NRI property in Hyderabad, explained

Buying or selling property in Hyderabad from abroad is allowed and common. The trouble usually comes from three things: tax cut at the wrong rate, a weak power of attorney, and no one checking the land on the ground. This page covers all three in plain words.

1. Buying: what you can buy and how to pay

• NRIs (Indian citizens living abroad) and OCI card holders can buy any number of homes and commercial properties.
• Agricultural land, plantations and farmhouses are not allowed. Many “farm plots” and “managed farmland” projects near Hyderabad are agricultural land: an NRI cannot buy these.
• Pay only through banks: a transfer from abroad or from your NRE, NRO or FCNR account. Keep every bank receipt; you will need them when you sell and want to take money back.
• Home loans for NRIs are available from Indian banks; the EMI must be paid from an NRE or NRO account or from abroad.

2. Buying without flying in: the power of attorney

1. Give a specific power of attorney (only for this property) to someone you trust in India, not a general one for everything.
2. Sign it abroad before the Indian embassy or consulate, or before a local notary and get it apostilled.
3. Get it stamped in India within 3 months of it arriving, at the Sub-Registrar office. An unstamped power of attorney can be refused at registration.
4. Cancel it in writing once the work is done.

3. Checking the property from abroad

Most NRI losses in Hyderabad are not about price; they are about land that had a problem nobody checked. Before any token:

• Land record on Bhu Bharati: how to check.
• 30-year encumbrance certificate (EC): how to get it.
• Layout approval (HMDA / DTCP LP number): how to check.
• For a project, its TG-RERA number: how to check.
• Someone standing on the site, with photos and a date. Read the NRI due-diligence checklist.

4. Selling: TDS and capital gains tax

• The buyer must cut TDS from your sale price and pay it to the government. There is no ₹50 lakh limit for NRI sellers.
• Held more than 24 months: long-term gain, taxed at 12.5% (no indexation for NRIs). TDS on the full price: 13% up to ₹50 lakh, 14.3% up to ₹1 crore, 14.95% above.
• Held 24 months or less: short-term gain, taxed at slab rates. TDS is usually about 30% plus surcharge and cess on the full price.
• Get a lower-TDS certificate before the sale (Form 13 under the old Act, Form 128 under the Income-tax Act, 2025) so TDS is cut on your gain, not the whole price. Otherwise you wait for a refund after filing your return.
• From 1 October 2026, a resident individual or HUF buying from you no longer needs a TAN; they can pay the TDS with their PAN. That makes your property easier to sell.
• Saving tax: reinvesting a long-term gain in another home in India (section 54) or in specified bonds within six months (section 54EC, up to ₹50 lakh) can reduce the tax. Ask a chartered accountant.

5. Taking the money abroad

• Sale money goes into your NRO account. You can send up to USD 1 million per financial year abroad from NRO balances, after tax, with a chartered accountant’s certificate and your bank’s remittance form.
• If you originally bought the property with money sent from abroad or from NRE/FCNR accounts, you can send back up to the amount you paid in foreign exchange, for up to two homes. Keep the original bank proofs.

Questions people ask

Can an NRI buy property in Hyderabad?

Yes. An NRI or OCI can buy residential and commercial property in India without RBI permission. They cannot buy agricultural land, a plantation or a farmhouse, except by inheritance.

Can an NRI buy an open plot?

Yes, if it is a residential or commercial plot. A plot that is still agricultural land in the records cannot be bought by an NRI. Check the land record and the layout approval before paying.

How does an NRI pay for property in India?

Through Indian banking channels: money sent from abroad, or from an NRE, NRO or FCNR account. Payment in foreign currency cash or traveller’s cheques is not allowed.

Can I buy property in Hyderabad without travelling to India?

Yes, through a power of attorney given to someone you trust in India. Sign it before the Indian embassy or consulate (or a notary with apostille), and get it stamped in India within 3 months of it arriving.

How much TDS is cut when an NRI sells property?

For property held more than 24 months, 12.5% plus surcharge and 4% cess on the full price (13% to 14.95%), unless the NRI has a lower-TDS certificate. For 24 months or less, about 30% plus surcharge and cess.

How much money can an NRI take abroad after selling property?

Up to USD 1 million per financial year from the NRO account, after paying tax and with the required CA certificate. If the property was bought with money sent from abroad or from NRE/FCNR accounts, the amount originally paid can be sent back, for up to two homes.

This page is general information, not tax or legal advice. Tax rules changed in 2024 and again with the Income-tax Act, 2025; confirm your case with a chartered accountant before you sell. I am a TS-RERA registered agent (A02200001905); how I am paid.

Sources

• Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (what NRIs and OCIs may buy; payment through banking channels).
• RBI Master Direction on Remittance of Assets (USD 1 million per financial year from NRO balances).
• Business Today, “Buying property from an NRI? TAN rule changes from October 1, 2026”, 28 August 2026.
• Income-tax (Fifth Amendment) Rules, 2026, published 24 September 2026, as summarised by SetIndiaBiz.
• CalcGuru, “NRI property TDS rates, the 2026 PAN change and exemptions”, updated 1 October 2026.