How NRIs can sell property in India? What is tax thereon?

  • Asked By
  • Updated On:
    07-Mar-2021
  • Replies:
    2

Short Answer

The entire process is simple and straightforward. You can sell your property, but then respective taxes will be implemented, such as capital gain for the long term or short term.

Detailed Answer

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:

  1. Yes, being an NRI, you can easily sell your residential or commercial property in India. However, you must comply to all the relevant rules.
  1. Moreover, you can sell your residential or commercial property to a resident of India or another NRI or PIO(Person of Indian Origin).
  1. You can also sell your inherited agricultural land, farm house but to an Indian resident only.
  1. 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.
  1. The sale proceeds should be credited to your Non resident Ordinary or NRO account, since this is meant to put your Indian income.
  1. 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!
  1. 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.

Tagged With: nri propertynri taxnri selling propertynri property sell
Categories: NRI Investment
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (1)

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.

Related FAQs
Is NRI money taxable in India?

NRI money is taxable in India under certain circumstances usually when the income is earned in India. There are also many deductions and exemptions available. For further details read the long form with description.

Can NRIs invest in mutual funds in India?

Yes, any NRI can invest in mutual funds in India, if they follow some certain conditions under Foreign Exchange Management Act or FEMA Act 1999.

How can NRIs from the United States invest in Mutual Funds in India?

NRIs living in the United States can invest in Indian Mutual Funds, but there are some hassles that have to be overcome. You will require an NRE, NRO, or FCRN account in order to convert the foreign currency into Indian rupees, post which you can complete the KYC and begin investing in Indian Mutual Funds.

What are types of bank accounts in India?

There are mainly 5 types of bank accounts in India. These include Savings account, Current account ,Fixed deposit account, Recurring deposit account and NRI accounts.

What is CAMS: KRA, KYC, FATCA Status?

A KRA is mandated to collect and maintain KYC records of investors on behalf of financial market participants registered with SEBI. Computer Age Management System (CAMS) is a registered entity with the SEBI was setup in 1993 as a registrar to Mutual Fund companies and now serves almost close to 60 percent of the industry. Foreign Account Tax Compliance Act is an agreement between India and United states to achieve greater tax compliance between both countries.

Can a foreigner invest in India?

Yes, a foreigner can invest in India only thorough government-regulated channels. Let's learn about some of the investment alternatives.

How much money can NRI transfer to India in one year?

There is no limit on the amount that can be transferred to India by NRIs. There are certain criteria for being an NRI so it is important to check whether you are considered to be NRI or not. For further details, read through the details ahead.

Can NRI invest in Indian stock market?

Yes, NRIs can invest in Indian stock market. It is essential for the individual to check if he is considered as NRI or not according to the norms of the government. If yes, only then he can invest. There are also certain rules and regulations that must be followed.

What are the documents required for NRI Demat Account?

An NRI requires a number of documents to open a Demat account in India. Continue reading to find out the list of documents.

How can an NRI open a Zerodha account?

You are required to fill up and submit a number of forms and documents via post to open a Zerodha account as an NRI. Continue reading and be informed.