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Short answer: an NRI can usually send property sale proceeds abroad, but the route depends on how the property was acquired and funded. Some sales fall under the foreign-funded property route in the RBI Master Direction. Others, such as sale proceeds held in an NRO account or inherited property, fall under the Remittance of Assets facility of up to USD 1 million per financial year. The USD 1 million limit is not a universal ceiling for every sale, and it is not relevant to every case. This guide helps you work out which route to discuss with your bank and what to prepare. It starts after the sale. For the tax the buyer deducts, see the NRI property sale TDS guide.
This is general information and not tax, legal or banking advice. Your authorised dealer bank decides the route for your transaction. Check the current RBI text and the applicable forms with the bank and a chartered accountant. This guide is independent and has not been reviewed by a lawyer.
Two repatriation routes
| Route | What it covers | Source |
|---|---|---|
| Foreign-funded property | Sale of property that an NRI, PIO or OCI acquired in line with the foreign exchange law of the time and paid for in foreign exchange through banking channels or from NRE or FCNR(B) funds. Residential property is limited to two such properties. Agricultural land, farm houses and plantation property are outside this route. | RBI Master Direction, paragraph 8.2 |
| Remittance of Assets | Up to USD 1 million per financial year from NRO balances, sale proceeds of assets and inherited assets, with documents showing acquisition or inheritance, tax compliance and a bank undertaking for NRO funds. | Remittance of Assets Regulations, 2016, regulation 4(2) |
RBI’s own FAQ on immovable property sets out both. Do not combine them into one rule: the two-residential-property limit belongs to the foreign-funded route, and the USD 1 million facility belongs to the Remittance of Assets route.
If the property was bought with foreign money
Paragraph 8.2 of the Master Direction lets the authorised dealer allow repatriation when the property was acquired under the foreign exchange law in force at the time, the purchase was paid for in foreign exchange through banking channels or from FCNR(B) or NRE funds, and, for residential property, no more than two such properties are involved. Housing loan repayments made from abroad or from NRE or FCNR(B) funds can count towards the funding. Your bank will ask for the original funding records.
If the proceeds are in an NRO account, or the property was inherited
Regulation 4(2) of the Remittance of Assets Regulations covers an NRI or PIO who remits up to USD 1 million per financial year out of NRO balances, sale proceeds of assets or inherited assets. Eligible property sale proceeds held in an NRO account may therefore be remitted under this facility, subject to the bank’s checks, supporting documents and applicable Indian taxes. For inherited property, keep the papers that establish the inheritance and see the NRI inheritance guide.
Property bought under section 6(5) of FEMA
Paragraph 8.1 says a person who acquired property under section 6(5) of FEMA, or a successor, needs RBI permission before repatriating the sale proceeds. The same paragraph adds that a non-resident can use the facilities under the Remittance of Assets Regulations. This does not mean every inherited property or property bought before emigrating needs an individual RBI approval. Ask your bank which case you are in.
Agricultural land, farm houses and plantations
The foreign-funded route in paragraph 8.2 excludes agricultural land, farm houses and plantation property. That does not by itself settle whether proceeds from an inherited agricultural property can be remitted. Acquisition, buyer eligibility and the remittance route all have to be checked, so take these cases to your bank and a property lawyer.
The annual USD 1 million facility
- The facility is per financial year, from 1 April to 31 March, and covers qualifying remittances together.
- All instalments must go through the same authorised dealer, as regulation 4(2) says.
- Remittances above USD 1 million in a financial year need RBI permission under regulation 7.
- Regulation 8 makes every remittance subject to the applicable Indian tax laws.
Example only, not a personal entitlement: if USD 200,000 has already been remitted this financial year under the facility, USD 800,000 of capacity remains, assuming all other conditions are met. A larger balance may need another financial year or an application to RBI.
The RBI Master Direction on Remittance of Assets (RBI page) shows a 2026 update date. Ask your bank whether anything changed for your case.
Tax evidence and forms
The bank wants proof that tax on the sale has been dealt with, and the right remittance declaration. Calculations belong in the NRI property sale TDS guide, and the guide to buying property from an NRI shows the buyer’s side.
- Buyer’s withholding documents: keep the buyer’s deduction records and the certificate that goes with them.
- Lower or nil deduction: Form 128 is the application for a lower or nil deduction certificate, not the certificate itself. It replaces Form 13 (see TaxGuru). Apply before the sale payment is made.
- Your tax computation: have the capital gains computation and proof of tax paid ready. Withholding does not by itself settle the final tax, and whether your bank wants a filed return before remitting depends on the transaction, so ask it.
