From FEMA compliance to NRO/NRE account transfers — a complete guide for non-resident Indians investing in Uttar Pradesh real estate remotely.
Non-Resident Indians are among the most active buyers of Indian real estate, drawn by rupee depreciation, emotional connection to home cities, and strong appreciation in tier-2 markets like Lucknow. The legal framework governing NRI property purchases is well-established but requires careful navigation.
Under FEMA (Foreign Exchange Management Act), NRIs can purchase residential and commercial property in India without RBI permission. Agricultural land, farmhouse property, and plantation property are excluded. Residential plots — including those in Prime Estate — are fully eligible for NRI purchase.
Payment must flow through NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts. Direct remittance from a foreign bank account to an Indian property seller is not permitted. Setting up the appropriate NRE/NRO account structure should be the first step for any NRI buyer.
For buyers unable to be physically present, a Power of Attorney (POA) can be granted to a trusted representative in India. The POA must be signed before an Indian consulate or notarised abroad and then apostilled (for countries part of the Hague Convention) or attested by the Indian embassy.
Documentation required for NRI purchase includes PAN card (if purchasing above ₹50 lakhs), OCI/PIO card or Indian passport copy, NRE/NRO bank account statement, POA document (if applicable), and Form 60 if PAN is not available.
TrustOn's NRI desk handles all documentation coordination remotely. We have completed purchases for buyers in the UAE, UK, USA, Singapore, and Australia — all without requiring a physical visit to Lucknow for the transaction. The site visit, of course, we encourage strongly when possible.
Tax implications: TDR at 1% applies on purchases above ₹50 lakhs. Long-term capital gains (after 2 years of holding) are taxed at 20% with indexation benefits. These are manageable with proper CA guidance, which our team can facilitate.
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