# Sell Property in India, Buy a House in the US: 2026 Timeline

> Sell property in India to buy a house in the US: step-by-step timeline for TDS, NRO, Form 15CA/15CB, wiring and lender sourcing. Get a free sourcing plan.

Canonical: https://www.masalaloans.com/blog/sell-property-india-buy-house-us
Author: Apurva Sanghavi
Published: 2026-10-17T19:21:36.202Z
Tags: mortgage, india, Down Payment, home buying, personal finance

**Quick answer (updated October 2026):** To sell property in India and buy a house in the US, start at least 90 to 120 days before you need the funds. The sale proceeds go through TDS, land in your NRO account, move under the USD 1 million annual limit with Form 15CA/15CB, and must sit in a U.S. account, fully documented, before your mortgage closes.

It's a common plan: sell the flat in Pune or the plot in Vadodara and use it as the down payment on a home in Austin or Edison. In practice, five systems have to cooperate: an Indian buyer, the Indian tax department, your Indian bank, the wire system, and a U.S. underwriter who wants a paper trail for every rupee.

This guide lays out the timeline, the Indian tax cost, and what your U.S. lender will ask for. The biggest mistake is starting too late, and the next biggest is moving money through a friend's account or informal channels.

## The complete timeline to sell property in India and buy a house in the US

| **Stage** | **Typical timing (before U.S. closing)** | **What happens** | **Documents to keep** |
| --- | --- | --- | --- |
| 1. Plan and price | 120+ days | Decide on sale; get CA advice on tax; check repatriation eligibility | Original purchase deed, proof of how purchase was paid |
| 2. Lower-deduction certificate (optional) | 100–120 days | Apply to Indian tax authorities so buyer withholds TDS on your actual tax, not a higher amount | Certificate from tax department |
| 3. Sale agreement and registration | 60–100 days | Buyer pays; sale deed registered | Registered sale deed, payment receipts |
| 4. TDS deducted | At payment | Buyer withholds tax and deposits it; you get a TDS certificate | TDS certificate |
| 5. Proceeds credited to NRO | At payment | Funds land in your NRO account | NRO statement showing credit |
| 6. CA certificate and remittance forms | 45–60 days | CA issues Form 15CB; you file Form 15CA (or successor forms) | 15CA/15CB copies |
| 7. Bank remits USD | 30–45 days | NRO funds converted and wired to your U.S. account | Bank remittance advice, SWIFT confirmation |
| 8. Funds arrive and sit in U.S. account | 30+ days | Lender sources the large deposit | U.S. bank statements, translation of Indian documents |
| 9. Closing | Day 0 | Funds wired to title or escrow | Final statements |

Timings are planning ranges, not guarantees.

## Step-by-step: what each stage involves

### Stages 1–2: Plan the tax before you sign

As of October 2026, long-term capital gains on Indian land or buildings held more than **24 months** are taxed at **12.5% without indexation** for transfers on or after July 23, 2024. NRIs don't get the resident option of 20% with indexation for older purchases. Short-term gains are taxed at slab rates.

The buyer must withhold TDS from a non-resident seller: 12.5% on long-term gains or 30% on short-term gains, plus surcharge and cess. This is the TDS rule for non-resident sellers, formerly Section 195 of the 1961 Act; India's Income-tax Act, 2025 took effect April 1, 2026, so section numbers have changed. If your actual tax is lower than what would be withheld, a **lower-deduction certificate** can prevent cash from being locked up until you file and claim a refund. Budget 2026 also removed the requirement for a buyer of NRI property to obtain a TAN; a PAN-based challan now works, which makes the sale easier for buyers.

### Stages 3–5: Sale and NRO credit

Have the buyer pay through banking channels into your NRO account. Any cash portion is money a U.S. lender can't source, and it creates Indian tax problems; ask your CA.

### Stage 6: Form 15CA and 15CB

To move money out of NRO, your bank typically requires Form 15CA, and for remittances above ₹5 lakh, a CA certificate in Form 15CB (or successor forms under the new Act). Part A of 15CA covers up to ₹5 lakh; Part C covers larger amounts with the CA certificate. Our [Form 15CA and 15CB guide](https://www.masalaloans.com/blog/form-15ca-15cb-down-payment) explains each field.

### Stage 7: The USD 1 million limit and repatriation rules

RBI allows remittance from NRO of up to **USD 1 million per financial year** (April–March), including property sale proceeds (RBI FAQ, January 2025). Repatriation of sale proceeds is limited to two residential properties, where the purchase was paid through banking channels or NRE, FCNR or NRO funds. If your sale is large, or straddles a financial year, plan which tranche moves when.

**Talk to a loan officer who's seen this before:** We build money-from-India sourcing plans for buyers every week. Send us your sale timeline and we'll map it against your U.S. closing date. Start at [/contact](https://www.masalaloans.com/contact).

