The Complete 2026 NRI Guide: Legalities, Taxation, and Asset Curation in Ahmedabad

As Gujarat’s economic corridors expand and the GIFT City corridor integrates with Ahmedabad's western suburbs, non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are allocating significant capital to the city's luxury residential market. However, navigating the legal, tax, and banking framework from abroad requires precise, structured guidance.

1. FEMA Framework and Allowed Properties

Under the Foreign Exchange Management Act (FEMA), NRIs have a general permission to acquire residential and commercial properties in India. There is no restriction on the number of residential properties an NRI can own. However, purchasing agricultural land, farmhouses, or plantation properties is strictly prohibited unless specifically approved by the Reserve Bank of India (RBI).

2. Financial Channels and Currency Compliance

All financial transactions must be conducted in Indian Rupees (INR) through normal banking channels. Payments must be routed through non-resident external (NRE), non-resident ordinary (NRO), or Foreign Currency Non-Resident (FCNR) accounts. Direct payments in foreign currency or cash transactions are illegal and carry severe compliance penalties.

3. Tax Deducted at Source (TDS) under Section 195

A critical compliance point is the withholding tax. When an NRI buys a property from a resident Indian, the standard TDS is 1% if the property value exceeds ₹50 Lakhs. However, if the seller is also an NRI, the buyer must deduct TDS under Section 195, which ranges from 20% to 30% depending on capital gains. Failure to deduct the correct TDS can result in hefty interest penalties and legal disputes.

4. Remote Execution and Power of Attorney

Most NRI buyers cannot travel to India for every stage of the transaction. In such cases, executing a Special Power of Attorney (POA) in favor of a trusted local representative or advisor is the standard protocol. The POA must be signed and attested by the Indian Consulate or Embassy in the buyer's country of residence and subsequently registered in India within three months of receipt.

By establishing these legal and financial protocols early, NRI families can confidently curate premium vertical estates or plotted assets in Ahmedabad, securing high-quality defensive assets with absolute compliance peace of mind.