NRIs With Property in Telangana: FEMA, Agricultural Land and Repatriation

NRIs from Telangana commonly hold three kinds of property at home: flats in Hyderabad, plots in layouts around the city, and family agricultural land in the districts. Each carries different FEMA and tax rules.

Flats and Plots

NRIs can buy, hold and sell residential and commercial property freely under FEMA. Before buying a plot, check layout approvals from HMDA, DTCP or the local body, whether the plot needed regularisation, and that land records are clean. Keep records of the foreign exchange used for the purchase — it matters for repatriation later.

Agricultural Land

NRIs can't buy agricultural land, but many inherit family land. Inherited agricultural land can be held, and sold only to resident Indian citizens. Telangana's land records moved to the Bhu Bharati system in 2025, replacing Dharani; mutation of inherited land into the heir's name is done through the prescribed process, and pattadar passbooks issued. Check the current procedure.

Tax on Selling Land

Rural agricultural land beyond specified distances from municipal limits isn't a capital asset, so its sale isn't subject to capital gains tax. Land nearer to towns and Hyderabad's growing municipal areas usually is. The buyer deducts TDS on payments to an NRI seller unless a lower deduction certificate is obtained.

Repatriation

• Sale proceeds of inherited property can be repatriated within the USD 1 million per year limit, with documents proving the inheritance.
• Property bought with foreign exchange allows repatriation of the original foreign exchange amount, for up to two residential properties.
• Form 15CA/15CB and tax documents are needed for the bank.

Managing From Abroad

Registration of sale deeds requires the seller or their attorney to appear. A power of attorney executed abroad must be attested or apostilled, and stamped in Telangana within the time allowed.

Getting Help

Think Filing advises NRIs on Telangana property, from FEMA and tax to repatriation.