Can NRIs buy a plot in India?
Yes. NRIs and OCI cardholders can buy residential or commercial plots in India without RBI permission under FEMA's Non-Debt Instrument Rules, 2019. The only exclusions are agricultural land, plantation property and farmhouses. Payment must come through Indian banking channels, and a PAN is needed.
How do NRIs pay for property in India?
- Allowed: inward remittance from abroad; transfer from your NRE, FCNR(B) or NRO account.
- Not allowed: cash, traveller's cheques, foreign-currency notes.
- Tip: pay from NRE/FCNR or by fresh remittance if you want the purchase amount to be repatriable later.
Is TDS applicable when an NRI buys property?
Yes, if you buy from a resident seller (such as a developer) for ₹50 lakh or more, you deduct 1% TDS (section 393 of the Income-tax Act, 2025, formerly 194-IA) and deposit it using Form 26QB. It's part of the price, not an extra cost.
| Worked example (indicative) | Amount |
|---|---|
| ~1,500 sq ft plot at Godrej Rivershore Estate | ~₹79 L |
| Five instalments of 20% each, booking to possession (booking max 10% before allotment) | ~₹15.8 L each |
| 1% TDS deducted by you (section 393, formerly 194-IA) | ~₹78,750 |
| Plus GST, stamp duty (Maharashtra rates), registration (1%, max ₹30,000) | as per cost sheet |
What documents does an NRI need?
- Passport and OCI card (if applicable)
- PAN card (apply online from abroad if you don't have one)
- Overseas address proof and photographs
- NRE/NRO/FCNR account details used for payment
- Registered power of attorney, if someone signs for you
Can I buy through power of attorney without travelling?
Yes. Sign a specific power of attorney abroad, get it attested at the Indian embassy or consulate (or apostilled), then have it adjudicated for stamp duty in India within three months. Your attorney signs the agreement for sale and appears before the sub-registrar.
- Video tourSee the site and your exact plot live.
- Book onlinePay the booking amount from your NRE/NRO account.
- POAExecute and attest abroad; courier to India; adjudicate.
- RegisterAttorney signs the RERA agreement for sale within 2 months of allotment.
Can NRIs get a loan for a plot?
Yes, many Indian banks offer NRI plot and plot-plus-construction loans in rupees, repaid from NRE/NRO/FCNR accounts. Plot loans typically fund a smaller share (often up to 70–75%) than home loans.
What tax does an NRI pay when selling?
Held over 24 months: 12.5% long-term capital gains (plus surcharge and cess), without indexation. Held less: slab rates. The buyer deducts TDS under section 195, you can apply for a lower-deduction certificate. Sections 54EC and 54F exemptions may apply.
Can NRIs repatriate sale proceeds?
Yes. The amount you originally paid in foreign exchange is repatriable for up to two residential properties. Any balance can be remitted from your NRO account within USD 1 million per financial year, with Forms 15CA/15CB.
Frequently asked questions
Can an NRI buy a plot in India?
Yes. Under FEMA's Non-Debt Instrument Rules, NRIs and OCI cardholders can buy residential or commercial plots in India without RBI permission. They cannot buy agricultural land, plantation property or a farmhouse (except by inheritance).
How can an NRI pay for a plot in India?
Only through normal banking channels, an inward remittance from abroad, or from an NRE, FCNR(B) or NRO account in India. Cash, traveller's cheques and foreign-currency notes are not allowed.
Is TDS applicable when an NRI buys property in India?
Yes, when the seller is resident and the price is ₹50 lakh or more: the buyer (including an NRI) deducts 1% TDS under section 194-IA and deposits it with Form 26QB. At Godrej Rivershore Estate most plots are above ₹50 lakh, so this usually applies.
What documents does an NRI need to buy a plot in India?
Passport, OCI card (if applicable), PAN card, overseas address proof, photographs, and bank details of the NRE/NRO/FCNR account used for payment. If a relative signs for you, a registered power of attorney.
Can an NRI buy property in India through power of attorney?
Yes. Execute a specific power of attorney abroad, get it attested at the Indian embassy/consulate or apostilled, and have it adjudicated (stamped) in India within three months of receipt. Your attorney can then sign the agreement and appear for registration.
What tax does an NRI pay when selling a plot in India?
If held for more than 24 months, long-term capital gains are taxed at 12.5% (plus surcharge and cess) without indexation; otherwise at slab rates. The buyer deducts TDS under section 195; you can apply for a lower-deduction certificate. Exemptions under sections 54EC and 54F may apply.
Can an NRI repatriate the money from selling a plot?
Yes. The amount originally paid in foreign exchange (inward remittance or NRE/FCNR) can be repatriated for up to two residential properties; the balance can be remitted from an NRO account within the USD 1 million per financial year limit, with Forms 15CA/15CB.
Can an NRI get a loan for a plot in India?
Yes. Many Indian banks offer NRI plot or plot-plus-construction loans in rupees, repaid from NRE/NRO/FCNR accounts. Plot loans usually fund a lower share of the price than home loans.
General information under FEMA and the Income-tax Act as understood on 2026-10-25; rules change. Consult a CA for your situation.