✅ Introduction: Non-Resident Indians (NRIs) selling property in India often face complexities in transferring sale proceeds abroad. Understanding tax implications, RBI regulations, and FEMA guidelines is crucial to ensuring a smooth repatriation process.
🏡 Step 1:
Understanding Repatriation Rules the
Reserve Bank of India (RBI) allows NRIs to repatriate up to USD 1 million
per financial year from India, provided the funds comply with tax and legal
guidelines. Here’s what you need to know:
✔ Type of Property: Residential or commercial
(agricultural land, farmhouse, and plantations cannot be repatriated).
✔ Holding Period: Long-term capital gains (held
for 2+ years) are taxed at 20% with indexation.
✔ Eligible Accounts: Funds must be routed
through an NRO account before repatriation.
📜 Step 2: Tax Implications
& TDS Deductions Before
repatriating, NRIs must comply with tax norms:
📌 TDS Deduction:
Buyer deducts 20% TDS on long-term capital gains (plus surcharge &
cess). If the property is sold within 2 years, TDS is 30% as per
short-term gains.
📌 Capital Gains Tax: Filing an ITR (Income
Tax Return) is mandatory to claim tax refunds (if applicable).
📌 Lower TDS Certificate: If applicable, NRIs can
obtain a Lower TDS Certificate (Form 13) from the Income Tax Department.
🏦 Step 3: Documentation
for Repatriation To repatriate
funds, NRIs must submit the following to their bank:
✅ Form 15CA & 15CB: Required for tax
compliance (CA-certified).
✅ Sale Deed & Bank Statements: Proof of
transaction & property sale.
✅ NRO Account Details: Funds should be credited
to the NRO account before repatriation.
✅ PAN & Tax Payment Receipts: To verify tax
compliance.
🌏 Step 4:
Repatriation Process Through Banks
Bank’s facilitate repatriation once compliance is met:
1️⃣ Deposit Sale Proceeds in an NRO account.
2️⃣ Submit Repatriation Request to the bank along
with necessary documents.
3️⃣ Bank Verification & RBI Compliance Check.
4️⃣ Funds Transferred to an overseas bank account
(within the permitted limit).
💡 Tips
for Smooth Repatriation
📌 Plan in Advance: Understand tax laws before
selling the property.
📌 Seek Expert Advice: Consult a CA for tax
planning & FEMA compliance.
📌 Use DTAA Benefits: To avoid double taxation in
India and the country of residence.
🚀 Conclusion:
Selling property in India as an NRI requires adherence
to tax laws, FEMA, and RBI rules. With proper documentation and tax compliance,
repatriating funds can be a seamless process. Seeking professional guidance
ensures a hassle-free experience. ✅
