NRI Property FAQs: Tax, Inheritance & Repatriation

For a resident seller, the familiar property-sale withholding rule is generally 1% when the statutory ₹50 lakh threshold is met. Payments to a non-resident follow a different withholding framework, and that resident threshold does not apply in the same way.

For long-term gains on transfers on or after 23 July 2024, the base rate is 12.5%, plus applicable surcharge and cess. Short-term treatment differs. The exact tax depends on the holding period, acquisition cost, available exemptions, transaction documents, and the seller's circumstances.

A practical cash-flow issue is that, without an order or certificate determining a lower amount or rate, a buyer may withhold conservatively on a larger base, potentially including the gross consideration. Any excess may later be claimed through the applicable tax-return and refund process, but the funds can remain blocked in the meantime.

Not necessarily. A will may be valid where it was made, but Indian buyers, banks, housing societies, and land-record authorities may require additional evidence before recognising title or allowing a sale.

The correct process can depend on the applicable succession law, where the will was executed, where the property is located, the wording of the will, whether a foreign probate or grant exists, and the relevant court's jurisdiction. For some wills connected with Mumbai property, specific Indian Succession Act provisions can make probate or another Indian proceeding relevant. A foreign grant does not automatically resolve every Indian title requirement.

Not always. Under the Reserve Bank of India's remittance-of-assets framework, eligible NRIs and PIOs may generally remit up to USD 1 million per financial year from NRO balances and specified sale or inherited asset proceeds, subject to documentary evidence, tax compliance, and checks by the authorised dealer bank. Amounts above the applicable facility may require RBI approval.

The correct route also depends on how the property was acquired and funded. Sale proceeds connected with foreign inward remittance, NRE funds, or FCNR funds can receive different treatment, while current income such as rent, interest, or dividends may follow a separate remittance route. It is therefore not accurate to assume that every source always consumes the same USD 1 million limit.

Banks may require Form 15CA and, in certain circumstances, Form 15CB. Form 15CB is not universally mandatory; the requirement depends on factors including tax chargeability, amount, and whether an assessing-officer order or certificate has been obtained.

Potentially, yes. A lower or nil deduction certificate allows the tax authority to specify the rate or amount the buyer should withhold based on the seller's projected taxable position.

Timing matters. The application must be made early enough for the certificate to be issued before the relevant payment or credit. Once tax has already been deducted and deposited, recovery generally moves to the applicable tax-return and refund process.

Under the Income-tax Rules, 2026, the current application is Form 128 under Section 395. It replaces former Form 13 under Section 197. A certificate is not automatic and does not guarantee a particular rate, amount, or processing time.