can nri own agricultural land in india

Can I Sell my agricultural land in India to an NRI?

 · NRIs as well as OCIs can’t directly buy agricultural land, plantation property, or a farmhouse in India but they can inherit it from a Resident Indian. An NRI can even inherit such properties from other NRIs subject to certain regulations such as special permissions from RBI.

Can a US citizen purchase agricultural land in India under automatic route?

 · NRIs or OCI can acquire agricultural land, plantation property, or farmhouse through inheritance from a person residing in India. An NRI can also inherit property from another NRI. But this is subject to certain regulations like RBI’s approval. Must-Read – …

Do NRIs pay tax on inheritance of agricultural land?

The answer to this, too, is no. NRIs cannot acquire agricultural land in India even by gift. While other types of properties can be acquired by the way of gift, this is not so for agricultural land. Can NRIs inherit agricultural land in India? Inheriting agricultural land is the only way NRIs can own agricultural land in India.

Can NRIs and OCIS sell agricultural land?

 · OCIs or NRIs may sell inherited plantations, agricultural land and farmhouses to Resident Indians only. For those agricultural plots bought with the RBI’s special permission, they will have to complete proper sale transactions. The sale proceeds should be remitted into the NRO account of the NRI seller. The maximum remitted amount can be US$1 …

Can NRI inherit agricultural land in India?

A non-resident Indian (NRI) or person of Indian origin (PIO), can inherit any immovable property in India, whether it is residential or commercial. They can even inherit agricultural land or a farmhouse, which they are otherwise not entitled to acquire by way of purchase.

What happens if NRI buy agricultural land?

As per notification No. FEMA21/2000 RBI dated May 3, 2000, NRI or PIO cannot acquire agricultural land or plantatiom (property or farm house) in India . Purchase of any property in violation of FEMA laws can result in fine or even confixation of such property.

Can parents of NRI buy agricultural land in India?

Under the exchange control law, NRIs cannot own an agricultural land in India. However, they may acquire such agricultural land through inheritance from a person residing in India. Accordingly, you may inherit an agricultural land.

Are NRIs allowed to buy agricultural land?

NRIs can only purchase commercial and residential properties in India. This also is subject to specific rules, and taxation applies to the purchase of property in India by NRIs. Regarding agricultural land, NRIs are NOT allowed to purchase agricultural land, farmland, farmhouses, or plantations in India.

Can NRI buy farmhouse in India?

Under the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, NRIs are not permitted to purchase agricultural land or plantation property or farmhouse in India.

Who Cannot buy agricultural land in India?

According to Foreign Exchange Management Act and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, both NRIs and OCIs aren’t allowed to buy any agricultural land or plantation property or farmhouses in India by law unless they get a special permission from the …

Can NRI get agricultural land by gift from parents?

1. Yes, NRI/OCI can acquire agricultural land by way of inheritance.

Can NRI buy agricultural land in parents name?

NRIs are not legally eligible to buy an agricultural land in India. An NRI cannot purchase any type of property in India without prior approval from RBI (Reserve Bank of India). More so, an NRI is also not able to acquire agricultural land by way of gift. They can only acquire agricultural land by inheritance.

Who can own agricultural land in India?

In some states, only one farmer can buy such land while in other states there are no restrictions. Across India, NRIs and foreign nationals cannot buy agricultural land/plantation property/farmhouse. However, they can inherit agricultural land.

Can foreign citizens buy agricultural land in India?

No. Since general permission is not available to NRI/PIO to acquire agricultural land/ plantation property / farm house in India, such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India.

Can an NRI avail agricultural loan?

NRIs cannot acquire agricultural property but they are allowed to inherit it.

How can I buy agricultural land in India?

Legal Tips For Buying Agricultural Land In India – A Complete…Check the title deed of the agricultural land to verify the ownership.Verify the documents and sign a land sale agreement.Find out the Stamp duty on the land.Required documents for the registration of the land.Sale/Conveyance deed of the land.More items…•

What is Benami transaction?

This is a Benami transaction, and the persons involved in it are punishable by law.

Can NRIs buy land in India?

Can NRI Purchase Agricultural Land In India. Under the Foreign Exchange Management Act and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, NRIs and OCIs are not allowed by law to purchase land or plantation property, or farmhouses in India unless they acquire special permission from RBI.

Can you buy farmland if you are an OCI holder?

You can sell inherited farmland but as an OCI holder you cannot buy.

Can an NRI buy land in the name of another person?

An NRI cannot buy agricultural land in the name of another person unless that person is a spouse, brother, sister, or lineal ascendant or descendant. It will be considered a Benami transaction which is illegal. (please consult a good lawyer as our knowledge is limited in this)

Is agricultural land a capital asset?

Rural agricultural land is not a capital asset hence capital gains tax is not applicable. However, if the agricultural land is defined as urban agricultural land, it is chargeable under capital gains tax.

Is land transaction difficult?

Land transactions can be tricky. The rules are different in different states. It might be difficult to have updated information as an NRI or OCI who is not always present in India. You have to research and understand factors like the legitimacy of land, compliances to be followed, etc. at the time of a property purchase and understand …

Can NRIs get farmland?

There is no restriction for NRIs and OCIs to get agricultural land, plantation property, or farmhouse as a gift from the person resident in India. (but consider Benami act)

Can NRIs buy property in India?

The Reserve Bank of India (RBI) has given general permission to NRIs to acquire property in India. However, it does not mean that NRIs can buy any type of property. NRIs can only purchase commercial and residential properties in India.

