NRI Selling Kolkata Flat & Repatriation of Sale Proceeds 2026
When you decide to sell your Kolkata 3 BHK as an NRI, there are specific rules governing TDS, capital gains tax, and how you can move the money abroad. Everything explained for 2026.
The NRI Sale Process: Overview
NRIs selling residential property in India face two key compliance requirements: (1) TDS (Tax Deducted at Source) deducted by the buyer from the sale proceeds; and (2) capital gains tax payable in India. After tax compliance, repatriation of remaining proceeds from NRO account to a foreign account is allowed under FEMA subject to annual limits.
TDS on NRI Property Sale
| Parameter | NRI Seller Rule |
|---|---|
| TDS Rate (LTCG >2 years) | 12.5% (post-July 2024 budget) on long-term capital gains |
| TDS Rate (STCG <2 years) | 30% on short-term capital gains |
| Who deducts TDS | The buyer (even if resident Indian) |
| TDS base | On sale consideration (not just gain) |
| Avoiding excess TDS | NRI can apply to AO for lower deduction certificate (Form 13) |
Capital Gains Tax on Kolkata Property Sale
| Holding Period | Classification | Tax Rate |
|---|---|---|
| Less than 24 months | Short-Term Capital Gain (STCG) | Taxed at income tax slab rate |
| 24 months or more | Long-Term Capital Gain (LTCG) | 12.5% (post July 2024, without indexation) |
Exemptions from Capital Gains
NRIs can claim capital gains exemptions under: Section 54 (reinvest in another residential property in India within 2 years of sale, or construct within 3 years); Section 54EC (invest LTCG up to ₹50 lakh in specified bonds within 6 months). These exemptions apply to NRIs as they do to residents.
Repatriation Rules After Sale
| Rule | Detail |
|---|---|
| Annual repatriation limit | USD 1 million per financial year from NRO account |
| Number of properties | Proceeds from up to 2 residential properties can be repatriated |
| Conditions | Property originally purchased from FEMA-permitted funds; tax paid in India |
| Documents needed | Form 15CA & 15CB (CA certificate); registered sale deed; ITR |
| Repatriation from | NRO account only (not NRE directly) |
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Frequently Asked Questions
How much TDS does a buyer deduct when buying a Kolkata flat from an NRI?
The buyer must deduct TDS at 12.5% for long-term capital gains (property held 2+ years) or 30% for short-term gains. This is deducted from the sale consideration paid to the NRI seller before transfer.
Can I repatriate the full sale proceeds of my Kolkata flat abroad?
You can repatriate up to USD 1 million per financial year from your NRO account, subject to tax compliance. Full repatriation of larger amounts may require multiple years or an RBI special approval.
What is Form 13 and how does it help NRIs selling property?
Form 13 is an application to the Income Tax Assessing Officer for a lower TDS deduction certificate. If the actual capital gain is much lower than the full sale price (e.g., due to acquisition cost), Form 13 ensures TDS is deducted only on the actual gain, rather than the full consideration.
What is long-term capital gains tax rate on property in India 2026?
Post the July 2024 Union Budget, LTCG on property is 12.5% without indexation benefit, or 20% with indexation (for properties purchased before July 23, 2024). For properties purchased after this date, 12.5% without indexation applies.
Is there double taxation if I pay capital gains tax in India as an NRI?
India has Double Tax Avoidance Agreements (DTAA) with most countries where large Bengali diaspora communities reside (US, UK, Canada, UAE, Singapore). Under DTAA, tax paid in India on property gains can typically be credited against tax liability in your country of residence. Consult a CA familiar with both Indian and your local tax laws.