How to Sell Property in India as an NRI (2026 Guide)

General information, not tax or legal advice. Rules as of October 2026.

Can NRIs sell property in India?

Yes. Under FEMA, an NRI or an OCI can sell property in India without any approval from the Reserve Bank of India, as long as the buyer is someone who is allowed to own that kind of property. What decides the matter is the type of property and the buyer, not where you live.

Agricultural land is the exception. NRIs and OCIs cannot buy it, so even inherited farmland can only go to a resident Indian citizen.

›OCI, PIO and foreign citizens of Indian origin

OCI cardholders are treated the same as NRIs for buying and selling residential and commercial property. The old PIO cards were merged into the OCI scheme in 2015, so a former PIO holder who has converted to OCI follows the OCI rules.

A foreign citizen of Indian origin who is not an OCI is in a different position. They usually hold Indian property because they inherited it or bought it while they were Indian citizens. They can generally sell it, but buying new property needs RBI permission, and there are extra conditions on what can be repatriated. Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong and North Korea need prior RBI permission to acquire or transfer immovable property in India, except leases of up to five years. That restriction does not apply to OCIs. If any of this describes you or your buyer, take advice before you list.

How to sell property in India as an NRI: step by step

Here is the order that works in practice. Some steps run in parallel; the PoA can be prepared while the property is listed.

›1. Check the title and clear any dues

Before you list, confirm that the property is legally yours to sell and that nothing stands in the way. Pull the sale deed or allotment letter, the chain of earlier deeds, and an encumbrance certificate. Check property tax, maintenance and utility bills are paid up. If there is a home loan, get a closure statement from the lender; the buyer can pay the lender directly from the sale price and the lender releases the original documents.

Inherited property needs one more step. The property must be in your name through mutation in the municipal or revenue records, backed by a will with probate (where required) or a succession or legal-heir certificate. If several heirs share it, all of them must sign or give PoAs.

›2. Gather the documents

Buyers, their banks and the sub-registrar all ask for paperwork. Collect it before you list, because missing chain documents are the most common cause of delay. Keep proof of your purchase cost too, including stamp duty and any improvement bills, since these reduce your taxable gain. The full list is in our guide to documents an NRI needs to sell property, and the summary table is further down this page.

›3. Give a specific power of attorney

If you will not be in India for the agreement and registration, appoint someone you trust through a specific power of attorney. It should name the property, allow the holder to sell, sign the agreement and sale deed, receive payment into your NRO account and deal with the sub-registrar. A general PoA is often refused for sales.

• Sign the PoA before a notary in your country of residence.
• If that country is a member of the Hague Apostille Convention (the USA, the UK, Australia and most of Europe), get it apostilled. Canada joined the Convention in 2024. In non-member countries, including the UAE, get it attested by the Indian embassy or consulate.
• Send the original to India. It must be adjudicated and stamped at the local stamp office within 3 months of arriving in India. Some states also require the PoA to be registered.
• Keep copies of your passport and visa or OCI card with it.

Our power of attorney guide for NRIs covers wording and state differences.

›4. Value the property and set a price

Look at recent registered sale prices for similar properties nearby, not just asking prices on listing sites. Also check the government circle rate (ready reckoner or guidance value). If you sell below the circle rate, the circle rate can be treated as your sale price for capital gains tax, unless the difference is within 10%. The buyer can also face tax on the shortfall. Pricing near or above the circle rate avoids both problems.

›5. Find a buyer

Use a local broker you can verify, listing portals, your society and word of mouth. Brokerage is usually around 1 to 2% of the price. When you agree terms, take a token amount by bank transfer only, and write down the total price, payment dates, who pays which costs and when possession is handed over.

Tell the buyer at first contact that you are an NRI. This changes the buyer's TDS duties, and buyers who learn about it at the agreement stage sometimes walk away.

›6. Apply for a lower TDS certificate on Form 128

This is the step that most affects your cash. Without a certificate, the buyer must deduct TDS on the full sale price. With one, the buyer deducts at the lower rate the tax officer approves, which is based on your actual gain.

