Repatriation Rules for NRI Property Sales in India

Repatriation is where NRI property transactions most often go wrong, and almost always for the same reason: the paper trail showing how the purchase was funded no longer exists.

This is what the rules actually say and what to keep.

The two-property rule

Under FEMA, an NRI may repatriate the sale proceeds of up to two residential properties, subject to two conditions. The property must have been acquired in accordance with the foreign exchange law in force at the time, and the amount repatriated must not exceed the foreign exchange originally remitted for the purchase.

The second condition is the one that matters. If you funded a purchase from an NRE account with money remitted from abroad, you can repatriate up to that amount. If you funded it from an NRO account holding rental income earned in India, that portion falls outside the two-property route.

There is no restriction on the number of commercial properties for repatriation of the original investment, but the same funding-trail logic applies.

The one-million-dollar NRO route

Anything beyond the two-property route - including gains, and including proceeds sitting in an NRO account - can be remitted under the general limit of one million US dollars per financial year.

This requires Form 15CA filed by the remitter and Form 15CB, a certificate from a chartered accountant confirming that applicable taxes have been paid or provided for. Banks will not process the remittance without both.

The limit is per financial year and per person, so a jointly held property can effectively double the annual capacity if both holders are eligible.

Section 195: the buyer withholds tax

When an NRI sells property in India, the buyer must deduct tax at source under section 195 on the entire sale consideration, not merely on the capital gain. At long-term rates plus surcharge and cess this can be a very large sum locked with the tax department until your return is assessed.

The standard remedy is to apply to the jurisdictional assessing officer for a lower or nil deduction certificate under section 197, computing the actual gain and the tax due on it. This is routine but takes four to six weeks, so start before you have a buyer rather than after.

Buyers should note the mirror obligation: if you are purchasing from an NRI seller and you deduct only the 1% applicable to resident sellers under section 194-IA, you become liable for the shortfall. Verify the seller residency status in writing before closing.

Capital gains and the exemption routes

Property held more than 24 months attracts long-term capital gains tax. Holdings under 24 months are taxed at slab rates as short-term gains.

Two exemption routes are available to NRIs. Section 54 exempts gains reinvested in another residential property in India within the prescribed window. Section 54EC exempts gains invested in specified bonds up to Rs 50 lakh within six months.

Both require careful timing, and the capital gains account scheme exists for cases where the reinvestment will happen after the return filing date. Take advice specific to your case - the general rules are simple but the timing rules are not.

What to keep, permanently

• Every foreign inward remittance certificate for money sent for the purchase.
• Bank statements for the NRE or NRO account showing the outflows to the developer.
• The complete payment receipt chain from the developer, in order.
• The registered sale deed and the allotment letter.
• Form 26AS and TDS certificates for every year the property generated income.
• Any section 197 certificate obtained, and the assessment order following the sale.

A note on timing

The sequence that works is: apply for the section 197 certificate, agree the sale, execute and register, receive proceeds into the NRO account, obtain Form 15CB from a chartered accountant, file Form 15CA, and instruct the bank.

The sequence that fails is doing all of that after the buyer has already deducted tax at the full rate, at which point you are waiting for a refund on assessment rather than avoiding the deduction in the first place.

Projects referenced above, with the numbers that decide between them

Each of these is on our desk today, with a live RERA registration and a price dated within the last month.

DLF Privana South - DLF, Sector 113. ₹6.9 Cr to ₹12 Cr, possession June 2029. 25 acres, 1,113 units, 78% open. Aravalli ridge views from rear stacks, unobstructed and unbuildable. The trade-off: among the highest per-sq.ft. rates on Dwarka Expressway, with limited negotiating room.

DLF The Dahlias Penthouse Collection sits in Golf Course Road from DLF, quoted at price on request with possession in December 2027. On 17 acres it carries 420 units at 82% open area. Its strongest card is that dedicated penthouse lift core with no lower-floor stops; its weakest is that price on request only, so comparison shopping is difficult without an advisor.

Smartworld One DXP (Smartworld, Sector 113) is quoted at ₹2.45 Cr to ₹4.35 Cr for a March 2028 handover, across 596 units on 9.8 acres with 74% left open. Worth knowing: Rs 13,200-15,800 per sq.ft. against Rs 18,600-plus for the neighbouring DLF product. Less good: smartworld has the shortest delivery record of any developer in this list.

Smartworld Sky Arc - Smartworld, Sector 79. ₹1.35 Cr to ₹2.15 Cr, possession September 2026. 7.4 acres, 468 units, 71% open. Under Rs 1.4 crore entry price with a listed-corridor developer. The trade-off: kherki Daula toll makes the Cyber City commute genuinely slow in the morning.

Krisumi Waterfall Residences sits in Dwarka Expressway from Krisumi, quoted at ₹1.85 Cr to ₹5.9 Cr with possession in Ready to move. On 12.6 acres it carries 433 units at 76% open area. Its strongest card is that ready to move with occupation certificate in hand and no GST payable; its weakest is that later phases are still under construction alongside occupied phase one.

Signature Global Twin Tower DXP (Signature Global, Dwarka Expressway) is quoted at ₹2.55 Cr to ₹4.6 Cr for a March 2030 handover, across 528 units on 10.4 acres with 79% left open. Worth knowing: Only two towers on 10.4 acres, giving genuine open space between buildings. Less good: possession is five years out - the longest lock-in in this list.

Sobha Altus - Sobha, Dwarka Expressway. ₹4.55 Cr to ₹8.2 Cr, possession March 2029. 11.2 acres, 604 units, 77% open. Backward-integrated construction with in-house glazing, joinery and concrete. The trade-off: priced above corridor peers at Rs 16,400-19,800 per sq.ft.

Emaar Urban Ascent sits in Dwarka Expressway from Emaar India, quoted at ₹2.25 Cr to ₹3.95 Cr with possession in September 2029. On 8.6 acres it carries 462 units at 73% open area. Its strongest card is that occupation certificate obtained before possession letters are released; its weakest is that pre-2016 Emaar India legacy issues still colour the brand for some buyers.