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Benami Property- A Clear Guide to Current Rules & Penalties5 Key Things NRIs Should Know Before Investing in Indian Real Estate
1. Foreign Exchange Rules
- NRIs must follow the FEMA (Foreign Exchange Management Act when investing.
- They can generally buy residential or commercial property, but not agricultural land.
- Inheritance or gifts of property are allowed, even for NRIs.
- Court permission may be needed in very specific cases for farm or agricultural land.
2. Tax Implications
- When selling the property within 2 years, any profit is treated as short-term capital gains — taxed at 30%.
- If the property is sold after 2 years, it falls under long-term capital gains, and the tax rate is 20% (after adjusting for inflation).
- The tax for long-term gains needs to be paid on the full sale value first; later, you can claim a rebate based on the indexed cost.
3. Picking the Right Type of Property
- NRIs should decide whether they want residential or commercial property, depending on their goal (rent-earning, capital growth, personal use).
- Residential properties are currently more popular and in demand, but commercial real estate in good locations can yield strong rental returns.
- It's safer to invest with reputed and trusted builders — check for certifications, government approvals, and track records.
4. Using Power of Attorney (POA)
- Since NRIs may not always be physically present in India, they can appoint a Power of Attorney (POA) to manage the property.
- Choose a trusted person (family or professional) as POA to oversee payments, maintenance, or legal matters.
- Ensure the POA document is legally sound and follows all government compliance to avoid future disputes.
5. Home Loan Options
- NRIs can take home loans in India — typically up to 80% of the property value.
- It’s recommended to use an NRE account when applying for the loan.
- After selling, loan repayment or proceeds can often be managed through NRE / NRO accounts, making it simpler to move money.
Why It’s a Good Time to Invest
- Real estate offers diversification compared to stocks or crypto.
- With research and compliance, NRIs can tap into India’s real estate market and gain from capital growth or rental income.
Investment opportunity at Pune: Pune is a safe haven where one can expect appreciation along with good growth in
NRIs can buy residential and NA plots in the Pune district legally.
Top Investment Zones: Talegaon, Shirwal, Hinjewadi Phase 3, Pir
Always verify the sale deed, NA order, and 7/12 extract before purchasing a plot.
Prefer to stay in a gated environment with security arrangements.
Still have doubts? You can contact Genuine Plots for safe buying.
Eco-village concepts are popular for NRI weekend stays & retirement plans.
Ensure the project land type is NA-converted, not purely agricultural.
Check for amenities: solar, water, internal roads, security, and farming activities.
Look for RERA-registered eco-projects near major cities like Pune & Mumbai.
Still have doubts? You can contact Genuine Plots for safe buying.
NRIs cannot buy a farmhouse on agricultural land, but can buy:
Villa plots
NA farmhouse plots
Weekend home plots
Ensure the project is in the Residential/Agri-Residential/NA Zone.
Check for proper mutation entries and fencing.
Still have doubts? You can contact Genuine Plots for safe buying.
Telangana follows central FEMA rules—
NRIs cannot directly purchase agricultural land, plantation properties, or farmhouse plots.
Only resident Indian citizens are eligible to buy agricultural properties.
NRIs can inherit but cannot buy agricultural lands.
If you still want to have farmland, you should consider the 'Converted (NA)' or 'Farmhouse' plots because they are available for legal purchase.
Due diligence is essential because the titles, permits, and other regulations regarding the land should be checked.
Still have doubts? You can contact Genuine Plots for safe buying.
- What does the NA plot mean?
An NA plot means Non-Agricultural land — land legally permitted for non-farming purposes such as residential, commercial, or industrial use.
- What are the types of NA plots?
Common NA types include:
Residential NA (for homes)
Commercial NA
Industrial NA
Resort/Institutional NA
- Is NA approval mandatory before construction?
Yes, NA approval is required before constructing any building on the land.
- Who issues NA permission?
The local Collector Office or Town Planning Authority issues NA permission after verifying land records and zoning.
- Can an agricultural plot be converted into an NA plot?
Yes, landowners can apply for NA conversion by paying the required fees and meeting zoning conditions.
- Is buying an NA plot safer than agricultural land?
Generally, yes, because NA plots have clear permissions for construction, reducing legal risks.
For legally verified deals and stress-free transactions, contact Genuine Plots.