If you’re an NRI in the USA or Canada looking to sell your property in India, you might feel overwhelmed by legal formalities, taxation, and paperwork. This NRI Property Selling Guide for US & Canada NRIs will help you navigate the process smoothly, ensuring compliance with tax laws and maximizing your returns.
Did you know?
- Nearly 30% of NRI property sales face delays due to missing documents or incorrect tax deductions.
- TDS on property sales for NRIs is 13-14.95%, while resident Indians pay only 1%!
- Many NRIs lose lakhs in unnecessary tax deductions simply because they don’t structure their sale correctly.
Does this sound familiar?
- Worried about the high TDS deduction when selling your property?
- Confused about how to legally transfer funds back to the US or Canada?
- Not sure which documents you need to complete the sale remotely?
If any of these concerns apply to you, you’re not alone! Many NRIs unknowingly overpay taxes or get stuck in lengthy property sale procedures.
At Brivan Consultants, we specialize in helping NRIs like you navigate the complex process of selling property in India—without unnecessary tax losses or legal roadblocks.
This guide provides a comprehensive overview to help NRIs understand the steps involved, including eligibility, legal documentation, tax considerations, and how to handle remittance of sale proceeds.
1. Understanding Capital Gains Tax for NRIs
When selling property in India, NRIs are subject to capital gains tax based on how long they’ve held the property.
🔹 Short-Term Capital Gains (STCG):
- Applies if the property is sold within 24 months of purchase.
- Taxed as per your income tax slab (up to 30%).
🔹 Long-Term Capital Gains (LTCG):
- Applies if the property is held for more than 24 months.
- Taxed at a flat 12.5% (without indexation benefit).
Pro Tip: You can claim exemptions under Section 54 by reinvesting your capital gains in another residential property in India. Read full guide here: Understanding Capital Gains Tax for NRIs: A Guide to Property Sales in India
2. How NRIs Can Reduce TDS on Property Sales
One of the biggest concerns for NRIs is the high TDS (Tax Deducted at Source) rate applied to property sales.
Revised TDS Rates for NRIs
| Property Value | New TDS Rate (LTCG) |
| Less than ₹50 Lakhs | 13% |
| ₹50 Lakhs – ₹1 Crore | 14.3% |
| ₹1 Crore+ | 14.95% |
How to Lower TDS Legally
- Apply for a Lower TDS Certificate (Form 13) from the Income Tax Department before the sale.
- Structure your sale strategically to maximize exemptions and deductions.
- File an ITR to claim a refund if excess TDS is deducted.
Brivan Consultants can handle the entire TDS exemption application process, ensuring you pay the lowest tax legally possible. Read full guide here: Comprehensive Guide to TDS for NRIs on Property Sales in India
3. Essential Documents for Selling Property in India
Before selling, ensure you have these key documents ready:
- Property Title Deed – Proof of ownership.
- Sale Agreement – Agreement between you and the buyer.
- Encumbrance Certificate (EC) – Confirms the property is free of legal dues.
- Tax Receipts – Proof that property taxes are paid.
- PAN Card & ID Proof – Essential for tax filings.
- Passport and OCI Card (if available) – Required for identity verification and to establish NRI status.
Missing any of these? Brivan Consultants can help you obtain them remotely—without you traveling to India! Read the full guide here: Essential Documents for NRIs Selling Property in India
4. Repatriation: How to Transfer Sale Proceeds Abroad
Once you’ve sold your property, transferring the money back to the US or Canada requires strict compliance with RBI and FEMA guidelines.
Repatriation Limits:
- Up to $1 million per financial year can be remitted abroad.
- The amount must come from an NRO account.
Required Documents for Repatriation:
- Form 15CA & 15CB – Chartered Accountant certification for tax compliance.
- Sale Deed & Tax Payment Proof – Confirms legal sale and tax clearance.
- Bank Declaration Form – Needed by Indian banks for repatriation.
Brivan Consultants can manage all legal paperwork and RBI approvals, ensuring a smooth fund transfer to your US/Canada account.
Read the full guide here: NRIs Remitting Property Sale Proceeds from India
5. Future-Proofing Your NRI Investments
As India tightens tax regulations on overseas income, NRIs must remain proactive and compliant. Key steps include:
- Regularly review residency status (India may further revise NRI residency definitions for taxation).
- Report foreign earnings to avoid legal risks under DTAA amendments.
- Plan for repatriation carefully, ensuring compliance with RBI & FEMA guidelines.
Brivan Consultants: Your Trusted NRI Advisory Partner
Selling property in India as an NRI can be complex, but with the right guidance, you can optimize tax savings and ensure a smooth transaction. This NRI Property Selling Guide for US & Canada NRIs is designed to help you navigate the process with confidence.
With our expertise, you can maximize tax savings, avoid unnecessary delays, and ensure full legal compliance while selling your Indian property remotely.
Let Brivan Consultants take care of the complexities so you can focus on what matters most—securing the best deal with minimal tax impact.
Frequently Asked Questions (FAQs)
1. Can I sell my property in India and transfer the money to the USA?
Yes, NRIs can repatriate sale proceeds from their Indian property to the USA. However, there is a limit of $1 million per financial year, including all other capital account transactions. The process requires Form 15CA & 15CB, tax clearance certificates, and compliance with RBI & FEMA regulations.
2. Can I sell property in India and transfer the funds to Canada?
Yes, NRIs selling property in India can repatriate their sale proceeds to Canada. However, they are subject to capital gains tax in India and must comply with RBI & FEMA regulations. To reduce tax liability, NRIs can claim exemptions under Sections 54 & 54F by reinvesting capital gains in another asset in India.
3. Do NRIs have to pay tax when selling property in India?
Yes, NRIs are subject to capital gains tax when selling property in India:
- Long-Term Capital Gains (LTCG): If held for more than 24 months, the tax rate is 12.5% (without indexation).
- Short-Term Capital Gains (STCG): If sold within 24 months, the gains are taxed at slab rates (up to 30%).
- TDS Deduction: The buyer deducts 13-14.95% as TDS for LTCG and 30% for STCG.
NRIs can reduce TDS by applying for a Lower TDS Certificate (Form 13) before the sale.
4. Can an NRI sell property in India without an OCI card?
Yes, NRIs can sell property in India even if they do not have an OCI (Overseas Citizen of India) card. However, they must hold an Indian passport or provide identity verification through their foreign passport and visa details. The sale must comply with FEMA regulations.
5. What is the Double Tax Avoidance Agreement (DTAA) between India and Canada?
The DTAA between India and Canada prevents double taxation on the same income. This means NRIs can offset taxes paid in India against their Canadian tax liabilities through Foreign Tax Credit (FTC). However, they must maintain proper documentation and file tax returns in both countries.
6. Can an NRI inherit property in India?
Yes, NRIs can legally inherit property in India through:
- A valid Will (testamentary succession).
- Laws of intestate succession (if no Will is written, the inheritance follows Indian succession laws).
NRIs can inherit residential, commercial, and agricultural land but need to comply with FEMA and local state laws before selling or transferring ownership.
