NRI buying property in Pune needs no RBI approval: NRIs and OCI cardholders can buy flats, houses, offices or shops, with no limit on number, but not agricultural land, plantation property or farmhouses. Payment must come through banks, as an inward remittance or from an NRE, FCNR(B) or NRO account, and banks can lend to NRIs within the same loan limits as residents. Tax runs both ways: you deduct 1% TDS when buying from a resident builder, and when you sell, the buyer deducts tax at non-resident rates, with long-term gains taxed at 12.5%.
Key takeaways
- NRIs and OCIs may buy any property except agricultural land, plantation property and farmhouses.
- Pay by inward remittance or from NRE, FCNR(B) or NRO accounts, never in foreign currency notes or traveller’s cheques.
- NRI home loans follow resident norms, so the 75% loan-to-value cap applies above ₹75 lakh.
- Buying from a resident builder, deduct 1% TDS from each payment when the price or stamp duty value is ₹50 lakh or more.
- Selling, the buyer deducts TDS at non-resident rates; NRIs pay 12.5% on long-term gains with no indexation option.
- Sale proceeds of up to two residential properties bought with foreign exchange can be repatriated; other proceeds go through the USD 1 million a year NRO route.
What FEMA allows NRIs and OCIs to buy
As an example, an NRI booking a 3 BHK at Bhansali Bespoke Balewadi, listed at ₹2.19–2.23 crore all-inclusive on Housiey in September 2026, would go through every step below: remittance, loan, TDS on each instalment and, one day, repatriation. The rules come from the RBI’s Master Direction on acquisition or transfer of immovable property, updated to 1 September 2022.
| Transaction | NRI or OCI allowed? |
|---|---|
| Buy a flat, house, office or shop | Yes, without RBI approval |
| Buy agricultural land, plantation property or a farmhouse | No |
| Inherit property | Yes, any property, from a resident or from someone who acquired it legally |
| Sell a flat | Yes, to a resident; to an NRI or OCI if it is not agricultural land, plantation or a farmhouse |
Separately, citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong and North Korea need prior RBI permission to buy property, other than on a lease of up to five years, unless they hold an OCI card.
How to pay: NRE, NRO, FCNR(B) or remittance
Paragraph 3.3 of the Master Direction allows payment only from money received in India through banking channels or by debit to an NRE, FCNR(B) or NRO account. Traveller’s cheques, foreign currency notes and any other mode are not allowed. Which source you use decides how freely you can take the money back later.
| Source of payment | What it is | Effect when you sell |
|---|---|---|
| Inward remittance | Money sent from abroad through a bank | Counts as foreign exchange for repatriation |
| NRE account | Rupee account funded from abroad | Counts as foreign exchange |
| FCNR(B) deposit | Foreign-currency term deposit | Counts as foreign exchange |
| NRO account | Rupee account for Indian income and older savings | Does not count; proceeds go through the USD 1 million NRO route |
Keep the bank’s remittance advice and statements for every instalment; you will need them to repatriate.
Home loans for NRIs
Section 4 of the RBI’s Master Direction on borrowing and lending lets banks and NHB-approved housing finance companies lend to an NRI or a person of Indian origin to buy a home in India, on these terms:
- Loan amount, margin and tenure are at par with resident borrowers, so the 75% loan-to-value cap for loans above ₹75 lakh applies. On a ₹2.20 crore flat, the most you can borrow is ₹1.65 crore.
- The loan must be secured by an equitable mortgage of the flat, and it cannot be credited to your NRE or FCNR(B) account.
- EMIs can be paid by remittance from abroad, from NRE, FCNR(B) or NRO accounts, from rent on the property, or by a relative in India crediting the loan account.
- The Direction does not mention OCI cardholders, so ask your lender.
EMIs paid by remittance or from NRE or FCNR(B) accounts count as foreign exchange for repatriation; EMIs from NRO do not. Our home loan guide for a ₹2 crore flat covers EMIs, pre-EMI and eligibility.
Power of attorney when you cannot be in Pune
Many NRIs sign booking and loan papers on a visit and give a relative a power of attorney (POA) for later steps. Under Section 33 of the Registration Act, 1908, a POA from someone living outside India is accepted when it is executed before and authenticated by a notary, a court, judge or magistrate, an Indian consul or vice-consul, or a representative of the Central Government. Indian missions attest POAs as a consular service.
- Keep it specific: name the flat, the developer, the agreement and each act, such as signing and registering the agreement, paying stamp duty and taking possession.
- Stamp it within three months: under section 18 of the Maharashtra Stamp Act, an instrument executed only outside the state may be stamped within three months after it is first received in Maharashtra, and it can be taken to the Collector for stamping. Section 34 bars an unstamped instrument from being acted upon or registered.
- Revoke it in writing once the job is done, and tell the developer and bank.
Considering a 3 or 4 BHK in Balewadi?
Bhansali Bespoke – The Hamptonns offers 3 BHK (1,186–1,212 sq ft) and 4 BHK (1,802–1,810 sq ft) homes in Laxmi Nagar, near Balewadi High Street. MahaRERA PM1260002600725.
