Selling property in India when you live abroad feels overwhelming — and for good reason. Between Power of Attorney, TDS deductions, capital gains tax, and FEMA repatriation rules, there are dozens of moving parts. Most NRIs either delay the sale for years or fly back to India thinking there's no other way.
There is another way. Here's the complete step-by-step process to sell your Indian property as an NRI — without stepping foot in India.
Step 1 — Grant a Power of Attorney (PoA)
Since you're abroad, you'll need to authorise a trusted person in India to act on your behalf. This is done through a Power of Attorney (PoA) — a legal document that gives someone the authority to sign papers, negotiate with buyers, and complete the sale.
How to create a PoA from abroad
- Draft the PoA document (your lawyer in India will prepare this)
- Get it notarised by a Notary Public in your country of residence
- Get it apostilled or attested by the Indian Embassy/Consulate in your country
- Send the original document to your representative in India
- Your representative registers it at the Sub-Registrar's office in India
Important: The PoA must be specific — it should clearly list the property address, the powers granted, and an expiry date. A general PoA is risky and can be misused.
Step 2 — Gather All Property Documents
Before listing the property, make sure all paperwork is in order. Missing documents are the most common reason property sales get delayed by 6–12 months.
- Title Deed / Sale Deed — original purchase document
- Encumbrance Certificate — confirms no loans or legal claims on the property
- Property Tax receipts — last 3 years minimum
- Approved building plan — for constructed property
- Society NOC — if the property is in a housing society
- PAN Card — mandatory for property transactions above ₹50 lakh
- Aadhaar Card or passport — identity proof
Step 3 — Understand TDS (Tax Deducted at Source)
This is where most NRIs get surprised. When an NRI sells property in India, the buyer is required by law to deduct TDS before paying you. Many buyers don't know this, and many sellers don't know the correct rates.
TDS rates for NRI property sales in 2025
- Long-term capital gains (held 2+ years): 12.5% TDS on sale value
- Short-term capital gains (held under 2 years): 30% TDS on sale value
- Plus applicable surcharge and cess
Pro tip: You can apply for a Lower TDS Certificate (Form 13) from the Income Tax department before the sale closes. If your actual capital gains tax liability is lower than TDS deducted, this can save you significant money upfront — rather than waiting for a refund.
Step 4 — Capital Gains Tax
Capital gains tax is calculated on the profit from the sale, not the full sale price.
How to calculate it
- Sale Price minus Indexed Cost of Acquisition = Capital Gain
- For properties held 2+ years, you get indexation benefit (adjusts purchase price for inflation)
- Long-term capital gains rate: 12.5% (without indexation, as per 2024 Budget changes)
Exemptions available
- Section 54: Reinvest gains into another residential property in India within 2 years
- Section 54EC: Invest gains in NHAI or REC bonds within 6 months (up to ₹50 lakh)
- Section 54F: If selling a non-residential property, reinvest full sale proceeds in a residential property
Step 5 — Open the Right Bank Accounts
As an NRI, you need specific accounts to receive sale proceeds and repatriate funds abroad.
- NRO Account (Non-Resident Ordinary): Sale proceeds must first be credited here
- NRE Account (Non-Resident External): For repatriation abroad — funds here are freely transferable
You can transfer funds from NRO to NRE up to USD 1 million per financial year after paying applicable taxes and submitting the required forms.
Step 6 — FEMA Compliance and Repatriation
This is the final — and most regulated — step. The Foreign Exchange Management Act (FEMA) governs how NRIs can move money out of India.
Documents required for repatriation
- Form 15CA and 15CB (filed online and by a Chartered Accountant respectively)
- Sale deed copy
- TDS payment challan
- Income tax returns for the year of sale
- Bank statement showing funds in NRO account
NRIs can repatriate sale proceeds from a maximum of 2 residential properties during their lifetime under FEMA. For commercial property, there's no such limit — subject to the USD 1 million annual cap.
Timeline — How Long Does It Take?
- PoA creation and registration: 2–4 weeks
- Document collection and verification: 2–6 weeks
- Finding buyer and negotiating: 1–3 months
- Sale registration: 1–2 weeks
- TDS filing and repatriation: 4–8 weeks after sale
Total realistic timeline: 3–6 months if everything is in order from the start.
Common Mistakes NRIs Make
- Not applying for Lower TDS Certificate — ends up overpaying tax and waiting months for refund
- Giving a general PoA instead of a specific one — creates legal risk
- Accepting cash component — illegal and blocks repatriation
- Not maintaining proper chain of title — causes delays at registration
- Trying to do everything themselves without a local property manager
The last point is where most NRIs lose the most time. Having a trusted local team on the ground — to verify buyers, coordinate with lawyers, and manage paperwork — is the difference between a 3-month sale and a 2-year headache.
Read also: FEMA Rules for NRI Property Repatriation: What You Must Know in 2025