NRI Property Buying Checklist Pune 2026 — 25 Steps Before You Sign

Buying property in Pune from abroad is entirely possible — and for many NRIs, it represents the smartest long-term investment they can make. Pune’s IT corridors, expanding metro network, and relatively affordable pricing compared to Mumbai make it a natural choice. But the paperwork, regulatory compliance, and remote-coordination challenges demand careful preparation.

This checklist covers every material step an NRI must complete before signing a sale agreement for a Pune property in 2026. Work through each item sequentially; skipping steps in this domain is expensive.

Part 1 — Eligibility & Legal Framework

Step 1: Confirm Your NRI / OCI / PIO Status

The rules differ depending on whether you are a Non-Resident Indian (Indian passport, resident abroad), an Overseas Citizen of India (OCI card holder), or a Person of Indian Origin (PIO card — now merged into OCI). All three categories are generally permitted to purchase residential and commercial property in India without RBI approval. Foreign nationals of non-Indian origin cannot purchase property without special RBI dispensation.

What you cannot buy: Agricultural land, plantation property, and farmhouses are off-limits for NRIs and OCIs without RBI approval. Stick to residential apartments, villas, or commercial units.

Step 2: Understand FEMA Compliance Requirements

The Foreign Exchange Management Act (FEMA) governs all NRI property transactions. Key rules:

• Payment must come only from NRE (Non-Resident External), NRO (Non-Resident Ordinary), or FCNR (Foreign Currency Non-Resident) accounts, or via inward remittance in foreign currency through normal banking channels.
• Cash payments, hawala transfers, or payments from a third party’s account are illegal and can result in the property being attached.
• Keep all bank remittance certificates (Form A2 or FIRC — Foreign Inward Remittance Certificate) for every payment instalment. You will need them for repatriation later.

Step 3: Obtain a PAN Card

A Permanent Account Number is mandatory for any property transaction above ₹50 lakh. Without PAN, the sale deed cannot be registered. Apply through NSDL or UTI portal online. NRIs must submit passport copy, OCI card (if applicable), and proof of overseas address. Processing takes 10–15 working days; allow extra time for postal delivery.

Step 4: Verify Property Category (Residential vs Commercial)

Residential properties — flats, row houses, villas — can be purchased freely. Commercial properties — offices, shops — are also permitted. However, the repatriation rules differ slightly depending on the source of funds used. Clarify with your CA or FEMA consultant before committing.

Part 2 — Financial Setup

Step 5: Open or Activate NRE / NRO Accounts

Virtually every Indian bank (SBI, HDFC, ICICI, Axis, Kotak) allows NRIs to open accounts online. For property investment:

• NRE account — funds are freely repatriable; interest is tax-free in India.
• NRO account — receives Indian-source income (rent, Indian salary); repatriation subject to annual USD 1 million limit and tax clearance.
• FCNR — fixed deposits in foreign currency; useful for parking funds before conversion.

Property payments must flow through these accounts. If you already have accounts, activate the NRI status and ensure they are classified correctly.

Step 6: Understand Repatriation Limits

When you eventually sell the property, you can repatriate the sale proceeds subject to:

• Maximum USD 1 million per financial year (April–March) from the NRO account.
• The amount repatriated cannot exceed the original investment amount brought in through foreign exchange.
• You must obtain a CA certificate in Form 15CB and submit Form 15CA online before the bank remits funds.

If the property was funded partly through an NRE account, the proportional amount can be repatriated from an NRE account (no annual cap), while the NRO-sourced portion is subject to the USD 1 million limit.

Step 7: Plan for TDS — You Are the Seller’s TDS Agent

When an NRI sells property, the buyer is required to deduct TDS at 22.66% (20% base + 10% surcharge + 4% cess) on the entire sale consideration, not just the profit. This is dramatically higher than the 1% TDS applicable when a resident Indian sells.

If you are buying now and may sell later:

• The TDS deduction will apply to the future buyer.
• You can apply to the Income Tax Department for a lower TDS certificate (Form 13) if your actual tax liability is lower than 22.66%.

When you are the buyer purchasing from a resident Indian seller: deduct 1% TDS if the sale value exceeds ₹50 lakh. Deposit it to the government using Form 26QB within 30 days.

Step 8: Evaluate Tax Treaty Benefits

India has Double Taxation Avoidance Agreements (DTAA) with most countries where NRIs reside — USA, UK, UAE, Canada, Singapore, Australia, and others. Capital gains on property sale may be taxable in both India and your country of residence, but the DTAA typically allows a credit for tax paid in India.

Check with a CA familiar with Indo-US or Indo-UK tax (whichever applies) before structuring your purchase to optimise for tax efficiency on eventual sale.

Step 9: Check NRI Home Loan Eligibility

NRIs are fully eligible for home loans from Indian banks and HFCs. Key parameters:

• Loan-to-Value (LTV): Up to 80% of property value for loans up to ₹75 lakh; 75% for higher values.
• Eligible income: Overseas salary (with employment contract and 6 months’ payslips), foreign bank statements, ITR if filed in India.
• Loan tenure: Up to 20 years for most NRIs; some banks offer 25 years.
• EMI repayment must come from NRE or NRO accounts only.
• Interest rates are generally the same as for resident Indians (currently 8.5–9.5% for most lenders).

Lenders: SBI (NRI home loan), HDFC, ICICI, Axis Bank, and Kotak are most NRI-friendly.

Part 3 — Due Diligence

Step 10: RERA Registration Verification (Remote)

Visit maharera.mahaonline.gov.in and verify:

• Project registration number is valid and active.
• Possession date registered on RERA matches what the builder’s brochure says.
• Quarterly construction progress reports have been filed by the builder.
• No litigation flag or lapsed registration.

