Do we need a transit visa we have a 12 hour stop over and have booked a hotel, we are flying with AirIndia from Sydney to Rome return

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It looks like as New Zealand or Australia passport holders you can get a transit or visitor visa. Links provided by @pnuts in the comments are helpful.

The transit visa seems way cheaper than the regular visitor visa, at 28 USD, but there is a priori no procedure explained online.

The visitor visa costs 60 USD which is expensive compared with a hotel room price. According to the electronic visa website and Wikipedia, you should apply for it online and then obtain it on arrival. Note that your passport must be valid for 6 months after you leave India. You should apply between 4 and 30 days before entering India (actually the payment should be made at least 4 days in advance so i would do it early enough for the payment to be processed at least 4 days in advance) The procedure is explained there.

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