NRI property repatriation and tax basics

This is general information based on the RBI FAQ on immovable property, updated April 2023, and on reports of 2026 tax changes. We do not cite section numbers, because India’s Income-tax Act 2025 took effect in April 2026 and renumbered them. Confirm everything with your CA and your bank before you act.

Can an NRI send property sale money out of India?

Yes, under RBI rules, if you meet the conditions. The source of the purchase money decides which route applies.

The property must have been acquired in line with the foreign exchange rules, and these conditions do not apply in the same way to agricultural land, farmhouses and plantations. Ask your bank how a home loan affects the amount, because part of a loan repaid from NRO may be treated differently from the part repaid from abroad.

What is the USD 1 million limit?

It is an RBI limit that allows up to USD 1 million per financial year, April to March, to be remitted from NRO balances and the sale of assets. It covers all such remittances in that year, not only property.

A remittance above this needs RBI approval, applied for through your authorised dealer bank. Sources differ on some details of the two-property limit, including whether it is counted across a lifetime, so get your bank’s reading in writing if you hold several properties.

How is the money moved, step by step?

Your bank and CA do most of this. It helps to know the order.

1. The buyer deducts TDS and pays you the balance, into your NRO account as a rule.
2. You complete your tax position with your CA.
3. A CA issues a certificate and the remittance is reported online. These were long known as Forms 15CA and 15CB, and secondary sources say they are now Forms 145 and 146 under the Income-tax Rules 2026. Ask your CA which forms apply.
4. Your bank checks the papers, and sends the money abroad.

Keep your purchase records from day one: the sale deed, remittance advices, bank certificates and receipts. Banks ask for proof of how the property was paid for, and it can be hard to find decades later. That is why how you pay when you buy matters.

How is an NRI taxed on a property sale?

Gains on property in India are taxable in India. Property held for more than 24 months is generally long term, and the rate widely reported for NRIs is 12.5% without indexation, plus any surcharge and cess. A shorter holding is taxed at your income tax slab rate.

• Reinvestment reliefs. NRIs can generally use the same capital gains reliefs as residents for buying another home or certain bonds, under conditions. Ask your CA.
• Tax treaties. The country where you live may also tax the gain. Your CA can look at the treaty and at foreign tax credits.

How much TDS does a buyer deduct from an NRI seller?

A buyer from an NRI seller generally deducts TDS on the whole sale price, not only on the gain, at the rate for the gain plus surcharge and cess. That can block far more money than the tax you actually owe.

You can apply to the tax department for a lower or nil deduction certificate before the sale, and it is worth starting early. Otherwise, you claim the excess as a refund after filing a return. From 1 October 2026, reports say resident individuals buying from an NRI can deposit the TDS using their PAN, without needing a TAN. The duty to deduct is unchanged.

How is rent from Lucknow property treated?

Rent is taxable in India, and it normally goes into an NRO account. A tenant paying an NRI landlord generally has to deduct tax at a higher rate than for a resident landlord, on the full rent. Your tenant may not know this, so raise it at the start.

You may need to file a return in India, including to claim back excess deduction. Ask your bank how the net rent can be remitted abroad. Our guide on rental income covers the rest of the sum.

What should you do before buying or selling?

Plan the exit before you buy, since the payment route you choose today sets your options years from now.

• Decide whether you may want the money back abroad, and pay from a suitable account.
• Keep a folder of remittance proofs, certificates and the sale deed.
• Before selling, speak to a CA at least a few months early, and apply for any lower-deduction certificate.
• If you are holding several homes, ask your bank how they count.

Lalit works on the property side and does not give tax advice. For a purchase or a resale in Lucknow, your CA and Lalit can work from the same set of documents. If someone else will sign for you, see our note on powers of attorney.