This can be done entirely online. Save screenshots of the RERA project page as on the date of your agreement.

Step 11: Title Search — Hire a Local Property Lawyer

Instruct a Pune-based property lawyer (not one recommended by the builder) to conduct a 30-year title search. The lawyer will examine:

• 7/12 extract (revenue records showing ownership history)
• Property card (in Pune city limits)
• Encumbrance certificate (confirms no mortgage or lien)
• NA (Non-Agricultural) order for land conversion
• Development Agreement between landowner and builder

Budget ₹15,000–₹30,000 for a thorough title search opinion in writing.

Step 12: Verify RERA Escrow Account Compliance

Under RERA, builders must deposit 70% of collected funds into a dedicated escrow account, withdrawable only against construction progress. Ask the builder:

• Which bank holds the RERA escrow account?
• Can they show you the latest RERA quarterly filing reflecting utilisation?

A builder refusing to share this is a red flag.

Step 13: Check Approved Building Plan vs Actual Layout

Obtain the approved floor plan sanctioned by PMRDA, PMC, or PCMC (depending on location). Verify that the flat you are buying matches the sanctioned plan — particularly carpet area, balcony, and terrace dimensions. Discrepancies between brochure and approved plan are common and lead to complications at OC stage.

Part 4 — Power of Attorney

Step 14: Draft a Specific, Registered POA

If you cannot be physically present in India for the registration, you must execute a Power of Attorney (POA). Critical requirements:

• The POA must be specific — listing exact property address, survey number, and specific powers granted (e.g., sign sale agreement, appear for registration). A general POA is routinely rejected by sub-registrar offices in Maharashtra.
• Execute the POA before the Indian Consulate or Embassy in your country of residence. It must be authenticated (apostilled if the country is a Hague Convention signatory; consular notarised otherwise).
• On arrival in India, the POA must be adjudicated (stamped) and registered at the local Sub-Registrar’s office within 3 months of arrival in India.

Step 15: Choose Your POA Holder Carefully

The POA holder will sign legally binding documents on your behalf. Choose a family member or a qualified professional (lawyer or CA) whom you trust unconditionally. Set clear written instructions and keep communication documented.

Part 5 — Agreement & Registration

Step 16: Review the Agreement for Sale Carefully

Before the Agreement for Sale (AFS) is signed, verify:

• Carpet area is defined per RERA (exclude walls, balconies are 50%).
• Payment schedule is milestone-linked (not time-linked).
• Possession date and penalty for delay (typically interest at SBI PLR).
• Force majeure clauses are not overly broad.
• No clause waiving RERA rights.

Step 17: Pay Stamp Duty and Registration (Maharashtra Rates 2026)

• Stamp duty in Pune: 6% of agreement value (5% stamp duty + 1% local body tax).
• Women buyers get a 1% rebate (5% total in some categories).
• Registration fee: 1% of agreement value, capped at ₹30,000.
• For NRI buyers, payment must come from NRE/NRO account; collect bank proof.

Step 18: Collect All Original Documents Post-Registration

After registration at the Sub-Registrar office, ensure you receive:

• Registered sale agreement (original)
• Payment receipts for stamp duty and registration
• Index II (receipt issued by registration office)

Store originals safely; scan and store digital copies in two cloud locations.

Part 6 — Post-Purchase Compliance

Step 19: Mutation / Property Card Update

After registration, apply for mutation of property records — updating revenue records and property card to reflect your name as owner. This is done at the local ward office (PMC/PCMC) or Tehsildar office. Required for future sale, inheritance, and loan transactions.

Step 20: Arrange Property Insurance

Buy a comprehensive property insurance policy covering structural risk, burglary, fire, and natural calamities. Premiums are low (typically ₹3,000–₹8,000/year for a ₹1 Cr flat). This is particularly important for NRIs who are not physically present to monitor the property.

Step 21: Set Up Property Management

If the flat will be vacant or rented out, engage a property management firm in Pune. They handle tenant vetting, rent collection, society dealings, and maintenance coordination. Fee: typically 8–12% of monthly rent, or ₹3,000–₹8,000/month for vacant property monitoring.

Step 22: File Indian Income Tax Return (ITR) for Rental Income

If you rent the property, rental income is taxable in India. You must file an Indian ITR (Form ITR-2 for NRIs) each year. TDS will be deducted by the tenant at 30% (NRI rate) — file ITR to claim refunds based on actual tax liability after deductions.

Step 23: Report Foreign Assets in Your Country of Residence

In the USA, property in India must be reported on FBAR (FinCEN 114) if the value combined with other foreign accounts exceeds USD 10,000. In the UK, Canadian, and Australian tax systems, similar disclosure requirements apply. Consult a cross-border tax professional.

Step 24: Plan for Repatriation in Advance

When you eventually sell, initiate Form 15CA / 15CB process at least 30 days before the sale. The CA must issue Form 15CB; you file Form 15CA online on the income tax portal. Submit both to your bank before the wire transfer.

Step 25: Keep a Running Improvement Expenditure Record

All capital improvement costs (renovation, modular kitchen, flooring upgrades) reduce your taxable capital gains on eventual sale. Maintain invoices, bank payment proofs, and contractor agreements from day one. Indexed cost of improvement is deductible against long-term capital gains.

Final Checklist Summary

Work With Experts Who Understand NRI Property

Pune’s real estate market rewards prepared buyers. NRI transactions have extra layers — FEMA, currency conversion, remote coordination, tax treaties — but none of these are insurmountable with the right professional team: a FEMA-aware CA, a good property lawyer, and a reliable local agent.

Browse NRI-friendly projects in Pune’s IT corridors at punerealtyhub.com — with verified RERA details, builder track records, and price-per-sqft benchmarks to help you make an informed decision from wherever you are in the world.