Red Sandalwood Investment for NRIs in United States

Quick answerUS-based NRIs and OCIs face the most complex cross-border picture of any diaspora, India’s FEMA restriction on agricultural land on one side, and the US system of worldwide taxation plus extensive foreign-asset reporting on the other. Getting both right is essential, and it is exactly why we start with a consultation rather than a sale. Indian-Americans are one of the largest and highest-earning diaspora communities, and among the most active in Indian farmland and real-asset investing. This page is general orientation for US-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 US tax layer

US citizens and green-card holders are taxed on worldwide income, wherever it arises.
A plot of land held personally is generally not a PFIC, but if you hold Indian assets through a foreign entity, PFIC/CFC rules can apply, so any structure needs review by a US to India CPA.
US estate tax can reach the worldwide assets of US citizens and domiciliaries, a real planning point for long-horizon holdings.
The India to US DTAA generally lets you claim a foreign tax credit for Indian tax paid, reducing double taxation.

Your India tax layer

Income arising in India (e.g. from a future harvest or sale) is taxable in India, and TDS is commonly deducted at source for NRIs.
The India to US treaty coordinates taxing rights so the same income is not fully taxed twice.

Repatriation, moving proceeds home

Route Indian receipts to your NRO account; NRE balances are freely repatriable.
Up to USD 1 million per financial year may generally be remitted from NRO balances.
Remittances are supported by Form 15CA (declaration) and a CA’s Form 15CB certificate.

See repatriation & FEMA for the full mechanics.

What you report back in the US

FBAR (FinCEN Form 114) if your aggregate foreign financial accounts exceed the reporting threshold.
FATCA (Form 8938) for specified foreign financial assets above the applicable threshold.
Foreign income reported on your US return, with foreign tax credits claimed via the DTAA.

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 US-based NRIs & OCIs

Can a US citizen or green-card holder buy agricultural land in India?

Generally no. Under FEMA, NRIs and OCIs are not permitted to directly purchase agricultural land in India. Any compliant pathway (such as inheritance or a resident-family structure) depends on your specific circumstances and needs independent FEMA advice.

Do I have to report Indian farmland investment to the IRS?

You report your worldwide income, and related Indian bank accounts may trigger FBAR and/or FATCA (Form 8938) reporting. A US to India cross-border CPA should confirm exactly what applies to your situation.

Will I be taxed twice, in India and the US?

The India to US DTAA generally allows a foreign tax credit for Indian tax paid, which relieves double taxation. Treatment is fact-specific; confirm with a cross-border CPA.

Your next steps

Read the FEMA entry rules and confirm your eligibility with independent counsel.
Engage a US to India cross-border CPA before committing.
Book our NRI consultation, bring your CPA if you like.

NRI in United States and considering this?

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

Book NRI Consultation