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NRI Property — Kerala

Selling Property in Kerala as an NRI — Legal Guide

An NRI can sell property in Kerala without being physically present — through a properly executed Power of Attorney, structured TDS compliance under Section 195, and FEMA-compliant repatriation of proceeds.

Income Tax Act Section 195  |  FEMA  |  Registration Act, 1908

Quick Summary

Sale of property in Kerala by an NRI or OCI holder requires compliance with both Indian property law and FEMA (Foreign Exchange Management Act, 1999). The property must have been originally acquired in accordance with FEMA provisions. Sale proceeds must be credited to an NRO account, from which repatriation abroad (up to USD 1 million per financial year) requires submission of Form 15CA/15CB (TDS certificate) from a Chartered Accountant and, where applicable, RBI approval. The buyer is required to deduct TDS under Section 393(2) of the Income Tax Act, 2025 (formerly Section 195) at 12.5% on long-term capital gains (property held more than 24 months), plus applicable surcharge and cess — maximum effective rate 14.95%. A lower deduction certificate under Section 397(1) of the Act reduces this where actual tax liability is lower.

NRIs can execute the sale remotely through a registered Power of Attorney (PoA) holder in Kerala. The PoA must be notarised and apostilled abroad (for Hague Convention countries) or attested at the Indian consulate, then adjudicated before the Sub-Registrar in Kerala. The sale deed is registered at the Sub-Registrar's office in whose jurisdiction the property is located. The entire process can be completed without the NRI travelling to India.

Key references: RBI — FEMA  ·  Kerala Registration Dept  ·  MEA — Apostille  ·  Kerala Revenue  ·  Last reviewed: June 2026

Step-by-Step Process

The office is located in Kakkanad, Ernakulam. NRI property sale transactions in Kochi, Kakkanad, Edapally, Vytilla and across Ernakulam district are handled from the office, including sale deed drafting, Sub-Registrar registration, TDS compliance and FEMA repatriation coordination.

1
Execute a Special Power of Attorney abroad: Draft a Special PoA limited to the specific property sale. Sign before a notary and get it apostilled (USA, UK, Australia, Canada) or attested through the Indian Embassy (UAE). After receipt in Kerala, register at the Sub-Registrar office. The PoA holder then acts as your authorised representative for all steps below.
2
Title verification and due diligence: Conduct a thorough title search — encumbrance certificate (minimum 30 years), original documents, patta, and survey records must be verified before finalising the buyer.
3
Sale agreement: Execute a sale agreement with the buyer setting out the price, payment schedule, and completion date. A token advance is received at this stage. The agreement is stamped and signed by the PoA holder on your behalf.
4
TDS by the buyer — Section 195: The buyer deducts TDS under Section 393(2) of the Income Tax Act, 2025 before making payment. For long-term capital gains (property held more than 24 months), TDS is 12.5% plus applicable surcharge and cess — maximum effective rate 14.95%. For short-term gains (held 24 months or less), TDS is at applicable income tax slab rates (up to 30% at the highest slab), plus surcharge and cess. TDS is legally charged on the capital gain, but buyers typically deduct on the full sale consideration in the absence of a lower deduction certificate. The buyer must obtain a TAN, deposit TDS via Challan 281 by the 7th of the month following deduction, file Form 144 (formerly Form 27Q) quarterly, and issue Form 131 (formerly Form 16A) to the NRI seller within 15 days of the quarterly return due date. Apply for a lower deduction certificate (Form 128, formerly Form 13) under Section 397(1) of the Income Tax Act, 2025 if actual tax liability is lower than standard TDS would produce.
5
Sale deed registration: The final sale deed is executed at the Sub-Registrar office by the PoA holder. Stamp duty and registration charges are paid. The buyer takes possession and title transfers.
6
Form 15CA and 15CB: To repatriate the net proceeds, file Form 15CA (online declaration) and obtain Form 15CB (Chartered Accountant certificate confirming tax compliance). Both are submitted to the bank.
7
Repatriation from NRO account: Sale proceeds are credited to your NRO account. After completing FEMA formalities, up to USD 1 million per financial year can be repatriated to your overseas account.

TDS Under Section 195 — Key Points

Section 393(2) of the Income Tax Act, 2025 (formerly Section 195 of the Income Tax Act, 1961) requires the buyer to deduct tax at source from the payment made to an NRI seller. This is the buyer's obligation, but the NRI seller must ensure compliance because failure blocks the sale proceeds.

Capital gains exemption: NRIs can claim exemption by reinvesting in another residential property in India under Section 54, or in NHAI/REC bonds under Section 54EC within 6 months of sale. File the income tax return to claim the exemption and refund of excess TDS deducted.

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Frequently Asked Questions

Can an NRI sell property without coming to India?
Yes. The entire process — from sale agreement through registration and repatriation — can be completed through a Special Power of Attorney holder in Kerala. The PoA must be properly apostilled abroad and registered at the Sub-Registrar office. The NRI communicates with the office by email and video call throughout.
How much TDS does the buyer deduct?
Under Section 393(2) of the Income Tax Act, 2025 (formerly Section 195), TDS is deducted at 12.5% plus applicable surcharge and cess on long-term capital gains (property held more than 24 months) — maximum effective rate 14.95%. For short-term gains (held 24 months or less), TDS is at applicable income tax slab rates (up to 30% at the highest slab) plus surcharge and cess. Section 393(2) imposes TDS on the income chargeable to tax — the capital gain — but buyers typically deduct on the full sale consideration in the absence of a lower deduction certificate. A lower deduction certificate (Form 128, formerly Form 13) under Section 397(1) of the Income Tax Act, 2025 aligns TDS with actual tax liability.
How are the sale proceeds repatriated?
Net proceeds are credited to the NRI's NRO account after tax payment. Repatriation requires Form 15CA (online declaration) and Form 15CB (CA certificate). The FEMA annual limit for repatriation from NRO accounts is USD 1 million per financial year. NRE and FCNR proceeds can be freely repatriated without this limit.
Can an NRI sell agricultural land in Kerala?
An NRI holding Indian citizenship can sell agricultural land only to an Indian citizen resident in India — not to another NRI or OCI card holder. OCI card holders are prohibited from purchasing agricultural land under FEMA. Both FEMA and the Kerala Land Reforms Act must be verified before proceeding.

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The office handles NRI property sales from PoA drafting and apostille guidance through to title verification, sale deed registration, and FEMA repatriation compliance — entirely by remote instruction. Response within one working day, across all time zones.

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