The NRI's Guide to Selling Property in India

The complete guide for Indians living abroad who are selling property back home.

You can do nearly all of it remotely

The valuation, the inspection and most of the paperwork can be handled without you flying back. The one thing that usually needs a physical presence is signing at registration, and that is what a power of attorney is for.

The five steps

1. Establish what it is worth and what it costGet the valuation done early, before the sale is agreed if possible. If the property was bought before April 2001, this is where the tax saving comes from.
2. Deal with the tax deduction before you sellThe buyer must deduct tax from your payment, usually far more than you owe. Apply in advance for a lower deduction certificate. This is the single most important thing on this page.
3. Sort out the paperworkTitle, mutation if inherited, and a power of attorney if you will not be present.
4. Complete the saleYour representative signs, registration happens, the buyer pays after deducting tax.
5. File and claim back any excessFile an Indian return showing the real gain and reclaim whatever was over deducted.

Getting money out of India

Sale proceeds can generally be remitted abroad, within annual limits and subject to your bank's documentation, which usually includes a chartered accountant's certificate confirming taxes have been dealt with. Your bank and accountant handle this. Ask them early rather than after the sale, because it takes paperwork.

The mistakes that cost the most

• Selling first, asking questions later. Once tax has been deducted and paid over, the only route is a refund, which takes months.
• Not getting the 2001 valuation. For older properties this is usually the largest single saving available.
• Assuming no tax at home means no tax in India. Particularly common among families in the Gulf. Indian tax on Indian property applies regardless.
• Leaving the power of attorney too late. It has to be executed and often attested abroad, which takes time.