Selling Indian property as an NRI is doable from abroad — but the paperwork is unforgiving and the TDS rate is brutal if you don't plan ahead.
The TDS shock
When an NRI sells property, the buyer must deduct TDS at **12.5% of the entire sale price** for long-term holdings (held >24 months), or at slab rate for short-term. Not 12.5% of the gain — of the sale price. This is the single biggest source of NRI cash-flow pain.
The workaround: Lower Deduction Certificate
Apply for a Lower/Nil TDS Certificate (Form 13) from the Assessing Officer before the sale closes. Done right, the buyer deducts TDS only on the actual capital gain. Typical turnaround: 4–6 weeks.
Repatriation
Sale proceeds go into your NRO account. From there: up to USD 1 million per FY can be repatriated using Form 15CA/CB. If the property was purchased while you were a resident, additional documentation applies.
Documents you'll need
- Original sale deed and chain of title
- PAN of buyer and seller
- TDS challan (Form 26QB filed by buyer)
- Form 15CA/CB for outward remittance
- Encumbrance certificate (typically last 13 or 30 years)