You apply on TRACES with Form 128 (earlier Form 13) under Section 395 (earlier Section 197). You need the buyer's details, the agreement or draft, your purchase documents and a computation of the gain. The certificate is issued for a specific buyer and amount. Processing commonly takes several weeks, so apply as soon as the buyer is fixed and build that time into the payment schedule. Our Form 128 guide walks through the application, and the Form 128 estimator shows how much TDS it could save you.

›7. Sign the agreement; the buyer arranges TDS

Under Section 393(2) (earlier Section 195), anyone buying from a non-resident must deduct TDS from every payment, including the token and instalments. There is no ₹50 lakh threshold, unlike sales by residents, and the 1% resident rate does not apply.

• From 1 October 2026 (CBDT Notification 121/2026), a resident individual or HUF buyer can deduct and deposit the TDS using their PAN through Form 141. They do not need a TAN for this.
• Any other buyer, such as a company, a firm or a non-resident, still needs a TAN, deposits the TDS by challan, files a quarterly return on Form 144 (earlier Form 27Q) and gives you a TDS certificate on Form 131 (earlier Form 16A).
• Either way, check that the credit appears in your tax statement on the income-tax portal before you file your return.

The TDS rates by sale value are in the tax section below. You can also run the numbers in our TDS calculator. For the buyer's side in detail, see our guide to TDS on sale of property by an NRI.

›8. Register the sale deed

The sale deed is signed and registered at the sub-registrar office where the property is located, by you or your PoA holder, the buyer and two witnesses. The buyer usually pays stamp duty and registration charges.

›9. Receive the money in your NRO account

The buyer must pay through banking channels into your NRO account in India, net of TDS. Do not accept cash, and do not ask the buyer to pay into your NRE account or an account abroad.

›10. File your Indian income tax return

You must file an Indian income tax return for the tax year of the sale (India's tax year runs April to March) to report the gain, claim any exemption and get back any excess TDS. For a sale in 2026-27, the return is generally due by 31 July 2027. Refunds go to an Indian bank account that is pre-validated on the portal, so keep your NRO account details up to date.

›11. Repatriate the proceeds

Once tax has been paid or deducted, your CA issues Form 146 (earlier 15CB) and you file Form 145 (earlier 15CA) online. Your bank then remits the money. The limits are explained in the repatriation section below.

Prefer a checklist you can tick off? Use our NRI property sale checklist.

How much tax does an NRI pay on selling property in India?

Your tax depends on how long you held the property. The holding period starts from the date you acquired it; for inherited property, the previous owner's holding period is added to yours.

Your capital gain is the sale price minus the cost of acquisition, the cost of improvements and expenses on transfer, such as brokerage and legal fees. For property bought before 1 April 2001, you can use its fair market value on that date (capped at the stamp duty value) as the cost.

NRIs cannot set off the basic exemption limit against long-term gains taxed at the special 12.5% rate, so the full gain is taxed even if you have no other Indian income.

›TDS on sale of property by an NRI, by sale value

TDS is worked out on the full amount the buyer pays, and the surcharge band depends on that amount. These are the effective rates the buyer applies when there is no Form 128 certificate.

So the top effective TDS rate on a long-term sale is 14.95%: 12.5% tax, a 15% surcharge (the maximum on capital gains) and 4% cess. If your PAN is not valid, TDS can be deducted at a higher rate, at least 20%, so check your PAN status before the sale.

›The 12.5% change in plain terms

For transfers from 23 July 2024, the long-term rate on property fell from 20% with indexation to 12.5% without indexation. Resident individuals and HUFs who bought before that date can work out the tax both ways and pay the lower amount. NRIs cannot. For an NRI, it is 12.5% without indexation, with no choice. On property held for many years, that can mean more tax than the old method would have given. Our 12.5% vs 20% explainer shows when the difference is large and why the option is limited to residents.

Worked example: an NRI in Dubai sells a Pune flat (illustrative)

Priya lives in Dubai. She bought a flat in Pune in 2015 for ₹60 lakh and sells it in November 2026 for ₹1.5 crore to a resident buyer. She has no other Indian income. To keep the arithmetic simple, we ignore improvement costs and brokerage, which would reduce her gain. The figures are illustrative.

