General information, not tax or legal advice. Rules as of October 2026.
This guide covers the full process for green-card holders, visa holders and US citizens of Indian origin: the India-side steps, the US-side tax, and the forms on both sides.
Can I sell my property in India while living in the USA?
Yes. You don't need to be in India; a family member or trusted representative can act for you under a properly executed Power of Attorney. That applies to US citizens too, whether the property was bought earlier or inherited. Who can buy:
- Residential or commercial property can be sold to a resident Indian, an NRI or an OCI.
- Agricultural land, a plantation or a farmhouse can only be sold to a resident Indian citizen.
The step-by-step process to sell property in India from the USA
›1. Gather documents and settle the title
Title deed, chain documents, encumbrance certificate, tax receipts, society NOC and PAN. For inherited property, add the death certificate and will/probate or succession documents. The full checklist is in the documents section below.
›2. Execute a specific Power of Attorney in the US
Use a specific PoA naming the property and the powers (sign and register the deed, receive payment into your NRO account). Sign before a US notary and get an apostille from the Secretary of State (the US and India are both Hague Apostille Convention countries). In India it must be adjudicated/stamped within 3 months of arrival. See our Power of Attorney guide for NRIs.
›3. Apply for a Form 128 lower-TDS certificate
Without it, the buyer deducts TDS on the full sale price, not just your gain. Form 128 (earlier Form 13) lets TDS match your estimated actual tax. Apply once you have a buyer and price. Try the Form 128 estimator.
›4. Make sure the buyer has a TAN and deducts TDS correctly
For a non-resident seller the buyer cannot use Form 26QB. They need a TAN, then deduct, deposit and file a TDS return, and give you the TDS certificate (Form 131, earlier Form 16A). See our TDS guide for NRI sellers.
›5. Sign the agreement and register the sale deed
Your PoA holder signs and registers the deed at the sub-registrar's office. Keep payments traceable.
›6. Receive the money in your NRO account
Proceeds must go to your NRO account (or NRE only up to the foreign-currency amount you originally paid).
›7. File your Indian income-tax return
TDS isn't the final tax. Excess TDS is refunded only after you file your Indian ITR, typically months later.
›8. Repatriate to your US bank with Forms 145/146
Remit up to USD 1 million per financial year from NRO balances, including sale proceeds, with Forms 145/146 (earlier Forms 15CA/15CB) and a CA certificate. If you bought with foreign remittance or NRE funds, proceeds up to that original foreign-exchange amount are also repatriable (up to two residential properties), on top of the USD 1 million route. Check the repatriation calculator.
›9. Report the sale on your US return
Form 8949 / Schedule D, Form 1116 and FBAR (below).
What documents do US-based NRIs need to sell property in India?
Most delays in a remote sale come from paperwork, not tax. Gather these before you list the property. Buyers, their banks and the sub-registrar will ask for most of them, and anything that has to be signed in the US takes 2 to 4 weeks to notarise, apostille and courier.
| Document | Why it's needed | Notes for US-based sellers |
|---|---|---|
| Title deed (your registered sale or conveyance deed) | Proves you own the property | The original is handed over at registration. If it's in your US safe, courier it early. |
| Chain documents and allotment letter | Shows clean title back through earlier owners | Buyers' lenders usually want 13 to 30 years of chain. |
| Encumbrance certificate | Shows no mortgage, lien or legal dues | Get a recent one; many states issue it online. |
| Property tax receipts and utility bills | Shows no municipal dues | Current year and a few earlier years. |
| Society NOC and share certificate | Confirms the society has no objection and no dues | For cooperative housing societies and many apartment complexes. |
| Occupation/completion certificate and approved building plan | Shows the building is legal and fit to occupy | Buyers' banks often refuse loans without them. |
| Home loan closure letter | Shows the loan is repaid and originals released | Only if you had a home loan on the property. |
| Gift deed, will, probate or succession certificate, death certificate, mutation record | Proves how you got the property | For gifted or inherited property only. |
| PAN card | Mandatory for the sale, TDS and your Indian return | Without a valid PAN, TDS can be higher. |
| Passport, OCI card, visa or green card copy | Identity and residential status | US citizens of Indian origin need passport plus OCI card copies. |
| US address proof | KYC for registration and banking | US driver's licence, bank statement or utility bill. |
| Specific Power of Attorney | Lets your representative sign and register | Notarised in the US, apostilled, then stamped in India within 3 months. |
| NRO account details (NRE if eligible) | Where the buyer pays you | Proceeds can't go straight to a US account. |
| Form 128 certificate (earlier Form 13) | Tells the buyer to deduct lower TDS | Optional but usually worth it. |
| Proof of how you paid for the property (foreign remittance, NRE debit, FIRC) | Supports repatriation and your US cost basis | Dig these out now; banks ask for them at remittance. |
If the title has gaps (a missing chain deed, an unrecorded mutation, a co-owner who hasn't signed), fix it before you sign with a buyer. Our guide to solving title and ownership issues walks through the common fixes.
