NRI selling Indian property, the full tax & repatriation stack.

Holding period: property held 24+ months is long-term; less is short-term. The relevant date is the date of acquisition (purchase deed / allotment letter / RERA registration), not possession.

Long-Term Capital Gain (LTCG) rate: post-July 2024, 12.5% without indexation. Pre-July 2024 purchases retain the option of 20% with indexation. The lower of the two is the taxable rate. For inherited property, the holding period and cost base roll back to the previous owner's acquisition.

Short-Term Capital Gain (STCG) rate: slab rate for the NRI — typically 30% + surcharge + cess for higher-income NRIs.

Fair Market Value (FMV): for properties acquired before 1 April 2001, FMV as on 1 April 2001 is the cost base (grandfathering).

Indexed cost of acquisition: cost × (CII of sale year / CII of acquisition year). CII for FY 2024-25 is 363; FY 2001-02 is 100.

Section 195 requires the buyer to deduct TDS on any payment to a non-resident. For NRI property sale, the applicable rate (post-July 2024) is 12.5% + surcharge + cess of the sale consideration (not the gain) unless an LDC (Lower Deduction Certificate) is obtained.

Surcharge rates for NRIs on LTCG above INR 50 lakh: 10% to 25% depending on income bracket.

Effective TDS rate on sale consideration above INR 1 crore (surcharge 15%): roughly 13.75% + 4% cess = ~14.3%. For sale consideration above INR 5 crore (surcharge 25%): ~15.625% + 4% cess = ~16.25%.

LDC (Lower Deduction Certificate): NRI files Form 13 with the Indian tax authority before the sale, requesting a lower TDS rate based on expected actual capital gains tax. The authority issues a certificate specifying the lower rate (e.g., 2-5% of consideration) — applied by the buyer at closing. Processing time: 30-45 days typically. Essential for high-value sales to avoid locking up large TDS amounts refundable only after ITR filing.

Section 54: LTCG on residential house property is exempt if reinvested in another residential property in India within 2 years (purchase) or 3 years (construction). Reinvestment cap effectively INR 10 crore post-2023. One residential property can be purchased; two are allowed where total LTCG is INR 2 crore or less (once-in-a-lifetime).

Section 54F: LTCG on any long-term capital asset (not just house) is exempt if the net consideration is reinvested in one residential house in India within 2 years. Exemption prorated if net consideration partially reinvested.

Section 54EC: LTCG on land or building reinvested in specified bonds (NHAI, REC, PFC, IRFC) within 6 months of sale is exempt. Cap: INR 50 lakh per financial year. Bonds carry 5.25% coupon, 5-year lock-in. Useful for NRIs who don't want to reinvest in physical property but want to defer gains.

Capital Gains Account Scheme (CGAS): if the reinvestment is not completed by the ITR filing due date, the LTCG amount is parked in a CGAS account at a public-sector bank. Reinvestment from CGAS within the specified timeline preserves the exemption; failure results in taxability of the un-reinvested amount in the year the timeline expires.

Post-sale, net proceeds credit to the NRI's NRO account. Repatriation out of India through NRO is capped at USD 1 million per financial year per account holder.

Required documentation:

• Form 15CA — self-declaration filed electronically on the Indian tax portal by the NRI, detailing the remittance and tax position.
• Form 15CB — CA certificate certifying the tax paid or treaty position; required for remittances exceeding INR 5 lakh.
• Sale deed, buyer's TDS certificate (Form 16A), capital gains computation, proof of tax paid, property documents (CA pack).

Where sale proceeds exceed USD 1 million: NRI can spread repatriation across multiple financial years (USD 1M year 1 + USD 1M year 2 + ...), or apply to RBI for approval of larger single-year repatriation. The USD 1M limit is per account holder — joint owners each have their own USD 1M.

Timing: Form 15CA / 15CB is generally filed in the same week as the actual bank remittance. Banks reject remittance requests without the Form 15CA acknowledgement attached.