1. 1Sale price: ₹1,50,00,000. Purchase price: ₹60,00,000. Held about 11 years, so the gain is long-term.
2. 2Capital gain: ₹1,50,00,000 − ₹60,00,000 = ₹90,00,000.
3. 3Tax at 12.5%: ₹90,00,000 × 12.5% = ₹11,25,000.
4. 4Surcharge at 10% (her income is between ₹50 lakh and ₹1 crore): ₹1,12,500.
5. 5Cess at 4% of ₹12,37,500: ₹49,500.
6. 6Actual tax: ₹11,25,000 + ₹1,12,500 + ₹49,500 = ₹12,87,000, about 14.3% of the gain.

Without the certificate, the buyer deducts ₹1,50,00,000 × 14.95% = ₹22,42,500. Priya's actual tax is ₹12,87,000, so ₹22,42,500 − ₹12,87,000 = ₹9,55,500 sits with the tax department until she files her return for 2026-27 and the refund is processed. That is often more than a year away.

There is one more lever. If Priya puts ₹50 lakh into Section 85 bonds within six months of the sale, her taxable gain drops to ₹40,00,000. That is below ₹50 lakh, so no surcharge applies: ₹40,00,000 × 12.5% × 1.04 = ₹5,20,000. Because the bonds are bought after the sale, the saving usually comes back as a refund when she files, unless the tax officer reflects it in the certificate.

The UAE has no personal income tax, so for Priya the Indian tax is the final cost. An NRI living in the USA, UK or Canada would also report the gain at home and claim credit for the Indian tax. Try your own numbers in the TDS calculator and the Form 128 estimator.

How to reduce tax when selling property as an NRI

You cannot avoid tax on an Indian property gain by living abroad. India keeps the right to tax gains on Indian property under every DTAA it has signed. You can, however, cut the tax legally and stop it being collected too early.

›Section 82 (earlier Section 54): buy or build another home

If you sell a residential house held long-term, the gain is exempt to the extent you reinvest it in one residential house in India. You must buy within 1 year before or 2 years after the sale, or build within 3 years. The exemption is capped at ₹10 crore. Once in a lifetime, if the gain is up to ₹2 crore, you can split it across two houses. The new house must be in India and must be held for 3 years.

›Section 86 (earlier Section 54F): sell a plot or other asset, buy a home

If you sell a long-term asset that is not a residential house, such as a plot or a shop, you can get an exemption by investing the net sale price, not just the gain, in one residential house in India. If you invest part of it, the exemption is proportionate. You must not own more than one other residential house on the date of sale. Our Section 82 vs 86 (earlier 54 vs 54F) guide compares the two in detail.

›Section 85 (earlier Section 54EC): capital gains bonds

Invest up to ₹50 lakh of a long-term gain from land or a building in specified bonds, such as those issued by REC, PFC or IRFC, within 6 months of the sale. The bonds are locked in for 5 years. NRIs can usually subscribe, generally on a non-repatriable basis, so check with the issuer.

If you have not reinvested by your ITR due date, deposit the unused amount in a Capital Gains Account Scheme account with a bank to keep the exemption open. Our reinvestment planner compares the options side by side.

›Form 128: pay the right TDS at the start

A lower TDS certificate does not reduce your tax. It reduces how much is withheld at the start, so you are not waiting a year or more for a refund. As the worked example shows, that can be the difference of several lakh rupees in your account on day one.

›DTAA credit at home

If your country of residence also taxes the gain, the DTAA usually lets you claim credit there for the Indian tax, so you do not pay twice. Keep the TDS certificates, the ITR acknowledgement and the computation. Our DTAA calculator estimates the credit.

How to repatriate sale proceeds from India

Sale proceeds are normally credited to your NRO account. How much you can send abroad depends on how you paid for the property.

The USD 1 million limit covers everything you send from your NRO account in a financial year, not just the property money. If the proceeds are larger, split the transfer across financial years, for example some in March and the rest after 1 April.

