can nri purchase agricultural land in india

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.

Why can NRI 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 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.

Can NRI get agricultural land by gift from parents?

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

Who can buy agriculture 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 an NRI avail agricultural loan?

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

Can NRI buy agricultural land in Kerala?

Anyone can buy agricultural land in Kerala except NRIs. According to the Kerala Land Reforms Act, 1963, the maximum area of ​​land is as under; a) An adult unmarried person or the only surviving member of the family, five standard acres land and the ceiling limit is 6 and not more than 7 and a half acres.

Can NRI purchase immovable property in India?

A NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India. A NRI may transfer any immovable property in India to a person resident in India.

What is considered agricultural land in India?

Agricultural land refers to the share of land area that is arable, under permanent crops, and under permanent pastures.

Why Financial Planning?

Planning is bringing the future into the present so that you can do something about it NOW.

Inheritance of Agricultural Land for NRI

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.

Gift of Agricultural Land for NRIs

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

Sale Of Agricultural Land

NRIs can sell agricultural land, plantation property, or farmhouse property provided the buyer is a citizen of India and resides in India. If the NRIs have purchased such lands with permission from RBI, they require approval from RBI to complete a sale transaction.

Taxation On Agricultural Land for NRI

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.

Benami Transactions – NRIs

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)

Hemant Beniwal

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A.

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.

Can NRI Invest in Agricultural Land in India?

It is very common for NRIs to look for a farmhouse or wish to get close to nature by buying agricultural land in India. Wait a minute… Can NRI invest in Agricultural Land in India? It is not easy as regulations restrict few transactions. Here are the details on NRI investments in Agricultural Land in India.

Can NRI Invest in Agricultural Land in India?

Well, the FEMA act & various master circulars layout terms are as follows. Here are the opening lines of RBI’s FED Master Direction No. 12/2015-16 –

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 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.

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 …

What are the laws for agricultural land?

State laws: Ownership and transfer of agricultural land is governed by state and local laws. In many states, only locally domiciled agriculturists are allowed to buy agricultural land (i.e those who have been farmers or from farming background). Lo

What to do if you are not buying land in your ancestral town?

Bottomline: tread carefully when it comes to agricultural land, especially if you are not buying in your ancestral town, village where your forefathers have been agriculturalists. Always seek the help of local lawyers and attorneys who can help you navigate the local laws.

Can an NRI own land?

With regards to your query regarding purchase of the agricultural land, as per FEMA guidelines if you have stayed in India for more than 182 days in a year then you can purchase an agricultural land with the status of an NRI or you can inherit the agricultural land . these are the only two ways a person with NRI status can own an agricultural land.

Can agriculturists buy land?

State laws: Ownership and transfer of agricultural land is governed by state and local laws. In many states, only locally domiciled agriculturists are allowed to buy agricultural land (i.e those who have been farmer s or from farming background). Local laws may also dictate other residence and income requirement for those trying to acquire such lands.

Can an NRI invest in a farm?

The guidelines also state that one can buy any number of residential or commercial properties. However, they are not permitted to invest in farm house, plantation land, and agriculture land.

Can an NRI buy land in India?

No , according to FEMA guidelines an NRI cannot buy any farmland or agricultural land anywhere in India. They can only acquire this type of land by the way of inheritance.

Can a sibling gift land in Tamil Nadu?

The answer is yes in some states. In Tamil nadu for instance – it is possible for a parent to child or sibling to sibling gift of agricultural land by paying stamp duty + revenue charges + 5% transfer fee. The Agricultural land has restricted use – one can use it only to build a farm house or for agricultural activities (unless theland can be converted).

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 …