Investing in India: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in India.
Who can buy in India
Indian citizens and resident buyers enjoy unrestricted ownership of residential and commercial real estate. NRI/OCI buyers follow FEMA regulations — residential/commercial allowed, agricultural land only via inheritance. Foreign nationals cannot purchase property in India except by inheritance.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Indian Resident | Yes | Freehold | Unrestricted purchase of residential, commercial, agricultural |
| NRI / OCI | Conditional | Freehold | Residential and commercial allowed; agri/plantation/farmhouse only via inheritanceApproval: FEMA / RBI compliance |
| Foreign National | No | None | Cannot purchase; inheritance allowed from Indian resident |
Capital gains on a sale
Capital gains tax applies to profits from selling property. Short-term capital gains (STCG) and long-term capital gains (LTCG) are treated differently based on the holding period. Indexation benefits are available for LTCG.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| 24 months or less | Short-Term Capital Gain (STCG) | At your income tax slab rate | Not applicable |
| More than 24 months | Long-Term Capital Gain (LTCG) | 12.5%, without indexation | Not applicable |
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Capital Gains Tax on Selling Land in India: The Complete Guide
Selling land in India as an NRI in 2026 means working under two overlapping changes at once: the 2024 capital gains rewrite and the 2025 Income Tax Act's wholesale renumbering. Confirm the rate against the acquisition date, and confirm the section number against the transaction date, before trusting either from an older source.
Frequently asked questions about India
With conditions. Residential and commercial allowed; agri/plantation/farmhouse only via inheritance Approval: FEMA / RBI compliance.
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