NRIs can repatriate the sale proceeds of Indian property, but how much and how quickly depends on how you acquired it. If you paid in foreign exchange, you can generally repatriate up to the amount you paid, for up to two residential properties. Everything else, including gains and property bought while resident or inherited, goes through your NRO account within USD 1 million per financial year, after tax and a chartered accountant’s certificate where required.
Key takeaways
- Property bought with foreign exchange or NRE/FCNR(B) funds: repatriation up to the amount paid, limited to two residential properties.
- Gains above that, and proceeds from property bought as a resident, inherited or gifted, go through NRO within USD 1 million per financial year.
- Tax must be paid first; the buyer’s TDS is usually the main payment.
- From 1 April 2026, Forms 15CA and 15CB are replaced by Forms 145 and 146 under the Income-tax Act, 2025.
- Keep purchase remittance records; without them, repatriation is harder.
The two repatriation routes
| How you acquired the property | Route | Limit |
|---|---|---|
| Bought as an NRI with inward remittance or NRE/FCNR(B) funds | Purchase-cost route | Up to the amount paid in foreign exchange; residential: not more than two properties |
| Gain over the purchase cost on the above | NRO route | Within USD 1 million per financial year |
| Bought with NRO funds or while resident in India | NRO route | Within USD 1 million per financial year |
| Inherited or received as gift | NRO route | Within USD 1 million per financial year, with documents proving inheritance or gift |
The USD 1 million figure is an overall annual limit for remittances from your NRO balances, not just property money. Amounts above it need RBI approval. Home loan repayments made from NRE or FCNR(B) accounts, or by remittance from abroad, generally count as foreign exchange paid for the property. Our guide to NRE, NRO and FCNR payments explains why this matters.
Step 1: settle the tax
When an NRI sells, the buyer must deduct TDS on the payment, and for non-residents there is no ₹50 lakh threshold. From 23 July 2024, long-term capital gains on property (held for more than 24 months) are taxed at 12.5% without indexation, plus surcharge and cess. For non-residents, TDS is deducted on the sale consideration unless you have a lower deduction certificate. Read our detailed guide on TDS and the lower deduction certificate.
After the sale, file your Indian income tax return. If the TDS was more than your actual tax, the return is how you claim the refund. If you plan to claim exemptions for reinvesting in another house or in specified bonds (the familiar sections 54 and 54EC, renumbered under the new Act), discuss the timing with your CA before you remit money out.
Step 2: move the money into the right account
Ask the buyer to pay into your NRO account; that is where sale proceeds of property in India are normally credited. Transfers to NRE are treated like a remittance abroad, with the same limits and forms. For the purchase-cost route, your bank may allow a direct remittance once it has verified the original foreign exchange payment.
Step 3: the paperwork your bank will ask for
- Sale deed and original purchase deed (or inheritance documents such as a will, legal heir certificate or succession certificate)
- Proof of the original payment in foreign exchange: remittance advices, NRE/FCNR statements or bank certificates
- TDS certificate and challan details, and your latest tax return where available
- Form 145 (earlier Form 15CA), filed online on the income tax portal
- Form 146 (earlier Form 15CB), a chartered accountant’s certificate, needed when the taxable remittance exceeds ₹5 lakh and you are not relying on a certificate from the tax officer
- The bank’s own remittance application and your undertaking under FEMA
The Income Tax Department’s FAQs confirm that Form 145 replaced Form 15CA under the Income-tax Rules, 2026, linked to sections including 393 and 395 of the Income-tax Act, 2025.
A worked illustration
Suppose you bought a flat in Coimbatore in 2016 for ₹60 lakh, paid entirely from your NRE account, and sell it in 2026 for ₹95 lakh. After TDS and tax are settled, the ₹60 lakh purchase cost can generally be repatriated as foreign exchange paid. The balance, net of tax, sits in NRO and can be remitted within the annual USD 1 million limit. The figures are only an example; your actual tax will depend on costs, improvements and any exemptions.
Practical tips
- Find your old records early. Banks can issue certificates for past NRE debits, but it can take time for older accounts.
- Plan the timing. If you are selling more than one property, spread remittances across financial years if needed to stay within the annual limit.
- Watch home-country tax. The country you live in may also tax the gain; tax treaty relief usually needs the Indian tax paid and documented.
- Use a local team. Selling from abroad is easier with a registered power of attorney and someone on the ground to handle the buyer and the sub-registrar.
Frequently asked questions
How much sale money can an NRI send abroad in a year?
Up to USD 1 million per financial year from NRO balances, which includes property sale proceeds. Separately, property bought with foreign exchange can be repatriated up to the amount paid, for up to two residential properties.
Can I repatriate proceeds from property I bought before becoming an NRI?
Yes, through your NRO account within the USD 1 million per financial year limit, after paying tax and completing the forms.
What replaced Form 15CA and 15CB?
From 1 April 2026, under the Income-tax Act, 2025, Form 145 replaced Form 15CA and Form 146 replaced Form 15CB.
Can I repatriate money from an inherited property?
Yes, within USD 1 million per financial year, with documents showing the inheritance and that tax has been paid.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- Ministry of External Affairs: Acquisition and transfer of immovable property in India (FEMA summary)
- ICICI Bank: NRIs selling real estate in India, repatriation rules
- Income Tax Department: Form 145 (earlier Form 15CA) FAQs
- TDSMAN: TDS on payments to non-residents, section 393(2) (old section 195)
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