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Can an NRI Buy Residential Plots in India?Can NRIs Buy Plots in India? 2026 Rules, Restrictions & New Tax Ease Explained
For many NRIs, owning a piece of land back home is more than an investment—it’s an emotional anchor. A future home, a retirement plan, or simply a long-term asset that grows in value over time. But before taking that step, it’s essential to understand what the law actually allows.
Surprisingly, the rules for NRIs are more straightforward than most people think—especially after the latest Budget 2026 announcement that has simplified one of the most troublesome tax requirements.
Let’s break everything down in simple terms.
So, Can NRIs Buy Plots in India?
Yes, absolutely.
NRIs are free to buy:
Residential plots
Commercial plots
Apartments and other built homes
There’s no need to approach the RBI for approval, and there’s no cap on the number of properties you can own.
Where the law draws a hard line is with:
Agricultural land
Plantation estates
Farmhouses
These cannot be bought directly, no matter where the NRI is living. They can only be inherited or received as a gift.
A Big Change in 2026: No More TAN Requirement
If an NRI sells property in India, the resident buyer is required to deduct TDS.
Until now, this process involved the buyer getting a Tax Deduction Account Number (TAN)—a step that confused most people and often delayed the deal.
Starting October 1, 2026, this requirement disappears.
Buyers can simply use their PAN to deposit the TDS.
No extra numbers, no extra paperwork.
This small change will make NRI transactions much smoother and quicker.
How NRIs Are Expected to Pay
All payments for property—whether a plot or a ready home—must come in Indian Rupees.
NRIs generally use these accounts:
NRE
NRO
FCNR
Funds can also be transferred from abroad directly through banking channels.
Cash is not allowed, and foreign currency must not be handed over physically.
Loans from Indian banks are permitted too, as long as the funds flow through regulated accounts.
Using a Power of Attorney (POA)
Most NRIs can’t fly back to India for every signature or document.
The law understands this.
A Power of Attorney can handle:
Registration
Agreement signing
Possession formalities
Signing the POA at an Indian Consulate or before a recognized notary abroad is enough. The document just needs to be stamped or adjudicated once it reaches India.
What Happens When an NRI Sells a Plot?
Repatriation is allowed, but with limits.
You can send up to USD 1 million per financial year out of India, provided:
Taxes are cleared
The original purchase payment can be proven
Documents like the sale deed are in order
A chartered accountant will typically handle the compliance for repatriation.
Things NRIs Should Watch Out for Before Buying
- Check if the plot is truly “residential”
Some plots are marketed as residential but may still be listed as agricultural on government records.
Always verify land conversion documents.
- Check RERA registration
Most plotted developments are legally required to get RERA approval.
This will also protect you against delayed handovers or disputed layouts.
- Verify the seller's title
Land ownership is a sensitive issue in India. One has to check:
Title chains
Certificates of Encumbrance
Demarcation and layout approvals
- Citizenship restrictions
If the NRI is a citizen of Pakistan, Bangladesh, China, Afghanistan, Sri Lanka, Iran, Nepal, or Bhutan, they must obtain prior RBI approval before buying anything.
Why Many NRIs Prefer Plots Over Built Property
Compared to apartments, plot investments offer:
More freedom to build later
Higher appreciation in fast-growing cities
Lower maintenance costs
Better long-term resale value
For NRIs planning eventual relocation or retirement in India, a plot can be a sensible first step.
Final Thoughts
Buying a residential plot in India as an NRI is not complicated. The legal framework is friendly, and with the 2026 tax update eliminating the TAN requirement, selling to or buying from an NRI will become even simpler.
Why Pollution Forces People to Opt for Land and Second Homes Closer to Nature
In the last few years, the air quality in cities like Pimpri Chinchwad, Pune, and Mumbai has continued to deteriorate gradually. It is no longer a surprise when the AQI figures go beyond 150, 200, and even 300. This means that the air we inhale daily is becoming increasingly hazardous, particularly for children, the elderly, and people with underlying health conditions. It is no longer a regular occurrence; it is now normal. As the environment deteriorates, so does the level of stress and discomfort.
People living in urban areas are beginning to ponder how much longer they will have to live within this environment. The traffic congestion, dust particles, sounds of horns and machinery, and the ever-present pressure to move and compete create an environment that is already hard to live with. Even the air that is breathed inside is no longer guaranteed to be safe.
Alongside this change in awareness, there has been an apparent change in what people perceive regarding homes and investments. Increasingly, individuals and families believe that having a retreat from the city environment is no longer a luxury but a necessity. This has triggered a steep demand for plots and second homes in environments that are cleaner and greener. Natural surroundings comprising trees, a cool breeze, and expansive space are becoming the paramount choice for a weekend home, a retirement, or a long-term investment solution.
Investing in land away from the polluted city means an individual gains peace of mind. An apartment, unlike land, lacks flexibility, privacy, appreciation, and a healthier environment. Land becomes a retreat where one can unwind, take a break, or even decide to live there eventually.
