Tax Basics for an NRI Who Owns a Plot in Telangana

When you buy

The sale deed carries stamp duty, transfer duty and a registration fee: 7.5% in total on the market value or the consideration, whichever is higher, according to the Telangana Registration & Stamps Department's ready reckoner. A PAN is needed for property above ₹20 lakh.

If you buy from a resident seller, you as buyer may have to deduct tax at source: under section 393 of the Income-tax Act, 2025 for purchases from 1 April 2026, and under section 194-IA of the 1961 Act before that, which set 1% where the consideration or stamp value was ₹50 lakh or more. Confirm the current rate with a chartered accountant.

The accounts you pay from

According to the RBI's FAQ on non-residents' accounts, income in NRE and FCNR(B) accounts is exempt from income tax and income in an NRO account is taxable.

When you sell

A gain on property held more than 24 months is long-term. For transfers on or after 23 July 2024, the Income Tax Department's guidance gives tax deducted at 12.5% on a non-resident's long-term gain and 30% on an individual's short-term gain, plus surcharge and cess. The option of 20% with indexation, for property bought before 23 July 2024, is for resident individuals and HUFs only.

Consult a chartered accountant

This guide sets out the rules the Indian authorities publish; it is not advice on your position. The country you live in may also tax a gain on the plot, and how the two interact is a question for a chartered accountant who knows both. Ask before you buy and again before you sell.

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