The general rules on acquiring and selling immovable property in India. General legal information only.
What can be bought
NRIs and OCIs can generally acquire residential and commercial property in India. They cannot buy agricultural land, plantation property or a farmhouse, though they may inherit such property. Check the current rules before relying on this.
How to pay
Payment is made through normal banking channels, from an NRE or NRO account or by inward remittance from abroad. Cash payments are not permitted.
Selling and repatriation
- Sale proceeds from a property can be credited to an NRO account, subject to tax.
- Repatriation of sale proceeds is allowed within the limits and conditions in the rules, and needs tax documentation.
- The rules differ for property bought with foreign funds and for inherited property.
Documents
- Passport and OCI card or proof of NRI status
- Power of attorney, if the purchase is done through an attorney: it should be properly executed and attested for use in India
- Bank certificates and tax documents for the transaction
Tax and RERA
Buying from a developer is covered by RERA, and tax deduction at source rules apply to NRI sellers. Take tax advice alongside legal advice.
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Important disclaimer: This article is general legal information, not legal advice. It does not create a lawyer-client relationship and is not an advertisement or solicitation under Bar Council of India rules. Verify current statutes, rules and judgments before relying on it.
