Moving Money From an Indian Property Sale to the USA
Sold a flat or inherited property in India? Here's the step-by-step on TDS, the $1M repatriation limit, Forms 15CA/15CB, and bringing the money to the US legally.
Rohan Gupta
Updated May 27, 2026 · 10 min read
Selling property in India and bringing the proceeds to the US is one of the larger, more anxiety-inducing money moves an NRI makes. The sums are big, the rules span two countries, and a single missed form can freeze your funds at the bank. But the process is well-defined: India lets you repatriate up to $1 million per financial year from your NRO account, provided you've paid the right taxes and filed the right certificates. Here's the complete roadmap from sale to US bank account.
In a nutshell
After selling Indian property, the buyer deducts TDS (often ~20%+ for NRIs on long-term gains). Proceeds go into your NRO account, from which you can repatriate up to $1 million per financial year. You'll need a Chartered Accountant's Form 15CB and your Form 15CA declaration to remit. On the US side, report the capital gain and claim a foreign tax credit to avoid double taxation.
Key takeaways
- Indian buyers must deduct TDS on NRI property sales — roughly 20%+ on long-term gains (higher rates for short-term).
- Sale proceeds are credited to your NRO account.
- You can repatriate up to $1 million per Indian financial year from the NRO account.
- Remittance requires Form 15CB (CA certificate) and Form 15CA (your declaration).
- The US taxes the capital gain; the DTAA credit prevents double taxation.
- Keep meticulous records of purchase cost, sale, and tax paid for both countries.
Step 1 — Understand the TDS the buyer deducts
When an NRI sells property in India, the buyer is required to deduct Tax Deducted at Source (TDS) before paying you. For long-term capital gains (property held over 24 months), the rate is around 20% plus applicable surcharge and cess. For short-term gains, TDS is deducted at the applicable slab rate, which is higher. This TDS is a prepayment against your actual Indian tax — if too much was withheld, you reclaim it when you file your Indian return.
Apply for a lower TDS certificate. Because TDS is often deducted on a high base, NRIs can apply to the Indian Income Tax Department for a lower/nil deduction certificate (under Section 197) reflecting the actual gain. This prevents a large chunk of your money being needlessly locked up — file it before the sale closes.
Step 2 — Proceeds land in your NRO account
Sale proceeds from Indian property are credited to your NRO (Non-Resident Ordinary) account, the account designed for India-origin income. From here, repatriation to the US is permitted within limits and with documentation.
Step 3 — The $1 million repatriation limit
The RBI allows NRIs to repatriate up to USD 1 million per Indian financial year (April–March) from the NRO account, covering sale proceeds, inheritance, and other eligible funds. For most property sales this is more than enough; for very large estates, you spread repatriation across financial years.
Step 4 — Forms 15CA and 15CB
This is the paperwork that actually unlocks the wire:
- Form 15CB — a certificate from a Chartered Accountant confirming the nature of the remittance and that applicable taxes have been paid.
- Form 15CA — your online declaration to the Income Tax Department, submitted using the details from the 15CB.
Your bank will not process the outward remittance without these. Engage a CA early — they'll handle both forms and confirm your tax position.
Step 5 — Remit to the US and report it
With 15CA/15CB in hand, your bank remits the funds to your US account. Then handle the US side:
- Report the capital gain on your US return (converted to USD).
- Claim a **foreign tax credit (Form 1116)** for the Indian tax paid, so you aren't taxed twice.
- Remember FBAR/FATCA reporting if the funds sat in Indian accounts above the thresholds.
A quick checklist
- Establish the property's cost basis and holding period.
- Apply for a lower-TDS certificate if appropriate, before closing.
- Complete the sale; buyer deducts and deposits TDS.
- Proceeds credited to your NRO account.
- Engage a CA for Form 15CB; file Form 15CA.
- Bank remits up to $1M/financial year to the US.
- Report the gain on your US return; claim the DTAA credit.
- Keep every document for 7+ years.
Frequently asked questions
How much money can I bring to the US from an Indian property sale?
Up to USD 1 million per Indian financial year from your NRO account, provided taxes are paid and Forms 15CA/15CB are filed. Larger amounts can be spread across years.
What are Forms 15CA and 15CB?
15CB is a Chartered Accountant's certificate confirming taxes on the remittance; 15CA is your online declaration to the tax department. Banks require both to process the outward transfer.
Will I be taxed in both India and the US?
Both can tax the gain, but the DTAA lets you credit the Indian tax against your US tax via Form 1116, so you effectively pay only the higher of the two.
Can I reduce the high TDS the buyer deducts?
Yes — apply for a lower/nil TDS certificate under Section 197 before the sale, reflecting your actual expected gain rather than a flat rate on the gross price.
The bottom line
Bringing Indian property money to the US is a process, not a gamble: pay the TDS, route proceeds through your NRO account, repatriate within the $1M annual limit using Forms 15CA/15CB, and reconcile on both tax returns with a DTAA credit. Get a CA on both the lower-TDS certificate and the remittance forms, keep impeccable records, and the transfer becomes a clean, fully legal move rather than a frozen-funds nightmare.