Buying in India from abroad.

01FEMA: who can buy what.

The Foreign Exchange Management Act (FEMA), 1999 governs all property transactions where one of the parties holds non-resident status. The rules are simpler than most NRIs assume:

• NRIs and OCIs can buy residential and commercial property in India without prior RBI approval.
• You cannot buy agricultural land, plantation property, or farmhouses. (You can inherit them.)
• You can sell residential/commercial to any Indian resident, NRI, or OCI; you cannot sell agricultural land to a non-resident.
• There is no cap on the number of properties you can own.

02NRO, NRE, FCNR — which account.

You'll need at least one of these to route funds. Quick reference:

Most YEIDA plot purchases use an NRE → INR transfer for the registry payment and an NRO for any rent post-possession. We can introduce you to relationship managers at HDFC, ICICI, and Axis who handle NRI portfolios in volume.

03RBI-compliant remittance.

Three things matter:

1. Funds origin must be lawful — salary, business income, sale of foreign assets. Banks ask for source-of-funds documentation for transfers > USD 250,000.
2. Use authorised banking channels — SWIFT wire to your own NRE/NRO, or a Liberalised Remittance Scheme (LRS) transfer from a resident relative (max USD 250,000/yr per relative).
3. Get a Form 15CA/15CB for outward repatriation later. Easier to set up at purchase time than to backfill at sale.

Hawala or informal channels are not an option — they invalidate the title chain and create capital-gains exposure at sale.

04Power of Attorney.

If you can't fly down for registration, a PoA lets a trusted person in India execute on your behalf. Three flavours:

• General PoA — broad authority. Avoid unless absolutely necessary.
• Special PoA — specific to one transaction, naming the property. Strongly recommended.
• Registered PoA (in India) vs. apostilled/consularised PoA (executed abroad). For YEIDA registry, you need the registered version — we coordinate with the sub-registrar.

05Documentation checklist.

What you'll need to assemble:

• Passport — first & last pages (current + any expired with India visa stamps)
• OCI card (if applicable)
• PAN card (mandatory for any property transaction in India)
• Aadhaar card — if you have one; can be obtained on a visit
• Proof of overseas address (utility bill, lease, driving licence)
• NRE/NRO bank statement (last 6 months)
• Power of Attorney (apostilled or consularised, original)
• Source-of-funds: salary slips, employment letter, business filings
• 2 passport-size photographs (for sub-registrar)
• Biometric on file (for digital KYC at most banks)

Vidastu maintains a digital folder per NRI client with all of the above, shared securely — this also speeds up future transactions and bank KYC refreshes.

06Tax: TDS & capital gains.

At purchase

If you're buying from a resident Indian seller, you (the buyer) deduct 1% TDS on the sale consideration if it exceeds ₹50 lakh, and deposit it via Form 26QB. If you're buying from an NRI seller, the TDS rate jumps to 20%+ surcharge on long-term capital gains (Form 27Q), unless the seller obtains a lower-deduction certificate from the I-T department.

While holding

Rental income from your Indian property is taxable in India under “Income from House Property”. India and most NRI source countries have DTAA (Double Taxation Avoidance Agreement) — you can claim credit for India tax against your foreign tax liability.

At sale

• Short-term capital gains (held <24 months): added to your slab income, taxed at slab rate.
• Long-term capital gains (held >24 months): 20% with indexation benefit.
• Section 54 exemption is available if you reinvest the LTCG in another Indian residential property within 2 years (or under-construction within 3 years).
• Section 54EC: park up to ₹50 lakh in NHAI/REC bonds for 5 years to exempt that portion.

07Step-by-step purchase flow.

1. Discovery — shortlist 2-3 projects/plots via video call + drone footage. (1 week)
2. Site visit — via Vidastu video walk-through or, ideally, your visit. (1-2 weeks)
3. Document KYC — you provide passport, PAN, NRE statement; we provide builder/seller side. (3 days)
4. Token payment — usually ₹5-15 lakh via NRE-to-builder transfer; receipt is your earnest money. (1 day)
5. Booking application form + agreement to sell. (3-5 days)
6. Bank loan sanction if applicable (PNB / HDFC / ICICI NRI desk — 2-3 weeks).
7. PoA execution from your country of residence + Indian consulate. (1-2 weeks)
8. Registry execution — your PoA holder signs at the sub-registrar; stamp duty paid; documents handed over. (1 day in person)
9. Possession or under-construction tracking — we send monthly construction-update photos + RERA-mandated quarterly reports.

End-to-end: 4-6 weeks from first call to registry, for ready/under-construction property. Pre-launch projects add 6-18 months for possession.

08Sale and repatriation.

When you sell:

• Buyer deducts TDS (20% + surcharge on LTCG, unless you have a lower-deduction certificate).
• Sale proceeds land in your NRO account.
• From NRO, you can repatriate up to USD 1 million per financial year across all sources after providing Form 15CA/CB and a CA-certified tax-clearance certificate.
• If sale proceeds > USD 1M, the excess stays in NRO and you repatriate in subsequent years.

For NRE-routed purchases of residential property up to 2 units, full proceeds (after applicable taxes) are repatriable without the USD 1M cap — provided the original purchase consideration came from NRE/FCNR funds.