Short answer: Yes, but not farm land. Under India's foreign exchange rules, an NRI or an OCI cardholder can buy residential and commercial property, such as a flat, a house or a non-agricultural plot, but cannot buy agricultural land, a plantation or a farm house. They can still inherit any property, including farm land. The money must come through Indian banking channels, not traveller's cheques or foreign currency notes.
This guide is for NRIs and OCI cardholders who want to buy property in India, and for buyers in India who are buying from an NRI seller. It was checked against the official Reserve Bank of India (RBI) and Income Tax Department websites in October 2026.
What NRIs and OCIs can and cannot buy
The rules are in the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and the RBI's Master Direction on acquisition and transfer of immovable property. An NRI is a person resident outside India who is a citizen of India. An OCI is a person resident outside India who is registered as an Overseas Citizen of India cardholder.
| How you get the property | Allowed for an NRI or OCI? |
|---|---|
| Buy a house, flat, shop or plot that is not agricultural land, a plantation or a farm house | Yes, from a resident, an NRI or an OCI |
| Buy agricultural land, a plantation or a farm house | No |
| Gift of property other than agricultural land, a plantation or a farm house | Yes, from a relative who is a resident, an NRI or an OCI |
| Inherit any property, including farm land | Yes |
A foreign citizen married to an NRI or OCI may buy one such property jointly with that spouse, if the marriage is registered and has lasted at least two years.
How the payment must be made
An NRI or OCI must pay from money received in India through banking channels. That means an inward remittance from abroad, or a payment from your NRE, FCNR(B) or NRO account. The RBI does not allow payment by traveller's cheques or foreign currency notes.
Keep every remittance advice and bank statement: how you paid decides how much of the sale money you can take abroad later. If you plan to borrow, check the bank's rules. Indian Bank, for example, lends to NRIs for plots, but not for plots in rural areas.
Inheritance and gifts
- You can inherit any property in India, including agricultural land, from a person resident in India.
- You can also inherit from a person living outside India, if that person acquired the property under the foreign exchange law in force at the time.
- You can receive property as a gift only from a relative, and not agricultural land, a plantation or a farm house. "Relative" has the meaning in section 2(77) of the Companies Act, 2013.
- If you own agricultural land, for example by inheritance, you can sell it or gift it only to a person resident in India.
- You may keep property you bought while you lived in India, or inherited from a resident, after you move abroad.
Selling later and taking the money abroad
The RBI lets an NRI send the sale money of a property abroad (repatriate it) when all of these are true:
- the property is not agricultural land, a plantation or a farm house;
- it was bought under the foreign exchange law in force at the time;
- it was paid for in foreign exchange through banking channels, or from an NRE or FCNR(B) account; and
- for homes, the money comes from not more than two residential properties.
If the purchase was funded by a housing loan and you repaid it from abroad through banking channels, or from an NRE or FCNR(B) account, those repayments count as foreign exchange for this rule.
NRIs can also send up to USD 1 million per financial year (April to March) out of NRO account balances and the sale proceeds of assets, with documentary evidence and after Indian taxes. If you bought the property while you lived in India, or inherited it from a resident, you need RBI approval to repatriate the sale money directly, but this USD 1 million facility is still open to you. For the selling steps, read how to sell property in India from abroad.
Buying from an NRI seller: you must deduct TDS
If the seller is a non-resident, the buyer must deduct tax at source (TDS) before paying. The Income Tax Department's FAQ says this falls under section 195 of the Income-tax Act, 1961, and not under section 194-IA, the rule for resident sellers.
The Income-tax Act, 2025 came into force on 1 April 2026. In the new Act, this duty sits in section 393(2), Table serial number 17: any person who pays a non-resident a sum chargeable to tax must deduct tax at the "rates in force".
- The department's FAQ explains that the rate depends on whether the seller's gain is long-term or short-term, plus surcharge and cess. Ask a tax professional to work out the amount.
- From 1 October 2026, a resident individual or HUF buyer does not need a separate TAN (tax deduction account number) for this deduction.
- The seller can apply to the Assessing Officer for a certificate of lower or no deduction. If one is issued, the buyer deducts at that rate.
Practical steps if you live abroad
- Confirm the land is not agricultural land, a plantation or a farm house. Check the patta (the revenue record of land ownership): see how to check patta and chitta online.
- For a plot, check the layout approval: see how to check DTCP approval.
- Get an encumbrance certificate (EC) to see the registered transactions on the property: see how to get an EC online.
- Pay only through banking channels, and keep the records.
- If you cannot travel for the registration, you can give a power of attorney to someone you trust in India: see power of attorney for property in Tamil Nadu.
- Register the sale deed at the sub-registrar office: see the property registration process.
Next steps
- Plots for sale in Tamil Nadu: every listing on Gmore has a video tour, so you can see a property from abroad before you travel.
- Power of attorney for property in Tamil Nadu
- Sell your property in India from abroad: owners can sell with Gmore for a flat fee with zero commission.
