Can NRI Sell Property in India Without Aadhaar or PAN?

If you are searching, Can NRI sell property in India without Aadhaar or PAN?, then the short answer is No,  an NRI cannot sell property in India without a PAN card; it is a non-negotiable legal requirement for TDS deduction, registration, and capital gains assessment. However, an NRI can sell property without Aadhaar in most cases, because Aadhaar is meant for residents and the Income Tax Department exempts genuine non-residents from the PAN-Aadhaar linking requirement. The practical complication is at the property registration stage, where some Sub-Registrar Offices use Aadhaar-based biometric verification, a procedural hurdle that has a legal workaround, not a legal requirement.

This distinction  PAN being mandatory and Aadhaar being conditional causes more confusion, and more stalled transactions, than almost any other compliance issue NRIs face when selling property in India. This guide breaks down both requirements separately, explains the 2026 regulatory changes, and lays out the exact steps to close your sale even if you have never held an Aadhaar card.

Why PAN Is Mandatory for Every NRI Property Sale?

A Permanent Account Number is the backbone of every property transaction in India, resident or non-resident. For an NRI seller specifically, PAN is required at four distinct points in the transaction.

• Tax Deducted at Source (TDS): When a resident buyer purchases property from an NRI, TDS must be deducted under Section 195 of the Income-tax Act, 1961 (renumbered as Section 393(2) under the Income-tax Act, 2025, effective from 1 April 2026). This applies to the entire sale consideration, with no threshold exemption, unlike resident-to-resident sales where Section 194-IA only applies above ₹50 lakh.
• Property registration: Under Rule 114B of the Income-tax Rules, PAN is compulsory for property transactions above the prescribed value, since the Sub-Registrar’s office reports high-value transactions to the Income Tax Department through the Statement of Financial Transactions (SFT).
• Capital gains computation and ITR filing: PAN is required to file the Income Tax Return, claim exemptions under Sections 54, 54EC, or 54F, and claim a refund if excess TDS was deducted.
• Repatriation of sale proceeds: Banks cannot process Form 15CA/15CB — required to remit sale proceeds abroad from an NRO account — without the seller’s PAN, halting repatriation under FEMA, including the USD 1 million per financial year limit.

What Happens If an NRI Tries to Sell Without PAN?

If a non-resident seller does not furnish a valid PAN, the buyer is legally bound to deduct TDS at the higher of the prescribed rate or 20%, regardless of the actual capital gain. In practice, most buyers and their advocates will refuse to proceed with registration once they discover the seller has no PAN, since it exposes them to compliance risk and reporting failures on their own filings. The absence of PAN does not just increase tax outflow, it stalls the transaction altogether.

How an NRI Can Get a PAN Card Without Visiting India?

This is the good news: obtaining a PAN does not require Aadhaar, an Indian address, or a trip to India.

The application can be completed entirely online with a copy of the passport as identity proof, overseas address proof such as a bank statement or utility bill, and passport-sized photographs. Some countries require these documents to be attested by the Indian Embassy or Consulate, or apostilled, depending on local rules. The e-PAN is typically issued within two to three working days, with the physical card couriered to the overseas address in three to four weeks. At no stage does this process require Aadhaar.

Need a PAN from abroad? Read our 3-minute step-by-step guide: How NRIs Can Apply For A Pan Card: Complete Procedure?

Does an NRI Need Aadhaar to Sell Property? The Real Answer

This is where the law and the ground reality diverge, and the article needs to address both layers separately.

The Income Tax Position: Aadhaar Is Not Required

Under Section 139AA of the Income-tax Act, only individuals who are “eligible to obtain an Aadhaar number” are required to quote it and link it with PAN. Aadhaar eligibility is tied to residing in India for 182 days or more in the preceding twelve months which, by definition, excludes most NRIs. CBDT Notification No. 37/2017, dated 11 May 2017, formally exempts non-residents from this requirement, provided they have neither obtained nor applied for an Aadhaar number.

For this exemption to apply cleanly, the NRI must ensure their residential status is correctly updated as “Non-Resident” on the Income Tax e-filing portal. If this update has not been made, the PAN can still be flagged as “inoperative,” disrupting TDS calculations, refunds, and the property transaction itself. NRIs who already hold an Aadhaar typically obtained before moving abroad fall outside this exemption and must either link it with PAN or get the residential status formally corrected with their Jurisdictional Assessing Officer.

The Property Registration Position: A Practical Workaround, Not a Legal Bar

The Registration Act, 1908 the central law governing property registration in India  does not mandate Aadhaar as a condition for registering a sale deed. The Supreme Court’s 2018 judgment in Justice K.S. Puttaswamy v. Union of India held that Aadhaar cannot be made compulsory outside welfare scheme delivery and specific tax-related uses. UIDAI subsequently directed government departments, including those handling property registration, to accept alternate documentation from NRIs.

In practice, however, several states have layered Aadhaar-based biometric authentication into their Sub-Registrar Office workflow as an anti-fraud measure. States such as Andhra Pradesh, Telangana, and parts of Karnataka now require biometric capture linked to Aadhaar for parties physically present at registration. This is an administrative practice at the state level, not a central statutory requirement, and it does not override the NRI exemption.

