The Repatriation Overview
When an NRI sells property in India, the sequence is: TDS deducted by buyer → proceeds in NRO account → tax filing → repatriation via Form 15CA/15CB → money reaches overseas account.
Getting this sequence wrong can mean: double taxation, repatriation refused by the bank, or IT scrutiny.
Step 1: Ensure Correct TDS by Buyer
The Indian buyer must deduct TDS before paying you. If buyer is Indian resident: TDS at 1% of property value (Sec 194IA) if value above ₹50 lakhs. If buyer is NRI: different rules apply.
For NRI seller: TDS by buyer (whether resident or NRI) must be at 20%+ LTCG rate if property held 2+ years, or at 30% slab rate if held under 2 years, UNLESS you obtain a lower deduction certificate (Form 13) from IT Department. This is critical — without Form 13, you may overpay TDS.
Step 2: Park Proceeds in NRO Account
All Indian property sale proceeds must initially land in an NRO account. Your buyer will transfer the net amount (after TDS) to your NRO account. The NRO receives the funds; repatriation from NRO follows.
Step 3: File Indian ITR
File Indian ITR for the year of sale, declaring the capital gain (LTCG/STCG). Claim deductions under Section 54 (reinvest in another house), 54EC (invest in capital gains bonds — max ₹50 lakhs), or 54F (invest in new house). These can eliminate or significantly reduce your tax liability. Claim refund if TDS exceeds actual tax due.
Step 4: Obtain CA Certificate (Form 15CB)
A Chartered Accountant certifies: the tax has been computed correctly, FEMA conditions are met, source of funds is legitimate. This is the CA's declaration in Form 15CB.
Step 5: File Form 15CA Online
After CA sign-off, file Form 15CA on the IT portal. This is the IT Department's prior approval for the repatriation.
Step 6: Approach Your Bank
Submit Form 15CA, Form 15CB, ITR acknowledgement (if filed), and bank's own repatriation request form. Banks may also ask for sale deed and property-related documents. Annual repatriation limit: USD 1 million per financial year from NRO account.
Timeline
This process typically takes 4–8 weeks. Start immediately after the sale, not months later. Get your Indian CA involved at the TDS stage — not after the buyer pays.