In one paragraph
The short answer: NRIs and OCIs have essentially the same property purchase rights in India. Both may buy residential property, commercial property, and residential plots allotted by a development authority such as YEIDA. Neither may buy agricultural land, farmhouses or plantation property — that prohibition is absolute under FEMA and the NDI Rules 2019. A foreign national who is neither an NRI nor an OCI generally cannot buy any immovable property in India without RBI permission. All purchases must be paid in INR through NRE, NRO or FCNR banking channels — not in foreign currency. This guide defines the three categories precisely, walks through the comparison table, covers repatriation and TDS in brief, and explains how Vidastu’s plot-and-build offer is fully open to NRIs and OCIs. This is general information, not legal or tax advice — consult your CA and FEMA advisor for your specific situation.
How the law defines NRI, OCI and foreign national
Before the comparison table, the three categories need a precise definition — because the words are used loosely in everyday conversation but carry specific legal meanings under Indian law.
NRI
Non-Resident Indian. A person who is an Indian citizen (holds an Indian passport) but is residing outside India. The FEMA residency test: present in India for fewer than 182 days in the preceding financial year (with some nuances for intent of stay). An NRI remains an Indian citizen and can vote, hold an Indian passport, and inherit or own property in India under the same rules as a resident Indian — with FEMA overlays on how the money moves.
OCI
Overseas Citizen of India. A person of Indian origin who holds a foreign passport but has been granted OCI status by the Government of India. OCI is not dual citizenship — it is a long-term visa with certain economic, educational and cultural rights. OCIs do not hold Indian passports. For property under FEMA, OCIs are treated on par with NRIs for residential and commercial property, but the same agricultural-land prohibition applies. OCI status is lifelong (for most holders) and passes to children in certain cases.
Foreign National
Foreign national (non-OCI). A person who is neither an Indian citizen nor an OCI — i.e., a person of no Indian origin holding a foreign passport, or a person of Indian origin who has not obtained OCI status. Foreign nationals generally cannot purchase immovable property in India without RBI permission. Leases of up to 5 years are permitted. Exceptions are narrow, case-specific and require regulatory clearance.
The comparison table — who can buy what
The table below summarises the position under FEMA (Foreign Exchange Management Act, 1999) and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules), as in force in June 2026. It is indicative — consult your FEMA advisor and lawyer for your specific transaction.
| Property type | NRI (Indian citizen abroad) | OCI (foreign passport, Indian origin) | Foreign national (no OCI/NRI) |
|---|---|---|---|
| Residential property (flat, house, villa) | Yes — no RBI permission needed; up to any number of properties | Yes — same as NRI; no RBI permission needed | Generally No — RBI permission required; lease ≤5 yrs permitted |
| Commercial property (office, shop, warehouse) | Yes — no RBI permission needed | Yes — same as NRI; no RBI permission needed | Generally No — RBI permission required; lease ≤5 yrs permitted |
| Residential plot allotted by a development authority (e.g. YEIDA, NOIDA, DUDA) | Yes — specifically permitted under FEMA / NDI Rules as “residential immovable property” | Yes — same as NRI; YEIDA plots are open to OCIs | Generally No — same restrictions as all immovable property |
| Agricultural land | No — explicitly prohibited under FEMA; inherited only under specific conditions | No — same prohibition as NRI; no exceptions for OCI status | No — prohibited; foreign nationals face additional restrictions |
| Farmhouse property | No — explicitly prohibited under FEMA | No — same prohibition as NRI | No — prohibited |
| Plantation property | No — explicitly prohibited under FEMA | No — same prohibition as NRI | No — prohibited |
| Property by inheritance | Conditional — NRIs may inherit any property (incl. agricultural land) from a resident or NRI, subject to FEMA repatriation rules on proceeds | Conditional — OCIs may inherit residential/commercial property from resident or NRI; inheritance of agricultural land by OCIs has additional conditions — consult a lawyer | Conditional — limited inheritance rights; RBI permission often needed for repatriation |
| Property by gift | Conditional — NRIs may receive gifts of residential/commercial property from close relatives; agricultural land gifts face restrictions | Conditional — OCIs may receive gifts of residential/commercial property from NRI or resident Indian; agricultural land gifts are not permitted | Generally No |
What NRIs and OCIs can buy in India — and how
Residential property
The most common category. NRIs and OCIs can buy any number of residential properties in India — flats, independent houses, villas, row houses, builder-floor units — without seeking RBI permission. The restrictions are on the payment channel (NRE/NRO/FCNR, in INR, not foreign currency) and on repatriation (proceeds from sale of more than 2 residential properties funded from NRE may not be fully repatriated without conditions — see repatriation section below).
