NRI Selling Property In India

NRI Selling Property in India

The Complete Pre-Sale, Registration and Post-Sale Checklist

A practical, three-stage checklist covering title, tax, TDS, FEMA and repatriation — for NRIs and PIOs planning to sell a flat, house, land or inherited property in India.

This checklist is general educational material. Your residential status, the type of property, source of funds, and the relevant financial year all affect which items on this list apply to you, and how. It is not a substitute for a case-specific review with a Chartered Accountant, a property lawyer and your Authorised Dealer bank.

Stage 1 — Before You Accept an Advance

• Confirm your residential status under Indian tax law for the relevant financial year —citizenship or passport alone does not decide this.

• Have your PAN ready and make sure NRO account KYC is current.

• Verify ownership and title — no unresolved disputes, and a clear succession chain if the property is inherited.

• Gather proof of the acquisition date and the original source of funds used to buy the property.

• Collect whatever cost and improvement records exist — original deed, improvement bills,
municipal records.

• Confirm the holding period, to establish short-term vs long-term classification.

• Check the current stamp-duty/circle-rate value against the price you plan to sell at.

• Get a preliminary capital-gains estimate prepared in writing.

• Review whether reinvestment-linked exemptions could apply on your facts, and what conditions they carry.

• Evaluate and, where appropriate, file for a lower/nil TDS deduction certificate — before any payment or credit is due.

• If a Power of Attorney is needed, have it drafted transaction-specific, with clear safeguards — not broad or perpetual by default.

• Confirm your bank account and the likely repatriation route with your Authorised Dealer bank.

• If you are tax resident elsewhere, flag the transaction to your local advisor for that country's reporting rules.

Stage 2 — At Agreement and Registration

• Make sure the TDS clause in the sale agreement reflects the correct NRI-seller provision, not the resident-seller mechanism.

•  Align the payment schedule with your TDS/certificate position.

• Confirm TDS is actually deducted and deposited by the buyer, with an acknowledgement.

• Check the sale deed carefully — consideration amount, stamp-duty value, party details, property schedule.

• Make sure any Power of Attorney is used strictly within its defined scope.

• Settle or clearly allocate possession terms and outstanding dues (society, property tax, utilities).

• Confirm any existing loan/mortgage on the property is discharged, with a release document.

• Account for all original documents and confirm how/when they will be handed over.

• Obtain all co-owner signatures where applicable.

•  Track the buyer's TDS compliance — challan, correct deposit mechanism, and return filing.

Stage 3 — After Registration

• Obtain Form 16A or the applicable TDS certificate from the buyer.

• Reconcile Form 26AS and AIS against the TDS actually deposited against your PAN.

• Pay any balance tax due, and estimate your refund position, if any.

• File your Indian income-tax return within the applicable due date.

• Track your refund claim through processing.

• Prepare the applicable remittance forms (Form 15CA/15CB, or their current equivalents — confirm for the relevant year) with your CA.

• Obtain your CA's certification for the remittance.

• Complete your Authorised Dealer bank's own forms and FEMA declarations.

• Submit acquisition and tax-payment evidence to the bank as required.

• Process the overseas remittance and retain the confirmation.

• Retain all records — agreement, sale deed, tax computations, certificates, bank correspondence — for future reference.

A Note on Two Things NRIs Often Conflate

Paying Indian tax and being able to remit the full sale proceeds abroad are two separate questions. Your Authorised Dealer bank independently examines how the property was acquired, the source of funds, whether it was inherited or gifted, the property type, and the applicable repatriation route — including facilities such as the commonly discussed USD 1 million per financial year route, which carries its own conditions. Confirm your repatriation route with your bank early, alongside your tax planning — not after the money is already in your account.

Similarly, TDS deducted at the time of sale is a credit against your final tax liability, not the final liability itself. Filing your Indian ITR and reconciling Form 26AS/AIS is how any excess TDS comes back to you as a refund.

CA Dhiraj Ostwal & Associates — NRI Taxation Desk

Phone/WhatsApp: +91-70200 45454

Email: client@cadhirajostwal.com

Website: www.cadhirajostwal.com

Book a review: https://calendar.app.google/nQZHpdXpX4dhstZd7

This checklist is for general educational information only. NRI residential status, capital gains, TDS, DTAA, FEMA, repatriation, property title and applicable forms all depend on facts and the relevant tax year. Please obtain case-specific advice from a qualified CA, a property lawyer and your Authorised Dealer bank before signing any sale agreement, making or receiving payment, filing taxes, or remitting funds.