• At any time held an Indian passport.
• Parents or grandparents who are citizens of India according to the Indian Constitution
• A spouse who is an Indian citizen or PIO (for the purpose of bank deposits)

An OCI is a person who is a citizen of another country, but also:

• Held an Indian citizenship at some point
• Was eligible for an Indian citizenship at the time of the commencement of the Indian Constitution
• Belongs to a territory that became part of India after Independence

With NRI investment in India growing at a large rate, an OCI can also buy real estate in India.

• Title deed should be clear- in original, and that it is solely in the name of the seller. Ensure that the title papers of the property are sound, especially if it is inherited or jointly held.


• A bank release in case it was at any point of time under mortgage.


• If the seller is unable to produce the original and shares a photocopy, there is a possibility that a loan has been taken against the property. Initiate a thorough check to avoid the pitfall of the sale being challenged at a later stage.


• As certain that the property has secured all clearances required by law, such as environment and municipal clearances and the authority to transfer the undivided share of land to each apartment owner and the entire plot to the society upon completion of the project.


• For projects under construction, insist on these documents to ensure that your investment is safe. It will be wise to get the papers verified by a lawyer before going ahead. Project documents are normally certified by legal advisors before financial institutions can give loans for flats. They scrutinize original title, encumbrance certificates, building permits, land ceiling clearances and other relevant documents.


• The buyer-builder agreements should be equitable and should not contain clauses that are volatile of an investor’s rights and interests.


• A no dues certificate from the seller at the time of purchase to ensure there is no water, electricity or any other pending bills with the authorities


• For new constructions, land title should be clear and the builder should have taken all approvals and permits from the civic authorities in terms of construction

The RBI allows NRIs to purchase immovable property in India including:

• Residential property
• Commercial assets

However, NRIs are forbidden from purchasing:

• Agricultural land
• Plantations
• Farmhouses

If you are looking for NRI investment in India and want to purchase one of these, you will need to specially apply to the RBI for permission and your case will be considered separately.

• All transactions must happen through the banking channel, repayment has to be done by inward remittances. You can directly get the money remitted from NRO/NRE account in India or issue post-dated Cheques or Electronic Clearance Service (ECS) from your NRE, NRO or Foreign Currency Non Resident (FCNR) account.
• In case you let out the property you can use the rent to repay the loan as well.
• Cheques issued from a relative’s local account can also be used to make the loan payments.

For NRI investment in India, some of the assets taxable under CGT include:

• House property
• Loans
• Buildings
• Jewellery

Some of the assets which don’t fall under CGT include:

• Capital gains invested in NHAI bonds or in Rural Electrification Corporation
• If long-term capital gains from the sale of a house is invested in buying another house. In such cases, the amount exempted is either the amount of capital gains or the amount invested in buying the new house, whichever is lower

Some of the assets which don’t fall under CGT include:

• If you are buying an under-construction property, your developer may ask for a power of attorney (PoA) favouring them. This is not unusual and would make documentation work slightly easier and quicker
• A Poa can be given to execute any contracts, deeds as well as mortgage, lease or even sell. So make sure the kind of authority you are giving to the person through the PoA. Just get it worded properly by a professional lawyer you trust

Rental income from any real estate in India can be repatriated after deduction of tax. But amount repatriated cannot exceed the amount paid in foreign exchange for property.

As per India’s Foreign Exchange Management Act (FEMA) 1999, a person resident in India is a person residing in India for more than 182 days during the previous financial year (April-March) and who has come to or stays in India either for employment, business or for any other vocation.

Anybody who wants to make an NRI investment in India should possess the following documents:

• Title Deed
• Authorized building plan
• NOC from Electricity Supply, Pollution Control Board, Water Department
• Sale agreement between builder and previous owner (if applicable)
• Possession letter from the builder
• Sale agreement
• Allotment letter
• Possession letter
• Encumbrance certificate (in case of there being a previous buyer)
• Occupancy certificate

For more details, read our article on Mandatory Documents NRIs Need While Investing in Indian Realty.

If you are an NRI looking to buy real estate in India, loans can be made available. Here are the guidelines to follow for home loans that cater to NRI investment in India:

• Title Deed
• Period of repayment and amount given as loan shall be decided by the bank providing the loan
• Rate of interest is decided by the RBI or National Housing Bank
• NOC from Electricity Supply, Pollution Control Board, Water Department
• The loan amount will not be credit to the NRE/Foreign Currency Non-Resident (FCNR)/Non-Resident Non-Repatriable (NRNR) account
• Loan installments will be paid through normal banking channel

• NRIs need to file income tax returns for investments if:
  Taxable income in India during that year was above 1.6 lakhs
• Short-term or long-term capital gains from sale of investments or assets were made (even below 1.6 lakhs)

If you are an NRI looking to buy real estate in India, loans can be made available. Here are the guidelines to follow for home loans that cater to NRI investment in India.

• Amount paid in foreign exchange through normal banking channels
• Amount paid through NRE debit/FCNR account

If the property was bought with Indian rupees, NRIs who want to buy real estate in India can remit not more than 1 million USD per financial year from balance held in NRO account.

For NRI investment in India, acquiring the property in itself is not taxable. However, the following are subject to income tax:

• Income gained from property in the form of rent
• Annual value of the house if it is not the only residential property owned by the individual

Capital gains from sale of the property