1. What FEMA 6(4) actually says

The Foreign Exchange Management Act (FEMA), 1999 and RBI's master directions allow NRIs and OCIs to acquire immovable property in India other than:

• Agricultural land
• Plantation property
• Farmhouse

The purchase can be made out of inward remittance or NRE / NRO / FCNR balances. No RBI approval is required for residential/commercial plots. PIOs now fall under OCI status.

2. The "farm plot" trap

"Managed farmland" / "farm plot" / "weekend farm" products that have exploded on Bangalore, Hyderabad and Coimbatore outer belts are almost all agricultural land even if marketed with a villa render. An NRI buying one is technically in breach of FEMA 6(4), and the sale can be struck down. Even if not challenged, repatriating the proceeds is blocked.

Rule. If the chitta / RTC / 7-12 says agri, punjai, nanjai, dry, or wet — an NRI should not buy it. Conversion to non-agricultural (DC / NA / patta conversion) must be complete before NRI purchase, not "in progress".

3. Power of Attorney pitfalls

• POA must be notarised and apostilled/attested at the Indian consulate abroad, then stamped in India within 3 months of arrival.
• Specific POA > General POA. A specific POA naming the plot survey number and the exact acts (register sale deed, receive khata, etc.) is harder to misuse.
• GPA sales are void (Suraj Lamp & Industries, SC 2011). Don't accept a plot where the seller is offering a GPA sale — it is not a title transfer.
• POAs have been misused to double-sell plots or mortgage them. Revoke the POA the day your sale deed is registered.

4. Funds, taxation and TDS

• Inward remittance route: NRE / FCNR / inward wire from your foreign bank.
• NRO can be used, but principal repatriation from NRO is capped at USD 1 million per FY under RBI rules.
• TDS on resale — buyer (if Indian resident) must deduct 20% LTCG / 30% STCG on sale consideration when seller is NRI, not on capital gains. File Form 15CA/15CB for repatriation.
• Rental income from a plot lease is taxable in India; use DTAA relief if applicable.

5. Repatriation on plot sale

• Sale proceeds of up to two residential properties can be repatriated without RBI approval if the plot was bought from inward remittance / NRE.
• For plots bought out of NRO or inherited, repatriation is capped under USD 1 million per financial year, subject to Form 15CA/15CB filing and payment of taxes.
• A plot that was classified agricultural at purchase cannot be repatriated — the FEMA breach blocks the exit. Another reason to avoid "farm plot" products.

6. Our checklist for NRI plot buyers

1. Shortlist only layouts we (or your own lawyer) rate Buy or Wait on this site.
2. Confirm non-agricultural classification on chitta / RTC / 7-12 before paying any token.
3. Make every payment through banking channels — never cash, never crypto, never "adjustments".
4. Use a specific, time-bound POA. Revoke the moment the sale deed is registered.
5. Get an independent lawyer in the city of purchase — not the developer's panel lawyer.
6. Keep every inward remittance advice (FIRC). You will need them for repatriation in the future.