›How to get a Power of Attorney notarised and apostilled in the US
- Have the PoA drafted in India. A lawyer who knows the local sub-registrar's format should draft it, with the full property description and the exact powers.
- Print it and add passport-size photos of yourself (and often the attorney-holder), signed across, as the sub-registrar may require.
- Sign it before a US notary public, usually with two witnesses. Bring your passport. Don't sign in advance.
- Get an apostille from the Secretary of State of the state where the notary is commissioned. Some states, such as New York, first need a county clerk certification of the notary's signature. Most states accept requests by mail or in person.
- Courier the original apostilled PoA to your representative in India. Keep scans.
- In India, your representative has it adjudicated and stamped by the Collector of Stamps within 3 months of it arriving. Some states also require the PoA to be registered before it can be used for a sale.
An apostille replaces consular attestation for India, so you don't need both. That said, some sub-registrars and banks still ask for attestation by the Indian Embassy or a Consulate in the US. Consular attestation is usually done by appointment through the mission's outsourced service provider, with you signing in front of the officer. Ask your sub-registrar which they accept before you sign anything; redoing a PoA costs weeks. A few Indian banks with US offices can also attest bank KYC documents for their own customers; our guide to Indian banks in the USA lists them.
›PAN, Aadhaar, OCI and passport copies
A PAN is mandatory: the buyer needs it to deduct TDS, and you need it to apply for Form 128 and file your Indian return. Make sure your PAN record shows you as non-resident and is operative; NRIs don't have to link Aadhaar, but a PAN wrongly flagged as inoperative can push TDS up. Aadhaar itself is not required for an NRI to sell. Our PAN card guide for NRIs covers applications and corrections.
Self-attest copies of your US passport (or Indian passport), your OCI card if you're a US citizen, and your US address proof. Keep the names consistent across the title deed, PAN, passport and PoA; a spelling mismatch is one of the most common reasons a sub-registrar sends papers back. If you need to know what OCI status lets you do, see our OCI benefits guide.
›Documents you collect after the sale
- A copy of the registered sale deed showing the price and date.
- The TDS certificate (Form 131, earlier Form 16A) from the buyer, and your Form 26AS/AIS showing the TDS credit.
- Your NRO bank statement showing the payment received.
- Forms 145/146 (earlier 15CA/15CB) and the bank's remittance advice for each wire to the US.
- Your Indian ITR acknowledgement and final tax computation.
Your US preparer needs these for Form 8949 and Form 1116, and you need them if the IRS or your bank ever asks where the money came from. If you're unsure whether you have to file in India at all, read do NRIs need to file ITR in India.
How is the sale taxed in India vs the US?
Under the India–US DTAA, India taxes gains on property located in India. The US taxes citizens, green-card holders and tax residents on worldwide income, so it taxes the same gain but credits the Indian tax.
| India side | US side | |
|---|---|---|
| Long-term threshold | Held more than 24 months | Held more than 1 year |
| Long-term rate | 12.5% without indexation (+ surcharge + 4% cess). The 20% with-indexation option is for residents only, not NRIs | 0% / 15% / 20% federal, + 3.8% NIIT for higher incomes, + state tax (none in e.g. Texas, Florida, Washington) |
| Short-term rate | Slab rates, up to 30% (+ surcharge + cess) | Ordinary income rates |
| Currency of the gain | INR: rupee sale price minus rupee cost | USD: cost at purchase-date rate, sale price at sale-date rate |
| How tax is collected | Buyer deducts TDS on full sale price (≈13%–14.95% for LTCG) unless Form 128 | You pay with your return / estimated tax |
| Exemptions | Sections 82, 85, 86 (earlier 54, 54EC, 54F) | Section 121 (only if it was your main home 2 of last 5 years) |
| Double-tax relief | — (India taxes first) | Foreign Tax Credit on Form 1116, capped at US tax on that gain |
| Tax year | April–March | Calendar year |
The Income-tax Act, 2025 (in force from 1 April 2026) renumbered the reliefs: Section 82 (earlier Section 54), Section 85 (earlier 54EC) and Section 86 (earlier 54F). The relief itself is the same.
