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Can an NRI Buy Residential Plots in India?Can NRIs Buy Plots in India? 2026 Rules, Restrictions & New Tax Ease Explained
For many NRIs, owning a piece of land back home is more than an investment—it’s an emotional anchor. A future home, a retirement plan, or simply a long-term asset that grows in value over time. But before taking that step, it’s essential to understand what the law actually allows.
Surprisingly, the rules for NRIs are more straightforward than most people think—especially after the latest Budget 2026 announcement that has simplified one of the most troublesome tax requirements.
Let’s break everything down in simple terms.
So, Can NRIs Buy Plots in India?
Yes, absolutely.
NRIs are free to buy:
Residential plots
Commercial plots
Apartments and other built homes
There’s no need to approach the RBI for approval, and there’s no cap on the number of properties you can own.
Where the law draws a hard line is with:
Agricultural land
Plantation estates
Farmhouses
These cannot be bought directly, no matter where the NRI is living. They can only be inherited or received as a gift.
A Big Change in 2026: No More TAN Requirement
If an NRI sells property in India, the resident buyer is required to deduct TDS.
Until now, this process involved the buyer getting a Tax Deduction Account Number (TAN)—a step that confused most people and often delayed the deal.
Starting October 1, 2026, this requirement disappears.
Buyers can simply use their PAN to deposit the TDS.
No extra numbers, no extra paperwork.
This small change will make NRI transactions much smoother and quicker.
How NRIs Are Expected to Pay
All payments for property—whether a plot or a ready home—must come in Indian Rupees.
NRIs generally use these accounts:
NRE
NRO
FCNR
Funds can also be transferred from abroad directly through banking channels.
Cash is not allowed, and foreign currency must not be handed over physically.
Loans from Indian banks are permitted too, as long as the funds flow through regulated accounts.
Using a Power of Attorney (POA)
Most NRIs can’t fly back to India for every signature or document.
The law understands this.
A Power of Attorney can handle:
Registration
Agreement signing
Possession formalities
Signing the POA at an Indian Consulate or before a recognized notary abroad is enough. The document just needs to be stamped or adjudicated once it reaches India.
What Happens When an NRI Sells a Plot?
Repatriation is allowed, but with limits.
You can send up to USD 1 million per financial year out of India, provided:
Taxes are cleared
The original purchase payment can be proven
Documents like the sale deed are in order
A chartered accountant will typically handle the compliance for repatriation.
Things NRIs Should Watch Out for Before Buying
- Check if the plot is truly “residential”
Some plots are marketed as residential but may still be listed as agricultural on government records.
Always verify land conversion documents.
- Check RERA registration
Most plotted developments are legally required to get RERA approval.
This will also protect you against delayed handovers or disputed layouts.
- Verify the seller's title
Land ownership is a sensitive issue in India. One has to check:
Title chains
Certificates of Encumbrance
Demarcation and layout approvals
- Citizenship restrictions
If the NRI is a citizen of Pakistan, Bangladesh, China, Afghanistan, Sri Lanka, Iran, Nepal, or Bhutan, they must obtain prior RBI approval before buying anything.
Why Many NRIs Prefer Plots Over Built Property
Compared to apartments, plot investments offer:
More freedom to build later
Higher appreciation in fast-growing cities
Lower maintenance costs
Better long-term resale value
For NRIs planning eventual relocation or retirement in India, a plot can be a sensible first step.
Final Thoughts
Buying a residential plot in India as an NRI is not complicated. The legal framework is friendly, and with the 2026 tax update eliminating the TAN requirement, selling to or buying from an NRI will become even simpler.
One of India's most important infrastructure projects is the upcoming Navi Mumbai International Airport (NMIA), which is expected to open in September 2025. Designed to handle nearly 20 million passengers annually in its first phase and scaling up to 90 million passengers per year, NMIA is more than an airport—it’s a growth engine that will transform the real estate map of Navi Mumbai.
A Growth Wave in Motion
Airports worldwide create ripple effects in housing, retail, logistics, and business hubs. NMIA is expected to generate over 4 lakh jobs, directly and indirectly, across aviation, IT, logistics, hospitality, and allied sectors. With better connectivity through the Mumbai Trans Harbour Link, metro extensions, and expressways, the surrounding regions are witnessing a surge in demand.
