consulate is the alternative. Our Power of Attorney guide for NRIs covers the drafting.
›2. Get the PoA adjudicated in India within 3 months
Once the PoA reaches India, it must be adjudicated and stamped within 3 months of arrival.
›3. Pull your documents together
Title deed, chain documents, tax receipts, society NOC, PAN, passport/OCI card, and proof of how you originally paid (it decides how much you can repatriate later). Use our documents checklist.
›4. Apply for Form 128 (earlier Form 13) before the sale
By default, the buyer deducts TDS on the entire sale price, not just your gain. A lower/nil deduction certificate on Form 128 (earlier Form 13) lets the buyer deduct only on your actual tax. Apply early. Estimate the impact with the Form 128 estimator, and read what changed when Form 13 became Form 128.
›5. The buyer gets a TAN and deducts TDS
Because you're a non-resident, the buyer cannot use Form 26QB. They need a TAN, must deposit the TDS, file the TDS return and issue you a TDS certificate. See our TAN and TDS guide, and run the numbers on the TDS calculator.
›6. Register the sale deed
Your PoA holder signs and registers the sale deed. The buyer typically bears stamp duty and registration (state-wise charges here).
›7. Receive proceeds in your NRO account
Sale proceeds must be paid into your NRO account. They can go to an NRE account only up to the foreign-currency amount you originally paid.
›8. File your Indian return
File the Indian return for the tax year (April–March) of the sale. This is how you claim back excess TDS; refunds typically take months.
›9. Repatriate to Canada with Forms 145/146
To wire money from NRO to Canada, file Forms 145/146 (earlier 15CA/15CB) with a CA certificate. You can remit up to USD 1 million per financial year from NRO balances. If you bought with foreign inward remittance or NRE funds, the amount you originally paid in foreign exchange can be repatriated, for up to two residential properties. See the repatriation calculator and repatriation guide.
How much tax will I pay in India?
- Long-term (held more than 24 months): 12.5% without indexation for transfers on or after 23 July 2024. The 20%-with-indexation option is for resident individuals/HUFs only, not NRIs.
- Short-term: slab rates, up to 30%.
- Exemptions: Section 54 (reinvest in one residential house in India, exemption capped at ₹10 crore), Section 54EC (up to ₹50 lakh in REC/PFC/IRFC bonds within 6 months, 5-year lock-in) and Section 54F (for land and other non-house assets). Section numbers are the familiar ones from the 1961 Act; the 2025 Act renumbers them but the relief is the same.
| Sale price | TDS on long-term gain (12.5% + surcharge + 4% cess) |
|---|---|
| Up to ₹50 lakh | ~13.00% |
| ₹50 lakh – ₹1 crore | ~14.30% (10% surcharge) |
| Above ₹1 crore | ~14.95% (15% surcharge) |
Without Form 128, these rates apply to the whole sale price.
Do I pay tax in Canada when I sell property in India?
Yes, if you're a Canadian resident: Canada taxes worldwide income. Three rules decide how much you actually pay:
- Deemed acquisition on immigration. When you became a Canadian resident, property you already owned is treated as acquired at its fair market value on that date (s.128.1 of the Income Tax Act). Only growth after you landed is taxable in Canada.
- 50% inclusion. Only half the capital gain is added to your income. The proposed rise to two-thirds was cancelled in March 2025.
- Foreign tax credit. India taxes the gain first (the India–Canada DTAA lets it tax gains on property located in India). Canada then gives credit for the Indian tax through Form T2209 (federal) and Form T2036 (provincial), limited to the Canadian tax on that gain.
Convert to CAD using Bank of Canada rates (date of each transaction, or annual average where permitted). The DTAA calculator lets you model the India and Canada sides together. For the full Canadian-side detail, read Canada tax on selling property in India.
India side vs Canada side: what each country taxes
| India | Canada | |
|---|---|---|
| Who taxes | India, as the property is in India | Canada, as your country of residence |
| Cost used | Your actual purchase cost in INR | FMV on your landing date (if owned before immigrating), else actual cost |
| Currency | INR | CAD, at Bank of Canada rates |
| Rate | 12.5% LTCG + surcharge + cess (no indexation for NRIs) | 50% of gain added to income, taxed at your marginal rate |
| How it's collected | TDS by buyer on full price (or Form 128 amount) | Your annual T1 return |
| Key forms | Form 128, buyer's TDS filings, ITR, Forms 145/146 | Schedule 3, T2209, T2036, T1135 |
| Tax year | 1 April – 31 March | Calendar year |
| Double-tax relief | — | Credit for Indian tax, capped at Canadian tax on the gain |
Illustrative worked example (INR and CAD)
Illustrative only. Assumptions: exchange rates of ₹45 = CAD 1 (2010), ₹50 = CAD 1 (landing date, 2016) and ₹60 = CAD 1 (sale date and Indian tax payment, 2026); a combined federal + provincial marginal rate of 45%; no selling costs, no exemptions claimed; the property is not designated a principal residence.
Anita bought a flat in Bengaluru in 2010 for ₹40 lakh. She moved to Canada in 2016, when a registered valuer put the flat's value at ₹70 lakh. She sells it in 2026 for ₹1.5 crore.
India side
| Amount | |
|---|---|
| Sale price | ₹1,50,00,000 |
| Less purchase cost (2010) | ₹40,00,000 |
| Long-term capital gain | ₹1,10,00,000 |
| Tax at 12.5% | ₹13,75,000 |
| Surcharge at 15% | ₹2,06,250 |
| Cess at 4% | ₹63,250 |
| Indian tax | ₹16,44,500 |
Without Form 128, the buyer deducts 14.95% of ₹1.5 crore = ₹22,42,500, which is ₹5,98,000 more than Anita owes, locked up until her refund arrives.
