Table of Contents
What is the NRI Property Purchase Guide India?
The NRI Property Purchase Guide India is a detailed checklist of legal, financial, and procedural do’s and don’ts for Non-Resident Indians looking to buy property in India. It helps you make informed decisions, stay within FEMA guidelines, and avoid unnecessary tax penalties or legal trouble.
Why is it important for NRIs?
Here’s the thing—most NRIs buy based on trust or emotional appeal. But real estate in India is full of grey zones.
Without a proper understanding of FEMA rules, income tax implications, and repatriation policies, you can:
- Lose money to TDS or capital gains tax
- Get stuck in court with a disputed title
- Be blocked from repatriating funds legally
- End up paying double tax
When should you consult a FEMA & Taxation Expert?
Before you send money, sign documents, or even shortlist a property. A delay in consulting an expert can lead to:
- Wrong account usage (NRO instead of NRE)
- Missed paperwork for repatriation
- Ineligibility to claim tax deductions
- Unrecorded power of attorney or gift deed
Where do most NRIs go wrong?
NRIs often fall into traps like:
- Buying agricultural land (which is restricted)
- Transferring funds through informal channels
- Relying on brokers without CA verification
- Misreporting residency status in tax returns
These mistakes trigger compliance notices, penalties, and legal hassles.
Who needs this guide the most?
This guide is a must-read for:
- NRIs buying first-time residential/commercial property
- NRIs inheriting or gifting property
- Families planning to sell ancestral property in India
- Investors planning to repatriate rental or capital gains
How to stay compliant with FEMA and tax laws?
Here’s what you must do:
- Use proper bank accounts (NRE/NRO/FCNR)
- Consult a FEMA expert for transaction structuring
- File Form 15CA/CB for fund repatriation
- Register PoA and gift deeds with legal review
- Keep DTAA and residential status in mind during tax filing
Pro Tip: Don’t rely on hearsay. Always consult a FEMA and tax audit expert who understands cross-border complexities.
FAQ's
No, NRIs are not permitted to buy agricultural land, plantation property, or farmhouses.
20% TDS applies on long-term capital gains, but refund claims and exemptions under Sec 54 may apply.
Yes, if they earn rental income, capital gains, or any Indian-sourced income above the basic exemption.
Through an NRO account after CA certification and RBI compliance (Form 15CA/CB).
They help ensure legal structuring of transactions, avoid double taxation, and manage fund repatriation safely.