Real Estate Hotspots to Watch
- Panvel: With proximity to NMIA and superb connectivity via highways, metro, and rail, Panvel is already recording a 20–30% rise in property values and is expected to grow another 15–25% post-airport launch.
- Ulwe: Known for affordability, Ulwe is gaining traction due to upcoming coastal roads and metro connectivity.
- Kharghar: A more developed node, Kharghar combines lifestyle amenities with investment potential, making it attractive for end-users and investors.
- Uran & Karjat: Offering lower entry points, these emerging zones are long-term bets poised for appreciation as infrastructure expands.
Why Invest Now?
Real estate prices in many of these nodes are still at entry-level compared to Mumbai’s prime hubs. With NMIA nearing completion, the window of early investment is narrowing. Entering now allows investors to capture appreciation before prices peak.
The Bottom Line
NMIA is not just about better air travel—it’s about redefining Navi Mumbai’s growth story. For those seeking long-term appreciation, strong rental potential, and access to a booming business ecosystem, investing around NMIA in 2025 could be a game-changing move.
Plot Buying in Maharashtra The 3 Documents You Must Check Before You Invest
Buying a plot in Maharashtra can be one of the most rewarding investments—but only if it’s done right. Too many buyers get stuck in disputes because of overlooked paperwork. To avoid costly mistakes, you need to know three critical documents: the 7/12 Extract, the NA Order, and the Title Report.
1. 7/12 Extract or Property Card – Knowing the Land’s Identity
For rural and semi-rural plots: The 7/12 Extract (popularly called Saat-Baara Utara) is your first check. It tells you who owns the land, its survey number, the area, the type of land, and any loans or claims on it. But note—this doesn’t confirm whether you can build on it, only that the person selling is the rightful owner.
For urban plots: Within city limits, the Property Card works the same way. It shows details like the CTS number, land area, and owner’s name.
Tip: Always match these details with the seller’s information.
2. NA Order – Making Sure the Land is Fit to Build On
Not every piece of land is legally fit for construction. Agricultural land, for example, cannot be directly used for building homes.
That’s where the NA Order (Non-Agricultural Order) comes in. Issued by the Collector’s office, this document confirms the land has been officially converted for residential use. If the NA Order is missing—or marked for “industrial” or “commercial”—you cannot build a home on it.
Tip: Insist on seeing a Residential NA Order before moving ahead.
3. Title Search & Supporting Documents – Securing Clear Ownership
Even with 7/12 and NA Order in hand, you need to check if the ownership is legally clean. This is where a Title Search Report from a lawyer is essential. It traces ownership for the past 30+ years and ensures:
- No disputes over the land
- No hidden mortgages or loans
- The seller is the true and only owner
Other supporting documents to check include:
- Encumbrance Certificate (EC): Confirms no outstanding loans or legal cases
- Registered Sale Deed: The actual proof of ownership transfer
- Tax Receipts & Layout Plan Approvals: Show compliance with local authorities
Final Word
Buying a plot is a long-term investment rather than just a sale. You can make sure that your ideal house or future asset is constructed on sound legal foundations by closely examining the 7/12 Extract, NA Order, and Title.
When in doubt, always seek legal advice from Genuine Plots and verify documents with government records. A little extra caution today can save you from years of hassle tomorrow.
1.Unmatched Security & Peace of Mind
Security is not only a luxury but also a need in the fast-paced world of today. You can find CCTV surveillance, biometric or access-controlled gates, and guarded entry points around the clock in gated communities.
2.Infrastructure That Delivers from Day One
Forget post-purchase hassles. Gated community plots come complete with well-paved roads, street lighting, underground cabling, solid drainage systems, and reliable water supply. These essentials aren’t an extra—they’re part of the package. No more unexpected costs or tedious approvals.
3. A Lifestyle with Amenities Built In
It’s not just a plot—it’s a lifestyle. Imagine walking paths, green parks, clubhouses, swimming pools, and community halls—all just steps away. These lifestyle elements greatly enhance well-being and make your property more appealing, whether you're living there or looking to resell or rent.
4. Stronger Appreciation & Resale Potential
Well-designed gated communities dominate local markets when it comes to demand and returns. Buyers often choose plots in gated enclaves because they offer better infrastructure, managed interiors, and spatial planning—all of which help drive higher resale values.
5. Transparent Legal Processes & Clarity
Avoid the pitfalls of murky ownership titles or zoning confusion. Developers of gated communities usually provide clear land titles, RERA registration (where applicable), and proper local authority approvals. Your investment remains secure—legally and financially.
