How to Sell Property in India as an NRI (2026 Guide): Capital Gains Tax, TAN Waiver & Repatriation

Can NRIs sell property in India?

Yes. NRIs and OCI cardholders can sell residential and commercial property in India to a resident Indian, an NRI or an OCI. Agricultural land, plantation property and farmhouses can be sold only to a person resident in India. No RBI permission is needed for a normal sale.

The steps that cause the most trouble are tax: the buyer's TDS obligation, the capital gains calculation and getting the money out of India. This guide walks through each in order.

Step-by-step roadmap

1. Gather documents: title deed, previous chain of title, encumbrance certificate, property tax receipts, society NOC, approved plans, PAN and passport/OCI.
2. Update PAN to non-resident status and ensure it is operative.
3. Agree price and sign an agreement to sell; collect the buyer's PAN.
4. Apply for a Form 128 lower TDS certificate (formerly Form 13) on TRACES.
5. If you cannot attend registration, execute a Specific Power of Attorney abroad and get it apostilled or attested.
6. Register the sale deed at the Sub-Registrar office; the buyer pays stamp duty.
7. For payments from 1 October 2026, an eligible resident individual or HUF buyer deducts TDS and reports it through the PAN-based Form 141, Schedule E, then issues the prescribed TDS certificate.
8. Receive sale proceeds in your NRO account.
9. Plan reinvestment for exemptions within the deadlines.
10. File ITR-2 for the year, then repatriate funds with Forms 145/146 (formerly Forms 15CA/15CB).

Capital gains tax for 2026

Since July 2024, long-term gains on property are taxed at 12.5% without indexation. Resident individuals who acquired property before 23 July 2024 can choose 20% with indexation if lower, but this grandfathering option is not available to NRIs. Surcharge applies at 10% when the gain exceeds ₹50 lakh and 15% above ₹1 crore for LTCG.

Cost of acquisition includes the purchase price, stamp duty, registration charges and brokerage. Cost of improvement covers capital spending such as an extension or major renovation, with bills. Selling expenses like brokerage and legal fees are deducted from the sale price.

TDS on sale and the 2026 TAN waiver

Buyers must deduct TDS when paying an NRI. For long-term property, TDS is 12.5% plus surcharge and cess on the full sale consideration (about 13% to 14.95%). For short-term property, TDS is 30% plus surcharge and cess.

CBDT Notification No. 121/2026, dated 22 September 2026, took effect on 1 October 2026. From that date, a resident individual or Hindu Undivided Family (HUF) buying immovable property from a non-resident no longer needs a Tax Deduction and Collection Account Number (TAN) for the covered transaction. The buyer reports and pays TDS through the PAN-based challan-cum-statement in Form 141, using its new Schedule E. Corporate buyers and other buyers outside this individual/HUF category still need a TAN and follow the regular TDS process.

Exemptions that reduce tax

If you cannot invest before your return due date, deposit the amount in a Capital Gains Account Scheme account at a public sector bank. NRIs can use these exemptions; the new house must be in India.

Repatriating the sale proceeds

• Sale proceeds are credited to your NRO account.
• You can repatriate up to USD 1 million per financial year from NRO, including property proceeds, after tax.
• If the property was bought with foreign remittances or NRE funds, you can repatriate up to the amount originally paid in foreign exchange outside the USD 1 million limit, for up to two residential properties.
• Inherited property proceeds fall within the USD 1 million limit.
• Submit Form 145 (formerly Form 15CA) and, where required, the CA's Form 146 (formerly Form 15CB), the sale deed, TDS certificates and bank statements to your bank.