NRI Property Guide

NRIs and OCIs can buy residential and commercial property in India without RBI permission. Agricultural land, plantations, and farmhouses are restricted.

Buying

• Pay through NRE / NRO / FCNR account or inward remittance.
• No cap on the number of properties.
• Power of Attorney to a trusted relative speeds up registration.

Renting out

• Rent must be credited to an NRO account.
• 30% TDS applies on rent unless lower deduction certificate obtained.
• Standard deduction of 30% available before income tax.

Selling

• Short-term (held under 24 months): taxed at slab rate.
• Long-term: 20% with indexation OR 12.5% without indexation (from FY 2024-25).
• Buyer must deduct TDS at 20% (LTCG) or 30% (STCG).

Repatriation

• Up to USD 1 million per financial year from NRO account with Form 15CA/CB.
• Sale proceeds of up to 2 residential properties can be repatriated.

Common mistakes

• Buying without RERA registration
• Using NRO funds for properties intended for repatriation
• Skipping the lower TDS certificate (Section 197)

Consult a chartered accountant for your specific situation.