There is no cap on the number of residential properties an NRI or OCI can own. There is also no requirement that the property be self-occupied — renting it out is permitted, and rental income is repatriable (up to a limit, net of Indian taxes). Consult your CA on rental income tax in India and your country of residence.
Commercial property
NRIs and OCIs can buy commercial property — shops, offices, warehouses, industrial units — with the same freedom as residential property. No RBI permission is needed. Payment must be in INR via NRE/NRO/FCNR channels. Rental yield from commercial property in India is generally higher than residential (6–9% gross in well-located commercial), though liquidity is lower.
Development-authority residential plots (e.g. YEIDA)
This is the category most relevant to Vidastu’s clients. A development-authority residential plot — allotted by a government body such as YEIDA (Yamuna Expressway Industrial Development Authority), NOIDA, Greater Noida Industrial Development Authority (GNIDA), or similar — is classified as residential immovable property under FEMA. NRIs and OCIs may therefore buy these plots on the same basis as residential property.
The YEIDA residential plot schemes (the RPS series) are explicitly open to NRI and OCI applicants. The allotment process involves an application, a draw of lots, instalment payments in INR from an NRE/NRO account, and registration at the sub-registrar’s office. A Power of Attorney can handle the India-side steps if you cannot travel. See our YEIDA Plot Scheme 2026 guide →
Payment channel — the non-negotiable rule
FEMA basics
NRIs/OCIs may purchase residential and development-authority-allotted residential plots (not agricultural land, farmhouses or plantations) under FEMA / the NDI Rules, 2019, with payment through NRE/NRO/FCNR banking channels. Repatriation, TDS and documentation rules apply. Please consult your CA / FEMA advisor for your specific case.
To expand: the NRE account (Non-Resident External) holds funds you earn abroad — it is in INR, freely repatriable, and the principal and interest are tax-free in India. Funding a property purchase from an NRE account means the proceeds on sale are also repatriable (within limits). The NRO account (Non-Resident Ordinary) holds India-sourced income — rent, dividends, sale proceeds of existing assets — and is repatriable up to USD 1 million per financial year net of applicable taxes. The FCNR account (Foreign Currency Non-Resident) holds funds in foreign currency and can be used for property payments after conversion to INR. Never make payments in cash or via hawala — this is a FEMA violation with serious penalties.
What is prohibited — the three hard stops
FEMA and the NDI Rules explicitly prohibit NRIs and OCIs from buying three categories of property. These are not discretionary restrictions that can be worked around — they are statutory prohibitions with criminal penalties for violations:
Why these three categories are prohibited
The prohibition on NRI/OCI purchases of agricultural land predates FEMA — it reflects India’s land reform policy goals of preventing concentration of agricultural land in the hands of non-residents, maintaining food security, and protecting the rural economy. These policy objectives have remained constant across successive FEMA amendments. The prohibition on farmhouses and plantations follows the same logic — farmhouses often sit on land with agricultural classification, and plantations have their own strategic classification.
There is no route around this prohibition for NRIs or OCIs — not through a company, not through a trust, not through a Power of Attorney. If an adviser suggests you can buy agricultural land by routing through an Indian company, be extremely cautious: the RBI has issued clarifications that FEMA applies to beneficial ownership, not just direct ownership. Consult a FEMA specialist immediately if you have been advised otherwise. This is not legal advice.
