NRI Guide
Last updated 12 September 2026
1. Can NRIs buy property in India?
Yes. NRIs and OCIs can buy most residential and commercial property in India under FEMA rules, without needing RBI's prior permission for these categories. The one broad restriction: agricultural land, farmhouses, and plantation property generally can't be purchased by an NRI/OCI — a specific RBI approval route exists for exceptions, but it isn't the norm. This guide focuses on what NRI buyers and sellers ask about most: repatriating sale proceeds, and how property income and gains are taxed.
2. Repatriating sale proceeds — how much, and how
When an NRI sells a property in India, the proceeds can be repatriated (transferred back abroad) subject to conditions set by the Reserve Bank of India under FEMA. As of 2026, the well-established ceiling is USD 1 million per financial year for remittance of sale or inherited property proceeds through an authorised dealer bank, once applicable taxes have been paid — a higher amount needs specific RBI approval. Proceeds are typically routed through an NRO (Non-Resident Ordinary) account, since a property bought with rupee funds is usually treated as NRO money; property originally bought with foreign remittance or NRE funds can have different, sometimes more generous, repatriation treatment. Two forms come up constantly in this process: Form 15CA (an online self-declaration) and, for larger remittances, Form 15CB (a certificate from a practising chartered accountant confirming the correct tax has been paid) — your bank will typically ask for these before releasing funds abroad.
3. TDS when an NRI sells property
This is the single biggest surprise for NRI sellers: when someone buys property from an NRI, the buyer must deduct TDS under Section 195 — and unlike a resident-to-resident sale (where TDS is a flat 1% on the sale value), for an NRI seller the default is to deduct TDS on the full sale consideration at the seller's applicable capital-gains rate, not just on the profit. As of 2026: property held for more than 24 months qualifies as a long-term capital gain, currently taxed at 12.5% (without indexation, following the Budget 2024 change) plus applicable surcharge and a 4% health and education cess; property held 24 months or less is a short-term gain, commonly deducted at a flat 30% plus surcharge and cess in the absence of other arrangements. Because TDS is otherwise withheld on the full sale price rather than the actual gain, many NRI sellers apply in advance for a Lower or Nil TDS Certificate under Section 197 (filed as Form 13 with the Assessing Officer) — an approved certificate instructs the buyer to deduct TDS only on the estimated real gain, which can make a large practical difference to how much cash is tied up until the next tax return is filed and any excess is refunded.
4. Rental income and double taxation
If an NRI keeps a property and rents it out instead of selling, the tenant (or their managing agent) is generally required to deduct TDS on rent paid to an NRI landlord under Section 195, rather than the simpler rate that applies for a resident landlord. Both rental income and capital gains from Indian property remain taxable in India regardless of NRI status. India's tax treaties (Double Taxation Avoidance Agreements, or DTAA) with most countries NRIs commonly live in typically allow a credit for tax already paid in India against tax owed in the country of residence, so the same income usually isn't taxed twice in full — but claiming that credit correctly is a return-filing detail worth getting a professional's help with.
5. Power of Attorney for remote transactions
Buying, selling, or simply completing paperwork on an Indian property from abroad is common enough that a Power of Attorney (PoA) — a document authorising someone in India, often a relative or a lawyer, to sign and act on the NRI's behalf — is routinely used for site visits, registration formalities, and bank or tax filings. A PoA used for property transactions is usually expected to be notarised and, if executed outside India, attested by the Indian consulate or embassy in that country, then adjudicated/stamped after it arrives in India. Exact requirements vary by state, so this is worth confirming locally before relying on one — and see our video-call viewing option on individual listings as a lower-effort way to see a property before deciding whether a visit (or a PoA-backed transaction) is worth arranging.
6. This isn't tax or legal advice
Everything above is general information about how these rules commonly work as of 2026, meant to help NRI buyers and sellers ask the right questions — it is not personalised tax, legal, or financial advice. The specific rates and thresholds mentioned (repatriation limits, TDS rates, holding periods) can and do change with each Union Budget and RBI notification, and how they apply to any specific transaction depends on facts we have no way to know here. Before making a decision, please have your own chartered accountant confirm current TDS/capital-gains treatment, and your own lawyer review any Power of Attorney or sale agreement.