Planning to Sell Property in India?
There’s so much you need to know!

FAQs

• Can NRIs buy and sell property in India?

  Yes, NRIs are allowed to buy and sell property in India. They can purchase residential or commercial properties without any special permission, but they are restricted from purchasing agricultural land, farmhouses, or plantation properties.

• Are there any tax implications for NRIs selling property in India?

  Yes, NRIs are subject to capital gains tax when selling property in India. Long-term capital gains (property held > 2 years) are taxed at 20% (transfer before 23.07.2024 with indexation benefits) or 12.5% (transfer after 23.07.2024 without indexation benefits), while short-term capital gains (property held < 2 years) are taxed at the applicable income tax slab rates.

• Can renovation costs be deducted when calculating capital gains for NRIs?

  Renovation or improvement costs can be deducted when calculating long-term capital gains, provided there are valid receipts or documentation as proof. The expenses should have been incurred after the property was acquired.

• Is TDS applicable when an NRI buys property in India?

  Yes, when an NRI purchases property from another NRI, the buyer must deduct TDS at the rate of 12.5% or 20% (as the case may be) on long-term capital gains or at the applicable rates on short-term capital gains. If the seller is a resident, TDS will be deducted at 1% on properties worth over ₹50 lakh.

• How can an NRI repatriate the sale proceeds of a property from India?

  NRIs can repatriate the sale proceeds of up to two residential properties, up to $1 million per financial year and must be done through an NRO account. Necessary documentation, such as a Certificate from a Chartered Accountant in Form 15CB and 15CA must be submitted.