Looking to buy a DTCP and RERA approved villa plot back home while you live abroad? Good choice. With the right banking route and paperwork, you can complete the transaction smoothly, keep your tax position clean, and stay ready for future repatriation. This guide keeps things simple and Chennai specific, so you can move from intent to registration without surprises.
Who can buy and what you can buy as an NRI or OCI
Non Resident Indians and OCI cardholders can buy residential plots and houses in India. Agricultural land, plantation land and farmhouses are restricted. In Padappai and the Oragadam belt, plotted developments are typically residential and fall well within RBI and FEMA rules when purchased from a DTCP and RERA approved layout.
Allowed money routes for paying the seller or developer
Use only banking channels. Cash is not allowed.
- Inward remittance from your overseas bank in freely convertible currency to India
- Payments from your NRE account
- Payments from your NRO account
- Payments from your FCNR deposits by premature withdrawal into NRE or NRO and then onward to the seller
Tip for Padappai buyers
Padappai registrations happen under the Kancheepuram jurisdiction. Ask your bank for FIRC or a credit advice that clearly shows the inward remittance reference. Keep these papers with your sale deed. They prove that the purchase funds came through an approved route.
NRE vs NRO for a plot purchase
- NRE account
Suitable when you are bringing fresh foreign earnings. Funds and eventual sale proceeds traceable to NRE remittances are repatriable subject to rules. - NRO account
Use this for Indian income like rent or salary earned in India or if you plan to make TDS and registration payments locally. Repatriation from NRO is permitted within prescribed limits with forms 15CA and 15CB at the time of outward remittance.
Practical approach
Many Chennai buyers use NRE for the property payment and NRO for statutory payments like TDS, stamp duty and registration. This keeps audit trails clean.
Can NRIs take a plot loan in Chennai
Yes. Indian banks and HFCs offer NRI loans for plots with a standard condition to construct a house within a defined period after purchase. Common requirements include:
- Valid Indian passport and visa or OCI
- Overseas address proof and local Indian address for communication
- Overseas salary slips or business income proofs and bank statements
- PAN
- Power of Attorney in favour of a trusted person in Chennai to sign loan and registration papers
- DTCP approval copy and TNRERA details from the developer
EMIs must be paid through NRE or NRO accounts. If you plan to build later in Velammal Garden, confirm the bank’s construction timeline so you do not violate loan conditions.
TDS by an NRI buyer when purchasing from a resident seller or developer
If you are buying from a resident builder or landowner and the consideration is 50 lakh or more, you must deduct 1 percent TDS under section 194IA at the time of payment. This is a buyer responsibility even if the buyer is an NRI.
- Use your PAN to pay TDS through Form 26QB
- Deposit TDS within the prescribed timelines
- Issue Form 16B TDS certificate to the seller or developer
- Keep challans and acknowledgements with your document set
If the seller is an NRI, different TDS rules apply for the buyer, but that is less common in developer sales. For purchases at projects like Velammal Garden from a resident developer, the 1 percent rule is the usual path when the threshold is crossed.
Stamp duty and registration in Tamil Nadu for NRIs
As an NRI you pay the same stamp duty and registration fees that residents pay, based on guideline value or agreement value, whichever is higher. In Padappai, guideline values vary by street and survey number. Your sub registrar office will compute fees at the time of registration. Carry your PAN, passport or OCI, and the original PoA if you are not attending in person.
Power of Attorney for buyers living abroad
If you cannot be present in Chennai for site visits, bank formalities, or registration:
- Execute a Special PoA in favour of a close relative or professional in Chennai
- Get it notarised and apostilled or attested by the Indian Embassy as per the country of execution
- Adjudicate the PoA in Tamil Nadu within the stipulated time so it becomes valid for registration use
Developers around Oragadam and Padappai are familiar with NRI PoA processes and can coordinate with your banker and registrar when papers are in order.
Clean compliance file for easy future repatriation
A clean file today makes tomorrow’s exit or refinance simple. Maintain:
- Sale agreement and sale deed with DTCP and TNRERA details
- Receipts for each payment reflecting NRE or NRO source
- FIRC or bank credit advice proofs for inward remittances
- TDS challans and Form 16B
- Stamp duty and registration fee receipts
- PoA copies with adjudication note if used
When you eventually sell, repatriation is permitted to the extent of amounts paid from NRE or inward remittance, and within the overall limits set for NRO sourced funds. Your banker will rely on this file.
