30 Jul 2025Quick answer: To sell property in India from abroad, an NRI needs clear title documents, a PAN, an NRO account to receive the proceeds and, unless they travel to India for registration, a power of attorney executed abroad, attested by the Indian mission or apostilled, and stamped (adjudicated) in India. Start 60 to 90 days before you want to register, because the lower TDS certificate, the power of attorney and any loan closure each take several weeks.
Updated: 23 October 2026 | Regi Tom Antony & Associates, Chartered Accountants, Kochi
This guide covers the practical and legal side of an NRI property sale: who you can sell to, documents, power of attorney, the sale agreement, registration and receiving the money. For the tax side, see our complete tax, TDS and repatriation guide and how to reduce capital gains before you sell.
Step 1: Check who you are allowed to sell to
| Type of property | NRI or OCI can sell to |
|---|---|
| Residential or commercial property | A person resident in India, an NRI or an OCI |
| Agricultural land, plantation property or farmhouse | Only a person resident in India who is an Indian citizen (sale to an NRI or OCI needs RBI approval) |
Step 2: Get the documents ready
- Title deed in your name and the earlier chain of title (usually 13 to 30 years, as the buyer's lawyer or bank requires)
- Encumbrance certificate for the same period, showing no undisclosed mortgage or charge
- Latest property tax and land tax receipts, and mutation records (khata, patta or local equivalent) in your name
- Approved building plan, completion or occupancy certificate, and for flats, the society or association NOC and share certificate
- For inherited property: death certificate, will and probate or legal heirship certificate, and mutation to the heirs' names
- PAN of every seller; Aadhaar if you have one, though it is not mandatory for NRIs
- Purchase documents, payment proofs and improvement bills, which you will also need for the capital gains computation
If there is an outstanding home loan, ask the bank for a foreclosure letter early. The buyer usually pays the loan amount directly to the lender, and the lender releases the original title deeds after closure.
Step 3: Power of attorney if you cannot travel
- Draft a specific power of attorney for the sale of this property, naming a trusted person in India and listing the acts they can do: signing the agreement and sale deed, receiving payments into your NRO account, and appearing before the sub-registrar.
- Execute it abroad before the Indian embassy or consulate, or before a local notary with an apostille in countries that are party to the Hague Convention.
- Adjudicate it in India: pay stamp duty at the sub-registrar or collector's office, usually within three months of its receipt in India. Rules and duty vary by state.
- Check that the buyer's bank accepts it; many banks have their own requirements for a power of attorney used in a sale they are financing.
Step 4: Sale agreement and the lower TDS certificate
Agree the price, payment schedule, possession date and who pays which costs. Because the buyer must deduct TDS on each payment, including the advance, apply for a lower or nil TDS certificate in Form 128 on TRACES as soon as the agreement is signed. It usually takes 15 to 30 days. The buyer deducts at the certificate rate once you give it to them. See how to apply for a lower TDS certificate and what the buyer has to do.
Step 5: Registration
The sale deed is stamped and registered at the sub-registrar's office where the property is located. You or your attorney, the buyer and two witnesses attend, with identity proof, photographs and, in most states, biometric capture. Stamp duty and registration fees are normally paid by the buyer unless agreed otherwise. Hand over possession, keys, original documents and utility transfers as the agreement provides.
Step 6: Receiving and moving the money
- Sale proceeds should be paid into your NRO account in India by banking channels, not in cash.
- You can remit up to USD 1 million per financial year from NRO balances, after tax, using Form 145 and, where required, a CA's certificate in Form 146.
- For property bought with funds remitted from abroad or from NRE/FCNR accounts, the amount originally paid in foreign exchange can be repatriated outside the USD 1 million limit, for up to two residential properties.
- File your Indian income tax return for the year of sale, to report the gain and claim any excess TDS as a refund.
Typical timeline
| Task | Usual time |
|---|---|
| Power of attorney: execution abroad, courier, adjudication | 2 to 4 weeks |
| Encumbrance certificate, tax receipts and society NOC | 1 to 3 weeks |
| Lower TDS certificate (Form 128) | 15 to 30 days |
| Loan foreclosure and release of documents | 2 to 4 weeks |
| Registration, after all the above | 1 day |
Common mistakes
- Using a general power of attorney given years ago; many sub-registrars and banks want a recent, specific one.
- Receiving the advance in cash or into a resident account the NRI should no longer hold.
- Signing the agreement before applying for the lower TDS certificate, so the advance suffers full TDS.
- Selling agricultural land to an NRI or OCI buyer without RBI approval.
- Selling inherited property before mutation into the heirs' names.
Frequently asked questions
Does an NRI need to come to India to sell property?
No. A specific power of attorney, executed abroad and adjudicated in India, lets a trusted person sign and register the sale on your behalf.
Can an OCI cardholder sell inherited agricultural land?
Yes, but only to a person resident in India who is an Indian citizen, unless RBI approval is obtained.
Can the sale proceeds go into an NRE account?
Proceeds are normally credited to the NRO account, from which they are repatriated within the limits, or transferred to the NRE account after tax with Forms 145/146.
Regi Tom Antony & Associates coordinates NRI property sales with your lawyer and the buyer: documents, power of attorney, Form 128, capital gains and repatriation. Write to letstalk@rtaandassociates.com.