Non-resident Indian and person of Indian origin
Overseas Indians, officially known as Non-resident Indians or Persons of Indian Origin, are people of Indian birth, descent, or origin who live outside the Republic of India. Overseas Indians are various individuals or ethnic groups associated with India, usually through ancestry, ethnicity, nationality, cit…
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 should a NRI buy a house in India?
“NRIs prefer to buy real estate as it is considered one of the safest investment avenues. It is also a source of rental income and there is surety that the capital value will appreciate,” he adds. Another reason is that there is a slowdown in most economies worldwide, while a few sectors are still lucrative in India.
Can a NRI purchase or own a property in India?
Yes, an NRI can buy either a residential property or a commercial property in India. There is no limit on the number of residential and commercial property that an NRI can purchase. But there is one exception under the Reserve Bank of India (RBI) regulation, that is an NRI cannot buy any agricultural land or plantation property in India.
Are NRIs eligible to buy property in India?
NRIs can buy all sorts of immovable properties in India other than agricultural land, farm house and plantation property. To acquire agricultural land/plantation property/farm house in India, they have to get approval from the RBI and the government.
Do NRI need PAN card to buy property in India?
PAN card is not compulsory for an NRI/PIO/OCI unless they have taxable income in India or thinking to invest in buying property or in Indian financial market.
Can NRI buy farm house in India?
Yes, a non-resident Indian can buy either a residential property or a commercial property in India. Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India. Exception: An NRI however cannot buy agricultural land, plantation land or a farm house in India.
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?
An NRI cannot directly purchase a farmhouse, plantation property, or agricultural land in India but they are allowed to inherit it from a resident of India. NRIs are also allowed to inherit such properties from other NRIs subject to certain regulations like special permission from the Reserve Bank of India.
Who can purchase 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. Provides information by state in alphabetical order.
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 a NRI inherit agricultural land in India?
As an NRI you can inherit any number of properties including agricultural land and farm house in India from a resident Indian whether relative or no.
How do I get RBI permission to buy agricultural land?
All requests for acquisition of agricultural land/plantation property/ farm house by any person resident outside India or foreign nationals may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.
Can OCI be gifted agricultural land in India?
Yes she can. An OCI can ingerit land or he can receive the property as a gift.
Can h1b holders buy agricultural land in India?
Foreigners and Non resident Indians cannot buy agricultural land in India . If you are citizen of us and have oci card then you need to get RBI permission to by fixed property . The condition is of Indian origin to buy the property. It is immaterial that who is taking care of those properties.
What is the cost of 1 acre of land in India?
1.06 million (53,000/0.05) per acre.
How much non agricultural land Can a person own in India?
For an unmarried individual a person can hold not more than seven-and-a-half acres of land . A joint family with more than 5 members can not hold property of more than 15 acres.
Is it good to buy agricultural land in India?
Usually, agricultural land is considered a good investment for high net-worth individuals and for those with surplus income. For salaried or self-employed individuals, living in cities, going through all this process will be time-consuming and tiresome.
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 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.
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 buy farmland?
Regarding agricultural land, NRIs are NOT allowed to purchase agricultural land, farmland, farmhouses, or plantations in India.
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 is Benami transaction?
This is a Benami transaction, and the persons involved in it are punishable by law.
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.
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 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 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 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 you buy farmland if you are an OCI holder?
You can sell inherited farmland but as an OCI holder you cannot buy.
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 –
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.
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 NRIs buy property in India?
However, many people still ask ‘can an NRI buy or own property in India? As per the Foreign Exchange Management Act (FEMA), NRIs are allowed to purchase certain types of properties in India.
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.
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.
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.
How long are capital gains taxable in India?
Long-term capital gains benefits can be received if the property is held for over 36 months. Capital gains may be taxable in the country the NRI resides if they do not have a DTAA (Double Taxation Avoidance Agreement) with India.
What is an agricultural land?
While immovable property generally refers to a property that is fixed to earth such as a house; an agricultural land usually refers to such a land which is devoted to agriculture, and the controlled and systematic rearing of livestock along with the production of crops, …
Can an NRI buy a commercial property?
Which properties can an NRI purchase: A citizen of India resident outside (NRI) can own commercial as well as the residential properties in India, and there are no restrictions on the number of immovable properties that he can purchase.
Can you buy farm land in India?
However, one cannot purchase any agricultural land/ farm house or plantation land, and such property can only be inherited. In order to purchase such property, he has to take prior permission from Reserve Bank of India. Such a proposal would then be considered by RBI in consultation with the Government of India.
Can an NRI transfer land?
Any person residing in India. Any Agricultural land/ farm house or plantation property that he has acquired in inheritance can only be transferred …