Non-Resident Indians can freely buy residential property in India under FEMA, with a handful of documentation and taxation nuances. This guide sets out what an NRI needs to know before, during and after a luxury residence purchase in Gurgaon.
- FEMA permits NRIs and OCIs to purchase residential and commercial property in India.
- Funds must be routed through NRE, NRO or FCNR accounts, or by inward remittance.
- Home loans up to 80% LTV are widely available; repayment is via NRE/NRO account.
- TDS on resale is 20% on long-term gains and 30% on short-term — plan the exit at purchase.
For a non-resident buyer, an Indian luxury purchase sits at the intersection of three regimes: the Foreign Exchange Management Act (FEMA), the Income-Tax Act and state-level stamp duty. Each is settled law; the friction is procedural, not legal. This guide walks through the sequence a well-advised NRI follows.
Who can buy — and what
NRIs (Indian citizens resident abroad) and OCIs (Overseas Citizens of India) may acquire any residential or commercial property in India without RBI approval. Agricultural land, plantation property and farmhouses are out of scope and can only be inherited or received as gifts.
How funds must move
- Inward remittance through normal banking channels.
- Debit to an NRE (Non-Resident External), NRO (Non-Resident Ordinary) or FCNR (Foreign Currency Non-Resident) account maintained in India.
- Traveller's cheques or foreign currency notes are not permitted for the consideration.
Home loans for NRIs
Every major Indian lender — HDFC, SBI, ICICI, Axis, Kotak — offers NRI home loans. Sanction is typically 75–80% of the property value, with tenors up to 20 years. Repayment must be in Indian rupees from the borrower's NRE/NRO account or by inward remittance.
Stamp duty and registration in Gurgaon
In Haryana, stamp duty for a male buyer in urban Gurgaon is 7% of consideration; for a female buyer, 5%; joint male-female registration is 6%. Registration fee is capped at ₹50,000. These are settlement charges paid at conveyance and are not GST-inclusive.
TDS and capital gains at exit
When an NRI sells Indian property, the buyer must deduct TDS at 20% on long-term capital gains (holding over 24 months) or 30% on short-term gains, plus applicable surcharge and cess. Applying for a lower-deduction certificate under Section 197 is the standard way to align TDS with actual tax liability.
Repatriation of sale proceeds
- Sale proceeds of up to two residential properties may be repatriated per FEMA.
- Repatriation is capped at USD 1 million per financial year across accounts.
- A CA-certified Form 15CA/15CB is required for the outward remittance.
A pragmatic NRI checklist
- PAN, OCI/passport, foreign address proof and Indian address proof (if applicable).
- NRE/NRO account with an Indian bank; keep a running statement.
- Power of Attorney to a trusted relative or advocate, notarised and apostilled abroad, adjudicated in India — necessary for on-ground signing.
- Title search, encumbrance certificate and RERA registration verification on the project.
- Registered sale agreement and, after possession, the registered conveyance deed.
The Westin Residences Gurgaon has a dedicated relationship team for NRI buyers across the GCC, UK, US and Singapore.
Frequently Asked
Can an NRI buy property in India without visiting?
Yes. With a properly executed and adjudicated Power of Attorney, every step from booking to registration can be completed by a representative. Modern developers also handle the KYC and payments digitally end-to-end.
Is a PAN mandatory to buy property in India?
Yes. A PAN is required for the sale agreement, registration and any TDS filing. NRIs without a PAN should apply well before booking.
Are there restrictions on the number of properties an NRI can own?
No FEMA-level cap on residential holdings. Repatriation is separately restricted to sale proceeds of two residential properties.
How is rental income from an Indian property taxed for an NRI?
Rental income is taxable in India at slab rates after a 30% standard deduction; tenants must deduct TDS at 30% and issue a Form 16A. DTAA credit may reduce liability in the country of residence.
- FEMA — Acquisition and Transfer of Immovable Property — Reserve Bank of India
- Haryana Registration and Stamp Duty rates — Government of Haryana
Residential Advisory Team
Relationship management
The relationship management team at The Westin Residences Gurgaon, working directly with buyers on shortlisting, diligence and site visits.
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