Can NRIs buy farmland?

Regarding agricultural land, NRIs are NOT allowed to purchase agricultural land, farmland, farmhouses, or plantations in India.

Can inherited land be converted to commercial land?

Can the inherited agricultural land be converted to commercial or residential land? NRIs can get the conversion done to commercial or residential land after inheriting agricultural land in India. However, converting agricultural land to commercial or residential land is, in itself, a lengthy and time-consuming process.

Can NRIs transfer land to a permanent resident?

NRIs are allowed to transfer the ownership of the agricultural land by gift or by sale, but only to a permanent resident of India. In the case of the sale of the inherited agricultural land, there will be tax implications, as well.

Can NRIs inherit land?

NRIs can inherit agricultural land, farmland, farmhouses, and/or plantations in India from a resident of India only.

Can NRIs acquire land in India?

The answer to this, too, is no. NRIs cannot acquire agricultural land in India even by gift. While other types of properties can be acquired by the way of gift, this is not so for agricultural land.

Do NRIs have to pay taxes on land?

While NRIs don’t have to pay any tax on the inheritance of agricultural land, it will need to be paid on the sale. Capital gains tax is levied on the sale proceeds in such transactions. The earnings from such sales can only be remitted abroad after the payment of the due taxes.

What the RBI also said on the issue

The RBI has stated in the recent past that OCIs and NRIs will not need any prior permission for buying or transferring immovable properties in India. However, the only exception will be plantations, agricultural land and farmhouses.

The Whole Selling and Gifting Aspect of it

However, NRIs can sell their inherited property or even gift away the same while remitting this money outside the country. OCIs or NRIs may sell inherited plantations, agricultural land and farmhouses to Resident Indians only. For those agricultural plots bought with the RBI’s special permission, they will have to complete proper sale transactions.

What to Ensure

Buying property is always a slightly complex affair when you’re an NRI. Get proper legal help and guidance from the right real estate platform before finalizing your transaction. NRIs cannot buy properties in the name of any other individual unless it is their spouse, descendant, lineal ascendant or their brother/sister.

Where to register gift deed in Uttar Pradesh?

After paying the applicable stamp duty in the relevant state, Uttar Pradesh in your case, the gift or release deed will require to be executed and registered by your daughter at the office of the sub-registrar of assurances, having territorial jurisdiction of the land.

Can NRIs buy farmland in India?

Under Fema and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, NRIs are not permitted to purchase an agricultural land or plantation property or farmhouse in India. However, one may seek special permission from the Reserve Bank of India, which may be granted only after …

Can a daughter give you land?

Under a gift or release deed, your daughter may gift or relinquish her interest in the land, as the case may be, to you or any other relative, subject to complying with the terms of the allotment of the land.

How much TDS can an NRI take out of a sale of a property?

If an NRI sells an immovable property, the proceeds earned from the sale of the property can be repatriated after the deduction of between 20% and 30% TDS, depending on the capital gain (short-term or long-term capital gain).

How to fund a property purchase in India?

You can fund the purchase of your property in India through inward remittances or using funds in your NRI account. This means you should have an NRI account in one of the authorized Indian banks. You can also submit post-dated cheques or opt for Electronic Clearance Service (ECS) from your NRE, NRO or FCNR accounts.

How do I buy a house in India?

An NRI can purchase a property in India by submitting required documents such as a passport, PAN card and ITRs. If the NRI is not in India, he/she can appoint a power of attorney for executing purchase transactions. You can fund the purchase of your property in India through inward remittances or using funds in your NRI account.

Can I download SBNRI app?

You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI home loan.

Can I get a home loan for an NRI?

You can also get an NRI home loan. Many banks and Non-Banking Financial Companies (NBFCs) offer a home loan to NRI customers. In this case, you need to make a downpayment of at least 20% of the market value of the property from your own sources. The bank will offer up to 80% of the property’s value.

Is income from NRO taxable?

Income in the form of salary received in India or income for services rendered in India is subject to income tax. Income from other sources like interest received in the NRO account is fully taxable. Moreover, capital assets of Indian origin like house property, shares and securities, gold, etc., shall be taxable in India.

Do I need a passport to buy property in India?

Passport or OCI card: As an NRI you will need to share your passport. If you hold a foreign passport, you need to show a Person of Indian Origin (PIOs) card or Overseas Citizen of India (OCI) card to buy property in India.

How much LTCG can be reinvested in two houses in India?

Effective FY20, LTCG can be reinvested in two residential houses in India if it doesn’t exceed ₹ 2 crore. The option to reinvest LTCG in two residential houses in India is available only once in a lifetime.

Can NRIs own land in India?

Under the exchange control law, NRIs cannot own an agricultural land in India. However, they may acquire such agricultural land through inheritance from a person residing in India. Accordingly, you may inherit an agricultural land. However, an agricultural land in India can only be sold to a person who is a resident in India.

Is rental income taxable in India?

Also, what will be tax implication of rental income received? —Ravi Singh. Under the Income-tax law, the value of any assets received under a Will or by way of inheritance is not taxable in India. However, the income arising from transfer or use of inherited property in India will be taxable in India. If you intend to let out the property, rental …

Is immovable property taxable in India?

If you intend to sell the immovable property, it will be taxable in India in the year of sale. Any immovable property held for a period of more than 24 months is classified as a long-term capital asset (LTCA). For inherited property, the holding period will be calculated from the date of acquisition by the original owner …