Red Sandalwood Investment for NRIs in Australia

Quick answerAustralia has a fast-growing Indian community and strengthening India ties (including the ECTA trade agreement). Australia-based NRIs should weigh India’s FEMA restriction alongside Australia’s residence-based worldwide taxation and the India to Australia treaty. Indians are among the fastest-growing migrant communities in Australia, with rising interest in Indian real-asset investment. This page is general orientation for Australia-based NRIs & OCIs, not legal or tax advice, every NRI engagement here begins with a consultation and independent FEMA and tax counsel.

Read this first: Under FEMA, NRIs and OCIs are generally not permitted to directly purchase agricultural land in India. Any compliant pathway depends on your individual circumstances and must be reviewed with independent counsel. Everything below is general orientation, not advice.

Your Australian tax layer

Australian tax residents are generally taxed on worldwide income.
The India to Australia DTAA can relieve double taxation on Indian-source income.
Foreign income and certain foreign holdings carry ATO reporting obligations.

Your India tax layer

Indian-source income (harvest/sale) is taxable in India, with TDS commonly deducted for NRIs.
The treaty coordinates taxing rights to avoid full double taxation.

Repatriation, moving proceeds home

Route Indian receipts through your NRO account; NRE balances are freely repatriable.
Up to USD 1 million per financial year may generally be remitted from NRO balances.
Form 15CA and a CA’s Form 15CB support the remittance.

See repatriation & FEMA for the full mechanics.

What you report in Australia

Report foreign income to the ATO where you are an Australian tax resident.
Keep records of Indian tax paid to claim treaty relief.
Confirm any foreign-asset disclosure obligations with an Australian adviser.

How we handle NRI investment

We require an NRI consultation before any commitment, review your situation against FEMA’s restrictions, and, where a compliant structure genuinely fits, document it properly. Where it does not fit, we say so. Start with how NRIs can invest.

Common questions from Australia-based NRIs & OCIs

Can an Australia-based NRI or OCI buy Indian agricultural land?

Generally no, FEMA does not permit direct purchase of Indian agricultural land by NRIs/OCIs. Compliant pathways depend on your circumstances and need independent advice.

Will I be taxed in both India and Australia?

The India to Australia DTAA coordinates taxing rights and typically provides credit relief for Indian tax paid. Confirm specifics with an Australian cross-border adviser.

Do I report Indian farmland income to the ATO?

If you are an Australian tax resident, you generally report worldwide income including Indian-source income. An Australian adviser can confirm your obligations.

Your next steps

Confirm your FEMA eligibility with independent counsel.
Check your Australian residence and reporting position with an adviser.
Book our NRI consultation to review the India side.

NRI in Australia and considering this?

Start with the consultation, it exists to keep you compliant, not to sell you.

Book NRI Consultation