Selling property in Mohali as an NRI is entirely possible — and often the right move when you have no plans to return or want to redeploy capital. But the sale process carries higher TDS, capital-gains rules and repatriation paperwork that differ sharply from a resident sale. Here is the 2026 step-by-step.
Step 1 — Confirm your title and documents
Before listing, assemble your sale file: original sale deed, allotment letter, latest property-tax receipts, society NOC, encumbrance certificate, and your PAN. Buyers and banks scrutinise NRI sales closely, and missing documents are the most common cause of delays.
Step 2 — Understand capital-gains tax
If you have held the property for more than 24 months, the gain is long-term capital gain (LTCG), taxed at 20% with indexation benefit. Held for less, it is short-term and taxed at slab rates. You can reduce or defer LTCG by reinvesting under Section 54 (into another residential property) or Section 54EC (into specified bonds, within the limits and timelines).
Step 3 — Know the TDS the buyer must deduct
This is the big one. When buying from an NRI, the buyer must deduct TDS on the entire sale consideration (not just the gain) — at 20% plus surcharge and cess for long-term, or higher for short-term. On a multi-crore Mohali deal, that is a large sum locked up.
Use a lower-deduction certificate
Just like with rent, you can apply under Section 197 for a certificate that limits TDS to your actual capital-gains liability rather than 20%+ of the full price. For sellers this is almost essential — it can free up tens of lakhs of your own money at the time of sale instead of waiting a year for a refund.
Step 4 — Open/operate the right accounts
Sale proceeds go to your NRO account. From there you can repatriate up to the permitted annual limit after tax, again via Form 15CA (filed by you) and Form 15CB (certified by a CA).
Step 5 — Power of Attorney if you cannot travel
Most NRIs sell without flying back by issuing a specific, registered Power of Attorney to a trusted representative for the sale. The POA must be carefully drafted and legalised/apostilled in your country of residence and adjudicated in India — a generic POA often gets rejected at registration.
Step 6 — Registration and handover
The buyer pays, TDS is deducted and deposited, the sale deed is executed and registered, and you receive the net proceeds in your NRO account. Keep the buyer's TDS challan and Form 16A — you need it for your return and any refund claim.
Common mistakes that cost NRIs money
- Letting the buyer deduct full 20%+ TDS instead of getting a Section 197 certificate
- Using a vague POA that registration rejects
- Missing the Section 54/54EC reinvestment window
- Forgetting Form 15CA/15CB and getting stuck at the remittance stage
- Under-pricing because they cannot see the live Mohali market from abroad
Selling a Mohali property from abroad? We handle valuation, buyers, TDS coordination, POA and repatriation paperwork.
Talk to our NRI deskGeneral information only, not tax or legal advice. Confirm specifics with a chartered accountant and lawyer.