Selling Property as an NRI: TDS, Repatriation, Form 15CA/15CB and POA

You moved to Singapore eight years ago, and the flat in Bengaluru has been rented out ever since. Now you have a buyer at ₹1.5 crore. Then the buyer's lawyer mentions that, because you are an NRI, more than ₹22 lakh will be deducted as tax before you see the money. And you still need to work out how to move the rest abroad.

NRIs can sell property in India quite smoothly, but the tax and banking steps are different from a resident's sale, and they need to start weeks before registration. Here is the full sequence.

Who you can sell to

An NRI or OCI can sell a residential or commercial property to a resident Indian, another NRI or an OCI. Agricultural land, plantation property or a farmhouse can be sold only to a resident Indian citizen. Most flat sales fall in the first, easier group.

TDS: why the deduction is so large

When a resident sells, the buyer deducts just 1% TDS. When an NRI sells, the buyer must deduct tax at the full capital gains rate under the old Section 195 rules (carried into the new Income Tax Act, 2025 with new numbering), and by default it is worked out on the entire sale price, not on your gain.

• Long-term (held over 24 months): 12.5% plus surcharge and 4% cess. Surcharge is 10% where income exceeds ₹50 lakh and 15% above ₹1 crore, so the effective rate is roughly 13% to 15%.
• Short-term (24 months or less): taxed at slab rates, so buyers usually deduct at 30% plus surcharge and cess.
• No indexation option for NRIs. The choice to compare with 20% with indexation, for property bought before 23 July 2024, is available only to resident individuals and HUFs.

The buyer also needs a TAN (a tax deduction account number), not just a PAN, deposits the tax, files a quarterly TDS return and gives you a TDS certificate. Many resident buyers don't know this, so raise it early.

The lower deduction certificate: apply before you sign

You can apply to the income tax department for a lower or nil deduction certificate, so the buyer deducts tax only on your actual gain. Under the old rules this was Form 13; the Income-tax Rules, 2026 renumbered many forms, so your CA will file the current version online through TRACES.

You will usually need your PAN, the sale agreement or draft, your purchase deed and cost of improvement proofs, a capital gains computation, and details of any planned reinvestment. Processing typically takes a few weeks, so apply as soon as the price is agreed and give a copy of the certificate to the buyer before registration.

Worked example

You bought the flat in 2014 for ₹70 lakh and sell it in November 2026 for ₹1.5 crore. Your gain is ₹80 lakh.

• Without a certificate: TDS at about 14.95% (12.5% plus 15% surcharge plus cess) on ₹1.5 crore is roughly ₹22.4 lakh.
• Actual tax on the gain: 12.5% on ₹80 lakh plus 10% surcharge and cess is roughly ₹11.4 lakh.
• The difference of about ₹11 lakh would sit with the tax department until you file your Indian return and the refund is processed, which can take months.
• If you reinvest the gain in another residential house in India within the time limits, the exemption under the old Section 54 (now Section 82 of the new Act) can cut the tax further, and the certificate can reflect that.

Getting the money out: repatriation limits

Sale proceeds are normally credited to your NRO account. How much you can send abroad depends on how you paid for the property:

• Bought with foreign exchange (money sent from abroad or from an NRE or FCNR account): you can repatriate up to the amount originally paid in foreign exchange. For residential property, this route covers no more than two properties.
• Bought with rupee funds, or inherited, and any amount above the foreign exchange you brought in: this comes under the USD 1 million per financial year facility for NRO balances, which covers sale proceeds of assets in India after applicable taxes are paid.
• Citizens of certain neighbouring countries face extra restrictions and need RBI approval.

The USD 1 million limit is per person per financial year (April to March), so a large sale can be spread across two financial years, as of November 2026.

Form 15CA and 15CB, now Forms 145 and 146

Before your bank sends money abroad from an NRO account, it needs tax paperwork:

• Form 15CA is your own online declaration about the remittance. Form 15CB is a certificate from a chartered accountant confirming that tax on the money has been paid.
• For remittances made from 1 April 2026, these have been replaced by Form 145 (the declaration) and Form 146 (the CA certificate) under the new rules, with broadly similar thresholds.
• A CA certificate is generally needed for taxable remittances over ₹5 lakh in a financial year, so almost every property sale needs one. If you hold a lower deduction certificate, a different part of the declaration may apply.

Your bank will also ask for an undertaking and the sale deed, TDS certificates and proof of how the property was paid for. Keep these together.

Selling without flying in: power of attorney

If you cannot be present for registration, give a trusted relative or friend a specific power of attorney for the sale of that property.

1. Draft it with an Indian property lawyer, naming the property and the powers clearly: signing the agreement, receiving payments into your account, signing and registering the sale deed.
2. Sign it before an Indian embassy or consulate, or before a local notary with an apostille, depending on the country.
3. Your attorney gets it stamped (adjudicated) in India, generally within three months of receiving it. In Karnataka the stamp duty depends on the relationship and terms, so confirm it with the sub-registrar.
4. Have sale money paid only into your NRO account, never to the attorney personally.

A POA does not transfer ownership by itself; only the registered sale deed does. Revoke it in writing once the sale is complete.

Documents checklist

• PAN (a valid, operative PAN avoids even higher TDS), passport and OCI card if applicable
• Original sale deed, mother deeds, khata, latest tax receipts and encumbrance certificate
• Proof of purchase payments, especially foreign exchange remittance records
• Society NOC and loan closure letter if there was a loan
• Registered power of attorney, if using one
• NRO account details for receiving payment
• Tax residency certificate and Form 10F if you want to claim treaty benefits

NRI sales involve Indian tax, foreign exchange rules and often the tax laws of your new country, so work with a CA who handles NRI cases. If you want someone on the ground in India to manage buyers, documents and registration while you are abroad, Skyros Estates can handle the sale from start to finish.