NRI sellers
Selling property in India from abroad: the 2026 sequence
Seven steps, in order, with the section numbers under the Income-tax Act 2025 and the old 1961-Act numbers in brackets. The registered valuer's report is the cost evidence that runs through every step.
The full-consideration trap
Without a lower-deduction certificate, the buyer must deduct roughly 14–16% of the entire price, not the gain. On a ₹2 crore sale that is about ₹29 lakh withheld against perhaps ₹5 lakh of actual tax, refundable only after your return is processed.
- Fix the cost base Registered valuer's FMV as on 1 April 2001 (pre-2001 property) or inheritance-date report; improvements with bills.
- Agree the sale and check Section 78 Compare the stamp-duty value with the price; a gap over 10% makes the state value the deemed price (formerly 50C). A valuation report supports a Valuation Officer reference.
- Apply for a lower-deduction certificate Form 13 on TRACES under Section 397 (formerly 197) with the agreement, cost evidence and computation; three to six weeks.
- Execute through a POA if abroad Registered or consular POA; see the POA guide.
- Buyer deducts TDS Under Section 393(2) (formerly 195) at the certified rate or, without a certificate, 12.5% plus surcharge and cess on the full price for long-term gains; Form 27Q; Form 16A to you.
- Credit to NRO, then repatriate CA issues Form 146 (formerly 15CB); you file Form 145 (formerly 15CA); bank remits within USD 1 million per financial year.
- File the return Claim any refund of excess TDS; claim Section 84 (formerly 54) reinvestment exemption if applicable; report in your country of residence with treaty credit.
Rates at a glance
| Item | 2026 position |
|---|---|
| Long-term holding period | More than 24 months |
| LTCG rate (non-resident) | 12.5% + surcharge + 4% cess, no indexation |
| STCG rate | Slab rates (up to 30%) + surcharge + cess |
| TDS section | 393(2) (formerly 195), on full consideration |
| Lower-deduction certificate | Section 397 (formerly 197), Form 13; buyer-TAN requirement removed from 1 October 2026 |
| Stamp-duty safe harbour | Section 78 (formerly 50C), 10% |
| Reinvestment exemption | Section 84 (formerly 54), ₹10 crore cap |
| Remittance forms | 145 and 146 (formerly 15CA/15CB); above ₹5 lakh |
| Repatriation limit | USD 1 million per financial year from NRO |
Frequently asked questions
What is the capital gains rate for NRIs in 2026?
12.5% plus surcharge and cess without indexation on long-term gains (property held over 24 months); slab rates on short-term gains. The 20%-with-indexation option is for resident individuals and HUFs only.
Is TDS on the gain or the price?
On the full sale price unless you hold a lower-deduction certificate under Section 397.
How much can I repatriate?
USD 1 million per financial year from NRO balances; no cap for property bought from NRE or FCNR funds (up to two residential properties).
Which forms replaced 15CA and 15CB?
Form 145 (remitter declaration) and Form 146 (CA certificate) from 1 April 2026.
Can I reinvest to save tax?
Yes, under Section 84 (formerly 54) by buying a residential house in India within the prescribed period, capped at ₹10 crore of gains, or under the bonds route where available.
Deeper guides: TDS on NRI property sale · Lower-deduction certificate · Forms 145/146 · FMV 2001.
Last reviewed 6 September 2026 by ValuerDekho editorial team (CA review pending). Regulatory references are to the Income-tax Act 2025 and Income-tax Rules 2026 (in force from 1 April 2026) with the former 1961-Act section numbers in brackets. This is general information, not tax or legal advice.