NRI Selling Property in Tamil Nadu: POA, TDS and Repatriation

An NRI can sell property in Tamil Nadu without travelling, by giving a power of attorney to someone here. The POA is signed abroad before an Indian consulate or a notary with an apostille, stamped within three months of reaching India, and then used to sign and register the sale deed. The buyer must deduct tax at the capital-gains rate, not the 1% that applies to resident sellers.

Step by step

1. Check what you are selling. Collect the title deed, parent documents, latest EC and patta. A buyer’s lawyer will ask for all of them, and gaps found late are what delay most NRI sales.
2. Decide who signs. Either you sign on a visit, or a relative or advocate in Tamil Nadu signs as your power of attorney holder.
3. Sign the POA abroad. Section 33(1)(c) of the Registration Act, 1908 accepts a POA executed before and authenticated by a notary, a court, an Indian consul or a Central Government representative. In practice: sign at the Indian embassy or consulate, or before a local notary and then get it apostilled. India has been party to the Hague Apostille Convention since 2005.
4. Stamp it within three months. Under Section 18 of the Indian Stamp Act, 1899, an instrument signed outside India can be stamped within three months of first being received in India. Keep the courier receipt as proof of the arrival date.
5. Agree the deal and sign the sale deed. Your POA holder signs the sale deed and presents it before the Sub-Registrar. See sale deed registration in Tamil Nadu.
6. Tax deducted by the buyer. Because you are a non-resident, the buyer deducts tax at source at the rate for your capital gain, plus surcharge and cess, not the 1% used for resident sellers. If your actual gain is small, you can apply to the Income-tax Department for a lower or nil deduction certificate before the sale. The forms changed under the Income-tax Act, 2025, so have a chartered accountant confirm the current process.
7. Receive the money in your NRO account. Sale proceeds are normally credited to your NRO account in India.
8. Take the money abroad. See the repatriation rules below.

Source: Registration Act, 1908 s.33; Indian Stamp Act, 1899 s.18; MEA apostille page

Can you take the sale money out of India?

Yes, for property other than agricultural land, farmhouses and plantation property, if these conditions are met:

• You acquired the property lawfully under FEMA.
• You paid for it in foreign exchange through banking channels, or from NRE, FCNR(B) or NRO funds.
• For residential property, repatriation is limited to not more than two properties.

Where you inherited the property, repatriation of up to USD 1 million per financial year is allowed under the Remittance of Assets Regulations, 2016. Your bank will ask for the sale deed, proof of how you paid for the property and a tax certificate from your CA before it sends the money.

Agricultural land you own can only be sold to a resident of India.

Source: RBI, FAQs on purchase of immovable property by NRIs and OCIs, Q.7 (updated 6 April 2023)

After the sale

The buyer applies for the patta transfer. Keep a copy of the registered sale deed in case any revenue record still shows your name. See patta name transfer in Tamil Nadu. If you are on the other side of the deal, see what an NRI can buy in India under FEMA.

Frequently asked questions

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

Yes. Give a power of attorney to someone in India, signed before an Indian consulate or a notary with an apostille, and have it stamped within three months of its arrival in India.

How much TDS does the buyer deduct when an NRI sells property?

The buyer deducts at the rate that applies to your capital gain, with surcharge and cess, rather than the 1% for resident sellers. You can apply for a lower or nil deduction certificate if your actual tax will be less. A chartered accountant should confirm the current forms under the Income-tax Act, 2025.

Can I repatriate the money from selling my flat in Chennai?

Yes, if you bought it lawfully and paid in foreign exchange or from NRE, FCNR(B) or NRO funds. For residential property, repatriation is limited to two properties.

Can an NRI sell inherited agricultural land?

Yes, but only to a resident of India.

Does the POA holder need to be a family member?

No. Any person you trust can hold the POA, including an advocate. Choose someone who will be available for registration and who understands what they are signing.

How Vakil Labs can help

Our Chennai advocates draft and check the POA before you sign it, verify the title documents, handle stamping and registration, and coordinate with your CA on TDS. See NRI legal services and property purchase and sale support.

Position as of 28 October 2026. General information, not legal or tax advice for a specific sale.