NRI Buying Property in Pune: 2026 Guide to Payment, TDS and Repatriation

An NRI can buy residential or commercial property in Pune without any RBI approval, provided the payment comes through banking channels from an NRE, NRO or FCNR account. The purchase itself is straightforward. What trips most buyers up is everything around it: the power of attorney, the TDS position when they sell, and the USD 1 million annual limit on taking money back out.

This guide walks through the full cycle - buying, holding, and eventually selling and repatriating - with the rules as they stand in 2026. For the transaction costs on the day of registration, read our Pune stamp duty guide.

Quick answer: Yes, NRIs and OCIs can buy residential and commercial property in India. Pay only through NRE, NRO or FCNR banking channels, hold a PAN, and register the sale deed with 6% stamp duty (male) or 5% (female) plus 1% registration capped at Rs.30,000. On resale, sale proceeds must land in an NRO account, and repatriation is capped at USD 1 million per financial year.

Can an NRI buy property in Pune?

Yes. A non-resident Indian or an Overseas Citizen of India can purchase residential and commercial property in India. No prior permission from the Reserve Bank of India is needed for a purchase. What is restricted is agricultural land, plantation property and farmhouses - those cannot be bought by a non-resident without specific approval.

Pune and PCMC are ordinary markets for an NRI buyer: the same MahaRERA registration applies, the same stamp duty applies, and the same sub-registrar process applies. There is no separate NRI quota, no separate price list, and no additional state levy.

How must an NRI pay for the property?

Only through banking channels. The money must come from an NRE account, an NRO account, an FCNR account, or a direct inward remittance in foreign exchange. Cash is not permitted, and a traveller's cheque is not an acceptable instrument for a property purchase.

The account you pay from decides how easily you can take the money out later, so decide before you transfer, not after you sell:

A detail most buyers miss: the funding source protects the principal, but the appreciation usually still falls inside the USD 1 million annual limit. Keep every remittance advice, FIRC and bank statement from the purchase - an authorised dealer will ask for them years later.

What is the step-by-step process?

1. Get a PAN. It is mandatory for the purchase, the registration and every tax filing that follows.
2. Open or activate NRE and NRO accounts. Most buyers need both - NRE for the purchase, NRO for rent and sale proceeds.
3. Shortlist only MahaRERA-registered projects. Check the registration number, the tower-wise completion date and the promoter's past projects on the MahaRERA portal.
4. Appoint a power of attorney if you cannot travel. Get it notarised and apostilled in your country of residence, and preferably adjudicated in India.
5. Pay the booking amount from your NRE or NRO account. Never from a relative's account, and never in cash.
6. Sign the agreement for sale. Read the carpet area, the parking allocation, the possession date and the delay clause.
7. Pay stamp duty and registration. 6% for a male buyer, 5% for a female buyer, 5.5% for joint ownership, plus 1% registration capped at Rs.30,000.
8. Collect the registered deed and the index copy. Store them with the payment trail - you will need both at resale.

For a ready unit, add one more step: verify the Occupancy Certificate before you pay the final instalment. Without it, the flat is not legally occupiable and the GST position changes.

What does the purchase cost an NRI?

Exactly the same as a resident buyer, with one addition - the TDS you must deduct if you are buying from a resident seller for Rs.50 lakh or more.

The ready-versus-under-construction GST gap is worth reading in full before you choose a project - our comparison of the two sets out the all-in difference.

Do I need a power of attorney?

Only if you cannot be physically present for the agreement and registration. A special power of attorney limited to this one property is safer than a general one. Execute it before a notary in your country of residence, get it apostilled (or consularised, depending on the country), and have it adjudicated in Maharashtra so the sub-registrar accepts it without argument.

Draft the powers narrowly: to execute the agreement, to pay stamp duty and registration, to appear before the sub-registrar, to collect the registered deed, and to do the society transfer. Do not hand over the power to sell or to withdraw funds unless you genuinely intend it.

Can an NRI get a home loan in Pune?

Yes. Most Indian banks and housing finance companies lend to NRIs for a residential purchase, and some lend against commercial property. Expect the lender to ask for your passport and visa, overseas address proof, income documents from your country of residence, NRE or NRO statements, and a power of attorney if you will not sign in person.

The loan is repaid from your NRE or NRO account, and the tax deduction on the interest is available subject to your residential status and the applicable rules - confirm that with your chartered accountant rather than a bank relationship manager.

What changes when you sell?

This is where the NRI transaction differs sharply from a resident one. Three things change:

1. TDS applies from the first rupee. There is no Rs.50 lakh threshold when the seller is an NRI. The buyer must deduct tax on the entire consideration.
2. The rate is the capital gains rate, not 1%. For a long-term gain on property held more than 24 months and transferred on or after 23 July 2024, TDS is 12.5% plus surcharge and cess. For a short-term gain it is the slab rate, up to 30% plus surcharge and cess.
3. Proceeds must be credited to an NRO account. Even if you hold an NRE account, FEMA requires Indian-source sale proceeds to land in NRO first.

A lower deduction certificate from the assessing officer can reduce the upfront TDS if your actual gain is smaller than the gross sale value - which it almost always is. Apply for it well before the deed date, or you will fund a large refund claim for months.

From 1 October 2026, a resident individual or HUF buying from an NRI can deposit TDS using their PAN instead of obtaining a TAN. The deduction obligation itself does not change - only the paperwork does.

How do you repatriate the money?

Through an authorised dealer bank, with a self-declaration and a chartered accountant's certificate confirming Indian tax compliance. Under the current rules the old Form 15CA and 15CB have been replaced by Form 145 and Form 146.

Two practical points. First, the USD 1 million cap applies per person per financial year, so a spouse who also holds NRI status has their own limit. Second, if the property was bought jointly, the funding trail for each holder needs to be documented separately.

What about tax on rent?

If you let out the flat, the tenant is the deductor. A tenant paying rent to an NRI must deduct tax at source under the non-resident provisions - commonly 30% plus surcharge and cess on the rent, unless you obtain a lower or nil deduction certificate. The rent is also taxable in India in your hands, with deductions available for municipal tax, standard deduction and home loan interest.

The rent should be credited to your NRO account, not NRE. Plan for the withholding from month one rather than discovering it at the end of the year.

Five mistakes NRI buyers make in Pune

• Paying from a relative's Indian account. It breaks the FEMA trail and can block repatriation years later.
• Booking before checking MahaRERA. The registration number, the tower-wise date and the promoter's record are all public.
• Signing a broad power of attorney. Limit it to the specific transaction and the specific property.
• Forgetting the Occupancy Certificate. Without it, a ready flat is neither legally occupiable nor GST-free.
• Not planning the exit at entry. Decide NRE versus NRO funding before you pay the booking amount, because it decides how much you can take back.

Frequently asked questions

15 detailed FAQs below. Related reading: stamp duty and registration in Pune and the best locations to buy a flat. Tax positions change; confirm your own with a chartered accountant before you transact.