Selling a property in India is only half the job for an NRI - the other half is getting the money back to your country of residence, legally and without delays. The rules are logical once you see how they fit together, but the paperwork needs to be planned well before the sale.

This article explains general principles. FEMA, RBI and income-tax rules change and individual facts matter. Please consult a qualified chartered accountant before selling or remitting.

The key question: how did you pay for the property?

Repatriation depends largely on the source of the funds you used to buy.

Bought with foreign exchange

If you paid through inward remittances or from your NRE/FCNR(B) account - including EMIs on a home loan paid from these sources - the sale proceeds can be repatriated up to the amount originally paid in foreign exchange. For residential property, this is allowed for up to two properties. You will need to show proof: bank statements, FIRCs or bank certificates for each payment.

Bought with rupee funds, or inherited

If you paid from your NRO account (Indian income), or inherited the property, the sale proceeds go to your NRO account. From there, NRIs and OCIs can remit up to USD 1 million per financial year (April–March), which covers all NRO balances including sale proceeds, after payment of applicable taxes. For inherited property, the bank will want documentary evidence of inheritance.

Gains above the original investment

Amounts above the foreign-exchange portion (for example, the appreciation) are generally remitted through the NRO route within the USD 1 million annual limit.

Tax comes first

You can only repatriate money on which tax has been paid. When an NRI sells:

  • The buyer deducts TDS under Section 195. Without a certificate, buyers often deduct on the full sale price, which can be far more than your real tax.
  • Apply for a lower deduction certificate (Form 13) under Section 197 before the sale, giving your purchase cost and expected gain. The buyer then deducts only what the certificate allows.
  • Capital gains on property held for more than 24 months are long-term. For transfers on or after 23 July 2024, NRIs pay 12.5% without indexation, plus surcharge and cess. (The option to choose 20% with indexation for older property is available only to resident individuals and HUFs.) Short-term gains are taxed at slab rates.
  • Exemptions under Sections 54 and 54EC may reduce tax if you reinvest in a house in India or in specified bonds - but reinvested money obviously is not being repatriated.

Also note that the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 with renumbered sections; your CA will map the familiar references to the new provisions. See our taxation and repatriation guide for more detail.

The paperwork: Forms 15CA and 15CB

  • Form 15CA is an online declaration by the remitter on the income-tax portal giving details of the remittance.
  • Form 15CB is a certificate from a chartered accountant confirming the nature of the payment, the applicable tax and that it has been paid (or that the payment is not taxable), and whether any tax treaty benefit has been applied. It is required in many cases depending on the amount and nature of the remittance.

Your bank will typically also ask for the sale deed, the purchase documents and payment proofs, TDS certificates, and its own remittance application form.

A practical timeline

  1. Months before: gather the purchase deed, payment proofs and FIRCs; ask your CA to estimate the gain and tax.
  2. Before signing: apply for the Form 13 lower-TDS certificate; agree in the sale agreement that the buyer will deduct TDS as per the certificate.
  3. At sale: receive payment into your NRO account (or as your bank advises); collect TDS certificates from the buyer.
  4. After sale: file Form 15CA (with 15CB from your CA, where required) and submit the remittance request to your bank.
  5. Tax return: file your Indian income-tax return for the year, report the gain and claim any refund of excess TDS.
  6. Your home country: report the sale there too, if required, and claim relief for Indian tax under the applicable tax treaty.

Common pitfalls

  • Missing remittance proofs from years ago - ask your bank for historical FIRCs or certificates early.
  • Not applying for Form 13 - leading to excessive TDS and a long wait for a refund.
  • Exceeding the USD 1 million limit - plan remittances across financial years if needed.
  • Forgetting the home-country tax position - the sale may be reportable where you live.

Planning a sale? We can coordinate with your CA and help you prepare the documents. Contact us.