Buying, selling and inheriting property in India while living abroad.
A flat in Bangalore bought before moving abroad, a family house in Chennai inherited from parents, a sale to a buyer who wants to know how much tax to deduct: each raises questions of tax, title and the movement of money.
A property transaction involving an NRI rarely turns on a single rule. When an NRI sells a flat in India, the buyer is generally required to deduct tax at source, the seller has a capital gains position of their own, and taking the proceeds abroad follows separate FEMA and banking conditions.
Inheritance adds a further layer. Before tax or repatriation can be considered, succession law decides to whom the property belongs, and a nominee is not automatically the person who inherits.
The tax deducted on a sale is also not necessarily the seller’s final tax. Where the deduction would exceed the tax actually due, the seller can apply for a lower or nil deduction certificate, which needs to be in place before the payment or credit on which tax is deducted.
Where to begin
- Selling property in India as an NRI
- Buying property from an NRI seller
- A lower TDS certificate on an NRI property sale
- Selling inherited property
- Paying for property held in a family member’s name
- Nominee or legal heir
Where you or an heir live abroad, the tax and legal position in that country should be reviewed by an appropriately qualified professional there.
All guides in this section
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Does a Nominee Become the Owner of Indian Bank Deposits, Demat Holdings or Life Insurance Proceeds?
Being named as a nominee does not always make someone the owner. Indian bank deposits, demat securities and life insurance follow different legal rules.
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If an NRI Pays for Property Registered in a Family Member’s Name, Who Owns It?
An NRI may pay for an Indian property without becoming its owner. The legal position turns on the registered documents, original funding arrangement and applicable property, benami, FEMA and tax…
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What Happens When an NRI Inherits Indian Property and Later Sells It?
An NRI who inherits Indian property must distinguish ownership, capital gains, buyer withholding and repatriation. The previous owner’s records and the applicable legal period can change the answer.
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How Can an NRI Get a Lower TDS Certificate When Selling Property in India?
A lower TDS certificate can address excess withholding on an NRI property sale. Form 128, the buyer’s determination and the reporting form serve different purposes.
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Buying Property from an NRI Seller: What TDS and Filing Rules Apply?
Buying from a non-resident seller changes the withholding rules. Here is what Indian property buyers need to know about TDS, certificates, reporting and the 1 October 2026 procedural change.
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Selling Property in India as an NRI: How Do Tax, TDS and Repatriation Work?
An Indian property sale can produce three different legal amounts: the taxable capital gain, the buyer’s TDS and the proceeds eligible for repatriation. Learn what determines each one.