For an NRI without Aadhaar, three practical routes exist to complete registration:

1. Alternate identity proof with a supporting affidavit — passport, OCI card, or visa copy submitted with a declaration of non-resident status. Acceptance varies by state and by individual officer, so verifying with the specific SRO beforehand is essential.
2. A registered Power of Attorney (PoA) in favour of a resident Indian — typically a trusted family member who holds Aadhaar. The PoA must be executed and attested at the Indian Embassy or Consulate abroad, then registered in India. The attorney-holder appears in person, completes biometric verification with their own Aadhaar, and signs the sale deed on the NRI’s behalf. This is the most reliable method for NRIs who cannot travel to India.
3. Travelling to India for the registration appointment — the NRI’s own passport, visa/OCI card, and PAN are used as identity proof, with the SRO recording the transaction without biometric Aadhaar capture, where state rules permit this for non-residents.

Among these, the registered Power of Attorney route is generally the most practical for NRIs handling a one-time sale from abroad, since it removes both the travel requirement and the Aadhaar dependency at the registration desk in one step.

PAN vs Aadhaar for NRI Property Sale: Quick Comparison

 TDS on NRI Property Sale: 2026 Rates and Process

Selling without PAN is not an option, so understanding the TDS mechanics that depend on PAN becomes the next priority. For property held more than 24 months, the gain is long-term and taxed at a flat 12.5% (plus applicable surcharge and 4% cess), pushing the effective TDS rate up to roughly 14.95% on high-value transactions. For property held 24 months or less, the gain is short-term and taxed at the NRI’s applicable slab rate, which can also work out close to or above 30% with surcharge and cess.

A critical point most NRIs miss: TDS under Section 195/393(2) is deducted on the full sale consideration, not on the actual capital gain, unless the seller proactively obtains a Lower or Nil Deduction Certificate. This certificate, earlier filed as Form 13, has been replaced by Form 128 under Section 395 of the Income-tax Act, 2025, effective from 1 April 2026, and is filed electronically through the TRACES portal. Filing this 30 to 60 days before the expected sale date, with PAN, sale agreement, and capital gains computation in hand, is the single most effective way to avoid having lakhs of rupees locked up until a refund is processed.

Separately, the Union Budget 2026 has simplified the buyer’s side of the process: from 1 October 2026, resident buyers purchasing property from an NRI seller can deposit TDS using a PAN-based challan instead of first obtaining a Tax Deduction and Collection Account Number (TAN). Until 30 September 2026, the TAN requirement for buyers continues to apply. This change makes buyers more willing to transact with NRI sellers, but it does not reduce or remove the seller’s own PAN requirement in any way.

Living in the US? Saving TDS in India is only half the battle. Don’t risk heavy IRS penalties on your foreign asset sale. Read our complete guide on: NRI Selling Property in India: US Tax Implications Explained (2026)

Step-by-Step: Selling Property as an NRI Without Aadhaar

• Apply for or verify your PAN- If you do not have one, apply via Form 93 (Indian passport holders) or Form 95 (OCI/foreign passport holders) through the Protean or UTIITSL portals.
• Update your residential status to “Non-Resident” on the Income Tax e-filing portal so your PAN is not flagged inoperative and the Aadhaar exemption applies correctly.
• Decide your registration route in advance — confirm with the specific Sub-Registrar Office whether biometric Aadhaar capture is enforced for non-resident sellers, and prepare either an affidavit-based alternate ID submission or a registered Power of Attorney accordingly.
• Execute and register the Power of Attorney, if chosen, at the Indian Embassy or Consulate, then register it with the appropriate authority in India.
•  Apply for a Lower/Nil TDS Certificate (Form 128) at least 30 to 60 days before the sale to prevent excess TDS on the gross sale value.
• Complete the sale deed registration, with your PoA holder or yourself present, ensuring TDS is deducted and deposited correctly by the buyer.
• File your Income Tax Return for the relevant tax year to report the capital gain, claim applicable exemptions, and reconcile or reclaim any excess TDS.
• Repatriate the sale proceeds through your NRO account using Form 15CA/15CB, subject to the USD 1 million per financial year limit under FEMA.

Common Mistakes NRIs Make in This Process

Many NRIs assume that because they cannot get an Aadhaar, they also cannot sell property and either abandon the transaction or hand it over to an unverified local agent without proper documentation, which creates fraud risk. Others assume the opposite: that since Aadhaar isn’t needed, PAN isn’t either, and arrive at registration without one, only to have the deal stall at the last stage. A third common error is not updating non-resident status on the income tax portal, which leaves the PAN marked inoperative and triggers TDS at a higher rate even though the seller technically qualifies for the Aadhaar exemption. Each of these is avoidable with planning that starts well before the sale agreement is signed.

Selling Property as an NRI? Get It Right the First Time

A single missing PAN application or an unplanned Aadhaar issue at the Sub-Registrar Office can delay a property sale by months and lock up a significant share of your proceeds in excess TDS. NRITaxs works exclusively with NRIs on PAN compliance, Lower TDS Certificate filing, Power of Attorney structuring, and repatriation, so your sale closes on schedule and your money reaches you without unnecessary deductions.