How NRIs Can Sell Property in India Without Traveling

Introduction: Why Selling Property from Abroad Is Harder Than It Should Be

For many NRIs, property in India represents years of savings, emotional attachment, and family legacy. Yet when it comes time to sell, NRIs often face disproportionate friction — unclear processes, aggressive brokers, excessive taxes, and pressure to travel back unnecessarily.

This guide is written to eliminate confusion. It is designed as a single source of truth covering the *legal, tax, banking, and execution layers* of selling property in India while living abroad.

By the end of this guide, you will know:

• Whether you need to visit India (most NRIs don’t)
• How to legally authorize someone through POA
• How capital gains tax and TDS really work for NRIs
• How to avoid losing lakhs in excess tax
• How to safely repatriate money abroad

Who This Guide Is For

• NRIs holding residential or commercial property in India
• Inherited property owners
• Joint owners where one or more owners are abroad
• NRIs planning to reinvest or repatriate funds

Step 1: Establish Clear Ownership and Title Readiness

Before initiating a sale, confirm that:

• Your name on the title deed exactly matches your passport
• There are no unresolved disputes, loans, or encumbrances
• Property taxes, maintenance dues, and utility bills are cleared

Key documents you should have scanned:

• Registered Sale Deed / Conveyance Deed
• Latest Encumbrance Certificate
• Property tax receipts
• Completion / Occupancy Certificate (for apartments)

Failure at this stage is the #1 reason NRI property deals fall apart.

Step 2: Power of Attorney (POA) — The Backbone of Remote Selling

A properly drafted POA allows a trusted person in India to execute the sale without you being physically present.

#### Types of POA

• Special POA (Recommended): Limited strictly to selling a specific property
• General POA: Broad powers (high risk, generally discouraged)

#### How to Execute POA from Abroad

1. Draft POA with precise powers
2. Sign before local notary or Indian Consulate
3. Apostille the document (or consular attestation)
4. Courier to India
5. Adjudicate and stamp POA in India

Critical Mistakes to Avoid:

• Using generic drafts
• Granting banking or cash-handling powers unnecessarily
• Appointing brokers as POA holders

Step 3: Pricing the Property Correctly (NRIs Often Underprice)

NRIs are vulnerable to underpricing due to lack of local market data.

Best practices:

• Compare Circle Rate vs Market Rate
• Review recent transactions in the same building/locality
• Avoid distress pricing pushed by intermediaries

Overpricing delays sales. Underpricing causes permanent capital loss.

Step 4: Capital Gains Tax — The Real Cost Center

#### Determine Holding Period

• Held > 24 months → Long-Term Capital Gains (LTCG)
• Held ≤ 24 months → Short-Term Capital Gains (STCG)

#### Tax Treatment

• LTCG: 20% with indexation
• STCG: Taxed at applicable slab rate

#### Exemptions Available

• Section 54: Reinvestment in residential property
• Section 54EC: Investment in specified bonds

Tax planning *before* sale can legally save you 10–20% of proceeds.

Step 5: Buyer TDS — The Most Misunderstood Step

Under Indian law, buyers must deduct TDS when purchasing from an NRI.

• LTCG: ~20–23% TDS
• STCG: ~30–33% TDS

Key Insight: TDS ≠ Final tax.

You can apply for a Lower or Nil TDS Certificate to prevent excess deduction.

Step 6: Sale Deed Execution & Registration

Your POA holder:

• Signs the sale deed
• Appears before Sub-Registrar
• Hands over possession

Ensure:

• Correct PAN quoted
• TDS challan received
• Sale consideration routed through banking channels only

Step 7: Repatriation of Funds

Sale proceeds are credited to an NRO account.

To remit abroad:

• File Form 15CA
• Obtain Form 15CB from CA
• Transfer up to USD 1M per financial year

Timeline: 7–15 working days typically.

Common NRI Mistakes That Cost Money

• Skipping lower TDS application
• Relying only on brokers
• Signing POA without legal review
• Repatriating before tax compliance

Final Checklist

• [ ] Clear title & dues
• [ ] Correct POA
• [ ] Tax computation
• [ ] Lower TDS certificate
• [ ] Proper repatriation filing