Selling property in India while living abroad is not straightforward. The paperwork is heavy, the timelines are long, and every step involves coordination across borders. This guide breaks down the entire process into clear steps so you know exactly what to expect and how to prepare.

Step 1: Setting Up a Power of Attorney (POA)

If you cannot travel to India for the registration, the first thing you need is a Power of Attorney. This document authorizes someone in India to act on your behalf during the sale.

Visit a lawyer in your country of residence with two witnesses. Sign the POA document and get it notarized. Then book an appointment with BLS International under the miscellaneous attestation category and submit your documents. The consulate general from the Indian embassy will sign the documents, and the process takes about 7 to 14 days.

Once you receive the signed copy, send the original document to India. One important detail: the POA should be executed in favor of a blood relative such as a sibling or parent. If you assign it to a blood relative, the stamp duty is just Rs. 2,500. If it goes to an in-law or someone outside the immediate family, stamp duty can range from 1% to 5% of the total property value.

Step 2: Adjudication of the POA

After the POA reaches India, the person holding it must take it for adjudication. This is handled at the district registrar office, not a sub-registrar office. The registrar will send the document to the consulate general for verification before adjudicating it. This step takes another 7 to 10 days.

Step 3: Getting NOC from the Bank

If the property has an active home loan, you need a No Objection Certificate (NOC) from the bank. Get a demand draft or cheque from the buyer based on the latest pre-closure letter. Pay off the loan fully and collect the closure confirmation, NOC, and LOD (List of Documents). Expect this to take 7 to 10 days.

Step 4: Obtaining the TDS Certificate

For NRIs, Tax Deducted at Source (TDS) is collected at 14% to 15% of the total property value. The buyer is responsible for paying this amount, but as the seller, you need the TDS certificate to file your income tax return the following year.

You can work with a Chartered Accountant to apply for a lower TDS certificate if your actual capital gains are significantly less than what the standard rate would suggest. In some cases, you may even qualify for a NIL TDS certificate if there are no gains. The TDS processing takes about 7 days.

Step 5: Final Registration

Once you have all the key documents in hand, including the adjudicated POA, LOD, NOC, and TDS certificates, you can proceed with property registration. If you have hired a broker, settle the brokerage charges before registration day.

Timeline and Final Tips

The entire process, from sale agreement to registration, typically takes 1 to 1.5 months. To keep things smooth, make sure your property taxes are up to date, your e-Khata certificate is in order, and all relevant documents are readily available before you begin.

Selling Indian property as an NRI is manageable if you plan ahead and stay organized. Each step has a clear timeline, and knowing what comes next takes much of the stress out of the process.