Complete NRI Guide to Real Estate in India

NRI Guide to Real Estate in India (2025 Edition)

Introduction: The Rising Influence of NRIs in Indian Real Estate

Overseas Indians, officially recognized as Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs), represent a global diaspora exceeding 32 million people. With India’s increasing global economic presence and connectivity, this number is expected to grow by over 1% annually, translating to more than 320,000 new NRIs each year.

As NRIs continue to play a vital role in the Indian economy, their interest in real estate—both residential and commercial—has surged. Favorable exchange rates, robust property appreciation in cities like Pune and Mumbai, and increasing transparency have made Indian real estate a promising investment avenue.

Why PAN Card is Mandatory for NRIs

The Permanent Account Number (PAN) is a 10-digit alphanumeric identifier issued by the Income Tax Department of India. It is mandatory for all NRIs and PIOs engaged in financial or investment transactions in India.

Key Uses of PAN for NRIs:

Mandatory for earning taxable income in India
Required to invest in mutual funds, shares, or securities
Essential for property purchases and vehicle registration
Necessary for bank KYC processes and high-value transactions

We facilitate PAN card applications for NRIs and PIOs without requiring a visit to India, in collaboration with experienced legal advisors. For assistance, contact: deepaksundrani@gmail.com | +91-9822052388 / +91-7498829332

Real Estate Ownership Rules for NRIs

1. Buying Property: NRIs can legally purchase or inherit residential and commercial properties in India. However, ownership of agricultural land, farmhouses, or plantation properties is restricted and requires prior approval from the Reserve Bank of India (RBI).

Required Documents for Purchase:

Valid Passport or OCI Card
PAN Card
Special Power of Attorney (if the buyer is overseas)
Proof of address and recent passport-sized photographs

2. Selling Property: NRIs are permitted to sell residential or commercial property to Indian residents, other NRIs, or PIOs. However, agricultural land can only be sold to resident Indian citizens.

Taxation on the sale of property involves:

Short-term Capital Gains (property held < 2 years): Taxed as per income slab
Long-term Capital Gains (property held > 2 years): Fixed tax at 20%

Important: Buyers are required to deduct Tax Deducted at Source (TDS) when purchasing property from NRIs. Failure to comply can result in significant penalties.

Understanding TDS on Sale of Property by NRIs

TDS must be deducted by the buyer at the time of each payment (including advance) made to the NRI seller. The applicable TDS rates are:

Long-Term Capital Gains:

Property < Rs. 50 lakhs: 20.8%
Rs. 50 lakhs – 1 crore: 22.88%
Rs. 1 crore: 23.92% – 28.496% depending on slab and surcharge

Short-Term Capital Gains:

Taxed as per individual income tax slab + surcharge + cess

Key Compliance Requirements:

Buyer must have a TAN (Tax Deduction Account Number)
File Form 27Q quarterly for TDS returns
Issue Form 16A to the seller
Deposit TDS within 7 days of the month-end

Note: Failure to deduct or deposit TDS correctly makes the buyer liable for the tax due, along with interest and penalties.

Reducing TDS via Form 13 (Lower Deduction Certificate)

The seller can apply for a lower or nil TDS deduction under Section 195 by submitting Form 13 to the Income Tax Department. This is especially helpful when the capital gain is lower than the sale price. The process takes 2–4 weeks and requires purchase cost, renovation bills, and proof of ownership.

We provide assistance for:

Filing Form 13
TDS calculation and refund
Legal and taxation advisory

Our Services for NRIs and PIOs

With over 18 years of experience, we offer a comprehensive suite of professional services tailored for NRIs:

1. Brokering & Consulting:

Buy/Sell/Lease high-value properties in Pune, Mumbai, Goa, Lonavala, Panchgani, and Mahabaleshwar
Ready and under-construction projects (residential and commercial)

2. Documentation & Legal Support:

Assistance in obtaining PAN Cards for NRIs/PIOs
Legal documentation: Sale Deeds, Gift Deeds, Will, Power of Attorney
Recovery or duplication of property documents (Pune-specific)

3. Tax & Compliance:

TDS advisory and reduction
Capital gains tax planning
Guidance in obtaining TAN and filing TDS returns

4. Project Selection Advisory:

Comparative analysis of projects in a given micro-location
Independent buyer-side advisory (consulting or brokering model)

Why Work With Us?

We are ethical, experienced, and client-centric. Our past clients—NRIs, expats, investors, and local buyers—continue to rely on us not only for purchases but also for ongoing property management. Our mission is to simplify and secure real estate transactions with transparency and trust.

For personalized guidance or queries, feel free to connect: 📧 deepaksundrani@gmail.com 📞 +91-9822052388 / +91-7498829332

Thank you for reading. Wishing you success and clarity in your real estate journey.

Warm regards,
Deepak Sundrani
Property Advisor & Consultant