Selling an Indian property as an NRI and repatriating the proceeds abroad involves FEMA regulations that most advisors get wrong. Here's the accurate, step-by-step process.
The FEMA Framework
Under FEMA (Foreign Exchange Management Act), an NRI can repatriate proceeds from the sale of Indian immovable property — but with important restrictions.
Key Rules
- Residential properties: Repatriation limited to 2 properties during NRI's lifetime
- Maximum per fiscal year: USD 1 million (≈ ₹8.3 Cr) per NRI
- TDS: Buyer must deduct TDS at 20% for long-term (>2 years) or 30% for short-term capital gains
The Step-by-Step Process
- Open NRO account (if not already active)
- Receive sale proceeds in NRO account
- Obtain CA Certificate (Form 15CA/15CB)
- Apply to AD Category-1 Bank for repatriation
- Transfer to NRE or overseas account
- File Indian ITR declaring capital gains
Common Mistakes
- Receiving proceeds in resident accounts instead of NRO
- Missing TDS deduction (seller liability)
- Incorrect DTAA application (India-UAE or India-UK treaty)
TSS Global's NRI team handles this end-to-end. We have processed 150+ FEMA-compliant repatriation transactions.