How can I repatriate money to my home country after selling property in India?

Yes — Non-Resident Indians can repatriate the sale proceeds of immovable property held in India, subject to RBI's FEMA framework. The legal basis:

(1) Section 6 of the Foreign Exchange Management Act, 1999;
(2) Foreign Exchange Management (Non-debt Instruments) Rules, 2019;
(3) RBI's Master Direction on Remittance of Assets.

Key permissions:

(1) Residential and commercial property — repatriation of sale proceeds is allowed;
(2) Agricultural land, plantation property, farmhouses — NRIs cannot purchase these in the first place. However, if acquired by inheritance, sale proceeds can be repatriated;
(3) Limit — up to sale proceeds of two residential properties per lifetime via the standard route. For more, special RBI approval is needed.

The first decision: did you buy this property as a resident or as an NRI? If as a resident, sale proceeds go to NRO and the USD 1 million per year route applies. If as an NRI using NRE/FCNR funds, more generous remittance is allowed.

Under the Remittance of Assets route, an NRI can remit up to USD 1 million per financial year (April-March) from their NRO (Non-Resident Ordinary) account. This applies to:

(1) Sale proceeds of property;
(2) Inheritance and legacy money;
(3) Pension and provident fund;
(4) Insurance maturity proceeds;
(5) Bank balances accumulated from Indian income (rent, dividends, interest).

The USD 1 million is per individual — so a husband and wife who jointly own can remit USD 2 million between them. The limit is per financial year, not per transaction.

For amounts above USD 1 million in a year, you need RBI approval — apply through your AD Bank with supporting documents. Approval is typically granted for genuine cases (large inheritance, retirement repatriation) but takes 2-6 months.

The limit does NOT apply to NRE / FCNR balances — these are fully repatriable without limit at any time. The USD 1 million rule applies only to NRO funds.

Capital gains on property sale are taxed under the Income-Tax Act, 1961:

(1) Long-term capital gains (LTCG) — for property held more than 24 months:
- 20% with indexation, OR
- 12.5% without indexation (option introduced by the Finance (No.2) Act, 2024 for properties acquired before 23 July 2024);
- Choose whichever is lower.

(2) Short-term capital gains (STCG) — for property held 24 months or less — taxed at your slab rates (up to 30% + surcharge + cess).

TDS under Section 195: the buyer must deduct TDS of 20% on LTCG (or 30% on STCG) on the sale consideration, NOT the gain. To avoid massive over-deduction, apply for a Lower TDS Certificate in Form 13 from the jurisdictional Assessing Officer before the sale completes — typically issued in 4-8 weeks.

Exemptions: Section 54 (reinvestment in another residential property), Section 54F (reinvestment of net consideration), Section 54EC (REC/NHAI bonds up to ₹50 lakh) can reduce or eliminate LTCG tax.

These are the compliance forms required to remit money abroad under Section 195 of the Income-Tax Act:

(1) Form 15CB — a certificate from a Chartered Accountant confirming:
- The nature of the remittance;
- That applicable taxes have been deducted/paid;
- The appropriate DTAA provisions (if any) considered;
- The TDS rate applied.

(2) Form 15CA — a self-declaration by the remitter, filed online on the Income Tax e-Filing portal. It has 4 parts; the relevant part depends on the amount and taxability:
- Part A — small remittances;
- Part B — remittances backed by Lower TDS Certificate;
- Part C — remittances above ₹5 lakh requiring CA certification (Form 15CB attached);
- Part D — exempt or non-taxable remittances.

The bank will not process the remittance without both forms. CA fees for Form 15CB typically range ₹3,000-₹15,000 per certificate. Engage a reputable, specialised NRI/FEMA/tax lawyer or CA for the first transaction — once you understand the flow, repeat transactions are easier.

India has Double Taxation Avoidance Agreements (DTAAs) with most countries — including the USA, UK, Canada, Australia, Singapore, UAE, Sweden, Germany. These prevent the same income being taxed in both India and your country of residence.

Key DTAA benefits for property sale:

(1) Tax credit — India taxes the gain (since the property is in India); your country of residence gives credit for the Indian tax paid;
(2) Reduced TDS rate — some DTAAs allow lower TDS rates than the default 20%/30%; claim the lower rate via your Lower TDS Certificate;
(3) Tax Residency Certificate (TRC) — required to claim DTAA benefits. Obtain from your country's tax authority (e.g., HMRC for UK, IRS for USA, etc) BEFORE the transaction;
(4) Form 10F — also filed on the Indian tax portal alongside the TRC.

Engage a CA with NRI / international tax expertise. For India-USA DTAA, structuring matters significantly for higher-value transactions — even a 5% reduction in effective tax on a ₹5 crore sale is ₹25 lakh saved.

For Aadhaar-related questions before/after the sale, see our NRI Aadhaar guide.