An OCI card grants significant rights to purchase, inherit and hold property in India — but specific prohibitions apply. Understanding exactly what you can and cannot do prevents costly regulatory violations under FEMA.
Quick Summary
Overseas Citizen of India (OCI) cardholders have the same property rights as Non-Resident Indians (NRIs) in India with one key restriction: OCI holders cannot purchase agricultural land, plantation property, or farmhouse property. OCI cardholders may purchase residential and commercial property in India without prior RBI approval. Property transactions must be conducted through normal banking channels using funds from NRE, NRO, or FCNR accounts. Sale proceeds may be repatriated subject to FEMA regulations and RBI guidelines. OCI status is governed by Section 7A of the Citizenship Act, 1955.
OCI cardholders who inherit agricultural land or plantation property from a person resident in India must obtain specific RBI approval to retain such property. Gifts and inheritance of residential and commercial property are permitted. For property registration, OCI holders must present their OCI card and passport. Powers of attorney executed abroad must be apostilled and adjudicated before the Sub-Registrar before use in Kerala.
Key references: FRRO — OCI Registration · Ministry of External Affairs · RBI — FEMA · Kerala Registration · Last reviewed: June 2026
| Transaction | NRI (Indian Citizen) | OCI Card Holder |
|---|---|---|
| Purchase residential property | Yes | Yes |
| Purchase commercial property | Yes | Yes |
| Purchase agricultural land | Yes (Indian citizen NRI) | No |
| Purchase plantation / farmhouse | Yes (Indian citizen NRI) | No |
| Inherit any property | Yes | Yes |
| Repatriate rental income | Yes | Yes |
| Repatriate sale proceeds | Yes (FEMA conditions) | Yes (FEMA conditions) |
| Take property as gift | Yes (residential/commercial) | Yes (residential/commercial only) |
The practical difference in property rights between an NRI holding Indian citizenship and an OCI card holder is limited to agricultural land, plantation property, and farmhouses. For the urban and residential property transactions that most OCI card holders encounter, the rights are identical.
An OCI card holder who sells property in India can repatriate the sale proceeds subject to the following FEMA conditions:
OCI card holders are taxed as NRIs in India for income tax purposes. TDS on property sale by an OCI card holder follows the same rules as for NRIs under Section 393(2) of the Income Tax Act, 2025 (formerly Section 195 of the Income Tax Act, 1961) — the buyer deducts TDS at 12.5% plus applicable surcharge and health and education cess on long-term capital gains (property held more than 24 months), with a maximum effective rate of 14.95%. For short-term capital gains (held 24 months or less), TDS is at applicable income tax slab rates (up to 30% at the highest slab) plus surcharge and cess. TDS is legally charged on the income chargeable to tax — the capital gain — but buyers typically deduct on the full sale consideration in the absence of a lower deduction certificate obtained under Section 397(1) of the Income Tax Act, 2025 (formerly Section 197).
When an OCI card holder is involved in an Indian estate — either as a beneficiary under a will or as a legal heir in intestate succession — specific issues arise:
Related service
NRI property lawyers KeralaThe office advises OCI card holders on property purchase, sale, succession, FEMA compliance and repatriation across all major states in India. All matters handled remotely through a Power of Attorney — physical presence in India is not required. Response within one working day, across all time zones.
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