6. Built-in Community Vibe
These plots foster neighbourhood engagement—with shared spaces and organised events facilitating social interaction. It’s not just a place to live; it’s a place to belong. Standalone plots, especially in sparsely developed areas, often feel isolating by comparison.
7. Hassle-Free Maintenance
From road upkeep and landscape care to lighting in communal areas, gated societies typically handle the maintenance. You get to enjoy hassle-free living—no need to manage each service individually or constantly chase contractors.
8. Faster Loan & Insurance Approvals
Financial facilitators love gated community plots. Thanks to pre-approved structures, shorter paperwork, and lower perceived risk, loan disbursement is smoother, and interest rates tend to be more competitive. Plus, securing property insurance is generally easier and cheaper.
9. Green, Sustainable Living
Modern gated developments often include eco-friendly features like rainwater harvesting, solar lighting, wastewater management, and native landscaping, thereby reducing your carbon footprint and also lowering your long-term utility costs.
10. Future-Ready Locations & Growth Potential
Many gated community plots are strategically placed near upcoming infrastructure—think new metro lines, expressways, or IT corridors. These growth corridors often outperform standalone plot sites in terms of connectivity and appreciation.
Supreme Court: Only a Registered Sale Deed Transfers Property Title
The Supreme Court of India has once again made it clear — ownership of a property passes only through a registered sale deed. Documents like General Power of Attorney (GPA), Agreement to Sell, or even an unproven Will cannot confer ownership rights.
Why GPA, Agreement to Sell, or Will Do Not Confer Ownership
- Agreement to Sell – It is only a promise of a future sale. Under Section 54 of the Transfer of Property Act, it does not itself transfer ownership rights.
- General Power of Attorney (GPA) – A GPA cannot transfer title of the property. Even an irrevocable GPA is not enough.
- Will – A Will, even if registered, must be strictly proved under the Succession Act and Evidence Act. Unless the execution and witnesses are verified, the Will cannot stand as proof of ownership.
The Supreme Court held that only a registered sale deed executed between parties and duly stamped and registered can convey title to immovable property. All other documents may support a transaction, but they do not amount to ownership.
Why This Ruling Matters
This judgment is significant for buyers, sellers, and investors in real estate:
- Clarity – There can be no confusion: ownership passes only through a registered sale deed.
- Caution – Buyers must be careful and not rely on GPA, Will, or Agreements to Sell while purchasing property.
- Legal Safety – A properly stamped and registered sale deed is the only way to avoid disputes in the future.
Buying a plot in Pune is a thrilling achievement, but it's important to understand the hidden expenses that can mount up quickly. There are several additional costs that could significantly impact your budget, in addition to the property's listed price. This thorough guide will assist you in controlling these expenses:
1. Stamp Duty & Registration Fees
Stamp Duty: In Pune, male buyers pay 7% stamp duty on real estate transactions, while female buyers pay 6%. The ready reckoner rate or the market value of the property, whichever is higher, is used to compute this fee.
Registration Fee: Up to ₹30,000 is the maximum registration fee, which is 1% of the property's value.
2. Broker Commission
- Standard Rates: Each party involved in a sale pays a commission of 2% to real estate brokers in Pune.
- Negotiability: Although these prices are set, they may be altered in light of the services rendered and the property's worth.
- Advice: Before using your broker's services, ensure you understand the commission structure.
3. Legal & Documentation Fees
- Verification Fees: The cost of property document verification services in Pune varies depending on the complexity and volume of documents involved, ranging from ₹6,000 to ₹9,000.
- Additional Legal Fees: If you require assistance in drafting sale deeds or other documents, legal fees may vary depending on the property's market value.
4. Maintenance & Security Deposits for Gated Communities
Maintenance Charges: Annual maintenance fees in Pune's gated communities can range from ₹14,000 to ₹30,000, depending on the amenities provided.
Security Deposits: Some societies may require a refundable security deposit.
5. Utility Connection Charges
- Water Connection: For new water connections, the Pune Municipal Corporation levies a connection fee and a non-refundable application fee. A refundable security deposit is also required, and additional infrastructure fees may be incurred if new pipelines are necessary.
- Electricity Connection: A single-phase domestic connection costs roughly ₹30 per month.
Conclusion
Always conduct thorough research and consult with Genuine Plots experts to fully understand the range of costs related to your plot purchase.
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