For each remittance you need Form 146 (earlier 15CB), a certificate from a chartered accountant confirming the tax position, and Form 145 (earlier 15CA), your own declaration filed online. Your bank will also ask for the sale deed, TDS certificates and a Form A2. Once the paperwork is in order, the bank usually remits within 1 to 3 weeks. Read our full guide to repatriating property sale proceeds, or plan the transfers with the repatriation calculator.

Selling property in India from abroad: country notes

The Indian process is the same wherever you live. What changes is how you sign the PoA and how your home country taxes the gain.

›From the USA

US citizens and green card holders are taxed on worldwide gains, so the Indian sale is reported on Form 8949 and Schedule D, with a foreign tax credit for the Indian tax on Form 1116. The NRO account goes on your FBAR and possibly Form 8938. The PoA is notarised and then apostilled by the relevant US state. See our guide to selling property in India from the USA.

›From the UK

UK residents report the gain in their Self Assessment return, converting figures to sterling, and claim Foreign Tax Credit Relief for the Indian tax. The UK's 60-day reporting rule applies to UK property, not Indian property. The PoA is apostilled by the FCDO. See our guide to selling property in India from the UK.

›From Canada

Canadian residents report the gain in their T1 return and claim a foreign tax credit for the Indian tax. Canada joined the Apostille Convention in January 2024, so a PoA can now be apostilled instead of attested by the Indian mission. See our guide to selling property in India from Canada.

›UAE, Singapore and Australia

The UAE has no personal income tax and Singapore does not tax capital gains, so for most residents there the Indian tax is the only tax. Australia taxes its residents on worldwide gains and generally allows a foreign income tax offset for the Indian tax. For PoAs, Australia and Singapore apostille; the UAE route is attestation at the Indian embassy or consulate. UAE residents who are Indian citizens should also check the deemed-residency rule on a large gain; see our guide to selling property in India from the UAE. Australian residents should read our guide to selling property in India from Australia, which covers the CGT discount and the offset.

How long does it take, and what does it cost?

Finding a buyer is the biggest variable. Apart from tax, the seller's costs are usually brokerage, CA fees for Form 128 and Forms 145/146, PoA execution and adjudication, a legal check and the bank's currency spread. Together these are often around 2 to 3% of the price. The buyer normally pays stamp duty and registration. Any excess TDS comes back only after you file your ITR, so the full cycle can run past a year. Our NRI property sale timeline and costs guide breaks this down stage by stage.

Common mistakes NRIs make when selling property

1. 1Skipping Form 128. Selling without a certificate means TDS on the full price, which can lock up lakhs of rupees for a year or more.
2. 2Letting the buyer deduct 1% as if you were a resident. The buyer is then in default, and you can face questions on your return. Tell the buyer up front that you are an NRI.
3. 3Using a general or unadjudicated PoA. Sub-registrars refuse PoAs that are not specific, not apostilled or attested, or not stamped in India within 3 months of arrival.
4. 4Taking payment in cash, abroad or into an NRE account. Sale money should come through banking channels into your NRO account.
5. 5Assuming the 20%-with-indexation option applies. It does not for NRIs, so plan on 12.5% without indexation.
6. 6Missing reinvestment deadlines. Section 85 bonds must be bought within 6 months, and unused amounts for Section 82 or 86 must be put in a Capital Gains Account Scheme account before the ITR due date.
7. 7Not filing an Indian ITR. Without a return there is no refund of excess TDS, and your CA may not sign Form 146.
8. 8Forgetting your home-country tax. The USA, UK, Canada and Australia can tax the same gain; claim the DTAA credit and keep Indian tax papers ready.

Documents checklist

Requirements vary by state and buyer. See the full list of documents required to sell property as an NRI.

If your buyer is unsure what they have to deduct, point them at the [buyer's guide to TDS on a purchase from an NRI](/blog/tds-on-property-purchase-from-nri-complete-guide). A buyer who understands the step argues about it less.

We handle NRI sales end to end, from the PoA to repatriation, through our NRI property sale service.