NRI Property Sale in Maharashtra – Step-by-Step Legal Guide 2025

 Compared to citizens residing in India, NRI (Non-Resident Indian) individuals have to follow certain additional rules and procedures to NRI property sale . This is because their country of residence is different, and special provisions under Indian law apply when conducting transactions from abroad.

Introduction – Why are NRI propertysale rules different?

Compared to citizens residing in India, NRI (Non-Resident Indian) individuals have to follow certain additional rules and procedures to sell property. This is because their country of residence is different, and special provisions under Indian law apply when conducting transactions from abroad.

1. Eligibility and Ownership Rules

• An NRI can sell property in India if it was purchased while they were a resident or if it was inherited.
• Certain types of agricultural land or plots have restrictions for NRI sales unless acquired through inheritance.

2. Required Legal Documents

• Proof of ownership (Sale Deed / Gift Deed)
• Mutation entry of inheritance
• Property extract (7/12 Extract)
• Property tax receipts from the municipality/local authority
• Identity proof (Passport, Aadhaar, PAN card)
• Aadhaar card and two passport-size photos
• If the property is Class 2 land, a government order permitting its sale

3. Power of Attorney (PoA) Process – If the NRI is Abroad

If the NRI cannot come to India personally but wishes to sell the property, they can authorize a trusted person through a Power of Attorney (PoA). This eliminates the need to be physically present in India for the sale.

• PoA must be attested by the Indian Embassy/Consulate abroad.
• The attested PoA must be registered in India to be valid. However, someone will need to be present in India to complete this process.

For complete details on PoA, read here: Power of Attorney Information

4. Registration and Stamp Duty Charges

• The sale agreement must be registered at the Sub-Registrar’s office in the respective district. After registration, the document should be submitted to the Talathi office. Registration fees include your lawyer’s fee plus the government’s registration fee.
• Stamp duty and registration charges are payable as per state government rates. These vary based on the property type and location — different for sale deeds and gift deeds. You can confirm the exact rate at your local Taluka office.

5. Taxation – Capital Gains and TDS

• Capital Gains Tax applies on NRI property sales.
• The buyer must deduct TDS (Tax Deducted at Source) from the sale consideration.
• TDS rates vary depending on whether the property is held long-term or short-term.

More details:

• 7/12 Extract Process
• Capital Gains and TDS Information

6. Repatriation of Sale Proceeds Abroad

After selling the property, the amount can be transferred abroad by following RBI guidelines. Only a certain limit can be remitted in a single financial year.

7. Common Mistakes NR Should Avoid

• Giving PoA to an untrustworthy person.
• Ignoring tax compliance rules.
• Not conducting legal verification before the sale.

8. Frequently Asked Questions (FAQs)

Q1: Can an NRI sell property without coming to India?
A: Yes, through a Power of Attorney.

Q2: How to transfer the sale proceeds abroad?
A: By following RBI and FEMA regulations through the bank.

Q3: Can an NRI sell agricultural land?
A: Only if it was inherited; otherwise, no.

Q4: Is there a separate stamp duty for NRIs?
A: No, the same rates as per government rules apply.

Q5: How long does it take for a sale deed to be completed?
A: It can be done in a single day.

Disclaimer: This information is provided for general guidance only. For advice on your specific situation, please consult a qualified Indian property lawyer.