NRI Selling Property in Punjab 2026: Tax, TDS & Repatriation

Selling from abroad adds a layer of tax and paperwork that resident sellers never face, and getting it wrong can freeze a large chunk of your money in India for months. For an NRI selling property in Punjab, three things have to be planned before you sign: the capital gains tax you owe, the TDS the buyer must deduct, and how you move the proceeds out of the country. This 2026 guide walks through all three in plain language so you keep control of your money and your timeline. (This is general information, not tax advice — confirm the specifics with a qualified chartered accountant.)

The three things an NRI selling property in Punjab must plan for

Resident sellers mostly worry about capital gains. An NRI has to manage capital gains tax, a much heavier TDS deduction at the time of sale, and the FEMA repatriation process to send the money abroad. Each has a fix, but they must be sequenced correctly — especially the TDS, which is where most NRIs are caught off guard.

Capital gains tax on the sale

If you have held the property for more than 24 months, the gain is long-term. Under the regime effective 23 July 2024, long-term capital gains are taxed at 12.5% without indexation for acquisitions on or after that date. Property bought before 23 July 2024 keeps a grandfathering option — the lower of 12.5% without indexation or 20% with indexation. Held for 24 months or less, the gain is short-term and taxed at your applicable slab. The mechanics are the same as for residents, which we cover in our capital gains tax on property guide; what differs for an NRI is how it is collected. Note too that the taxable sale value is benchmarked to the government collector rate, so it cannot be understated.

TDS — the cash-flow shock most NRIs miss

Here is the trap. When an NRI sells, the buyer is required to deduct TDS on the entire sale value — not just the profit — at the long-term rate (12.5%) plus applicable surcharge and cess, or at slab rates for a short-term sale. On a ₹2 crore property that can mean roughly ₹28–31 lakh withheld at source, even if your actual taxable gain is a fraction of that. You would only recover the excess later by filing a return. That is a huge amount of your own money locked up — which is exactly what the next step exists to prevent. (For the buyer’s side of this same deduction, see our guide to TDS on property purchase in Punjab.)

The Lower/Nil TDS certificate (Section 197)

Before the sale closes, an NRI seller can apply to the Income Tax Department for a Lower or Nil Deduction Certificate under Section 197 (using Form 13). Once granted, it directs the buyer to deduct TDS only on your actual capital gains rather than the gross sale value — often cutting the amount withheld dramatically. This single step is the difference between tens of lakhs sitting idle for a year and a clean, cash-efficient sale. Apply early, because processing takes time and the certificate must be in the buyer’s hands before they deduct.

How to repatriate the money abroad

Sale proceeds go into your NRO account first. To send them overseas, FEMA allows repatriation of up to USD 1 million per financial year, and you route it through your bank with two forms:

• Form 15CB — a certificate from a chartered accountant confirming the taxes have been handled.
• Form 15CA — your own declaration filed online, based on the 15CB.

With those in order, the authorised-dealer bank processes the remittance. Plan this before the sale so the money is not stuck in the NRO account longer than it needs to be.

Ways to reduce the tax legally

• Section 54 — reinvest the long-term gain from a residential house into another residential house in India.
• Section 54F — a similar exemption when you sell a non-residential asset and buy a house.
• Section 54EC — invest the gain (up to ₹50 lakh) in specified bonds within six months.

Selling remotely — you do not have to fly back

You can complete the whole sale from abroad through a properly executed and registered Power of Attorney appointing someone in India to sign and register on your behalf — the exact apostille and registration steps are in our NRI Power of Attorney guide for Punjab. Before you list, make sure the title is clean by pulling the records yourself, as explained in our guide on how to check Punjab land records online. If you are also still buying, see our NRI buying property in Tricity checklist.

The right sequence for an NRI selling property in Punjab

Order matters more than anything else. The clean sequence for an NRI selling property in Punjab is: confirm your holding period and likely capital gain; apply for the Section 197 lower-TDS certificate before you finalise the buyer; get your PAN, NRO account and (if selling remotely) registered Power of Attorney in place; complete registration; then arrange 15CB and 15CA for repatriation. NRIs who skip the lower-TDS step and only think about repatriation at the end are the ones who end up with a large sum frozen and a year-long wait for a refund. Start the certificate application first — everything else is faster once that is moving.

FAQ — NRI selling property in Punjab

How much TDS is deducted when an NRI sells property?

On a long-term sale, TDS is deducted on the full sale value at 12.5% plus surcharge and cess, unless you obtain a Lower/Nil TDS certificate under Section 197, which reduces it to your actual gains.

How much money can an NRI repatriate after selling?

Up to USD 1 million per financial year from the NRO account, using Form 15CA and a CA-certified Form 15CB.

Can an NRI sell property in Punjab without coming to India?

Yes — through a registered Power of Attorney authorising a trusted person in India to complete the sale and registration.

Can an NRI avoid capital gains tax on the sale?

You can reduce or defer it by reinvesting under Sections 54, 54F or 54EC. Speak to a CA to structure this correctly for your case.