NRI Purchase Cost Calculator
Compute total cost for NRI property purchase including TDS, repatriation, and currency impact.
Fill inputs and click Calculate
- TDS: 1% on property > ₹50L (NRI buyer must deduct & deposit).
- For property > ₹50L: TDS u/s 194-IA.
- Repatriation: RBI FEMA allows up to 2 properties per FY.
- Excludes GST on under-construction property.
Frequently Asked Questions
Can NRIs buy property in India?
Yes, under FEMA (Foreign Exchange Management Act) regulations, NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India) can purchase residential and commercial properties in India without prior RBI approval. However, NRIs cannot purchase agricultural land, plantations, or farmhouses in India. There is no restriction on the number of properties an NRI can buy. The purchase must be funded through inward remittance through banking channels or from the NRI's NRE/NRO/FCNR accounts in India.
What is TDS on property purchase by NRIs?
When an NRI sells property in India, the buyer must deduct TDS (Tax Deducted at Source) at 20% (plus applicable surcharge and cess) on the capital gains if the property is held for more than 24 months (long-term), or at 30% (plus surcharge and cess) on the income tax slab rate if held for less than 24 months (short-term). When an NRI buys property, no TDS is deducted by the seller - the NRI buyer pays the full amount to the seller. However, if the seller is a resident, the NRI buyer must deduct 1% TDS if the property value exceeds ₹50 lakh.
What are the additional costs for NRIs buying property in India?
Beyond the standard stamp duty (7-8%) and registration (1%), NRIs should budget: (1) Currency conversion charges: 0.5-2% depending on the bank and transfer method; (2) Legal fees for title verification and documentation: ₹50,000-2 lakh; (3) Power of Attorney (if not personally present): ₹10,000-50,000 including attestation at Indian consulate; (4) NRI-specific compliance (Form 15CA/15CB for remittances): CA fees ₹5,000-15,000; (5) Travel costs for site visits: varies by origin country; (6) Repatriation restrictions may apply when selling. Total additional costs: 3-5% above standard purchase costs.
Can NRIs get a home loan in India?
Yes. Most Indian banks (SBI, HDFC, ICICI, Axis) offer home loans to NRIs for purchasing property in India. Key requirements: (1) Valid Indian passport or OCI card; (2) NRE/NRO account with the lending bank; (3) Income documents (salary slips, employment contract, income tax returns of the host country); (4) Power of Attorney to a resident Indian for loan execution; (5) Minimum loan tenure may be restricted to 15-20 years (vs 30 for residents). Interest rates are typically 0.25-0.50% higher than resident rates. Loan amount is limited by FOIR norms applied to the NRI's income (converted to INR).
How can NRIs repatriate proceeds from property sale in India?
NRIs can repatriate up to USD 1 million per financial year from their NRO account, which includes proceeds from property sale, subject to: (1) Payment of all applicable taxes (capital gains tax) in India; (2) Obtaining Form 15CA (self-declaration) and Form 15CB (CA certificate) from a Chartered Accountant; (3) The property must have been purchased in accordance with FEMA regulations; (4) For properties purchased with inward remittance or NRE funds, the entire sale proceeds can be repatriated. For properties purchased with NRO funds, repatriation is limited to USD 1 million per financial year. The repatriation process takes 2-4 weeks through the banking channel.
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