Worked example: selling a flat in India while living in the US (illustrative)
Assumptions (illustrative only): Priya, a US citizen in New Jersey, bought a flat in Pune for ₹60,00,000 when the rate was ₹50 per USD. She sells it in 2026 for ₹1,76,00,000 at an assumed ₹88 per USD. She held it well over 24 months. We ignore transfer costs and assume no other Indian income.
›India side (INR)
| Item | Amount |
|---|---|
| Sale price | ₹1,76,00,000 |
| Cost (no indexation for NRIs) | ₹60,00,000 |
| Long-term capital gain | ₹1,16,00,000 |
| Tax at 12.5% | ₹14,50,000 |
| Surcharge at 15% (income above ₹1 crore) | ₹2,17,500 |
| Cess at 4% | ₹66,700 |
| Actual Indian tax | ₹17,34,200 |
| TDS if no Form 128 (14.95% × ₹1,76,00,000) | ₹26,31,200 |
| Excess TDS stuck until ITR refund | ₹8,97,000 |
Without Form 128, almost ₹9 lakh waits for her ITR refund.
›US side (USD): how the weaker rupee shrinks the gain
| Item | Amount |
|---|---|
| Sale price: ₹1,76,00,000 ÷ 88 | $200,000 |
| Cost basis: ₹60,00,000 ÷ 50 | $120,000 |
| US long-term capital gain | $80,000 |
| For comparison: the INR gain converted at today's rate (₹1,16,00,000 ÷ 88) | $131,818 |
Because the rupee moved from 50 to 88, the US taxes $80,000, not $131,818: about 39% less gain, purely from currency.
›Form 1116: how the credit works
| Item | Amount |
|---|---|
| US federal tax at 15% on $80,000 | $12,000 |
| Indian tax paid: ₹17,34,200 ÷ 88 | $19,707 |
| Foreign Tax Credit allowed (capped at US tax on this gain) | $12,000 |
| Federal capital gains tax left to pay | $0 |
| Unused credit (carry back 1 year / forward 10 years) | $7,707 |
| NIIT if her income is above the threshold: 3.8% × $80,000 | $3,040 (usually not reduced by the credit) |
The real Form 1116 limit is computed across her whole return, but the pattern is typical: Indian tax on a large INR gain exceeds US tax on a smaller USD gain, so federal tax on the sale often goes to zero. What remains is NIIT and state tax (New Jersey taxes capital gains; Texas or Florida would not).
What US forms do I need to file after selling property in India?
- Form 8949 and Schedule D: the sale, in USD.
- Form 1116: claim the Indian tax as a Foreign Tax Credit.
- FBAR (FinCEN 114): required if your foreign accounts together exceed $10,000 at any point in the year. The NRO account holding your sale proceeds counts.
- Form 8938 (FATCA): if your foreign financial assets cross the thresholds for your filing status.
- Form 3520: if you received the property (or money) as a gift or inheritance from a non-US person worth over $100,000 in a year.
FBAR basics are in our FBAR compliance guide. For how the treaty credit works, see our DTAA guide for NRIs. For the full US-side detail, read Do I pay US tax on selling property in India?
Selling inherited property in India as a US citizen
Your US cost basis is stepped up to fair market value at the date of death, in USD at that day's rate, so a recent inheritance may show little US gain. India generally computes the gain from the original owner's cost, so Indian tax can be large and exceed what you can credit. Get a date-of-death valuation and model India with our inherited property LTCG calculator. Check Form 3520 if it exceeded $100,000.
Can I reduce the Indian tax?
Yes:
- Section 82 (earlier Section 54): reinvest the long-term gain in one residential house in India (bought 1 year before or 2 years after the sale, or constructed within 3 years), capped at ₹10 crore.
- Section 85 (earlier Section 54EC): invest up to ₹50 lakh in REC, PFC or IRFC bonds within 6 months, with a 5-year lock-in.
