(Last Updated: May 14, 2019)

NRI selling property in India Tax implications: How to sell & tax thereon?



  • Once you become an NRI, a lot of queries come to your mind. Can NRIs sell a property in India? If yes, how to sell, what is the process of selling a property in India? What are the tax implications for an NRI wishing to sell residential or other property? I just opened this thread to discuss on this very interesting topic for my NRI friends looking for all these answers.
    As per my viewpoint, here are few important points that I feel like adding:

    • Yes, being an NRI, you can easily sell your residential or commercial property in India. However, you must comply to all the relevant rules.

    • Moreover, you can sell your residential or commercial property to a resident of India or another NRI or PIO(Person of Indian Origin).

    • You can also sell your inherited agricultural land, farm house but to an Indian resident only.

    • When you sell your property, you will have to pay tax on Capital Gain arising from it. It may be a Short term Capital Gain tax or Long term Capital Gain tax as applicable.

    • The sale proceeds should be credited to your Non resident Ordinary or NRO account, since this is meant to put your Indian income.

    • You can also issue a special power of attorney to a trustworthy person in India, who can handle it on your behalf. This is required if it's not possible for you to be physically present, so you can assign this to someone of your trust. But, be very careful in doing so!
      That's what I know about NRIs selling property in India. Do add your valuable thoughts here.

    May be I missed an important point or two, so feel free to include your valid points, if any. Let's clarify all the doubts related to NRI property sale in India.



  • @Ishu Hey, these are quite interesting points to know. I moved abroad 2 years back so was just checking out the tax implications I'll have to bear now. I have a house in India that I wish to sell very soon. Can you just tell what is difference between Short term Capital Gain and Long term capital Gain. Also, as an NRI, do I need to pay taxes at both the places i.e. India and where I presently stay? Or can I get some kind of tax exemption at one place? If anyone can guide.



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