Non-Resident Indians (NRIs) can buy and sell residential and commercial properties in India, subject to regulations under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI). Restrictions apply to agricultural land, and NRIs must adhere to specific payment and taxation rules when engaging in property transactions.

• 01NRIs are restricted from purchasing agricultural land, plantation property, and farmhouses, but can acquire these through inheritance or gifts.
• 02Payments for property must be made through approved channels, such as NRE, NRO, or FCNR accounts, and not via traveller's cheques or foreign currency notes.
• 03Repatriation of sale proceeds is limited to the amount originally paid for the property, with specific caps on repatriation amounts based on property type and purchase method.
• 04Capital gains tax on property sales is set at 20% with indexation for properties bought before July 23, 2024, and 12.5% without indexation for those bought after.
• 05TDS for NRIs selling property is higher than for residents, deducted at 20% on long-term capital gains and 30% on short-term capital gains.

These regulations affect NRIs looking to invest in Indian real estate, influencing their financial planning and tax obligations.