With the increase in levels of pollution in the state of Maharashtra, buyers are seriously contemplating the future. When you purchase a plot of land in a region with plenty of nature around, you get pure air, reduced noise, and a healthy rate of living. With an increase in pollution and a higher increase in the number of people in cities over the coming years, a plot of land in a natural region will be even more valuable.
What is RERA?
RERA stands for Real Estate Regulatory Authority, which has been brought under the Real Estate (Regulation and Development) Act, 2016, in order to bring transparency, accountability, and safety to the real estate sector in India. Every state has its own RERA authority, for instance, MahaRERA in Maharashtra.
RERA applies to:
- Residential & commercial projects
- Land development layouts
How RERA Protects Land & Plot Buyers
1. Ensures Only Legal, Approved Projects Are Sold
All projects have to be registered with RERA before developers can sell any land or plots.
This makes sure that:
- The land title is checked
- The layout plan is approved.
- Permissions are checked
2. Mandatory Disclosure of Project Details
RERA compels the developer to disclose :
- Details of land ownership
- Layout and plot sizes
- Approvals & Sanctions
- Development Timeline
- Amenities promised
- No hidden information or false promises.
- Restrict Misleading Advertisements
A builder cannot advertise or sell plots or unapproved schemes unless the project is registered at RERA and has a valid RERA number.\
3. Prevention of Money Misuse
Developers must maintain 70% of buyers' money in a separate bank account for:
Land development and infrastructure
They are prohibited from making transfers to other projects.
Protection: It keeps projects from being delayed or abandoned.
Severe Penalties on Developers for delays in development, illegally changed outlays or failure to deliver what was promised.
RERA can fine it, freeze accounts, or cancel the project registration.
4. Grievance Redressal Made Easy
Buyers can submit grievances directly to RERA online for delays , fraud, non-delivery or wrong information.
RERA resolves cases faster compared to civil courts.
Protection: Consumers receive fast, inexpensive justice.
5. Open Sales Arrangements
RERA mandates a standard sale agreement, preventing developers from including unfair clauses.
6. Assurance of Timely Delivery
If the developer delays work beyond the committed timeline, the buyers are entitled to compensation.
Interest Refund in case of exit (if they wish to)
Safety: The buyer's investment remains secure.
Land is one of the few assets that appreciates consistently when supported by the right set of external factors. Its value seems static but through time, it gets shaped by infrastructure, location, policy changes, and socio-economic demand. Here are the seven major factors that influence long-term appreciation.
1. Location & Connectivity
The most important factor influencing land value is still location. Plots near developing cities, planned highways, transportation hubs, or industrial corridors appreciate considerably more quickly. Increased demand and consequently higher prices are the results of improved connectivity, such as new expressways, metro links, widened roads, or airport improvements.
Improved logistics, shorter travel times, and increased residential and commercial interest are all benefits of improved access. This frequently results in a discernible rise in real estate prices even before infrastructure projects are finished.
2. Infrastructure & Basic Utilities
Availability of water supply, electricity, road access, drainage, and telecom connectivity adds immediate usability and desirability to land. Even raw plots with easy access to utilities enjoy a higher valuation.
The areas in which local authorities invest, such as streetlights, sewage systems, waste management, or road widening, become naturally more attractive for both developers and end-users. Infrastructure development often initiates multi-year appreciation cycles in surrounding land.
3. Zoning Ordinance & Land-Use Approval
Government zoning policies directly impact the value of land. Land zoned residential, commercial, or industrial sells at a higher price than strictly agricultural areas because of the higher development potential.
Prices for land that can be lawfully rezoned or converted—for instance, from agricultural to residential or commercial—usually rise quickly. In a similar vein, clear title deeds, uncontested ownership, and the absence of litigation boost marketability and buyer confidence, which drives up prices.
4. Supply-Demand Disequilibrium
Land is intrinsically scarce. As populations grow, cities expand, and industries migrate to newer areas, the demand for usable land goes up, but its supply remains fixed.
High-growth areas, especially tier-I and tier-II cities, tend to enjoy sustained demand from both buyers and developers. When demand surpasses supply, appreciation becomes inevitable. This holds true to a large extent in suburban corridors where urban sprawl transforms the countryside into residential and commercial hotspots.
5. Future Development Potential
Land appreciation is highly dependent upon the expectations of future development. Announcements related to:
- new highways
- metro or rail corridors
- industrial parks
- IT hubs
- logistics zones
- residential townships
…tend to drive early investor interest and cause value increases even before construction starts.
Speculation is seldom all wrong-it simply mirrors genuine future potential. As a rule, the investors who identify early signs of urban growth usually benefit the most.
6. Natural Features & Environmental Conditions
Topography, soil quality, access to water, and lack of environmental hazards are highly influential in determining value, particularly for agricultural, resort, or residential land.
The lands that have beautiful scenery, a body of water around it, or even slight slopes command better prices. In contrast, land requiring heavy levelling, environmental clearance, or flood mitigation appreciates more slowly because of the high cost of development involved.