Inheritance of agricultural land
This is the main genuine exception. An NRI or OCI can inherit agricultural land, a farmhouse or a plantation from a resident Indian or from an NRI — provided the original owner was permitted to hold it under FEMA / the Foreign Exchange Regulation Act (FERA) before FEMA came into force. If you inherit such property, you may hold it. The restrictions are on: (a) repatriation of proceeds from selling inherited agricultural land — this requires RBI permission; and (b) OCIs inheriting agricultural land — the position is that OCIs can hold inherited agricultural land but the repatriation and transfer rules are more restrictive. Get specialist FEMA legal advice before you sell inherited agricultural land. This is general information, not legal advice.
Payment, repatriation and TDS — the brief version
Repatriation of sale proceeds
When you sell a residential or commercial property in India, how much can you take back abroad? The basic rule under FEMA:
- NRE-funded purchase: Proceeds of sale of up to 2 residential properties funded from an NRE account may be repatriated freely (subject to taxes being paid). For a 3rd or subsequent property, RBI permission is needed for repatriation. Commercial property proceeds funded from NRE are repatriable without a numerical cap.
- NRO-funded purchase: Proceeds can be repatriated up to USD 1 million per financial year net of taxes — subject to filing Form 15CA / 15CB with your CA.
- Inherited or gifted property: Repatriation of proceeds is subject to separate caps and conditions depending on whether the property was residential, commercial or agricultural, and whether the original acquisition was permitted. Consult a FEMA advisor.
TDS on property sale — what buyers deduct from NRIs/OCIs
When you (as an NRI or OCI) sell property in India, the buyer is required to deduct Tax Deducted at Source (TDS) before paying you the sale consideration:
- Long-term capital gains (held >2 years, indexed): TDS at 12.5% (from Budget 2024; previously 20% with indexation). Note: the removal of indexation for certain assets was announced in Budget 2024 — confirm the current rate with your CA as this has been subject to clarification.
- Short-term capital gains (held ≤2 years): TDS at the applicable income-tax slab rate — can be as high as 30%+ surcharge.
- Surcharge and cess: Applicable surcharge (depending on sale value) and 4% health and education cess are added on top.
You can apply to the Income Tax department for a lower or nil TDS certificate (Form 13) if your actual tax liability is lower than the standard TDS rate — this avoids locking up large sums and waiting for a refund. DTAA (Double Taxation Avoidance Agreements) between India and your country of residence may reduce the effective tax rate — confirm with your CA. Consult your CA / FEMA advisor before selling — do not rely on this page for tax planning.
How this maps to Vidastu’s plot + remote build offer
Vidastu Developers Pvt. Ltd. is a Greater Noida-based real estate developer and UP-RERA registered agent (UPRERAAGT000309/01/2026), operating since 2012. Founder Vidit Kaushik (BITS Pilani civil engineer) and co-founder Ravi Shankar Sharma (30+ years construction and Vastu) lead the firm. Vidastu holds a 4.8-star average across 54 Google reviews, with a client base that is predominantly NRI.
Vidastu’s core NRI offer — a YEIDA residential plot + remote turnkey construction — is fully open to both NRIs and OCIs because:
- YEIDA residential plots are development-authority-allotted residential property — squarely in the permitted category for NRIs and OCIs under FEMA / NDI Rules 2019.
- Construction on the plot is a service contract, not a separate property purchase — not subject to the same FEMA categorisation.
- Payment is structured through NRE/NRO in INR — fully FEMA-compliant.
- The entire process — plot application, registration via Power of Attorney, building-plan sanction, construction — can be handled without a single trip to India. Weekly WhatsApp video walkthroughs keep you in control from abroad.
Neither NRIs nor OCIs need RBI permission for this transaction. There is no prohibition, no grey area on property classification, no agricultural-land risk — YEIDA plots are statutory development-authority allotments for residential use.
Related guides and tools
- FEMA Guide for NRIs — NRE/NRO accounts, permitted property types, repatriation limits and TDS in plain English
- NRI Money Transfer for Property — how to fund a purchase from abroad, FEMA compliance, TDS
- NRI Power of Attorney Guide — apostille vs consulate attestation, step-by-step for remote buying
- YEIDA Plot Scheme 2026 — how NRIs and OCIs apply for a YEIDA residential plot
- Repatriation & TDS When You Sell — Form 13, LTCG, DTAA and getting proceeds out