Selling property in Chennai while living in the USA, UK, Canada, Singapore, or the UAE is entirely possible — and far more common than most NRIs realise. Thousands of NRIs complete property sales in Tamil Nadu every year without stepping foot in India.
The key is getting the right infrastructure in place before the sale begins: a valid Power of Attorney, a professionally prepared valuation report, and an advocate who understands both the legal and tax dimensions of an NRI transaction.
Here is the complete step-by-step process.
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Step 1 — Get an Independent Valuation Report Before you negotiate a sale price, commission an IBBI-registered valuation report. This establishes the fair market value of your property, forms the basis for sale price negotiation, and is required by most banks and the buyer's lender. It is also essential for TDS calculation and repatriation.
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Step 2 — Grant a Power of Attorney (POA) You cannot sign the sale deed in person from abroad. A registered General or Specific Power of Attorney is the legal instrument that allows a trusted representative in India to act on your behalf. The POA must be notarised in your country of residence, apostilled (or attested at the Indian Consulate), and registered at the Sub-Registrar's Office in Chennai upon arrival in India.
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Step 3 — Verify All Title Documents Before the buyer's advocate starts their due diligence, you should verify your own documents: Sale Deed, Encumbrance Certificate (EC) for 30 years, Patta, property tax receipts, and the chain of title documents. Any gaps need to be resolved before the buyer's side raises them.
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Step 4 — Agree on a Sale Price and Sign the Agreement Your POA holder signs the Sale Agreement on your behalf. The agreement locks in the price, the timeline, and the advance payment. It is a legally binding document — have your advocate review it before signing.
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Step 5 — TDS Deduction by the Buyer When an NRI sells property, the buyer is required to deduct TDS (Tax Deducted at Source) under Section 195 of the Income Tax Act. The TDS rate is typically 20–22.66% on the sale proceeds (not just the capital gain). The buyer deposits this with the tax authority and provides you with Form 16A.
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Step 6 — Obtain Form 15CA and 15CB Before the money can be remitted to your foreign bank account, your Chartered Accountant must prepare Form 15CA (NRI declaration) and Form 15CB (CA certificate). These forms confirm that TDS has been correctly deducted and that the remittance is permissible under FEMA.
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Step 7 — Execute and Register the Sale Deed Your POA holder executes and registers the Sale Deed at the Sub-Registrar's Office. The buyer pays the stamp duty. The registered Sale Deed is the final transfer of ownership.
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Step 8 — Repatriation to Your Foreign Account After the sale deed is registered and TDS compliance is complete, the net proceeds can be remitted to your NRO account in India and then repatriated to your foreign bank account via your bank, subject to FEMA limits (USD 1 million per financial year).