TDS when you buy a flat in Pune
Under section 393(1), Table serial 3(i), of the Income-tax Act, 2025, the buyer deducts 1% of the consideration or the stamp duty value, whichever is higher, where the property value is ₹50 lakh or more, counting all buyers together. It applies to NRI buyers too. You deduct it when each instalment is paid or credited, and deposit it with Form 141, the PAN-based challan-cum-statement that replaced Form 26QB in April 2026.
On a ₹2.20 crore flat, total TDS is ₹2.2 lakh. When a 30% instalment of ₹66 lakh falls due, you pay the developer ₹65.34 lakh and deposit ₹66,000. Stamp duty and GST are the same for NRIs as for residents; see stamp duty and registration charges in Pune and GST on under-construction flats.
Buying a resale flat from another NRI is different: you deduct at non-resident rates, as the next section explains.
Tax and TDS when you sell as an NRI
A flat held for more than 24 months is a long-term asset. The Income Tax Department’s guide on long-term capital gains sets the rate at 12.5% without indexation; the option of 20% with indexation for land or buildings bought before 23 July 2024 is limited to resident individuals and HUFs. Short-term gains are taxed at slab rates.
The buyer must deduct tax under section 393(2), Table serial 17, at the rates in force for non-residents, plus surcharge and cess. From 1 October 2026, resident individual and HUF buyers can report this on Form 141 using their PAN instead of obtaining a TAN, under CBDT Notification 121/2026 dated 22 September 2026 (Taxscan). Companies, firms and NRI buyers still need a TAN.
| NRI selling a flat bought in 2019 | Amount |
|---|---|
| Sale price, November 2026 | ₹1,90,00,000 |
| Cost of acquisition, including stamp duty | ₹1,10,00,000 |
| Long-term capital gain | ₹80,00,000 |
| Tax at 12.5% plus 4% cess (before surcharge) | ₹10,40,000 |
| TDS if the buyer deducts on the full price (13%) | ₹24,70,000 |
| Excess held until your refund | ₹14,30,000 |
A buyer who cannot verify your gain may deduct on the full price. Applying to the tax department for a lower deduction certificate before the sale avoids that; surcharge would add to both figures, depending on income. Brokerage and improvement costs reduce the gain.
Repatriation: how much you can take back
- Bought with foreign exchange: under paragraph 8.2 of the property Master Direction, your bank may allow repatriation of sale proceeds if you bought legally and paid by remittance or from NRE or FCNR(B) funds, for not more than two residential properties. EMIs paid from those sources count as foreign exchange.
- Everything else: the Master Direction on remittance of assets, updated 29 June 2026, allows up to USD 1 million per financial year from NRO balances or sale proceeds of assets, with documentary evidence and taxes paid.
- Rent: it goes to your NRO account, and your tenant must deduct TDS under the non-resident rules before paying you.
Sources conflict on one point. Many bank guides say repatriation is capped at the amount you originally paid in foreign exchange. The RBI Master Direction shows that wording was replaced with effect from 26 March 2018, and the current condition only requires that the purchase was paid in foreign exchange. Ask your bank in writing how it will treat any gain before you sell.
Bottom line
For an NRI, buying a flat in Pune is mostly about paper trails: verify the project on MahaRERA (see how to check MahaRERA registration), pay through the right accounts, deduct 1% TDS on each instalment, use a specific and properly stamped POA, and keep every remittance record for the day you sell. For The Hamptonns, the location page, floor plans and price page help you shortlist from abroad. This is general information, not tax or legal advice; tax in your country of residence also matters, so speak to a CA in India and an adviser where you live. For help with a Balewadi purchase from abroad, contact us.
FAQs
Can an NRI buy property in Pune without RBI permission?
Yes. Under FEMA, an NRI or OCI cardholder can buy any residential or commercial property in India without RBI approval, except agricultural land, plantation property and farmhouses. There is no limit on the number of properties. Payment must be made through banking channels or from NRE, FCNR(B) or NRO accounts. Foreign citizens from certain neighbouring countries need RBI permission unless they hold an OCI card.
How much TDS does an NRI deduct when buying from a builder?
1% of the consideration or the stamp duty value, whichever is higher, where the value is ₹50 lakh or more. The rule is in section 393(1) of the Income-tax Act, 2025, which replaced section 194-IA. You deduct it from each instalment and deposit it using your PAN on Form 141. On a ₹2.20 crore flat, total TDS is ₹2.2 lakh.
What TDS applies when an NRI sells a flat in India?
The buyer deducts tax at non-resident rates under section 393(2) of the Income-tax Act, 2025: on long-term gains, 12.5% plus surcharge and cess. Without a lower deduction certificate, buyers often deduct on the full sale price. Since 1 October 2026, resident individual and HUF buyers can deposit this using their PAN on Form 141 instead of a TAN.
How much can an NRI repatriate after selling a flat?
If the flat was bought with money remitted from abroad or from NRE or FCNR(B) funds, the bank may allow the sale proceeds to be repatriated, for up to two residential properties. Otherwise the money goes to your NRO account, from which you can remit up to USD 1 million per financial year after paying applicable taxes in India.
Can an NRI get a home loan for a flat in Pune?
Yes. RBI rules let banks and NHB-approved housing finance companies lend to NRIs with the same loan amount, margin and tenure rules as residents, so loans above ₹75 lakh are capped at 75% of the property value. The loan is secured by a mortgage of the flat. EMIs can be paid from NRE, NRO or FCNR(B) accounts, by remittance, or from rent on the property.
