Rules for NRI to buy property in India:
NRIs can buy only commercial and residential properties, but can't buy any agricultural land. There is no limit to buy commercial and residential property, but when an NRI wants to sell his property and take the money back to the residing country, then he can sell only two units.
NRI can also invest in real estate buy transferring the fund through the NRE, NRO and FCNR account, but they can make payment via traveller's cheques and foreign currency notes.
If an NRI wants to buy property in India and he is not present there, then he should make a power of attorney in favor of any relative, who is residing in India and who is available to execute the document process on his behalf.
NRI can also apply for a home loan in India. They need some document like income proof, salary details, tax details, appointment letter, PAN card or any other ID, bank statement, passport copy, visa copy, etc. to apply for a home loan. But, the loan amount should not be more than 85% of all property value. NRI also executes a power of attorney in favor of any relative before sanction of the loan by the bank.
NRI can also rent out their property in India and the received rent can credit to their NRO or NRE account. If NRI does not have NRO account, the rent amount can also be directly remitted abroad, for this NRI would need an appropriate certificate from a chartered accountant certifying that all taxes have been duly paid. Since NRI earns this money from Indian property, he has to pay tax in India. In this case, rent payer can deduct the applicable tax, which 30 percent of the rent amount. For this rent payer must get a TAN number and deduct TDS from the rent amount. He must provide the TDS certificate to the NRI.