Selling Property in India as an NRI
Every document an NRI seller needs from listing to remittance: title papers, cost records for the gain, the Form 13 application for lower TDS, the buyer's TDS challans and Form 16A, reinvestment proofs, and the 15CA/15CB and NRO bank paperwork for repatriating the sale proceeds.
Unless you hold a lower-deduction certificate, the buyer usually deducts TDS on the whole sale price: 12.5% plus surcharge and cess if the property was held over 24 months, or slab rates (up to 30%) plus surcharge and cess if not. Getting Form 13 before the agreement is the single most valuable step — see our NRI property sale calculator.
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Title and cost
- Registered purchase deed or allotment letter and possession letter; society share certificate
- Payment proofs for the original purchase — bank statements, builder receipts, stamp duty and registration receipts
- Bills for improvements and renovation (with dates, for indexation)
- Valuation report for fair market value as on 1 April 2001, if bought before then
- Latest property tax receipt and society no-dues certificate
Lower TDS certificate (Form 13)
- Draft sale agreement or MOU with the buyer, showing the price and the buyer's PAN and TAN
- Computation of the expected capital gain (we prepare it)
- Last two years' returns, if filed; PAN; passport and visa for status
- Registration on the TRACES portal as a taxpayer (we handle it)
- Applied before the agreement is signed — the certificate takes three to six weeks
At sale
- Buyer's TAN — needed unless the buyer is a resident individual or HUF, who from 1 October 2026 can deposit the section 393 (195 of the 1961 Act) TDS through a PAN-based challan
- TDS challan and Form 16A from the buyer for each instalment
- Registered sale deed, with the sale proceeds credited to your NRO account
- Power of attorney, notarised and apostilled abroad and adjudicated in India, if you are not present for registration
Reinvestment (if claiming exemption)
- Agreement and payments for a new residential house in India (section 82; 54 of the 1961 Act), within one year before or two years after the sale
- section 85 (54EC of the 1961 Act) bond allotment advice — NHAI, REC, PFC or IRFC within six months, up to ₹50 lakh
- Capital Gains Account Scheme deposit slip if the new house is not bought before the return due date
Repatriation
- Form 15CB from a chartered accountant and Form 15CA filed on the portal
- Bank's remittance form (A2) and the NRO to NRE/foreign transfer request
- Sale deed, TDS proofs and the tax computation for the bank's file — up to USD 1 million a financial year from an NRO account
- Copy of the filed return showing the gain, if the sale and remittance fall in different years
Before you send
- Ask the buyer to deduct TDS under section 393 (195) (with a TAN, or from 1 October 2026 a PAN-based challan for an individual or HUF buyer) — TDS under section 393 (194-IA) at 1% is the wrong section for an NRI seller and causes notices to both sides.
- File the return for the year of sale to claim the refund of any excess TDS; refunds to NRO accounts take four to eight weeks after processing.
- Agricultural land in a rural area is not a capital asset and its sale is not taxed, but NRIs generally cannot buy it.
Disclaimer. This page is a general reference prepared from the law and notifications as we understand them on the date shown. It is not legal, tax or professional advice and does not create a client relationship; rates, thresholds and due dates change and your position depends on facts we have not seen. Please confirm with us before acting on anything here. I. H. Khan and Associates accepts no liability for decisions taken on the basis of this page. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the 1961 Act number in brackets (pages about the FY 2025-26 return, which the 1961 Act still governs, quote that Act first) — see our section map.
Questions we are asked
What documents does an NRI need to sell property in India? An NRI seller needs title and cost records (purchase deed, payment proofs, improvement bills), Form 13 application papers, the buyer's TDS challans and TDS certificate, the registered sale deed, reinvestment proofs where exemption is claimed, and Form 15CA/15CB with the bank's remittance forms for repatriation.
When should an NRI apply for a Form 13 lower TDS certificate? An NRI should apply for Form 13 before the sale agreement is signed, as the certificate usually takes three to six weeks. Without it, the buyer usually deducts TDS on the whole sale price: 12.5% plus surcharge and cess if the property was held over 24 months, or slab rates (up to 30%) plus surcharge and cess if not.
What is the common TDS mistake when buying property from an NRI? Deducting TDS under section 393 (194-IA) at 1% is the wrong section for an NRI seller and causes notices to both sides. The buyer must deduct TDS under section 393 (195); from 1 October 2026 a resident individual or HUF buyer can deposit it through a PAN-based challan instead of a TAN, while other buyers still need a TAN.
What documents are needed to repatriate NRI property sale proceeds? Repatriation needs Form 15CB from a chartered accountant, Form 15CA filed on the portal, the bank's A2 form and NRO transfer request, and the sale deed, TDS proofs and tax computation. Up to USD 1 million a financial year can be remitted from an NRO account.
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