How can I sell my property in India while living in the US?

Asked by: Oda Lakin DDS  |  Last update: November 10, 2023
Score: 5/5 (28 votes)

The list of documents required by an NRI to sell off the property is as follows:
  • Passport as an Id proof.
  • PAN Card to apply for tax exemption certificate after the sale of the property.
  • Tax returns, if the property yields earnings.
  • Address proof of India and abroad.
  • A sale deed as proof of ownership.

How I can sell my property in India while I am in USA?

If you are a Non-Resident Indian, you can sell the property to a Resident Indian without restrictions. If the buyer is a Non-Resident Indian or a Person of Indian Origin (POI), you may need the approval of the Reserve Bank of India (RBI). You are not allowed to sell the property to a foreigner.

Can you sell property in India and bring money to USA?

Prior to transferring funds from India to the US you'll need to complete Form 15CB, and your bank will ask you to provide proof of the source of the money, such as a copy of the property sale agreement.

Is property sold in India taxable in USA?

India and the US have a double taxation treaty in place. That means you shouldn't need to pay the same taxes twice when you sell your property in India. However, you'll likely still need to report the sale of your property to the IRS even if no tax is due.

Can you sell a property in India without being present?

1.Do a comprehensive evaluation of the property to find its market value or simply hire a broker or brokerage firm to do the same for you. 2. If one isn't physically available, a trustworthy person can be granted the Power of Attorney to carry out the sale, provided that all the necessary paperwork is there.

NRIs Selling Property In India - All that you need to know - By D B Mehta

20 related questions found

Can OCI card holders sell property in India?

Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions. As per FEMA, RBI frames the Directions / Regulations concerning the Acquisition and Transfer of immovable property in India.

Can an NRI sell property in India without visiting India?

Digital India has indeed made our lives easy and this is one of such examples. An NRI can sell property anytime but he or she will need some documents like: Title of the property (which is in the seller's name) Occupation Certificate from the municipal corporation in India.

Can US citizens own property in India?

If you're a US citizen and hold an OCI (Overseas Citizen of India) card, you'll be able to buy most types of property in India even if you're not living there. Key exceptions include agricultural land and properties, and plantations, which can't be bought by non-residents.

Do I have to pay tax if I sell my house in India?

But there is something which needs your attention, selling off property is liable for tax payment in India. The tax is paid on the sale of all property types except agricultural land. The property seller has to pay two types of taxes while receiving any income from the sale of immovable property.

How do I transfer inheritance from India to USA?

You need to write the inheritance to the IRS and submit Form 3520, with your annual tax return details. According to U.S. regulations, if you are gaining or making a profit from the inherited property, including capital gains, dividends, or interests, you will need to pay tax on such inherited income.

How to get power of attorney to sell property in India from USA?

You will have to make a power of attorney in favor of a trusted individual who can do the sale on your behalf. To execute a valid POA, the document must be notarized by a local Notary Public, legalized by the relevant Indian Embassy/Consulate, and then registered in India with the local land registration authorities.

How much cash can carry to India from USA a US citizen?

There's no limit, however, to how much foreign currency you can bring into India. Although, you will have to declare it if the amount exceeds US$5,000 in notes and coins, or US$10,000 in notes, coins, and traveller's cheques².

How much money can I transfer from India to USA without taxes?

No, the money transferred to US from India is not taxable. But, if it exceeds US $100,000 for any current year, you must report it to the IRS by filing Form 3520. This is just an informational form with no taxes payable.

When an NRI sells property in India?

An NRI selling a property in India will have to pay tax on capital gains. On long-term capital gains, 20% tax is paid; on short-term capital gains, income tax is levied as per income tax slabs.

What are the tax rules for NRI selling property in India?

When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable. NRIs can claim exemptions under Section 54, Section 54 EC, and Section 54F on long-term capital gains.

How to avoid capital gains tax when selling a house in India?

To minimise capital gains tax on propery the tax-payer can either reinvest the proceeds in another property sale or invest them in Capital Gains Bond issued by the National Highway Authority of India and the Rural Electrification Corporation.

Can I sell my property for cash in India?

No real estate transaction is to take place if the cash amount exceeds Rs 20,000. As per Section 269SS of the Income Tax Act, the seller will be held guilty of taking payment of over Rs 20,000 in cash and must be prepared to pay a 100% penalty fee for it.

Do senior citizens have to pay capital gains tax in India?

Residential Indians of 80 years of age or above will be exempted if their Annual Income is below Rs. 5,00,000. Residential Indians between 60 to 80 years of age will be exempted from long-term capital gains tax in 2021 if they earn Rs. 3,00,000 per annum.

How much tax do I pay on property gains in India?

Tax: Long-term capital gains on sale of house property are taxed at 20%. For a net capital gain of Rs 63, 00,000, the total tax outgo will be Rs.12,97,800. This is a significant amount of money to be paid out in taxes.

Can a foreign citizen sell his property in India?

As per the 1973 Act, any person who is not a citizen of India or any company which is not incorporated in the country is required to get permission from RBI to acquire, hold, transfer or dispose an immovable property in the country.”

Can I register property in India from USA?

NRIs can register property from abroad, as long as they carry out all of their transactions in Indian rupee through local banks.

Can US green card holders own property in India?

Can a green card holder buy property in India? Do you have the same question? Then the answer is 'yes'. A green card holder can invest in an Indian property as per the Foreign Exchange and Management Act (FEMA) provisions.

What documents are required for US citizen to sell property in India?

Documents Required for NRI to Sell Property in India
  • Identity Proof: Passport, OCI card if applicable.
  • Address Proof.
  • PAN Card.
  • Title Deed (in the seller's name)
  • Older Title Deeds (if any)
  • Updated Encumbrance Certificate.
  • Mutation Extracts (also known as Khata, Pokkuvaravu etc.)
  • Tax Receipts (building tax & land tax)

Can NRI inherit property in India?

An NRI can inherit any immovable property in India, be it residential, commercial, agricultural, or a farmhouse (which they are otherwise not entitled to purchase). An NRI is also free to inherit property from another NRI or ROI (Resident of India).

Can I sell my property in India and bring money to Canada?

NRI selling property in India will have to pay capital gain tax in India. Further, he/she can claim exemption from capital gains by investing in any other asset in India for claiming exemption u/s 54 and 54F etc. NRIs can sell property in India and can legally repatriate the money to Canada.