## A worked example

Say Ritu, a hypothetical green card holder in Austin, sells a flat in Pune for ₹1.2 crore that she bought in 2015 for ₹50 lakh. For simplicity we ignore improvement costs and transfer expenses.

| **Item** | **Amount** |
| --- | --- |
| Sale price | ₹1,20,00,000 |
| Purchase price | ₹50,00,000 |
| Long-term gain | ₹70,00,000 |
| LTCG tax at 12.5% (before surcharge and cess) | ₹8,75,000 |
| Proceeds after that tax | ₹1,11,25,000 |
| At an illustrative ₹88 per USD | about $126,420 |

The exchange rate is illustrative only. Surcharge, cess and fees reduce the net further; your CA computes the real figure.

## What your U.S. lender will ask for

Under Fannie Mae B3-4.2-05, foreign assets must be "exchanged into U.S. dollars and held in a U.S. or state regulated financial institution" and verified before closing. Translations are required for documents not in English. Under B3-4.2-02, any single deposit larger than 50% of your monthly qualifying income must be sourced on a purchase. A sale-proceeds wire will always cross that line.

Expect to provide:

- Registered sale deed (translated if needed)

- NRO statement showing the buyer's payment credited

- TDS certificate

- Form 15CA/15CB copies

- Indian bank remittance advice

- U.S. bank statement showing the incoming wire

Why the funds should land in your account rather than go straight to escrow, and how long they need to sit, are covered in [Fannie Mae's foreign asset rule](https://www.masalaloans.com/blog/foreign-assets-mortgage-rules) and [seasoning money from India](https://www.masalaloans.com/blog/seasoned-funds-from-india). For general deposit rules, see [large deposit sourcing rules](https://www.masalaloans.com/blog/large-deposit-mortgage-sourcing-rules).

### If your parents are selling, not you

If the property is in your parents' names and they gift you the proceeds, different paperwork applies, including LRS limits and TCS for resident parents. See our guide to [gift money from India for a down payment](https://www.masalaloans.com/blog/gift-money-india-down-payment-mortgage).

## What the rules actually say

- **RBI FAQ on remittance of assets** (January 2025): NRO remittances up to USD 1 million per financial year, including property sale proceeds; Form 15CA/15CB (or successor forms) required.

- **India Income-tax Act, 2025** (effective April 1, 2026) and Finance Act 2024: LTCG on land and buildings at 12.5% without indexation for transfers on or after July 23, 2024; 24-month holding period; TDS on non-resident sellers at 12.5% LTCG / 30% STCG plus surcharge and cess. Budget 2026 removed the buyer TAN requirement.

- **Fannie Mae B3-4.2-05**: foreign assets must be exchanged into U.S. dollars and held in a U.S. or state-regulated institution, verified before closing; translations required.

- **Fannie Mae B3-4.2-02**: single deposits over 50% of monthly qualifying income must be sourced on purchases.

## Frequently Asked Questions

**Q: How long does it take to move money from an Indian property sale to the US?**<br />A: Plan on at least 90 to 120 days from listing to funds sitting in your U.S. account. The sale itself, TDS, the CA certificate, Form 15CA and your bank's processing all take time. Starting after you're under contract in the U.S. is the most common reason closings get delayed.

**Q: How much tax do NRIs pay on selling property in India?**<br />A: As of October 2026, long-term gains on property held more than 24 months are taxed at 12.5% without indexation for transfers on or after July 23, 2024, plus surcharge and cess. Short-term gains are taxed at slab rates. TDS is withheld by the buyer, and a lower-deduction certificate can reduce it to match your actual tax.

**Q: Can I send more than USD 1 million from my NRO account?**<br />A: Not in a single financial year under the general NRO route. The RBI limit is USD 1 million per April–March financial year, including sale proceeds. If you need more, plan remittances across two financial years or talk to your bank and CA about other permitted routes.

**Q: Can the money go straight from India to my escrow account?**<br />A: It's usually better for funds to land in your own U.S. account first. Fannie Mae requires foreign assets to be converted to dollars and held in a U.S. or state-regulated financial institution, verified before closing. Direct-to-escrow wires create sourcing headaches and some title companies won't accept international wires.

**Q: Do I have to report the India property sale on my US taxes?**<br />A: If you're a U.S. tax resident, generally yes. The sale is typically reportable, and Indian tax paid may be claimed as a foreign tax credit using Form 1116. Large NRO balances may also trigger FBAR or Form 8938. Ask a CPA who handles India-U.S. cross-border returns.

## Get your money-from-India sourcing plan in 15 minutes

Send us your property sale timeline, your expected proceeds and your target U.S. closing date. We'll build a free money-from-India sourcing plan that lines up TDS, Form 15CA/15CB, the wire and seasoning with your loan, plus a document checklist sent to your WhatsApp or email. We shop 150+ wholesale lenders, so one lender's foreign-funds overlay isn't the final answer. Book a free 15-minute call at [/contact](https://www.masalaloans.com/contact), start your application at [/apply](https://www.masalaloans.com/apply), or call 713-366-4668. For Indian tax filings, work with a qualified CA; for U.S. reporting, a CPA.

*Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.*