I bought a 2bhk flat in Mumbai in 2015 for 2 crores. Now I moved to London and planning to settle there permanently with my family.
Since my status is now NRI, I am planning to sell the flat and repatriate the sale proceeds to the UK
I would like guidance on:
• The complete process for an NRI selling property in India
• TDS and capital gains tax implications
• How repatriation of funds to the UK works
• Documents required for the sale and fund transfer
• Any legal or banking issues I should be aware of
• Ways to save or reduce capital gains tax legally
Would appreciate advice from anyone who has gone through a similar process
I purchased a property from an NRI. Even I had lot of confusion, so I consulted with my CA. I just wanna tell you what I have gone through, since you’ve help the property for more than 2 years, it will be considered as long-term capital gains, indexation benefits will apply. Also, buyers usually deduct TDS in NRI transactions, so it’s better to understand the exact tax liability properly before finalizing the deal.
In my opinion, having a good CA who understands NRI property transactions is very important because repatriation, FEMA rules, and tax compliance can become complicated later if not handled correctly.
As an NRI, selling the flat in India is really a huge pain. I bought properties around 10 years ago, last month I sold the flat. When you sell a property, there is an huge TDS that is need to pay by the buyer to the Income Tax department normally around 22-24% including surcharge and cess. The buyer then pays the remaining balance amount to you during registration.
It’s much better to apply for a lower TDS certificate from the Income Tax Department before the sale. If your actual capital gains tax is lower, this certificate helps reduce the TDS deduction significantly and improves your cash flow immediately instead of waiting months to claim a refund later through ITR.
NRI can sell the property in India. After the property sale, the amount is normally credited to the seller’s NRO account. From there, the NRI can repatriate funds abroad subject to RBI and FEMA guidelines, proper tax payment, and submission of all required documents such as 15CA, sale deed, PAN details and Bank statements.
Hey bro, so basically you need the two sets of document to sell the property in India, one is actual sale and another one is for moving the money to the UK.
For the property sale you need the documents are
• Original title deed / sale deed from 2015
• Encumbrance certificate
• Property tax receipts (up to date)
• Occupancy certificate / building completion certificate
• Society NOC (from the housing society)
• PAN card (mandatory — without PAN, TDS is deducted at 40%)
• Passport and OCI/NRI status proof
• Form 13 (Lower TDS certificate, if applied)
For repatriation:
• Form 15CA (self-declaration, filed online on Income Tax portal)
• Form 15CB (CA’s certificate confirming tax compliance)
• Sale deed copy
• TDS certificate (Form 16A from buyer)
• ITR acknowledgement for the year of sale
• NRO account statement
• Copy of your UK address/bank details
Honestly the biggest thing nobody tells you, just get a CA who actually specializes in NRI stuff. Because if you go with some random CA, the repatriation paperwork will become a nightmare and you’ll end up calling India at midnight trying to figure out why your own money is stuck.
If you’re an NRI planning to sell property in India, don’t skip these basics, they can save you a lot of headache from legal and banking issues
FEMA compliance: Every step must follow Foreign Exchange Management Act rules. Your bank will verify this before releasing funds.
PAN card is mandatory: If you don’t have one, apply immediately. Without PAN, TDS shoots up to 40%.
Society NOC: Mumbai housing societies can sometimes delay NOC issuance. Start this early.
Capital gains account scheme: If you want to claim Section 54 exemption but haven’t bought a new property yet before filing your ITR, park the capital gains in a Capital Gains Account Scheme (CGAS) with a scheduled bank. This preserves your exemption while you search for a property.
UK tax implications: As a UK tax resident, you must declare this Indian property sale income to HMRC. However, under the India-UK Double Taxation Avoidance Agreement (DTAA), tax already paid in India is creditable against your UK tax liability,so you won’t be taxed twice, but you must report it.
NRI, while selling their property in India, there are some main legal ways to cut down capital gains tax are
1.Section 54 - You can reinvest capital gains from sale of a residential property into another property in India within 2 years (purchase) or 3 years (construction).
2.Section 54F - Invest long term capital gains in long term specified assets within six months of the sale upto an amount of Rs.50 lakhs subject to conditions specified therein.