An NRI’s Guide to Selling a Flat in India
Selling a Flat in India while living in the US is possible, but one needs to do it properly to avoid legal and tax issues.Let’s make this easy to understand.
Step 1: Power Of Attorney
Give a limited Power of Attorney (POA) to a trusted person in India.The POA
should be signed in the US, notarised, and either attested at the Indian Consulate or apostilled (India accepts apostille under the Hague Convention), and strictly limited to selling the apartment.After the POA reaches India, one has to get it stamped (stamp duty) and sometimes registered locally before the Sub-Registrar will accept it for executing the sale deed. This varies by state,so treat it as a local SRO compliance step.
Step 2: Bank Only Payments
Clearly state that only bank transfers are allowed and no cash will be accepted.
It’s better to deal with salaried buyers or buyers taking a home loan, as payments
are properly recorded.Also, mention in the agreement that the full amount must be paid through the bank.If anyone asks for a cash payment, don’t go ahead with the deal.
Step 3: Register Properly
If you bought an under-construction property and registration is still not done,
Don’t sell before registering.Ownership legally transfers only after registration—selling earlier can create legal and tax issues.
Step 4: Hire a Lawyer & CA
Get a lawyer for the POA and sale execution, and a CA will guide you on tax, TDS, and compliance.
Step 5: TDS + TAX
Since you are an NRI:
Buyer must deduct higher TDS, not the usual 1%.
Long-term capital gains (held 24 months):
Generally 12.5% + surcharge + cess.
Short-term gains (held ≤ 24 months):
→ Taxed at normal slab rates
(up to 30% + surcharge + cess).
TDS is deducted before payment to you.Later, you can file an Indian ITR and
claim a refund if excess TDS was deducted.
Step 6 : Taking money back to the US
Money comes to your NRO account. (Non-Resident Ordinary account).
You can legally transfer up to USD 1 million per year with proper documents.
Conclusion:
Selling an apartment in India while living in the US is completely doable if you
follow the right legal, banking, and tax process.Use a limited POA, accept only
bank payments, follow NRI tax rules, and take help from a lawyer and CA to avoid future trouble.
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