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Selling property in India as an NRI involves more than finding a buyer. Taxation, documentation, repatriation rules and legal compliance all matter.
Before listing, verify the sale deed, title documents, tax receipts, occupancy certificate, encumbrance certificate, approved plan and society clearances, wherever applicable.
Buyers purchasing property from NRIs must deduct TDS at applicable rates. Depending on the capital gains classification, the rate can range from 12.5 per cent to over 20 per cent.
Can You Reduce TDS?
The actual tax liability may be lower than the amount deducted. NRIs can apply for a lower or nil TDS certificate from the Income Tax Department.
NRIs planning to transfer sale proceeds abroad must follow RBI rules and documentation requirements. Proof of taxes paid may also be required during the process.
NRIs can appoint a trusted representative through a Power of Attorney. Proper drafting, notarisation and, where required, embassy or consulate attestation are important.
Keep financial records ready and consider professional legal and tax advice. Proper planning can help NRIs avoid delays, compliance issues and unnecessary complications.