NRI Guide to Buying Property in Pune (2026)

Buying a home in Pune from abroad is entirely possible, and thousands of NRIs do it every year. The rules are clear once you know them: what you can buy, how you must pay, how tax works and how to complete the paperwork without flying in for every step. This NRI guide to buying property in Pune covers each of those, based on RBI, Income Tax Department and Maharashtra rules as they stand in 2026.

Who can buy property in India

Under the RBI's master direction on acquisition of immovable property under FEMA, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can buy:

• residential property, such as flats, villas and row houses
• commercial property, such as offices and shops

There is no limit on the number of residential or commercial properties.

What NRIs and OCIs cannot buy is agricultural land, plantation property or a farmhouse. These can be inherited, but buying one needs the RBI's prior approval, which is rarely given. Keep this in mind with plots: a plot must be properly non-agricultural. Our NA plots checklist explains what to verify.

A few other points:

• The old PIO card was merged into OCI in 2015, so OCI cardholders follow the same rules as NRIs here.
• A foreign-national spouse of an NRI or OCI can buy one property jointly with them, under the same restrictions.
• Foreign nationals of non-Indian origin living abroad generally cannot buy property in India.

How you must pay

The payment rules are strict. You must pay through normal banking channels:

• money sent to India from abroad (an inward remittance), or
• funds from your NRE, FCNR(B) or NRO account in India

Payment in foreign currency notes or traveller's cheques is not allowed.

Home loans: NRIs and OCIs can take a home loan from an Indian bank or housing finance company. EMIs are usually paid from your NRE or NRO account or by remittance from abroad. Banks set their own eligibility rules for NRIs, so compare a few lenders.

Tax when you buy

When you buy from a developer or a resident seller in India, the same rule applies as for residents: if the property costs ₹50 lakh or more, you must deduct 1% TDS from the payment and deposit it with the income tax department. From April 2026 this falls under section 393 of the Income-tax Act, 2025, which replaced the old section 194-IA.

You will also pay the same stamp duty and registration charges as any buyer in Pune. Our guide to stamp duty in Pune explains them with a worked example. Under-construction homes also attract GST, which ready homes do not. See ready-to-move vs under-construction flats for the trade-offs.

Tax and repatriation when you sell

Capital gains tax

If you sell a property you have held for more than 24 months, the gain is long-term. For sales from 23 July 2024, long-term capital gains on property are taxed at 12.5% without indexation for non-residents, plus surcharge and cess. Gains on property held for 24 months or less are taxed at your slab rate.

TDS when an NRI sells

When an NRI sells, the buyer must deduct TDS on the sale price, at the rates that apply to non-residents, and there is no ₹50 lakh threshold. The rate is applied to the full price, not just your gain, so many NRI sellers apply to the income tax department for a lower deduction certificate before the sale.

Since 1 October 2026, individual buyers buying from an NRI can deposit and report this TDS using their PAN, without having to get a separate TAN. That makes NRI sales simpler for the buyer.

Taking the money out of India

How much you can send abroad depends on how you paid for the property:

• Bought with money from abroad or your NRE/FCNR account: sale proceeds can be repatriated for up to two residential properties, typically up to the amount you originally brought in.
• Bought with rupee funds, or proceeds above that amount: you can remit up to USD 1 million per financial year from your NRO account, under the RBI's rules on remittance of assets.

Banks will ask for a chartered accountant's certificate and the income tax forms for foreign remittance. Form names changed with the new income tax rules, so check the current requirements with your bank or CA.

Buying without flying in: power of attorney

Most NRIs complete the purchase through a trusted person in India holding a power of attorney (PoA).

1. Draft the PoA for the specific property and actions (signing the agreement, registration, paying stamp duty).
2. Sign it abroad in front of the Indian embassy or consulate, or before a notary and then have it apostilled if your country is part of the Hague Convention.
3. Get it stamped in Maharashtra. A document signed outside India must be presented for stamping within three months of it reaching India, under the Maharashtra Stamp Act. An unstamped PoA cannot be used for registration.
4. Your PoA holder registers the agreement at the sub-registrar's office on your behalf.

Use a PoA limited to the purpose, and revoke it when the work is done.

Documents you will need

• passport and visa or OCI card
• PAN card, which is essential for registration, TDS and loans
• overseas address proof and Indian address, if any
• NRE/NRO bank statements showing the payment trail
• passport-size photographs
• the PoA, if someone is acting for you

NRIs who do not have Aadhaar are not required to link it for income tax purposes.

Checks before you book

Buying from abroad means you cannot drop by the site every weekend, so the paperwork matters even more:

• Check the project's MahaRERA registration: promoter, completion date, progress updates and complaints.
• Ask for the carpet area in writing, and compare prices per sq ft of carpet area. See carpet area vs built-up area.
• Ask for a complete cost sheet, including GST, stamp duty, registration and society charges.
• Ask your advisor for a video walkthrough of the site and the sample flat.

The PROPHUNT view

The rules for NRIs buying in Pune are straightforward: buy residential or commercial property, pay through your NRE, NRO or FCNR account, deduct TDS where required, and use a properly stamped power of attorney if you cannot be here. The bigger risks are practical, not legal: choosing the right project from far away, and keeping a clean payment trail for when you sell.

PROPHUNT LLP regularly helps NRI buyers shortlist projects across Pune, arrange video site visits and coordinate the paperwork. If you are planning a purchase, talk to our advisors.

Tax and FEMA rules change. This article is general information, not tax, legal or financial advice. Confirm the current rules with your chartered accountant and bank before you buy or sell.