Glossary · Legal

What is FEMA?

Also called: Foreign Exchange Management Act, 1999, NDI Rules 2019, RBI rules for NRIs

FEMA, the Foreign Exchange Management Act, 1999, and the rules made under it decide what Indian property NRIs and OCIs may buy, inherit, receive, sell and repatriate.

Under FEMA and the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, an NRI or OCI can buy residential and commercial property in India, but not agricultural land, a plantation or a farmhouse.

They can inherit any property, including agricultural land, from a person who held it lawfully. They can receive property as a gift from a relative, except agricultural land, plantations and farmhouses. When selling agricultural land, a plantation or farmhouse, an NRI or OCI can generally sell it only to a person resident in India who is an Indian citizen.

FEMA also governs money: sale proceeds usually go to an NRO account, and up to USD 1 million a financial year can be sent abroad from it, supported by Forms 145 and 146. Foreign citizens who are not OCIs face tighter limits.

Why it matters if you live abroad

FEMA decides who you can gift or sell family farmland to while you live abroad — check it before promising land to a cousin or signing any deal.

Read the full guide

FEMA

Inherit yes. Buy no.

⚖️ Legal basics 7 min read

Can an NRI Buy Agricultural Land in India? FEMA Rules Explained

NRIs and OCIs can't buy farmland, plantations or farmhouses in India, but they can inherit them. What FEMA allows for buying, gifts, inheritance and selling.

Related terms

NRO account
An NRO (Non-Resident Ordinary) account is an Indian rupee bank account for NRIs to receive and manage income earned in India, such as rent, pension or property sale proceeds.
Form 145 / Form 146
Forms 145 and 146 are the income-tax forms for sending money abroad from India, replacing Forms 15CA and 15CB from 1 April 2026: a remitter’s declaration and a CA’s certificate.
Gift deed
A gift deed transfers property from one living person to another without payment. For land or buildings, it must be registered, stamped and accepted while the giver is alive.
Ancestral property
In Hindu law, ancestral property is undivided property inherited through up to four generations in the male line, in which sons and, since 2005, daughters have a birthright.
Sale deed
A sale deed is the registered document that transfers ownership of property from seller to buyer. In India, a sale of immovable property worth ₹100 or more must be registered.

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