NRI Selling Property in India? Everything You Need to Know in 2026

Thousands of NRIs sell property in India every year — to repatriate funds, settle estates, or liquidate assets. But NRI property sales involve complex TDS rules, capital gains computation, and RBI repatriation limits. This 2026 guide covers everything step by step.

TDS on NRI Property: Buyer's Responsibility

Under Section 195, the buyer must deduct TDS before paying the NRI seller — mandatory regardless of property price.TDS rates in 2026:• LTCG (held >2 years): 12.5% + surcharge + cess (~14.95%)• STCG (held ≤2 years): 30% + surcharge + cess (~35.88%)Rates apply on entire sale consideration. NRIs can claim refund after filing ITR. Apply for a Lower TDS Certificate (Form 13) if actual tax liability is lower.

Capital Gains Tax for NRIs in 2026

LTCG (held >24 months): Taxed at 12.5% without indexation (Budget 2024).STCG (held ≤24 months): Taxed at applicable slab rates (~30% for NRIs).Exemptions:• Section 54: Invest LTCG in one residential property within 2 years• Section 54EC: Invest up to ₹50 lakh in NHAI/REC bonds within 6 months• Section 54F: Invest entire net sale consideration in residential property

Repatriation of Sale Proceeds: RBI Rules 2026

NRE/foreign funds: Up to USD 1 million per year — requires Form 15CA/15CB from CA.NRO/rupee funds: Up to USD 1 million per year after paying taxes.Forms 15CA & 15CB: Mandatory before repatriating above ₹5 lakh. 15CB is the CA certificate; 15CA is the online declaration. Getting these wrong blocks repatriation entirely.

NRI Property Sale Checklist 2026

1. Determine holding period and applicable rate2. Apply for Lower TDS Certificate if needed3. Ensure buyer deducts correct TDS (receive Form 16A)4. Evaluate Section 54/54EC/54F exemptions5. File ITR in India by July 31 to claim TDS refund6. Get Form 15CB from CA, file 15CA before repatriation7. Repatriate only through official banking channels

How Gadhia Associate Helps NRIs

NRI property sales involve income tax, FEMA, and banking compliance simultaneously. At Gadhia Associate, we handle Lower TDS Certificate applications, ITR filing, Form 15CB certification, and repatriation planning. Contact us at careandcomply@gmail.com or visit gadhiaassociate.com.