Selling a home or a plot of land in India while living in the UK can feel like a logistical mountain. Between fluctuating exchange rates and complex Indian tax laws, many NRIs postpone the sale simply to avoid the paperwork. However, the 2026 Union Budget has introduced some helpful changes that make the process significantly easier for UK-based sellers.
At Indian Attorneys (UK), we handle the cross-border legalities so you can focus on your next investment. Here is how the process works in 2026.
You don’t need to fly back to India
One of the biggest misconceptions is that you must be physically present in India to sign the sale deed. In 2026, you can manage the entire transaction from the UK using a Special Power of Attorney (PoA).
To make this legally valid in India, you simply draft the document and sign it before a UK Notary Public. After that, you get it apostilled by the Foreign, Commonwealth & Development Office (FCDO). Once your chosen representative in India receives this apostilled document, they can sign the sale papers at the Sub-Registrar’s office on your behalf. It is a secure, well-established route that saves you the cost and time of an international flight.
The 2026 tax landscape: PAN over TAN
A major headache for NRI sellers used to be the "TAN" requirement. Previously, your buyer had to apply for a specific Tax Deduction Account Number (TAN) just to pay the tax on your sale. As of October 2026, this rule has been scrapped for resident individual buyers.
Your buyer can now deduct and deposit the Tax Deducted at Source (TDS) using only their Permanent Account Number (PAN). This is a massive win for NRIs because it removes a significant procedural hurdle that often caused buyers to hesitate or back out of deals involving overseas sellers.
Managing the TDS trap
When an NRI sells property, the buyer is legally required to deduct TDS at the highest rate. For long-term gains on property held for more than two years, the base rate is now 12.5%. However, when you add the mandatory surcharges and cess, the effective rate can climb as high as 14.95% of the total sale value.
If you are selling a property for £200,000, having nearly £30,000 blocked in tax can be a huge blow to your cash flow. To avoid this, you should apply for a Lower TDS Certificate (Form 13) before the sale. This tells the buyer to only deduct tax on your actual profit, not the entire sale price. In 2026, these certificates are usually issued online within 30 days, so it pays to be proactive.
Repatriating your money to the UK
Once the sale is complete and the money is in your NRO account, the next step is moving it to the UK. Under current RBI guidelines, you can repatriate up to USD 1 million per financial year.
To do this, you will need a Chartered Accountant in India to issue Forms 15CA and 15CB. These documents certify that all taxes have been paid and the funds are eligible for transfer. Your UK bank will also want to see the registered Sale Deed and proof of tax payment to satisfy their Anti-Money Laundering (AML) checks.
Why professional oversight matters
Selling property in India involves a "triple-check" process. You must satisfy the Sub-Registrar, the Income Tax Department, and the RBI. A mistake at any stage can lead to your funds being frozen in an Indian bank account for years. We provide a bridge between the two legal systems, ensuring your money reaches your UK account safely and legally.
