NRI Buying Property in Lucknow: RBI Rules, Loans and Tax (2026)

An NRI or OCI can buy any residential or commercial property in Lucknow, but not agricultural land, plantation property or a farm house. Payment must come through normal banking channels or from an NRE, FCNR(B) or NRO account, never in foreign currency notes or traveller's cheques. Indian banks can lend to NRIs for a home on the same terms as residents, and when you sell, the sale proceeds of up to two residential properties can be repatriated, subject to the conditions below.

This guide sets out the rules from the Reserve Bank of India and the Income-tax Act, 2025, with worked figures from flats we list. For a quick overview of how we work with buyers abroad, see our For NRIs page.

What NRIs can buy in Lucknow under FEMA

The RBI's FAQ on purchase of immovable property in India by non-resident individuals, last updated on 6 April 2023, summarises the Foreign Exchange Management (Non-Debt Instrument) Rules, 2019. In short:

There is no limit in the FAQ on the number of residential or commercial properties an NRI may buy. The limit of two applies to repatriating sale proceeds, which we come to below.

NRIs and OCIs can also receive property other than agricultural land as a gift from a relative, and can inherit property. Citizens of certain neighbouring countries need the RBI's prior permission, but the FAQ notes that this restriction does not apply to OCIs.

How NRIs must pay

The RBI FAQ is clear that the money must arrive in India through banking channels. You can pay:

• By an inward remittance from abroad through a bank.
• From your NRE account (repatriable rupee savings).
• From your FCNR(B) account (foreign currency deposits).
• From your NRO account (rupee income earned in India, such as rent).

Payment must not be made in traveller's cheques or foreign currency notes. Keep every bank advice and foreign inward remittance record. You will need them to show how the property was paid for when you sell and want to send the money abroad.

If the booking amount, instalments and the final payment come from different accounts, note which account paid each one. A developer's receipt shows the amount and date, but your bank's advice shows the source, and it is the source that matters for repatriation. Ask the developer to issue receipts in the name of the buyer on the allotment letter, not a relative who sent the money.

Home loans for NRIs

The RBI's master direction on rupee borrowing and lending with NRIs and PIOs allows an authorised dealer bank, or a housing finance company approved by the National Housing Bank, to lend to an NRI for buying a home in India. The main conditions:

• The loan amount, margin and tenure must be on par with home loans to residents.
• The loan is secured by an equitable mortgage on the property bought, and the lender may take a lien on your other assets in India.
• The loan cannot be credited to your NRE or FCNR(B) account.
• You can repay from remittances from abroad, from your NRE, FCNR(B) or NRO account, from rent earned on the property, or through a relative in India paying directly into the loan account.

Because terms are on par with residents, the RBI loan-to-value limits are the same: at most 90% for loans up to ₹30 lakh, 80% for ₹30 to 75 lakh and 75% above ₹75 lakh. Stamp duty and registration are not financed.

Worked example: what you need in cash

Prices are the developers' quoted base prices; the figures assume a man as the buyer, and that the deed value equals the price. Our stamp duty guide covers the rates in full, and our EMI calculator works out the instalment. Our home loan service can compare lenders that work with NRIs.

Ready or under construction: what suits a buyer abroad

Distance changes the trade-off. An under-construction flat spreads payments over the build and lets you register at possession, but someone has to follow progress, check the quarterly updates on UP RERA and inspect the flat before handover. A ready flat can be seen, rented out and registered in one visit, but the payment comes in one go.

The areas are quoted on different bases, so compare on carpet area before you compare prices. If you plan to let the flat, the RBI master direction allows rent from the property to be used to repay an NRI home loan, which can make a ready flat easier to carry. Our rental yield calculator lets you test a rent you have been quoted against the price; we do not publish rent estimates of our own.

Buying from abroad: power of attorney

You do not have to fly to Lucknow for every step. Bookings, agreements and payments can usually be handled from abroad, but the registration of the agreement for sale and the sale deed needs a person at the sub-registrar's office, where photographs and thumb impressions are taken. If you cannot attend, a relative or other trusted person can attend for you under a power of attorney.

A power of attorney signed outside India has to meet formalities both where you sign it and in Uttar Pradesh, where it will be used. We have not been able to confirm from an official source the attestation, stamp duty, time limit or adjudication procedure that currently apply in UP, so check these with the sub-registrar's office or your lawyer before you sign. Keep the power specific: name the property, the documents the attorney may sign and the accounts involved.

Before you book: the same checks as any buyer

• RERA registration. Verify the project's number on up-rera.in. Our guide on how to check UP RERA registration walks through it.
• Documents. Collect the plans, allotment letter and registered agreement; see documents required to buy property in Lucknow.
• Your own KYC. Passport, OCI card if you have one, PAN and an Indian address for correspondence.
• Carpet area. Compare flats on carpet area, not the larger quoted figure.

On the purchase itself, if you buy from a resident seller and the value is ₹50 lakh or more, you as the buyer must deduct 1% TDS under section 393(1) of the Income-tax Act, 2025, just like a resident buyer.

When an NRI sells property in Lucknow

TDS under section 393(2)

When the seller is an NRI, the buyer must deduct tax at source under section 393(2) of the Income-tax Act, 2025, which replaced section 195 from 1 April 2026. Unlike the 1% rule for resident sellers, there is no ₹50 lakh threshold, and TDS is deducted at the rates in force on the capital gain. Agree with the buyer in advance how the deduction will be worked out, and have your chartered accountant check the capital gain figure before the sale.

Repatriating the sale proceeds

The RBI FAQ sets the conditions for taking the money out of India:

• The property must have been acquired in line with the foreign exchange law in force at the time.
• For property bought by an NRI, the purchase must have been paid through banking channels or from the specified non-resident accounts.
• For residential property, repatriation of sale proceeds is limited to not more than two properties.
• Agricultural land, farm houses and plantation property are excluded.
• Under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016, the FAQ notes that repatriation up to USD 1 million per financial year is allowed.

If you inherited the property or bought it while resident in India, different rules apply to repatriation, so check your case with your bank before you sell.

Common mistakes NRI buyers make

• Paying a token in cash or from a relative's account. Every rupee should come from your NRE, FCNR(B) or NRO account or by remittance.
• Not keeping remittance records. You will need them to repatriate the sale money.
• A general power of attorney with no limits. Make it specific to the property.
• Buying land recorded as agricultural. NRIs cannot buy it.
• Assuming a buyer of your flat will deduct 1%. As an NRI seller, TDS is under section 393(2) at the rates in force, with no threshold.

For a wider view of what is available, see our guides to ready to move flats in Lucknow and property in Gomti Nagar Extension.

How we can help NRI buyers

We work with buyers abroad on video calls and by email: shortlisting with carpet areas and RERA numbers, checking documents, coordinating payments into the correct project account, and attending the site and the registry with your attorney. Read more on our For NRIs page, see our investment service, or contact us with what you are looking for.