Form 145 and Form 146 from 1 April 2026
For remittances made on or after 1 April 2026, Form 145 replaces Form 15CA and Form 146 replaces Form 15CB under the Income-tax Rules, 2026 (see the BDO note and TaxGuru). The form that applies depends on the date of the remittance, not the date of the sale. Which part of Form 145 applies depends on whether the payment is taxable, the amount and any certificate from the Assessing Officer:
| Form 145 part | In outline |
|---|---|
| Part A | Taxable remittance of up to Rs 5 lakh in the financial year, without an accountant’s certificate. |
| Part B | Larger taxable remittance where the Assessing Officer has issued a certificate. |
| Part C | Larger taxable remittance without that certificate, supported by the accountant’s certificate in Form 146. |
| Part D | A remittance that is not chargeable to tax. Whether it falls here has to be assessed for your case. |
A remittance of more than Rs 5 lakh does not automatically need Form 146. Taxability and the certificate route decide. This outline is drawn from the sources above, so check the Income Tax Department’s published form guidance at incometaxindia.gov.in. If your bank still asks for the old form on a remittance made after 1 April 2026, raise it with the bank and ask what it relies on.
A sequence to follow before the sale closes
- Confirm how the property was acquired and keep the original funding evidence.
- Ask your authorised dealer which repatriation route applies to you.
- Get the bank’s checklist for your transaction before closing.
- Coordinate the sale receipts and the buyer’s tax documents.
- Complete the remittance forms that apply.
- Confirm the exchange rate, charges and beneficiary details.
- Keep the bank’s remittance confirmation and every supporting record.
Preparation checklist
This is a preparation list, not a legal list of documents. Your bank decides what it needs.
| Situation | Records to discuss with the bank |
|---|---|
| Foreign-funded purchase | Original inward remittance and NRE or FCNR(B) funding records. |
| Inherited property | Documents that establish the inheritance and ownership. See the NRI inheritance guide. |
| Joint ownership | Each seller’s share and receipt trail. |
| Earlier remittances | A record of amounts already used under the annual facility. |
| Outstanding property loan | Loan settlement and net proceeds records. |
| Overseas transfer | Beneficiary account details, currency and bank charges. |
| Always | Sale deed, PAN, passport, NRO account statements and the buyer’s tax deduction papers. |
If a representative is handling the sale for you, check the authority they need under the NRI power of attorney guide, and use the property lawyer checklist to prepare any missing title or transfer records. The NRI property buying guide covers the purchase side.
Frequently Asked Questions
Can an NRI send property sale proceeds abroad?
Usually yes, through the route that fits how the property was acquired and funded. Your authorised dealer bank decides the route and the documents.
Is USD 1 million the limit for every NRI property sale?
No. USD 1 million per financial year is the Remittance of Assets facility, used for NRO balances, asset sale proceeds and inherited assets. Foreign-funded property has its own route in the RBI Master Direction, with a two-residential-property limit.
Can proceeds held in an NRO account be remitted?
Eligible NRO balances and sale proceeds can be remitted under the USD 1 million facility, subject to the bank’s checks, documents and Indian taxes.
Can I send the money in instalments?
Yes, within the annual facility, and all instalments must go through the same authorised dealer. Above USD 1 million in a financial year, RBI permission is needed.
Did Form 145 replace Form 15CA?
For remittances made on or after 1 April 2026, Form 145 replaces Form 15CA and Form 146 replaces Form 15CB. Earlier remittances stay on the old forms.
Is Form 128 the lower deduction certificate?
No. Form 128 is the application you file to seek a lower or nil deduction certificate.
Which documents does the bank want?
It varies. Common items are the sale deed, funding and inheritance records, NRO statements, tax papers and the remittance forms. Ask your bank for its checklist before closing.
Sources and a note on accuracy
| Point | Source |
|---|---|
| Foreign-funded route, paragraphs 8.1 and 8.2 | RBI Master Direction on immovable property |
| USD 1 million facility, regulations 4(2), 7 and 8 | Remittance of Assets Regulations, 2016 |
| RBI explanation for non-residents | RBI FAQ on immovable property |
| Form 145, Form 146 and Form 128 | BDO, TaxGuru and Income Tax Department |
Reviewed on 24 October 2026. The RBI texts were read from the RBI site. The Form 145, Form 146 and Form 128 details come from the sources above, because the Income Tax Department forms pages were not available for reading. The Remittance of Assets Master Direction shows a 2026 update that was not read in full. Confirm everything with your authorised dealer bank and a chartered accountant.
The featured image is an AI generated illustration made for this guide, and not a photograph.
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