Indian citizens in Malaysia and OCI cardholders can buy residential and commercial property in India, and can sell property they own or have inherited. Agricultural land cannot be bought, but inherited agricultural land can be held and can be sold to a person resident in India. The buyer deducts tax at source on a sale by a non-resident, and the proceeds are repatriated from an NRO account up to USD 1 million a year.
- Document route
- High Commission of India attestation
- Time difference
- 2.5 hours ahead of IST
- Handled in India at
- Sub-registrar office and tax portal
- Travel to India
- None with a power of attorney
How it works from Malaysia
For a sale of inherited property we first put the title in order: heirship documents, mutation in the names of the present owners and, where several cousins hold shares, a partition or a joint sale with everyone's authority. A property still recorded in a grandparent's name cannot be sold at a fair price. Each owner in Malaysia signs a power of attorney at the High Commission of India or through the notary and Ministry of Foreign Affairs chain. We then draft the agreement, check the buyer's payment route and attend registration.
Tax is handled before the deal, not after. A PAN is obtained for each seller. For inherited property the cost and holding period of the original owner are used, and long-term gains are taxed at 12.5 percent without indexation, plus surcharge and cess. An application for a lower deduction certificate stops the buyer from deducting tax on the entire price. After registration, a chartered accountant certifies the remittance in Form 15CB and the bank sends the funds to Malaysia.
What is different for NRIs in Malaysia
- A Malaysian citizen without an OCI card needs Reserve Bank permission to buy immovable property in India, so OCI should be obtained first.
- Malaysia generally does not tax foreign-source capital gains of individuals, but confirm the current rule with a Malaysian tax adviser before remitting.
- Payment for a purchase must come through banking channels. Cash and third-party remittances create problems at the time of sale and repatriation.
Step by step from Malaysia
Free review call
Malaysia is two and a half hours ahead, so calls are held from late morning onwards. We read your papers on a property purchase or sale in India first, so the call is about your options and not a repeat of the facts.
Authority from Malaysia
Where a representative must act for you in India on a property purchase or sale in India, you sign at the High Commission of India in Kuala Lumpur, or use a notary, the Ministry of Foreign Affairs and then the High Commission. We draft the document and send signing instructions.
Work in India
In India, we verify title, settle the agreement and sale deed, handle the tax deduction paperwork and attend registration with your attorney holder. Updates for clients in Malaysia go by email and WhatsApp with scans of whatever is filed.
Result and handover
At the end you receive the registered deed, tax certificates and, on a sale, the bank papers for repatriation. Originals are couriered to your address in Malaysia if you need them.
The law in full
This page covers what changes when you handle a property purchase or sale in India from Malaysia. For the Indian law, the complete document checklist, common mistakes and more questions, read our main page on Buying & Selling Property. For other matters, see all legal services for NRIs in Malaysia or the Property & Real Estate practice area.
Questions from NRIs in Malaysia
Can I sell inherited farmland in India while living in Malaysia?
Yes, to a person resident in India who is an Indian citizen. You cannot sell agricultural land to another NRI or OCI.
Do I need to travel for registration?
No. A registered or attested special power of attorney lets your representative sign and present the sale deed.
How do I bring the money to Malaysia?
The buyer pays into your NRO account after deducting tax. With Form 15CA and 15CB the bank remits up to USD 1 million per financial year.