<p>Non-Resident Indians are among the most active buyers in Varanasi's residential market, drawn by family ties, the city's spiritual pull, and steady long-term appreciation around localities like <a href="https://kashiproperty.in/neighborhood/lanka">Lanka</a>, Sigra, <a href="https://kashiproperty.in/neighborhood/mahmoorganj">Mahmoorganj</a>, <a href="https://kashiproperty.in/neighborhood/sarnath">Sarnath</a>, Assi, <a href="https://kashiproperty.in/neighborhood/shivpur">Shivpur</a> and <a href="https://kashiproperty.in/neighborhood/rohaniya">Rohaniya</a>. Buying from abroad is entirely legal and well-trodden, but it runs on a specific set of rules under FEMA (Foreign Exchange Management Act) and the Income Tax Act. This guide walks you through what you can buy, how to fund and repatriate money, the role of a Power of Attorney, and how to close a purchase without flying down for every signature.</p>

<h2>What NRIs can and cannot buy under FEMA</h2>

<p>Under FEMA, an NRI or OCI (Overseas Citizen of India) can freely purchase residential and commercial property in India, including in Varanasi. There is no cap on the number of properties and no special RBI permission required for these categories.</p>

<ul>

<li>Allowed: Ready or under-construction flats, builder floors, houses, and commercial units.</li>

<li>Not allowed (without RBI approval): Agricultural land, farmhouses, and plantation property. You also cannot buy these even as a gift, though you may inherit them.</li>

</ul>

<p>If you are buying a plot marketed as "residential", confirm the land use is actually converted to non-agricultural (abadi/residential) in the revenue records before paying anything. In and around Varanasi, some peripheral plots near Rohaniya or the ring road are still classified as agricultural on paper.</p>

<h2>Funding the purchase: NRE, NRO and home loans</h2>

<p>Payments must be made in Indian rupees through banking channels, not foreign currency cash. NRIs typically pay from one of these accounts:</p>

<ul>

<li>NRE account: Funded from foreign earnings, freely repatriable. Best if you may want to send sale proceeds back abroad later.</li>

<li>NRO account: Holds India-sourced income (rent, etc.); repatriation is capped at USD 1 million per financial year with paperwork.</li>

<li>FCNR deposits can also be used.</li>

</ul>

<p>Most Indian banks and NBFCs offer NRI home loans, usually up to 75-80% of value, with tenures often shorter than for residents. Rates in 2026 are broadly in the 8.5-9.5% range but vary by lender and profile, so confirm the exact rate, processing fee and eligibility directly with your lender. EMIs must be paid from your NRE/NRO account or via inward remittance.</p>

<h2>Power of Attorney for remote buying</h2>

<p>Since you may not be in Varanasi for registration, a Power of Attorney (PoA) to a trusted person in India is common. Execute it carefully:</p>

<ul>

<li>Sign the PoA before the Indian Consulate/Embassy in your country of residence, or on local notarised stamp paper, then have it apostilled/attested.</li>

<li>After it reaches India, it must be adjudicated and stamped at the sub-registrar, and often needs registration for immovable property transactions.</li>

<li>Keep the PoA narrow: name the specific property, and specify whether the holder can sign the sale deed, take possession, and apply for utilities, but ideally not sell.</li>

</ul>

<p>Give PoA only to close family or a vetted professional. A registered general PoA to sell should be avoided.</p>

<h2>TDS and taxes on purchase</h2>

<p>Tax responsibility depends on who the seller is, and here NRIs must be careful as buyers too:</p>

<ul>

<li>Buying from a resident seller: If the sale value is ₹50 lakh or more, you deduct 1% TDS under Section 194-IA and deposit it.</li>

<li>Buying from another NRI: TDS is deducted under Section 195 at the applicable capital-gains rate (much higher, often around 12.5-20% plus surcharge/cess on gains), so structure this correctly with a CA.</li>

</ul>

<p>You will also pay stamp duty and registration charges to the Uttar Pradesh government. UP levies stamp duty around 6-7% (with a common 1% rebate when a woman is a purchaser) plus about 1% registration. The exact duty is calculated on the higher of transaction value or the government circle rate for that locality. Verify the current circle rate and duty for Sigra, Mahmoorganj or your target area on the official IGRSUP portal before budgeting. After purchase, factor in annual house tax payable to Varanasi Nagar Nigam.</p>

<h2>Documents to keep ready</h2>

<ul>

<li>Valid passport and OCI/PIO card; visa/residence proof abroad.</li>

<li>PAN card (mandatory for registration and TDS).</li>

<li>Overseas address proof and recent photographs.</li>

<li>NRE/NRO bank details and, for loans, income and employment documents.</li>

<li>Duly executed and attested PoA if using a representative.</li>

</ul>

<h2>Practical tips for buying remotely</h2>

<ul>

<li>Verify title independently: Hire a local property lawyer to check the chain of title, encumbrance certificate, and approved building plan, do not rely on the builder's paperwork alone.</li>

<li>Prefer UP RERA-registered projects: Check the project and promoter on the UP RERA portal for approvals and delivery track record.</li>

<li>Insist on video verification: Ask for live video walkthroughs and geotagged photos of the actual unit in Sarnath, Assi or Shivpur, not just brochures.</li>

<li>Route all money through banking channels and keep remittance advices for future repatriation.</li>

<li>Plan repatriation early: Keep Form 15CA/15CB and CA certificates ready if you expect to send sale proceeds abroad.</li>

</ul>

<h2>Frequently Asked Questions</h2>

<h3>Can an NRI buy property in Varanasi without visiting India?</h3>

<p>Yes. By granting a properly attested and registered Power of Attorney to a trusted person in India, an NRI can complete the entire purchase, including registration, remotely. Independent legal title verification and video inspection of the property are strongly recommended.</p>

<h3>Can NRIs repatriate money from selling a Varanasi property?</h3>

<p>Yes, within limits. Proceeds are repatriable up to USD 1 million per financial year through an NRO account, subject to submitting Form 15CA/15CB and applicable capital-gains tax being paid. If the property was bought with NRE funds, repatriation of that portion is generally easier.</p>

<h3>Is TDS applicable when an NRI buys property?</h3>

<p>Yes. If buying from a resident seller at ₹50 lakh or above, the NRI buyer deducts 1% TDS. If buying from another NRI, higher TDS under Section 195 applies on the seller's gains. Always confirm current rates and thresholds with a chartered accountant and on the official portals.</p>

<p style="margin-top:18px">Explore areas in Varanasi: <a href="https://kashiproperty.in/neighborhood/mahmoorganj">Mahmoorganj</a> · <a href="https://kashiproperty.in/neighborhood/bhelupur">Bhelupur</a> · <a href="https://kashiproperty.in/neighborhood/shivpur">Shivpur</a> · <a href="https://kashiproperty.in/neighborhood/rohaniya">Rohaniya</a> · <a href="https://kashiproperty.in/neighborhood/sunderpur">Sunderpur</a> · <a href="https://kashiproperty.in/neighborhood/durgakund">Durgakund</a></p>