Step-by-Step Guide for NRIs: Buying a Home in Bangalore and Taking Sale Money Abroad

Buying a home in Bangalore from abroad is possible, and thousands of NRIs and OCIs have done it. The rules are different from those for a resident, though, and a mistake at the buying stage can block the money at the selling stage. The sections below follow the full timeline in order: the eligible assets, the payment routes, the paperwork, the tax at sale, and the ceiling on money going out of India.

Step 1: Choose the Right Kind of Property

An NRI or OCI cardholder can buy apartments, villas, residential plots and commercial space such as offices or shops. RBI approval is not needed under the 2019 non-debt instruments rules of FEMA, and the number of units is unlimited. The closed categories are farm land, plantations and farm houses.

The ban turns on legal status. A plot marketed as farm land, or a site still classed as revenue land without conversion to housing, is off limits however it is advertised. On the city's edge, read the conversion order and the approved layout carefully.

Gifts and inheritance follow other rules. A relative living in India or overseas may gift a home or commercial property. By inheritance, an NRI may receive anything the earlier owner held lawfully, farm land too, and may then keep it or sell it.

Step 2: Pay Through the Right Account

Every rupee has to go through a bank. The accepted sources are a remittance from abroad, a Non-Resident External (NRE) account, a Foreign Currency Non-Resident (FCNR) deposit and a Non-Resident Ordinary (NRO) account. Foreign currency notes and traveller's cheques are not accepted.

The choice shapes the exit. A purchase made with remittances, NRE money or FCNR money keeps the right to send sale money abroad. NRO money, usually income earned in India, is subject to a lower ceiling.

A loan is another option. Lenders in India, both banks and housing finance firms, serve NRIs, with repayment from remittances, NRE or NRO funds or the rent earned. A quick estimate of the instalment is on the EMI calculator. Foreign exchange repayments, and those from NRE and FCNR funds, are treated as foreign exchange paid towards the property.

Step 3: Sort Out Documents and Representation

Every NRI who buys, sells or earns rent in India needs a PAN. When the buyer cannot visit often, a relative or adviser based in Bangalore can act under a power of attorney. A precise document that names the property and the permitted acts, such as signing and registering the sale deed, is far safer than a general authority.

An attorney deed signed overseas normally goes to the Indian mission for attestation, or is apostilled if the country is a party to that system. In India it must be stamped in Karnataka before it is presented at the sub-registrar's office.

Step 4: Selling and the Tax Bill

India taxes an NRI's gain on selling property here. Beyond 24 months of holding, the gain is long-term, at 12.5% with surcharge and cess and no indexation. At 24 months or less, it is short-term and is added to income at slab rates.

Tax has to be deducted by the buyer before payment. Earlier the obligation was in the 1961 Act's Section 195, and from 1 April 2026 it is in Section 393 of the new 2025 Act. The rate follows the capital gains rates given above and is far above the 1% for a resident seller.

Deduction on the full price can far exceed the real tax. A seller whose gain is modest may approach the tax office for a certificate of lower deduction ahead of completion. As of 1 October 2026, an Indian-resident individual or HUF paying an NRI can deposit the TDS using a PAN, with no TAN needed. NRIs also get exemptions if a long-term gain goes into buying another house.

Step 5: Sending the Money Abroad

Reserve Bank norms allow money from selling a lawfully bought property to go abroad, limited to the amount first paid in foreign exchange. In the case of homes, the facility extends to two properties only.

Any excess, and proceeds from a purchase made with NRO money, land in the NRO account before anything else. After that, the NRI may remit as much as USD 1,000,000 per year, counted April to March, with inherited-property proceeds included in the total.

Banks want the tax forms filed online first. Form 145 succeeded Form 15CA, and Form 146 succeeded Form 15CB, on 1 April 2026. The accountant's certificate showing that tax was paid on the outgoing amount is found in Form 146.

A Quick Checklist

Run through these points before committing money:

1. Check that the asset is a home or commercial space and not farm land.
2. For payment, favour overseas remittances or money from NRE and FCNR accounts, and retain each bank record.
3. Study the title, the approvals and any RERA registration of the project or the second-hand flat.
4. Draft a power of attorney that is specific if a representative will act in Bangalore.
5. Preserve the sale deed, receipts and loan statements for use when money is finally transferred.
6. Work out TDS and capital gains well before selling.

Overseas buyers comparing new and ready homes can see how we help on our NRI page. Because this is only an outline, a chartered accountant should go over the tax on every sale.