Can NRIs (Non-Resident Indians) buy property in Nagpur?
Yes, Non-Resident Indians (NRIs) can buy property in Nagpur and across India with certain regulations and considerations in mind. Here’s a concise and clear breakdown:
What NRIs Can Buy
NRIs are allowed to purchase residential and commercial property in India. There is no limit on the number of such properties they can own.
However, agricultural land, farmhouses, and plantation property are not permitted purchases for NRIs unless specifically inherited.
No prior permission from the Reserve Bank of India (RBI) or any other authority is required for purchasing eligible property types.
Payment & Financing Rules
Payment for property must be made in Indian Rupees (INR) through authorized banking channels like your NRE, NRO, or FCNR account.
NRIs can take home loans from Indian banks to purchase residential or commercial properties, with repayment in INR.
Key Documents Required
Indian Passport, or if using a foreign passport, a valid OC I/PIO card.
PAN Card mandatory for property transactions.
Registered and notarized Power of Attorney (PoA) if you’re not physically present in India.
Tax & TDS Obligations
Rental Income: Subject to TDS at 30%, net of standard deductions.
Sale of Property by NRI:
Long-term capital gains (held >2 years): TDS at 20%, plus applicable surcharge and cess.
Short-term capital gains (<2 years): TDS as per NRI’s income tax slab.
If the seller is an NRI:
Buyer must deduct TDS at 20.8% (20% + 4% cess) for long-term gains, with extra surcharge depending on transaction value.
If the seller is a resident Indian and property value > ₹50 lakh, TDS is 1%.
Final Takeaway
Yes, NRIs can confidently buy residential or commercial property in Nagpur (and elsewhere in India). While the process is largely the same as for resident Indians, it’s essential to be aware of unique document, payment, and tax requirements especially around TDS.
