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Most NRI sellers arrive with the tax question answered and the process question untouched. The tax is arithmetic your chartered accountant will do. The close is where these files actually fail.
Author
Ashutosh Bhogra
Category
NRI
Read time
6 min read
Published
31 July 2026
Most NRI sellers arrive with the tax question answered and the process question untouched. The tax is arithmetic your chartered accountant will do. The close is where these files often become delayed.
This article concerns process, not tax advice. The statutory position depends on the seller’s residential status, title, payment structure and timing. Take the final transaction structure to your chartered accountant and property counsel.
If you are not flying in for registration, somebody must be able to act for you. A power of attorney executed abroad needs to be properly authenticated for use in India and, once brought to Delhi, dealt with under applicable stamping requirements. Whether registration is required depends on the instrument and transaction. Begin this early and obtain specific legal advice before fixing a closing date.
Confirm rather than assume. The name on the PAN should be reconciled with the title documents, particularly if the property was acquired before a marriage or a name change.
Withholding on a non-resident seller is deducted under the applicable statutory framework and is materially different from the one per cent regime for a resident seller under Section 194-IA. If actual tax liability may be lower than withholding, a lower deduction certificate can reduce the amount withheld upfront. Applying in the closing week is not a workable plan.
Consideration should move through the agreed banking channel. The deed, payment trail and tax documentation need to be consistent. This is important at closing and at a later sale, when the next buyer will review the title and payment trail.
After deduction and deposit, obtain the applicable TDS certificate and records. They may be needed to claim credit in the seller’s Indian tax return and to support reporting in the country of residence, subject to advice in that jurisdiction.
The 2026 Budget announced a simplified process for resident individuals and HUFs who purchase immovable property from non-resident sellers: deduction and deposit through a PAN-based challan rather than obtaining a TAN. The announced implementation date is 1 October 2026. Do not assume the process applies to a company, LLP, non-resident buyer, or a payment before its effective date; confirm the live procedure with the transaction’s chartered accountant.
A residential floor in a South Delhi colony is not the same as agricultural land, plantation property or a farmhouse. These can attract a different FEMA and land-use analysis. Confirm the position on the specific title with counsel rather than reasoning from a master-plan provision to a foreign-exchange rule.
Union Budget 2026 speech — PAN-based challan proposal
Income Tax Department — TDS guidance for purchase of immovable property
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