You thought selling your house in India was complicated?
Wait till you try doing it from 7,000 km away.
For NRIs, a property deal comes with FEMA, TDS, paperwork… and a few traps.
You bought the house in rupees.
You sold it for more rupees. So… you made money, right?
Not necessarily.
For an NRI, the real return also depends on the currency you’re ultimately taking the money back in.
A property can look like a great investment in ₹……but look very different once you convert the proceeds
back into dollars, pounds or another currency.
Your property can appreciate.Your currency can disagree.
You sold the property.
Congratulations!
Now meet your new partner:
TDS.
When an NRI sells property in India, the buyer generally has to deduct TDS.
For an NRI seller, the applicable rate can be 20% plus surcharge and cess, depending on the circumstances.
Note: The buyer not the seller is responsible for deducting it.
[ Illustration Breakdown / Dialogue ]
Seller: “Wait… who pressed the tax button?”
Property Before TDS:
VALUE: ₹ X
Buyer: “Apparently… me.”
Property After TDS Machine:
VALUE AFTER TDS: ₹ X – TAX
PAN | No PAN?
The tax treatment can become even more painful.
SELLING THE HOUSE ISN’T THE END
You sold it.
You paid the tax.
You got the money. Now… where does the money go?
For NRIs, repatriating property-sale proceeds isn’t as simple as transferring the money to any bank account.
The route can depend on:
- How the property was originally funded
- Whether the property qualifies for repatriation
- FEMA rules
- The number/value of properties involved
Whether proceeds are routed through the appropriate NRE/NRO account
Visual & Diagram Elements Text Content:
Seller Thoughts: “…I thought I was just selling my house?”
Officer / Checkpoint Question: “NRE or NRO?”
Checkpoint Counter Title: MONEY REPATRIATION CHECKPOINT
Trolley Label: PROPERTY SALE PROCEEDS (₹)
Repatriation Process Flow:
PROPERTY
SALE
NRO
REPATRIATION
WRONG ROUTE = TROUBLE
How the calculation would look like
Let’s say an NRI (resident in the US) sells his apartment in India.
Initial Scenario Parameters:
• Sale consideration: ₹1,50,000,000
• Indexed cost of acquisition: ₹80,000,000
• Other expenses (legal, brokerage, etc.): ₹2,00,000
[1] Full value of consideration ₹1,50,000,000
[2] Less: Indexed cost of acquisition ₹80,000,000 Balance: ₹70,000,000
[3] Less: Other expenses
₹2,00,000 Taxable capital gain: ₹68,000,000
[4] Long-term capital gains tax (20%)
₹13,60,000 (₹68,000,000 × 20%)
[5] Add: Surcharge (10%) on tax
₹1,36,000 (10% of ₹13,60,000)
[6] Add: Health and education cess (4%)
₹59,840 (4% of ₹14,96,000)
[7] Total tax liability
₹15,55,840 (₹13,60,000 + ₹1,36,000 + ₹59,840)
TDS (to be deducted by buyer)
₹15,55,840 Buyer will deduct this amount and deposit it with the Income-tax Department.
Net amount received by seller
₹1,34,44,160 (₹1,50,00,000 − ₹15,55,840)
Note for NRIs:
▪ This amount will be credited to your NRO account in India.
▪ Repatriation outside India will depend on FEMA rules, eligible limits, and the proper documentation (including Form 15CA/CB and other requirements). ▪ If your property was purchased using funds already received in NRE account or through the NRI route, repatriation may be smoother.
Before an NRI buys or sells property in India…
Don’t just check the property.
Check the paperwork behind it.
NRI PROPERTY
SURVIVAL KIT
8 things to keep on your radar:
01 — Currency
What does the return look like in your home currency?
02 — Bank account
NRE or NRO? Get the route right.
03 — TDS
The buyer has tax-deduction responsibilities.
04 — PAN
Keep your PAN ready.
05 — Repatriation
Know whether and how the proceeds can move abroad.
06 — Sale deed
Don’t assume every transfer needs the same document.
07 — Power of Attorney
If you’re abroad, get the execution and registration right.
08 — Documents
Sale deed, PAN, inheritance documents, conversion documents where applicable.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.