Selling property for NRIs in India involves navigating complex legal, tax, and compliance requirements. At Brivan Consultants, we simplify this process with a structured approach tailored to meet the unique needs of NRIs. Here’s a detailed step-by-step guide to ensure a seamless property sale experience.
Step 1: Understand the Process & Engage Brivan
The first step is gaining clarity on the process and legal requirements involved in selling property in India as an NRI. Brivan Consultants offers expert insights, explaining the nuances of tax implications, legal documentation, and repatriation rules. By engaging our services, you gain access to professionals who understand the intricacies of NRI property transactions.
Step 2: Brivan Appoints a Dedicated Team
Once onboard, we assign a dedicated team to manage your property sale from start to finish. This team includes legal experts, tax advisors, and real estate professionals to ensure every aspect of the sale is handled with precision.
Step 3: Tax Liability & Capital Gains Calculations
A critical component of the process is understanding your tax liability. NRIs are subject to capital gains tax based on the holding period of the property:
- Short-Term Capital Gains (STCG): Applicable if the property is held for less than 24 months and taxed at the applicable income tax slab rate.
- Long-Term Capital Gains (LTCG): Applicable for properties held longer than 24 months. While LTCG is taxed at 12.5% flat without indexation for properties registered post-July 2024 (or 20% with indexation for those registered before this date), the TDS rate remains unchanged at 20% regardless of the tax rate applicable.
Our team develops a detailed action plan to manage these liabilities and explore tax-saving opportunities under Sections 54 and 54EC. For a deeper understanding of tax implications and exemptions, refer to Essential Tax Guidance for NRIs Selling Property in India.
Step 4: Execute the Power of Attorney (POA)
If you cannot be physically present in India, a Power of Attorney (POA) allows you to designate a trusted representative to manage the sale on your behalf.
We assist in drafting, notarizing, and registering the POA in compliance with Indian legal standards. The POA document ensures that all transactions are carried out seamlessly, without requiring your physical presence.
To understand the nuances and importance of a POA, check out our detailed guide: Power of Attorney for NRIs Selling Property.
Step 5: Identify Buyer & Finalize the Deal
Finding the right buyer is crucial for a successful property sale. Brivan Consultants leverages its network of real estate professionals and potential buyers to connect you with serious prospects.
- On behalf of the client, we do the initial screening of buyers by tabling alll terms and conditions and do the 1st round of negotiation ensuring transparency and fairness.
- All the filtered prospect buyers are passed onto the seller (NRI) clients where we help moderate these meetings/ negotiations.
- With the selected buyers, The first step is to sign the Agreement to Sell. Its important to block the deal signing this agreement and taking the advance/ token money. This will curb/ avoid any possible future disputes.
Step 6: File for Low/Nil TDS Certificate + Sales Deed Registration
Tax Deducted at Source (TDS) is a mandatory deduction for NRIs selling property in India. Without a lower TDS certificate, buyers must deduct TDS at the full rate of 20% (LTCG) or 30% (STCG) on the total sale price.
- Our team helps you apply for Form 13 under Section 197 to secure a lower or nil TDS certificate.
- We also handle the sales deed registration, ensuring the legal transfer of ownership to the buyer.
Step 7: Repatriation of Funds
Once the sale is complete, the next step is transferring the proceeds to your overseas account. This process involves:
- Crediting the sale proceeds to your NRO (Non-Resident Ordinary) account.
- Filing Forms 15CA and 15CB to comply with remittance regulations.
- Repatriating up to USD 1 million per financial year.
Brivan ensures all tax compliance and documentation requirements are met, allowing for a hassle-free fund transfer. For a detailed overview of the remittance process, refer to our guide: NRIs Remitting Property Sale Proceeds from India.
Step 8: Mandatory Income Tax Filing
Filing your income tax return (ITR) is essential to declare the capital gains from the property sale and claim any eligible tax refunds. Our tax advisors prepare and file your ITR, ensuring accuracy and compliance with Indian tax laws.
Why Choose Brivan Consultants?
At Brivan Consultants, we specialize in providing comprehensive support for NRIs navigating property transactions in India. With over a decade of expertise and satisfied clients across 15+ countries, we simplify complex processes, enabling you to:
- Maximize returns by ensuring legal and tax compliance.
- Avoid costly errors in documentation and tax filing.
- Save time and effort with a dedicated team handling every aspect of the sale.
Conclusion
Selling property for NRIs in India doesn’t have to be overwhelming. With Brivan Consultants by your side, you can manage the entire process seamlessly, from understanding tax liabilities to repatriating funds. By following these structured steps, you ensure a compliant, stress-free, and profitable property sale.
Contact Brivan Consultants today and let us make your property sale journey smooth and rewarding!
