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Selling a flat in Navi Mumbai while you live abroad is a set of steps that depend on each other: papers and permissions, the tax position, the agreement, registration, and then the money and its journey abroad. The order is not a simple line. Payment, loan settlement and registration are usually coordinated under the structure you agree with the buyer, and tax is deducted from each payment made to you, including any advance, not only from the last one. This guide sets out the sequence from the decision to sell until the money reaches your overseas account, says who does what, and links to the detailed guide for each step.
This is general information and not legal or tax advice. The Income-tax Act, 2025 and the Income-tax Rules, 2026 apply from 1 April 2026, and several procedures changed. How long each stage takes depends on your documents, the society, the lender, the buyer and the offices involved. Have an advocate and a chartered accountant check your own case. This guide is independent and has not been reviewed by a lawyer.
The sequence at a glance
| Step | What happens | Who leads |
|---|---|---|
| 1 | Check the title papers, the society position and any CIDCO charge | You and your advocate |
| 2 | Estimate your gain and the tax; apply for a lower deduction certificate if it helps | You and your chartered accountant |
| 3 | Sign a limited power of attorney abroad if you cannot attend | You and your advocate |
| 4 | Sign the agreement for sale; payments by bank only, with tax deducted from each payment | Both sides’ advocates |
| 5 | Agree how any home loan is closed and the documents released | You and the lender |
| 6 | Preliminary society and CIDCO paperwork, then recording the completed transfer | Seller, buyer and society |
| 7 | Register the sale deed; the buyer usually pays stamp duty and registration | Advocates and the Sub-Registrar |
| 8 | Buyer deducts tax from every payment, deposits it and reports it | Buyer and the buyer’s accountant |
| 9 | Money lands in your NRO account | You |
| 10 | Send the money abroad, with the forms your bank requires | You, your accountant and your bank |
| 11 | File your Indian return and claim the tax credit and any exemption | You and your accountant |
Step 8 sits near the end of the table only because the buyer’s deposit and reporting are completed after the payments. The deduction itself applies from the first payment, so settle the tax position in Steps 2 and 4, before anything is paid.
Step 1: papers, society and CIDCO
- Collect your title papers: the registered agreement or conveyance, the share certificate and membership papers, and recent maintenance and property tax receipts. See the society share certificate guide and the property lawyer checklist.
- Ask the society for its dues position and what it requires for a transfer. Do not assume a fixed transfer fee. Ask in writing.
- If the flat is on CIDCO land, find out whether a transfer charge applies to your lease. A news report says a Bombay High Court bench quashed CIDCO’s transfer charge demands on two old Navi Mumbai societies on 29 September 2026 (see the Free Press Journal report). A news report is not the judgment. Whether the ruling helps you depends on your own lease and society, so ask CIDCO’s estate office and your advocate to read the order itself before you rely on it, and see the CIDCO transfer charges guide.
- If you have a home loan, get a loan statement and ask the lender for the foreclosure procedure and the release of your original documents.
Step 2: estimate the tax and decide on the lower deduction certificate
Two different things are easy to mix up here. The final capital gains tax is what you owe for the year, worked out in your return. The tax the buyer deducts is a withholding on each payment. A lower deduction certificate reduces the withholding and improves cash flow. It does not reduce the final tax.
- Long term or short term: a flat held for more than 24 months is long term.
- Long term capital gains rate: 12.5% without indexation for transfers on or after 23 July 2024, plus surcharge and cess. The older option of 20% with indexation for property bought before that date is limited to resident individuals and HUFs, so an NRI gets the 12.5% rate regardless of when the flat was bought (see the ICAI journal article).
- Short term gains: these are taxed at your slab rates in the usual case, and the withholding rate can differ from the final rate. Ask your chartered accountant to work out both for your sale.
- Exemptions: reinvesting the gain can reduce the final tax, but only if you meet the conditions, the time limits and the investment caps. Under the Income-tax Act, 2025 the old section 54 is described as section 82 and section 54F as section 86 (see this commentary). A plan to reinvest is not an exemption you already hold. Check the current section numbers, the deadlines and the limits with your accountant before you count on one.
If your final tax will be much lower than what the buyer would otherwise deduct, ask your accountant about applying for a lower or nil certificate before any payment is made. The buyer can use it only once it is issued. See the guide to the lower TDS certificate (Form 128).
Step 3: if you cannot attend, a limited power of attorney
A power of attorney for this one sale, signed abroad before a notary and then attested or apostilled by the route your country uses, lets someone sign for you in India. It may need stamping and registration, and the requirements depend on the document. Keep it limited to the sale and the bank account for the proceeds. See the NRI power of attorney guide for authentication, stamping and revocation.
Step 4: the agreement for sale
- Your advocate and the buyer’s advocate settle the agreement. Read the payment schedule against the tax deduction, because the buyer deducts tax on each payment made to you, including a token amount or an advance paid before registration.
- Take payments by bank only and keep the receipts. Note the date and the amount of every part payment.
- Agree in writing the basis of the deduction, the rate and the authority for it, before any payment.
- See the agreement for sale, sale deed and conveyance guide for what each document does.
Step 5: loan closure
If the flat is mortgaged, the loan is usually settled out of the sale money, under whatever structure you and the buyer agree with the lender, and the lender releases your original papers. Agree who arranges this and by when, so the registration is not delayed.
Step 6: society and CIDCO formalities
- Before registration: society no objection, dues clearance and any CIDCO requirement. Settle these before the deed is signed.
