How to Sell Property in India from Abroad?

If an NRI wants to sell off his/her property in India from abroad, there are a few things he/she must take into consideration.

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The rules that a NRI must follow to sell his property in India are

1. An NRI can only sell residential or commercial property in India to an Indian resident/ NRI or a Person of Indian Origin.

2. If an NRI has agricultural land, plantation property, or farmhouse in India, it can only be sold to the resident(s) of India or an Indian citizen.

3. NRI is also allowed to transfer their residential or commercial property to an authorized dealer or housing finance institution in India through a mortgage.

4. An NRI cannot transfer their residential and commercial property in India to a party abroad via a mortgage. They will need prior approval from the Reserve Bank of India (RBI) to do so.

The list of documents required by an NRI to sell off the property is as follows:

1. Passport as an Id proof

2. PAN Card to apply for tax exemption certificate after the sale of the property.

3. Tax returns, if the property yields earnings 

4. Address proof of India and abroad

5. A sale deed as proof of ownership

6. Allotment letter from society, builder or relevant authority

7. Documents from society complex to confirm no payments are due

8. Approved building plan and Occupation Certificate to assure that the property is cleared of all the dues from legal authorities

9. Encumbrance Certificate to ensure that no dues are left with legal authorities

Property tax receipts as additional proof.

Once you are in possession of all the documents, you can contact NoBroker WhatsApp support

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NRIs and OCIs often appoint a trusted relative or legal representative in India as their Power of Attorney (PoA) holder. The PoA document, which must be notarized or attested by the Indian consulate in the seller’s country of residence, grants the representative authority to handle various tasks, including negotiating, signing documents, and completing the sale process on the owner’s behalf. I have shared a breakdown on how to sell property in india from abroad below for your reference. 

How to Sell a Property in India from Abroad?

• NRIs, OCIs, and PIOs are allowed to sell residential and commercial properties without restrictions, though they may face limitations on selling agricultural land, farmhouses, or plantations unless they inherit them.

• They can sell property to an Indian resident, another NRI, or an OCI. However, they cannot sell agricultural land to another NRI or OCI and are usually required to sell it to an Indian resident only.

• Funds from the property sale should be routed through a Non-Resident Ordinary (NRO) account in India.

• Capital gains tax applies to the sale, with the rate depending on the holding period of the property. Short-term gains are taxed as per income slabs.

• The seller should file for a Tax Deduction Certificate (TDS) from the Income Tax Department for smooth repatriation of sale proceeds.

This is

how to sell property in India from abroad.

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Wondering how to sale property in India? Selling property in India from abroad involves specific steps and considerations. Whether you’re an NRI (Non-Resident Indian) or an OCI (Overseas Citizen of India), here’s a comprehensive guide to help you navigate the process:

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1. Eligibility to Sell Property:

   • NRI Selling Property in India

     :

     • NRIs can sell residential or commercial property to other residents, NRIs, or PIOs (Persons of Indian Origin) without special permission from the Reserve Bank of India (RBI).

     • PIOs can sell property to residents or NRIs, but selling to another PIO requires prior RBI approval.

   • Foreign Nationals of Non-Indian Origin

     :

     • Citizens of countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan can sell property in India only with prior RBI approval.

2. Procedure for NRI Selling Property in India:

   • Similar to Resident Indians, NRIs can transfer immovable property (except agricultural land, plantation property, or farmhouses) in India:

     • Sale

       : To a person resident in India.

     • Gift

       : To a person resident in India, NRI, or PIO.

   • Agricultural Land, Plantation Property, or Farmhouse

     : If acquired through inheritance, it can only be sold or gifted to Indian citizens permanently residing in India.

   • Foreign Nationals of Non-Indian Origin

     : Property acquired through inheritance with RBI approval cannot be transferred without prior permission.

3. Using Power of Attorney (POA): NRIs living abroad can authorize a relative or friend in India through a POA to sell the property on their behalf.

4. Tax Implications:

   • Understand the tax implications of selling property in India, including capital gains tax and exemptions.

   • Consult a tax advisor to optimize tax liability.

5. TDS (Tax Deducted at Source):

   • TDS is applicable when selling property in India. Ensure compliance with TDS rules.

   • File Form 15CA and 15CB for remittance of sale proceeds.

6. Repatriation of Sale Proceeds:

   • NRIs can repatriate sale proceeds after fulfilling TDS requirements.

   • Use the NRE/NRO account for repatriation.

I hope you get an idea of how to sell a property in India.

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From what I have obserbved is that Non-Resident Indians frequently want to buy and sell real estate in India. NRI selling property in India and investing in brand-new real estate in major cities are two examples. Managing properties in India, whether it be for management, repairs, or paying taxes, may occasionally be quite time-consuming for NRIs. I will delve into the numerous facets of a US citizen selling property in India in this answer.

Procedure for NRI to sell property in India

The following steps must be taken in order to sell an NRI's property in India:

1. Make a thorough assessment of the property to determine its market value, or just pay a broker or brokerage company to do it for you.

2. If one is not physically present, a reliable individual may be given the Power of Attorney to complete the sale, providing that the required documentation is present.

3. Recognise your tax obligations. Whether or not the sale amount has been received in full, capital gains are taxed in the year that the property is transferred.

4. The payment to the NRI has TDS (Tax Deducted at Source) subtracted at that time. The selling agreement between the NRI seller and the buyer must include all relevant information about TDS and its rate.

5. Only an FCNR account or an NRE/NRO account is permitted to receive the money.

6. If the NRI reinvests the property's capital gains in another piece of property or tax-exempt bonds, they are not subject to taxation.

I hope this helps you understand the process of NRI selling property in India.