Canada side
| Amount | |
|---|---|
| Proceeds (₹1,50,00,000 ÷ 60) | CAD 250,000 |
| Deemed cost at landing (₹70,00,000 ÷ 50) | CAD 140,000 |
| Capital gain | CAD 110,000 |
| Taxable capital gain (50%) | CAD 55,000 |
| Canadian tax at 45% | CAD 24,750 |
| Indian tax paid (₹16,44,500 ÷ 60) | CAD 27,408 |
| Foreign tax credit (capped at Canadian tax) | CAD 24,750 |
| Net Canadian tax on this gain | CAD 0 |
Indian tax exceeds the Canadian tax on the gain, so Anita owes nothing extra in Canada. Canada does not refund the unused CAD 2,658.
Why the landing-date valuation matters: using her 2010 cost instead (₹40 lakh ÷ 45 = CAD 88,889), the Canadian gain would be CAD 161,111, taxable CAD 80,556, tax CAD 36,250. After the CAD 27,408 credit she would owe about CAD 8,842.
Canadian reporting checklist
- Schedule 3: report the proceeds, adjusted cost base and outlays, all in CAD.
- Form T2209: federal foreign tax credit for the Indian tax. Claim your final Indian tax, not the TDS deducted if part of it will be refunded.
- Form T2036: provincial foreign tax credit for any Indian tax not used federally (Quebec residents claim on their Quebec return).
- Form T1135: required if the total cost of your specified foreign property exceeded CAD 100,000 at any time in the year. Rental property and land held for investment count; a personal-use home does not. Your NRO account balance counts, so sale proceeds sitting in NRO can trigger T1135 even if the flat didn't. Late-filing penalties apply.
- Form T2091 (edge case): a foreign home can technically be designated as your principal residence. It's rarely beneficial, so ask your adviser.
- Keep the file: landing-date valuation, Bank of Canada rates used, sale deed, TDS certificate, Indian ITR.
Common mistakes Canada-based sellers make
- Using your original purchase cost in Canada instead of landing-date FMV.
- Letting the buyer file Form 26QB. It isn't available for NRI sellers; the buyer needs a TAN.
- Skipping Form 128 and waiting months for a large TDS refund.
- Missing the 3-month PoA adjudication window.
- Converting the INR gain at one rate instead of converting cost and proceeds at their own dates.
- Forgetting T1135 because the money is "just in the NRO account".
- Claiming the full TDS as a foreign tax credit when part of it comes back as an Indian refund.
- Offering agricultural land to OCI or NRI buyers. Only resident Indian citizens can buy it.
What NRiSimplify handles for Canada-based sellers
Fully remote. One team, one person in charge:
- Legal: specific PoA drafting, apostille and adjudication guidance, document readiness.
- Tax in India: capital gains computation, Form 128, exemption planning (Sections 54, 54EC, 54F), your Indian return and refund.
- Buyer coordination: TAN, TDS deduction and the TDS certificate.
- Banking and remittance: NRO credit, Forms 145/146 and the wire to your Canadian bank.
- Canadian handover: the India-side figures and documents your Canadian tax preparer needs for Schedule 3, T2209 and T1135.
Can I sell my property in India while living in Canada without travelling?
Yes. Sign a specific Power of Attorney in Canada before a notary, get it apostilled (Canada joined the Apostille Convention in January 2024) or attested at the Indian consulate, and send it to India. It must be adjudicated and stamped within 3 months of arrival. Your attorney then signs and registers the sale deed for you, and proceeds are paid into your NRO account.
How much TDS will the buyer deduct if I live in Canada?
For a long-term gain, the buyer deducts 12.5% plus surcharge and 4% cess on the full sale price, roughly 13% up to ₹50 lakh, 14.3% up to ₹1 crore and 14.95% above that. Short-term gains can attract around 30% plus surcharge and cess. A Form 128 (earlier Form 13) certificate can bring TDS down to your actual tax.
Do I have to pay tax in both India and Canada?
Both countries can tax the gain, but you don't pay twice in full. India taxes first because the property is in India. Canada taxes residents on worldwide income, then gives a foreign tax credit for Indian tax through Forms T2209 and T2036, capped at the Canadian tax on that gain. Often the Canadian top-up is small or nil.
What cost does CRA use if I owned the property before moving to Canada?
Under the deemed-acquisition rule, property you owned when you became a Canadian resident is treated as acquired at its fair market value on your landing date. Only the growth after that date is taxable in Canada. Get a valuation report from a registered valuer as of your landing date, and keep it with your landing documents.
Is the Indian property reportable on Form T1135?
Only if it's specified foreign property, such as a rental flat or land held for investment, and your total specified foreign property cost exceeds CAD 100,000 at any time in the year. A home used personally by your family is excluded. Note that your NRO account balance counts, so sale proceeds held there can trigger T1135.
Can I transfer the full sale proceeds to my Canadian bank account?
Usually, yes. NRO balances including sale proceeds can be remitted up to USD 1 million per financial year with Forms 145/146 (earlier 15CA/15CB) and a CA certificate. If you bought with foreign remittance or NRE funds, the amount originally paid in foreign exchange is repatriable for up to two residential properties.
Can an OCI cardholder who is a Canadian citizen sell to anyone?
An OCI can sell residential or commercial property to a resident Indian, an NRI or another OCI. Agricultural land, plantations and farmhouses can only be sold to a resident Indian citizen. Tax-wise, an OCI living in Canada is a non-resident in India, so the buyer must deduct non-resident TDS.