- After registration: the society records the completed transfer of the flat and the shares in the buyer’s name, and may ask for the registered deed and a transfer fee.
- The CIDCO transfer charges guide and the society share certificate guide explain the papers.
Step 7: registering the sale deed
- The sale deed is registered at the Sub-Registrar’s office. In usual practice the buyer pays the stamp duty and registration fee. See the stamp duty and registration guide for the rates, which vary with the type of area and the buyer, and check the current figures with the IGR calculator.
- You sign in person, or your attorney signs for you under the power of attorney. Confirm with your advocate which suits your case.
Step 8: the buyer deducts, deposits and reports
- From 1 April 2026 the buyer deducts under section 393(2) of the Income-tax Act, 2025, which replaced section 195. The deduction applies to each payment, and unless you hold an applicable certificate it is not limited to your gain (see TaxGuru and TDSMAN).
- The statement the buyer files depends on the buyer. From 1 October 2026 a resident individual or resident HUF buyer who buys from a non-resident seller uses a PAN and reports in Form 141, Schedule E (see the department’s Form 141 Schedule E page and TDSMAN). Other buyers use the TAN based route and Form 144. For payments around that date, ask the buyer’s accountant which applies to each payment.
- Ask the buyer for the proof of deposit and for the TDS certificate, because you need the credit when you file your return. The form name for the certificate depends on the route, so confirm it with the buyer’s accountant.
- The NRI property-sale TDS guide covers the deduction in more detail.
Steps 9 and 10: the money and sending it abroad
- The net sale proceeds go into your NRO account. See the NRE vs NRO guide for how that account works.
- Sending the money abroad depends on which route applies to you. One is the facility for remitting up to USD 1 million per financial year from NRO balances. There is also a separate route for eligible property that was bought with foreign funds, and its conditions are different. The guide to sending property sale proceeds abroad explains both routes and how to tell which applies.
- Forms 145 and 146 are not needed in every case. Whether they are required depends on the reporting requirements for your remittance and on your bank’s checks. Your bank decides the documents it will accept (see this summary).
Step 11: your Indian return
File an Indian return for the year of sale, report the capital gain and claim credit for the tax the buyer deducted. If you reinvested and you meet the conditions, claim the exemption there. If more tax was deducted than you owe, you claim the refund through the return. See the NRI income tax return guide.
What the timing depends on
No stage has a fixed duration. Each depends on something outside your control, so plan around these and keep a margin.
| Stage | What it depends on |
|---|---|
| Papers, society and CIDCO checks | How quickly the society and CIDCO reply, and whether your papers are complete. |
| Lower deduction certificate | The department’s review and any queries it raises. Do not plan payments around an approval date. |
| Power of attorney abroad | Notary and attestation in your country, courier time, and any stamping or registration in India. |
| Agreement to registration | Loan closure, the society, the buyer’s funding and the Sub-Registrar’s appointments. |
| Proceeds to an overseas account | The buyer’s deposit and certificate, your bank’s checks and the remittance route. |
Frequently Asked Questions
What is the first step when an NRI sells a flat in Navi Mumbai?
Collect the title papers, ask the society for its dues and transfer requirements, and check whether a CIDCO charge applies to your lease. Then estimate your tax before you sign an agreement.
Does the buyer deduct tax on the whole price or only my gain?
The deduction applies to each payment, and unless you hold an applicable certificate it is not limited to your gain. A lower certificate improves cash flow at closing. It does not reduce your final tax.
Is tax deducted only at registration?
No. It applies to each payment made to you, including a token amount or an advance. Agree the deduction basis, rate and authority with the buyer in writing before any payment.
What is the long term capital gains rate for an NRI?
For a flat held more than 24 months it is 12.5% without indexation, plus surcharge and cess. The older indexation option is limited to resident individuals and HUFs.
Can I sell from abroad without travelling?
Usually yes, through a limited power of attorney signed abroad and attested by the correct route. Ask your advocate what the Sub-Registrar and the buyer will accept.
Who pays stamp duty on the sale?
In usual practice the buyer pays the stamp duty and registration fee. Confirm it in the agreement.
How do I send the money abroad?
The proceeds go into your NRO account first. Remitting abroad depends on the route that applies to you, including the USD 1 million per financial year facility and a separate route for eligible property bought with foreign funds. See the repatriation guide.
Do I always need Forms 145 and 146?
No. Whether they apply depends on the reporting requirements for your remittance and your bank’s checks. Ask your bank and your accountant.
Do I have to file a return in India after the sale?
Yes, to report the gain, claim credit for the tax deducted, claim any exemption you qualify for and claim a refund of any excess.
Sources
| Point | Source |
|---|---|
| CIDCO transfer charge ruling (news report of 29 September 2026) | Free Press Journal |
| Buyer’s deduction and reporting from 1 April 2026 | TaxGuru, TDSMAN and Income Tax Department |
| Capital gains rate and indexation | ICAI journal |
| Exemptions | TaxGuru commentary |
| Repatriation overview | Taxaj and Landeed |
Reviewed on 27 October 2026. Check the stamp duty rates with the Sub-Registrar, CIDCO charges with CIDCO, and the Income-tax Act section numbers, the exemption conditions and the buyer’s TDS certificate form with a chartered accountant. This guide has not been reviewed by a lawyer.
The featured image is an AI generated illustration made for this guide, and not a photograph.
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