NRI property sale checklist: tax, TDS and repatriation
Selling Indian property as an NRI involves more than registration. Seller status changes the buyer's TDS process, while capital-gains computation, source records and original payment route affect the tax return and any later repatriation.
Prepare before finding the buyer
Organize title, acquisition cost, improvement evidence, PAN, bank route and lower-deduction planning before the first advance is paid.
Key points
- Buyer TDS — The buyer needs the correct non-resident deduction workflow.
- Capital gains — Keep cost and exemption evidence for final return calculation.
- Repatriation — Bank source and tax records are needed if proceeds move abroad.
Seller preparation file
Collect purchase deed, sale agreement, improvement invoices, loan closure, society clearance, tax receipts and inherited-property records. Resolve title or nomination issues before marketing.
Discuss lower-deduction certification early because processing time can affect the payment schedule.
After completion
Reconcile buyer TDS certificates.
Calculate and report the gain in the correct return.
Retain bank and tax evidence for any repatriation request.
Frequently asked questions
Can sale proceeds go directly overseas?
The route depends on acquisition funding, property type, taxes and RBI repatriation conditions.
Can the buyer deduct tax only on the gain?
The statutory withholding process may not match final gain. A valid lower-deduction certificate can be important.
Does an inherited property have a different cost history?
Yes. Acquisition and holding records may trace to the previous owner, subject to current tax law.