By VCAREFIRST | Simplifying NRI Compliance
Selling assets in India as an NRI? Whether it’s property, mutual funds, or shares, there are important tax rules, FEMA guidelines, and repatriation procedures to follow. This guide covers all the key updates for FY 2024–25, including the latest changes to capital gains tax and indexation rules.
📊 Updated Capital Gains Tax Rates for NRIs (FY 2024–25) (New Tax Regime)
| Asset Type | Holding Period | Short-Term Tax Rate | Long-Term Tax Rate | Indexation Benefit |
| Listed Equity Shares | <= 12 months | 15% (if transfer before 23 July 2024) | 10% (above ₹1.25 lakh) (if transfer before 23 July 2024) | ❌ No |
| 20% (if transfer after 23 July 2024) | 12.5% (above ₹1.25 lakh) (if transfer after 23 July 2024) | |||
| Equity Mutual Funds | <= 12 months | 15% (if transfer before 23 July 2024) | 10% (above ₹1.25 lakh) (if transfer before 23 July 2024) | ❌ No |
| 20% (if transfer after 23 July 2024) | 12.5% (above ₹1.25 lakh) (if transfer after 23 July 2024) | |||
| Debt Mutual Funds (post-Apr 1, 2023) | Any duration | As per slab (max 30%) | 🚫 LTCG classification removed | ❌ No |
| Unlisted Shares | <= 24 months | As per slab | 20% (if transfer before 23 July 2024) | ✅ Yes |
| 12.5% (if transfer after 23 July 2024) | ❌ No | |||
| Gold/Jewellery | <= 24 months | As per slab | 20% (if transfer before 23 July 2024) | ✅ Yes |
| 12.5% (if transfer after 23 July 2024) | ❌ No | |||
| Real Estate (Purchased before 23 July 2024) | <= 24 months | As per slab | 20% | ✅ Yes |
| Real Estate (Purchased after 23 July 2024) | > 24 months | As per slab | 12.5% | ❌ No |
📊 Updated Capital Gains Tax Rates for NRIs (FY 2024–25) (Old Tax Regime)
| Asset Type | Holding Period | Short-Term Tax Rate | Long-Term Tax Rate | Indexation Benefit |
| Listed Equity Shares | <= 12 months | 15% | 10% (above ₹1 lakh) | ❌ No |
| Equity Mutual Funds | <= 12 months | 15% | 10% (above ₹1 lakh) | ❌ No |
| Debt Mutual Funds (post-Apr 1, 2023) | <= 36 months | As per slab | 20% | ✅ Yes |
| Unlisted Shares | <= 24 months | As per slab | 20% | ✅ Yes |
| Gold/Jewellery | <= 36 months | As per slab | 20% | ✅ Yes |
| Real Estate | <= 36 months | As per slab | 20% | ✅ Yes |
📝 Grandfathering Clause: If property was purchased before 23 July 2024, the seller can choose between 20% with indexation or 12.5% without.
🔁 Repatriation of Sale Proceeds – Step-by-Step for NRIs
Once you’ve sold an asset, you may want to transfer the funds abroad. This is allowed, but FEMA requires documentation and bank approval.
✅ Route Funds via NRO Account
- Proceeds must be credited to your NRO (Non-Resident Ordinary) account.
- Direct transfers from savings/resident accounts are not permitted.
💸 Annual Limit:
- Up to USD 1 million per financial year can be repatriated.
- Includes sale proceeds, rent, interest, pensions, etc.
📄 Required Documents:
- Form A2 – A form to be filled and submitted to the bank for repatriation requests.
- Form 15CA – Online declaration filed on the Income Tax portal.
- Form 15CB – Certificate by a Chartered Accountant confirming tax compliance.
- PAN, Passport, Visa
- Sale deed/redemption statements
- Tax payment/TDS proof
- FEMA compliance declaration
- ✅ Form 15CB is mandatory for most remittances above ₹5 lakh unless specifically exempted.
✅ Do’s for NRIs Selling Capital Assets
- ✔️ Update PAN with NRI status
- ✔️ Open/Use NRO/NRE accounts
- ✔️ Calculate holding period correctly
- ✔️ Apply for Form 13 (Lower/Nil TDS) if eligible
- ✔️ File ITR in India if income > ₹2.5 lakh or to claim refund
- ✔️ Use exemptions (Sec 54, 54EC, 54F) if conditions are met
- ✔️ Declare under FATCA/CRS in all investments/bank KYC
❌ Don’ts for NRIs
- ❌ Do NOT use old resident savings accounts
- ❌ Do NOT rely on buyer to manage TDS alone—oversee it yourself
- ❌ Do NOT forget to file ITR even if TDS was deducted
- ❌ Do NOT ignore Form 15CA/CB for remittance
- ❌ Do NOT underreport capital gains—even if money stays in India
📑 TDS on Sale of Assets for NRIs
Property: 20% on LTCG (with indexation) or 12.5% (without indexation), plus surcharge & cess, As per Slab on STCG
Equity: 10% or 12.5% on LTCG above ₹1.25 lakh, 15% or 20% on STCG depending on tax regime
Debt/Unlisted Shares: 20%-30% depending on holding period and tax regime
💡 Apply Form 13 to reduce TDS if total capital gain is small or exemption is applicable.
🧾 Example: Selling Real Estate in FY 2024-25
- Scenario: Anita, an NRI in Canada, sells her Mumbai apartment (purchased in 2016) for ₹1.5 crore in September 2024.
- She chooses 20% LTCG tax with indexation (grandfathered).
- Buyer deducts TDS at 20% + cess on ₹80 lakh gain.
- Funds are deposited in her NRO account.
- Her CA issues Form 15CB.
- Anita files Form 15CA, and her bank processes the repatriation.
✅ Result: Funds legally transferred abroad, and she files ITR for refund or compliance.
📋 NRI Compliance Checklist
Task Status
PAN & NRI KYC ✅
Asset holding period determined ✅
TDS deducted or Form 13 applied ✅
Form 15CA/15CB completed ✅
Funds repatriated via NRO ✅
ITR filed with capital gains ✅
FATCA/CRS declarations updated ✅
💬 Need Help With Tax Filing, Form 15CB, or Repatriation?
VCAREFIRST supports NRIs with:
- Capital gains tax computation
- TDS & refund advisory
- Form 13, Form 15CA/CB documentation
- ITR filing with exemptions
- Real estate repatriation compliance
📧 Email: support@vcarefirst.in
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