This is the highest-dollar repatriation most NRIs ever do. The path: buyer withholds TDS at sale → you receive net proceeds in NRO → CA calculates capital gains tax → file 15CA / 15CB → wire to overseas. Order matters: the tax bill is settled BEFORE you can wire.
The buyer's TDS — biggest shock
When an NRI sells Indian property, the buyer is legally required to deduct TDS at the time of payment — at rates higher than for resident sellers:
- Long-term capital gain (property held > 2 years): 20% TDS on the SALE VALUE (not gain) + applicable surcharge + 4% cess. Effective ~22.88% for sale value > ₹2 cr.
- Short-term (property held ≤ 2 years): 30% TDS on sale value at slab rates
- This is withheld via Form 26QB filed by the buyer within 30 days of sale
The 5-step path from sale to wire
Apply for Lower TDS Certificate (Form 13) — BEFORE you sign sale deed
Filed online at incometax.gov.in. Provide expected sale value, cost basis, holding period, expected LTCG. ITO issues certificate within 30 days. Without this, buyer withholds full 20%/30% on sale value.
Buyer withholds TDS, files Form 26QB, deposits with govt
Within 30 days of sale. You get TDS certificate (Form 16B). Net proceeds (sale value minus TDS) land in your NRO account.
Decide on Section 54 / 54EC reinvestment
Section 54: reinvest LTCG in another Indian residential property within 2 years (purchase) or 3 years (construction) — gain exempt up to ₹10 cr cap. Section 54EC: invest LTCG in NHAI / REC bonds within 6 months — up to ₹50 lakh exempt. Both reduce the tax bill after TDS is already withheld; you claim refund via ITR.
CA issues 15CB (tax-paid certificate)
CA reviews: TDS challan, sale deed, capital gains calculation, any Sec 54 / 54EC claims. Issues Form 15CB confirming taxes are settled on the repatriable amount. Typical CA fee for property repat: ₹10,000-25,000 (much higher than NRO basic because of complexity).
File 15CA + submit to bank → wire
Same flow as NRO basic. Bank reviews sale deed + TDS challan + 15CB + 15CA. Timeline: 10-20 working days for property repatriation (slower than basic NRO because of scrutiny). Wire goes out.
The $1M cap — and how property gets around it
The standard $1M/yr NRO repatriation cap applies, BUT property sale proceeds get a special accommodation:
- Sale of up to 2 residential properties in a lifetime — proceeds can be repatriated within the regular $1M/yr cap, no special permission
- Sale of additional properties or commercial property — same cap but RBI may scrutinize
- If sale proceeds exceed $1M, can split across financial years OR apply for RBI special permission
- Inherited property: repatriation needs the succession certificate too (see inheritance guide)
What it actually costs (₹2 cr sale, ₹50L gain example)
- Without Lower TDS Certificate: Buyer withholds 20% × ₹2 cr = ₹40L. Your actual LTCG tax = ₹10L. Refund of ₹30L takes 9-18 months.
- With Lower TDS Certificate (Form 13): Buyer withholds ~₹10-12L. Net proceeds ~₹1.88-1.90 cr available immediately.
- CA fee for 15CB + property repat package: ₹15,000-30,000
- Bank repat charges + SWIFT: ₹5,000-15,000 for a $200K wire
- FX spread: 0.5-1.5% of remitted amount