NRI / OCI Buying Property in Odisha: Easy 2025 Guide

## 🏡 What can you actually buy?

If you are an NRI (Non-Resident Indian) or OCI (Overseas Citizen of India):

✅ You can buy:

• Residential property (flats, houses, apartments).

• Commercial property (shops, offices, plots in approved areas).

❌ You cannot buy:

• Agricultural land.

• Plantation land.

• Farmhouses.

👉 If someone offers you farmland or a farmhouse to buy in Odisha, it’s not legally allowed. You can only inherit these types of land, not purchase them.

💰 How can you pay for property in India?

You must use Indian banking channels — no cash, no traveller’s cheques.

Here’s how most NRIs/OCIs pay:

• Send money from abroad directly into India through bank transfer (your bank abroad → Indian bank).

• Use your Indian bank accounts:

NRE account = Non-Resident External account → you put in foreign money here (USD, GBP, AED, etc.), and it’s kept in INR. Money can be sent back abroad later.

• NRO account = Non-Resident Ordinary account → this is for money earned inside India (like rent, pension, deposits). Money here can also be sent abroad, but with limits and more paperwork.

• FCNR account = Foreign Currency account in India → deposits kept in your foreign currency.

👉 In short:

• Use NRE for sending money into India from abroad.

• Use NRO if the money is already in India.

• Always keep the bank’s advice/FIRC slip as proof (important later for taking money out of India).

🖊️ What if you can’t come to Odisha? (Power of Attorney – PoA)

You don’t need to fly down every time. You can give someone you trust in India a Power of Attorney (PoA) so they can sign documents for you.

Steps:

• Sign the PoA in your country before the Indian Embassy/Consulate or a local Notary.

• Get it attested (embassy stamp) or apostilled (international stamp of authenticity).

• Send it to Odisha → your lawyer/agent will register it at the Sub-Registrar office before using it.

⚠️ Important:

• Use a PoA without possession (cheaper and safer).

• A PoA with possession is treated like an ownership transfer — stamp duty is higher (5% + 2% fee in Odisha).

🧾 What happens on registration day in Odisha?

• You (or your PoA holder) go to the Sub-Registrar’s Office.

• Carry: ID proof, sale deed draft, stamp duty receipt, and slot booking details.

• Odisha now uses e-Registration:

Draft deed online.

• Pay stamp duty/registration fees online.

• On the day → biometric thumbprint, photo, and signatures are taken.

• After registration, the land record (RoR – Record of Rights) is updated through mutation (done online via Tahasil).

💸 Taxes when buying

Case 1: Seller is Resident Indian

• If the property price is ₹50 lakh or more, buyer must cut 1% TDS (tax) before paying the seller.

• This is deposited online using Form 26QB.

Case 2: Seller is also NRI/OCI

• Different rule applies → Section 195.

• TDS here is not 1%. Instead, tax is deducted as per capital gains (20% or more, depending on type of gain + surcharge/cess).

• The seller can apply for a lower TDS certificate from the Income Tax Department to reduce this.

👉 Buyer must confirm seller’s residency status before deciding which rule applies.

🌍 After purchase: rent, resale & sending money abroad

• Rental income: Can be deposited in your NRO account. After paying Indian tax, you can remit it abroad.

• Selling property later:

You can send back up to USD 1 million per financial year (approx ₹8.3 crore) from your NRO account after providing tax proofs and CA certificate.

• If you bought using foreign money (NRE), you can also repatriate sale proceeds, but you’ll need the old FIRC/bank records.

📋 Buyer’s simple checklist

• ✅ Check RoR (Record of Rights) → land must be Gharabari (residential), not agricultural.

• ✅ Get an Encumbrance Certificate → ensures no loans/mortgages on the property.

• ✅ If new construction, check building plan approval on [SUJOG/OBPAS](/blog/sujog-obpas-in-odisha-the-super-simple-guide-to-getting-your-building-plan-approved) and ask for Occupancy Certificate after completion.

• ✅ Pay via NRE/NRO account or foreign remittance (never cash).

• ✅ Deduct TDS correctly (1% or Sec. 195) depending on seller’s status.

• ✅ Keep all proofs (bank advices, FIRCs, sale deed, mutation papers).