What NRIs Pay When Selling Property in India
This NRI capital gains tax guide covers what changed under the Finance Act 2024 — a lot of guidance still floating around online reflects the old rates. This guide covers what actually applies today — the current long-term capital gains rate, how short-term gains are taxed, and what you can legally repatriate once the sale closes.
None of this replaces a CA who specialises in NRI taxation — but it will tell you what questions to ask before you sell.
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12.5%
Flat LTCG rate under the Finance Act 2024
NRI Capital Gains Tax Guide: LTCG vs STCG — What Changed in 2024
Which one applies depends entirely on how long you've held the property before selling.
Long-Term (held 2+ years)
For property sold on or after 23 July 2024: a flat 12.5% with no indexation benefit — replacing the earlier 20%-with-indexation rule.
Short-Term (held under 2 years)
Added to your total taxable income in India and taxed at your applicable income tax slab rate — up to 30%.
Repatriating Your Sale Proceeds
Once the sale closes, how much you can move abroad — and how — depends on how the property was originally funded.
- Up to USD 1 million per financial year (April–March) can be repatriated from your NRO account, after applicable tax
- Sale proceeds from up to 2 residential properties in your lifetime are repatriable this way — a 3rd property needs specific RBI approval
- If the property was originally bought using NRE or FCNR funds, or direct foreign remittance, the full sale proceeds can be repatriated
- The buyer deducts TDS at the time of payment, before the balance reaches your account
Reinvest your long-term capital gain into another residential property in India within 2 years of sale (or 3 years if under construction), and hold the new property for at least 3 years, to claim exemption from LTCG tax on the reinvested amount.
The Bottom Line
Tax treatment depends on your specific holding period, funding source and residency status — this guide covers the general framework, but always confirm your exact numbers with a CA who specialises in NRI taxation before you sell.
If you're also financing your next purchase, our NRI home loan guide covers how NRE/NRO accounts work on the buying side.
Frequently Asked Questions
Do NRIs pay TDS when selling property?
Yes — the buyer deducts TDS before paying you, at a rate specific to your transaction. Confirm the exact figure for your sale with us and your tax advisor before you finalise a deal.
Can I avoid capital gains tax entirely?
Not entirely, but you can reduce or eliminate it through reinvestment exemptions like Section 54 (reinvesting in another residential property) or Section 54EC (investing gains in specified capital gains bonds).
How much can I repatriate at once?
Up to USD 1 million per financial year from your NRO account, or the full amount if the property was funded via NRE/FCNR. Before you sell, it's worth confirming the project was RERA-registered — see our RERA guide for NRI buyers.
Get the Numbers Right Before You Sell
We coordinate with tax advisors who specialise in NRI transactions, so your sale, TDS and repatriation are handled correctly the first time.
Buying instead? Browse verified listings on Asraa Realty's NRI page or reach us through our contact page.
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