Index 

1. What Is The Process Of Selling Property In India As NRI? 
2. Which Documents Are Required In Selling Property In India?
3. How Is Selling Agricultural Land Different For NRIs?

What Is The Process Of Selling Property In India As NRI? 

As a Non-Resident Indian (NRI), you can sell your residential or commercial property in India to a resident Indian, another NRI, or a Person of Indian Origin (PIO). Here’s a step-by-step guide to the process:

1. Conduct a comprehensive evaluation of the property to find its market value. Alternatively, hire a broker or brokerage firm to assess the property. 
2. Gather property title documents in your name and a power of attorney, if applicable, No objection certificate showing no outstanding dues on the property, your identification proof, residence proof, and PAN card, details of your NRO bank account where the sale proceeds will be deposited.
3. Appoint a Power of Attorney (POA). If you are not physically present in India, you can grant a trustworthy person the POA to carry out the sale.
4. Get the POA document notarized, attested by the Indian consulate, and send it to the POA in India.
5. Acknowledge tax Implications. Capital gains are taxable in the year the property is sold, regardless of whether the full payment has been received. If sold within 2 years of purchase, short-term capital gains tax applies based on your income slab. If sold after 2 years, long-term capital gains tax of 20% applies. The buyer must deduct TDS at 20% for long-term gains or 30% if sold within 2 years.
6. Deposit Sale Proceeds. The sale proceeds can only be credited to your FCNR or NRE/NRO account. You can repatriate the funds to your home country, subject to certain restrictions.
7.  You can claim exemptions under Sections 54 and 54EC on long-term capital gains from the sale of residential property. The exemption is limited to the capital gains amount, not the entire sale receipt

Which Documents Are Required In Selling Property In India? 

When an NRI sells property in India, the following documents are essential:

1. Passport
2. PAN Card: Necessary for tax purposes and to apply for a tax exemption certificate.
3. Power of Attorney (POA): If the NRI cannot be present, a POA allows someone to act on their behalf.
4. Tax Returns: Relevant if the property has generated income, to show compliance with tax obligations.
5. Address Proof: Documents like utility bills or ration cards for both Indian and foreign addresses.
6. Sale Deed: A legal document proving ownership and detailing the sale.
7. Encumbrance Certificate: Confirms that the property is free of legal dues.
8. Allotment Letter: If applicable, confirming the property allocation from a builder or society.
9. Occupancy Certificate: Indicates that the property is ready for occupation.

How Is Selling Agricultural Land Different For NRIs? 

NRIs face specific regulations when selling agricultural land in India.

1. They are prohibited from purchasing agricultural land directly but can sell inherited agricultural land. 
2. The sale must be made exclusively to Indian citizens residing in India.
3. Sale proceeds must be credited to an NRO account, and repatriation is limited to $1 million per financial year, subject to tax compliance.
4. Capital gains tax applies, but rural agricultural land is generally exempt from this tax, while urban agricultural land is taxed based on ownership duration.