- Section 86 (earlier Section 54F): for non-house assets such as land; the net sale consideration must be invested.
- Not ready to buy before your return is due? Park the money in the Capital Gains Account Scheme to keep the claim alive.
The catch: lower Indian tax means less foreign tax credit, so the IRS may collect the difference. Model both sides first.
Common mistakes US-based sellers make
- A general or un-apostilled PoA, or one not stamped within 3 months of arrival.
- Name mismatches between the title deed, PAN, passport and PoA.
- Leaving the original title deed in the US until the week of registration.
- Buyer filing Form 26QB instead of getting a TAN.
- Skipping Form 128, locking up lakhs in excess TDS.
- Computing the US gain in rupees instead of USD at historical rates.
- Missing the FBAR in the year proceeds sit in your NRO account.
- Assuming the credit covers NIIT and state tax. It usually doesn't.
- Mistiming the credit across India's April–March year and the US calendar year.
- Citing FIRPTA. It applies to foreigners selling US property, not to sales in India.
What NRiSimplify handles for US-based sellers
NRiSimplify handles NRI property sales fully remotely: one team, one person in charge.
- Legal: title review, PoA wording, apostille and stamping in India.
- Tax: Indian capital gains estimate, Form 128, buyer TAN/TDS, and your Indian ITR to recover excess TDS.
- Banking: proceeds landing correctly in your NRO (or NRE, where allowed) account.
- Remittance: Forms 145/146 and the wire to your US bank.
- Paper trail: sale deed, TDS, ITR and remittance records your US preparer needs for Forms 8949 and 1116.
See the full NRI property sale service. Selling from elsewhere? See our guides for the UK, Canada, the UAE and Australia.
Can I sell property in India without travelling from the USA?
Yes. Execute a specific Power of Attorney before a US notary, get it apostilled, and courier it to India, where it must be adjudicated and stamped within 3 months of arrival. Your attorney-holder then signs and registers the sale deed. Payment goes to your NRO account and can be repatriated to the US with Forms 145/146, so the whole sale can be done without a trip.
What documents do I need to sell property in India from the USA?
The title deed and chain documents, a recent encumbrance certificate, property tax receipts, society NOC, occupation certificate, PAN, passport and OCI copies, US address proof, NRO account details and a specific Power of Attorney notarised in the US and apostilled. For inherited or gifted property, add the will, probate or succession certificate, death certificate or gift deed.
Do I need my PoA attested by the Indian Consulate, or is an apostille enough?
An apostille from the US Secretary of State of the state where it was notarised is generally enough, because India and the US are both in the Hague Apostille Convention. Some sub-registrars and banks still prefer consular attestation, so check with the sub-registrar before you sign. You don't need both.
Is a PAN card mandatory for NRIs selling property in India?
Yes. The buyer needs your PAN to deduct and report TDS, and you need it to apply for a Form 128 certificate, file your Indian return and repatriate the money. Aadhaar is not required for NRIs.
How much TDS will the buyer deduct if I live in the US?
For a long-term sale (held over 24 months), TDS is 12.5% plus surcharge and 4% cess, roughly 13% to 14.95%, calculated on the full sale price, not your gain. For short-term sales it can reach about 30% plus surcharge and cess. A Form 128 (earlier Form 13) certificate can bring TDS down to your actual tax.
Do I pay tax in both India and the US?
Both countries tax the gain, but you don't pay twice in full. India taxes first because the property is in India. The US taxes your worldwide income but gives a Foreign Tax Credit on Form 1116 for Indian tax, capped at the US tax on that gain. NIIT and state tax are usually not reduced by the credit.
How much money can I send from India to the US after the sale?
From your NRO account you can repatriate up to USD 1 million per financial year, including sale proceeds, with Forms 145/146 and a CA certificate. If you originally bought with foreign remittance or NRE funds, proceeds up to that original foreign-exchange amount are repatriable for up to two residential properties, in addition to the USD 1 million route.
I'm a US citizen and inherited a flat in India. How is it taxed?
In the US, your basis is stepped up to fair market value at the date of death, converted at that day's rate, so the US gain is often small. India generally taxes the gain from the original owner's cost, which can be large. File Form 3520 if the inheritance from a non-US person exceeded $100,000, and report the NRO account on your FBAR.