NRI Property Guide

No. NRIs and OCIs may buy residential and commercial property freely, but agricultural land, plantation property and farmhouses cannot be purchased. They can be inherited, and can be held if acquired while you were resident. Selling inherited agricultural land is generally only permitted to a resident Indian citizen.

Up to USD 1 million per financial year from an NRO account, with Form 15CA from you and Form 15CB from a chartered accountant. Where the property was purchased using funds remitted from abroad or from an NRE account, sale proceeds of up to two residential properties may be repatriated without counting against that limit.

If you have income arising in India — rent, capital gains, interest — above the basic exemption limit, yes. It is also usually in your interest even when not strictly required. TDS on NRI rent is deducted at 31.2% and on sale at 20% plus surcharge, both frequently well above actual liability after deductions. Filing is how you recover the excess.

Yes. Most Indian lenders offer NRI home loans, generally at the same rates as residents, with repayment through NRE or NRO accounts or by inward remittance. Tenure is typically shorter, LTV slightly lower, and documentation heavier — passport, visa, overseas employment contract, salary slips and often an attested Power of Attorney for someone in India to act on your behalf.

A tenant paying rent to an NRI landlord must deduct TDS at 31.2% under Section 195, and deposit it against your PAN. This is far higher than the 2% that applies when the landlord is resident. Many tenants are unaware of this and the liability for failure sits with them, so it is worth addressing explicitly in the rent agreement. After the 30% standard deduction on rental income, your actual liability is usually well below the TDS, making a refund available on filing.

For property purposes, OCI cardholders are treated substantially the same as NRIs under FEMA — the same freedom to buy residential and commercial property, and the same prohibition on agricultural land. Tax treatment depends on your residential status for the relevant year under the Income Tax Act, which is determined by days of physical presence in India, not by your citizenship or OCI card.