When NRIs from the UAE consider transferring funds for property purchases in India, they must adhere to specific regulations to ensure compliance with both Indian and UAE laws. Here are the key considerations:

• Foreign Exchange Management Act (FEMA): According to FEMA, NRIs can purchase property in India using funds received through inward remittances or from their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts. Payments must be made in Indian currency through banking channels. Traveller’s cheques or foreign currency notes are not accepted​​.
• Remittance Limits: NRIs can remit up to USD 1 million per financial year from their NRO accounts, provided they have paid all applicable taxes in India. This remittance limit includes the repatriation of proceeds from the sale of property in India​.
• Tax Compliance: When selling property, NRIs must account for Tax Deducted at Source (TDS). Long-term capital gains are taxed at 20%, while short-term gains (if the property is sold within two years) are taxed at 30%. NRIs can avail tax exemptions by reinvesting the capital gains in another property within specified timeframes.
• Banking Channels: Funds for purchasing property must be transferred through proper banking channels, typically using NRE or NRO accounts. It is advisable to consult with a real estate attorney in India to ensure all necessary approvals and permits are in place, and to verify that the property title is clear of any encumbrances​.