Exiting unlisted Indian shares has quietly become one of the most risk-prone transactions for NRIs.
On paper, it appears simple compute capital gains, deduct TDS, and repatriate funds.
In reality, most issues emerge after the money is received.
Tax authorities now examine these exits through three lenses at once: valuation robustness, accuracy of withholding tax, and FEMA consistency at the repatriation stage. A valuation accepted at entry may not withstand scrutiny at exit. TDS is often deducted mechanically, without correctly applying DTAA positions or gain characterization.
Banks are increasingly refusing remittance unless valuation, consideration, tax paid, and reporting align perfectly.
The real risk is not outright non-compliance, but misalignment between otherwise “compliant” steps, which surfaces years later during assessment or remittance reviews.
The question has shifted from “Is tax paid?” to “Will this exit still hold up under valuation, tax, and FEMA scrutiny later?”
That is where most NRI exits are now getting stuck.
