Contact Us

Legal and Tax Essentials
NRI Guide

Buying property in India as an NRI is fully legal, but it comes with specific rules, tax implications, and compliance requirements. Understanding these clearly can save you from costly mistakes and delays. This guide explains FEMA rules, taxation, repatriation, and common pitfalls NRIs should be aware of when investing in Indore real estate. It is part of our complete resource on NRI real estate investment in Indore.

FEMA & RBI Norms for NRI Property Purchase

What NRIs Can Buy
  • Residential property (apartments, villas, plots)
  • Commercial property (offices, shops)
What NRIs Can't Buy
  • Agriculture Land
  • Plantation Property
  • Farmhouses
Payment Rules

Buying & Selling Property in Indore as an NRI

NRIs can buy property
  • Individually
  • Jointly with another NRI or resident Indian
  • Through a Power of Attorney (POA)
Key legal checks
  • Clear land title
  • Approved building plans
  • RERA registration
  • Occupancy & completion certificates
Selling Property in India
  • Resident Indians, Other NRIs
  • Sale proceeds are credited to an NRO account
  • Capital gains tax applies

Taxation for NRI Property Owners in India

Rental Income Tax for NRIs
  • Taxed as House Property
  • TDS @ 30%
  • 30% Standard Deduction
Capital Gains Tax on Property Sale

Holding Period

  • <2 Years - Taxed as per income tax slab
  • >2 Years - Taxed at 20% with indexation benefits

Repatriation Rules for NRIs

Rental Income Repatriation
  • Allowed after payment of applicable taxes
  • Funds routed through NRO to NRE
Sale Proceeds Repatriation
  • Up to USD 1 million per financial year
  • Applicable after tax clearance
  • Proper documentation required

Common Legal & Tax Mistakes NRIs Make

Many NRI investors lose money not due to the market - but due to avoidable mistakes.
  • Buying property without proper title verification
  • Ignoring FEMA payment rules
  • Not accounting for TDS on rental income
  • Improper Power of Attorney documentation
  • Assuming repatriation is automatic
  • Buying purely on advice from relatives or brokers
Connect with us

Need Help with NRI Legal & Tax Compliance?

Our Indore-based NRI advisory team assists with:

End-to-End Support

We're here to assist you from start to end

  • FEMA & RBI compliance
  • Property due diligence
  • Tax coordination with CAs
  • Rental income structuring
  • Exit & repatriation planning

How Can We Help You?

Enquire Now
Mastering Mystery Shopping
For More
TALK TO US
Facebook-f Linkedin-in Instagram

© 2025 All Rights Reserved. @ Floorwalk Consultants Private Limited.