Step by step: how an NRI can close a plot at Padappai
Step 1 Confirm approvals and title
Ask the developer for the DTCP approval number, TNRERA registration details, and the mother deed chain. For plots inside a gated layout like Velammal Garden, these are standard documents and easy to verify during your legal review.
Step 2 Fix the payment plan
Align your remittance calendar with the developer’s milestones. If taking a loan, time your sanction and disbursals to match registration.
Step 3 Move funds the right way
Remit from overseas to NRE or use NRO. Share UTR references with the developer’s accounts team so they can issue receipts with exact amounts and dates.
Step 4 Deduct and deposit TDS if applicable
If the consideration is 50 lakh or more and the seller is resident, deduct 1 percent, pay via 26QB, and hand over Form 16B.
Step 5 Execute PoA if needed
If you are abroad during registration, ensure your PoA is notarised or apostilled and adjudicated in Tamil Nadu before the sub registrar appointment.
Step 6 Register and collect the set
Attend in person or through your PoA. Collect the sale deed, encumbrance certificate, patta or mutation application acknowledgements as guided by the developer.
Local pointers for the Padappai and Oragadam belt
- Connectivity
Padappai sits strategically between Tambaram, Sriperumbudur and Oragadam industrial clusters. Shorter commutes for returning families and better rental demand if you plan to build later. - Documentation culture
Developers accustomed to NRI buyers generally provide bank friendly document kits, which speeds up loan underwriting and registration slots. - Community build out
Look for internal roads, stormwater drains and avenue trees. In well planned layouts, these help preserve long term value and reduce maintenance headaches for owners living overseas.
Why Velammal Garden is NRI friendly
- DTCP and RERA approved plotted layout with clear documentation
- Developer familiarity with NRI remittance and PoA processes
- Strong residential and rental potential owing to Oragadam employment hubs
- Responsive support during and after registration for paperwork and utility connections
Explore available plots, sizes and corner options at velammalgarden.com and request an NRI specific booking and registration checklist. You can also ask for a sample compliance file to mirror your own records. Start your shortlisting at velammalgarden.com and fast track your banking steps in parallel.
Quick compliance checklist you can copy
- PAN linked to your NRE or NRO
- Overseas KYC set up with your Indian bank branch
- FIRC or remittance advice saved for each payment
- TDS 1 percent paid if the 50 lakh threshold is crossed and seller is resident
- DTCP and TNRERA references copied into your purchase file
- PoA notarised or apostilled and adjudicated in Tamil Nadu if used
- Stamp duty and registration receipts filed with the sale deed
- All receipts carry the correct payer name and bank reference
Common mistakes to avoid
- Mixing cash and bank payments
- Using a general PoA instead of a specific PoA tailored to this property
- Forgetting to pay TDS when the threshold applies
- Not capturing UTR numbers and FIRC copies at the time of each transfer
- Delaying adjudication of the foreign executed PoA
FAQs: NRI remittances and compliance for plot purchase
Can I pay the entire plot amount from my NRE account
Yes. Payments from NRE are allowed and help with repatriation later. Keep all bank proofs and receipts that quote the NRE account or UTR number.
Is TDS applicable when buying a plot from a resident developer in Chennai
If the consideration is 50 lakh or more, the buyer must deduct 1 percent TDS under section 194IA, deposit it through Form 26QB and issue Form 16B to the seller. This rule applies even if the buyer is an NRI.
What KYC documents do banks usually ask for in NRI plot loans
Passport, valid visa or OCI, overseas and India addresses, PAN, salary slips or business financials, overseas and NRE or NRO bank statements, and a Special PoA in favour of a local representative to sign on your behalf.
How do I keep future repatriation hassle free if I sell the plot
Pay through NRE or inward remittances wherever possible, keep FIRC and receipts, and maintain a complete compliance file. On sale, banks repatriate up to eligible limits based on these proofs and the prevailing FEMA rules.
Can I register via PoA if I cannot travel to Chennai
Yes. Execute a Special PoA abroad, get it notarised and apostilled or embassy attested, then adjudicate it in Tamil Nadu. Your PoA holder can complete registration on your behalf.
Ready to explore DTCP and RERA approved plots with NRI friendly processes and complete banking support in Padappai
Visit velammalgarden.com and ask for the NRI buyer pack to begin your shortlisting and remittance planning today.