7. Social Amenities & Neighbourhood Growth
Land demand is boosted by the presence of schools, hospitals, markets, shopping centres, parks, and public services in the area. When an area becomes socially well-developed, it attracts families, businesses, and builders, thereby establishing a long-term upward trend of land price improvements.
Even agricultural land near expanding residential belts can appreciate dramatically once neighbouring regions begin to urbanise.
Conclusion
Accessibility, infrastructure, legal clarity, development potential, environmental quality, and social growth all contribute to an increase in land value. Even though land is a reliable long-term investment, investors can find plots with the highest potential for appreciation by understanding these seven factors. Land can provide substantial returns for decades if strategic research and due diligence are done.
1. Ownership & Title Documents
Mother Deed Check and Original Title Deed
Verify the full ownership chain (at least 30 years, if feasible).
Verify that all documents have the same names, survey numbers, and plot details.
Check to see if he has the complete legal authority to sell the property.
2. Encumbrance Check
Get an Encumbrance Certificate (EC for at least 30 years.
There are no mortgages, liens, loans, court orders, or attachments
Verify with the records of the SRO
3. Property Tax & Bills
Property tax receipts are updated.
Request the last 3–5 years' tax payment history
Check for pending dues: electricity, water, society charges, maintenance
4. Verification of Land & Plot
Verify land classification: non-agricultural, NA-residential, NA-commercial, etc.
Check government records for restricted / acquisition zones
Verify property is not under forest land, ceiling land, grazing land, or CRZ restrictions
Check F-Line 7/12 Extract, Property Card, Mutation Entries
5. Legal Clearances
Confirm Approvals from Town Planning Department
Ensure that the approved plan/development permission is current
6. Verification of Seller's Identity
Verify the seller's PAN, Aadhaar, passport, and address proof
If co-owned, check consent from all co-owners
If a Power of Attorney is used, ensure:
- It is registered
- Seller is alive
- POA is specific to the property and valid
7. Verification against Government Records
Property matches records in the local revenue office
Verify mutation entries for accuracy, and update them
Confirm the property is not marked as disputed / government-owned / encroached
8. RERA Check (If Applicable)
Check the project and builder on the RERA website
Check:
- Approvals
- Project status
- Complaints
- Background history of litigation
9. Affidavit of Title
Obtain a legally notarised Affidavit of Title from seller
10. Physical Verification
Examine property lines with a certified surveyor
Verify that the fencing corresponds to the survey numbers.
Consult your neighbours for firsthand confirmation.
Check for disputed pathways or encroachments.
11. Lawyer Review
All documents to be verified by a property lawyer
Get a written Title Search Report
Certificate of Legal Clearance Final Step: Safe Payment
Make payments only through bank transfer
Never pay without an Agreement to Sell
Register the property immediately after payment
What does the term Vahivat mean?
Vahivat (or Vahiwat) means possession, use, or management of land. It refers to someone who controls and uses a piece of land, even if they are not the legal owner.
How is Vahivat different from ownership?
Vahivat Ownership
Actual use/possession, Legal title in records
May manage or cultivate land. Has full legal rights to transfer, sell, or mortgage
Not always permanent or official. Officially recognised and documented
A person can have vahivat of land without being its registered owner.
Who is a Vahivatdar?
A vahivatdar is the person who physically controls the land, manages, or cultivates it
- May collect profits/produce
- May lease or administer the property
They are users or managers of the land, not necessarily owners.
Is Vahivat recorded in government documents?
Yes.In cases where ownership is unclear or disputed, revenue officials sometimes record the possessor’s name under:
- “Jungle Vahivat” – for forest or uncultivated land
- “Vahivatdar” column – for land under someone’s management or possession
This acknowledges de facto (actual) possession, even if ownership is not settled.
Does Vahivat give legal ownership rights?
No, vahivat alone does not give ownership.
However, long-term, continuous possession may be used in court for claims like adverse possession.
Can Vahivat affect land disputes?
Yes. Vahivat becomes important in cases related to:
- boundary disputes
- Inheritance of land in possession
- long-standing agricultural use
- claims on unused or government land
- establishing common public access routes
Courts often examine who had actual possession for how long.
What is a “Vahivat Road”?
A vahivat road is a path or road used by people for many years—
even if it passes through private land.
Long-term public use can make it recognised as a public right-of-way.
Can a Vahivatdar sell the land?
Generally, no, unless they also have legal ownership.
A Vahivatdar may:
- ✔ use the land
- ✔ manage it
- ✔ lease it (in some cases)
But cannot legally sell, mortgage, or transfer without proper title.
Why does Vahivat still matter today?
It matters for:
- Old revenue records
- rural land usage patterns
- boundary clarification
- disputes over long-term possession
- determining public access routes
- historical occupancy rights
Many villages still use the terms in everyday land-related discussions.
Why are Vahivat maps becoming an issue?
Because authorities are modernising land records.
Old vahivat-based maps often lack legal clarity.
This is why departments (like in Pune district) are cancelling old vahivat surveys and demanding proper re-measurement.