An NRI can legally sell property in India, but the process depends on the type of property and the NRI’s residential status. The sale should be properly documented and carried out through authorised banking and tax channels.
The NRI should first verify the property documents, ownership records, and any outstanding loans or dues. A valid sale agreement and registered sale deed are generally required. If the NRI cannot be physically present in India, they may execute a properly drafted and authorised Power of Attorney in favour of a trusted person to complete the transaction on their behalf.
The buyer generally pays the sale consideration through permitted banking channels rather than informal cash transactions. Tax compliance is also important. Tax may be deducted from the sale consideration as required under Indian tax laws, and the NRI may have capital-gains tax obligations depending on the property and period of ownership.
After the sale, the NRI can repatriate the eligible sale proceeds through an authorised dealer bank, subject to applicable FEMA rules, tax compliance, documentation, and prescribed limits or conditions. It is advisable to obtain a tax calculation and have the transaction reviewed by a property lawyer or tax professional before completing the sale.
