The Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), or Overseas Citizens of India (OCI) may want to sell their property if they do not have a plan to visit India or maintain the property in India.
Any property residential or commercial can be sold to a resident Indian whether purchased, inherited, or gifted. However, if the property is inherited from a Non-Resident special permission person is needed. The Non-Resident Indian (NRI) can buy residential or commercial property except agricultural land, plantation property, and farmhouse. This is because a non-resident can acquire agricultural land in India only through inheritance. The inherited agricultural land can only be sold/transferred to resident Indians.
The sale proceeds of the property are allowed to transfer abroad up to the amount of foreign exchange remitted by NRI to India to buy the said property through a formal banking channel or out of funds held in FCNR(B) or NRE account in the bank. Capital gains/profits from the sale of property are deposited in the NRO account and are repatriated subject to the condition of USD one million per financial year (April-March).
If the property was acquired from local resources or through inheritance, the sale proceeds of such property shall be first credited to the NRO account in a bank. (Read “How to open an NRO account”). Remittance from the balance available in an NRO account can be repatriated up to USD one million or equivalent in other foreign currency per financial year (April to March) after payment of relevant taxes (capital gain/TDS etc.). Repatriation (transfer of money abroad) is allowed only in case the property is held for 10 years. If not, the sale proceeds are held in the NRO account to complete 10 years.
Documents required: Certificate from Charted accountant: Form 15CB
Certificate from Income Tax department –Form 15 CA
Proof of inheritance in case of sale of inherited property Documentary proof of the sale of property
Application to the bank to convert Indian Rupees to a foreign currency-Form A2 KYC (identification proof) of NRI
For complete details read;
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