Can an OCI 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 .Reserve bank of India.
Can an OCI card holder buy property in India without RBI approval?
Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when he was an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder.
Can an OCI inherit agricultural property?
As far as I am aware yes, agricultural property can be inherited by an OCI. There is a guidance note issued by the government on this – check the DIPP website or the Ministry of Land and Revenue website for details.
Can NRIs and OCIS sell agricultural land?
NRIs and OCIs can sell agricultural land, plantation property, or a farmhouse only to a Resident Indian. For the lands purchased with permissions from RBI, special approvals are required to complete sale transactions.
What will happens if NRI buy agricultural land in India?
NRIs can buy both residential and commercial property in India but not agricultural land, farm houses, or plantation properties. However, if an NRI is willing to purchase agricultural land in India, it requires permission from the Reserve Bank of India for doing so.
Can non Indian citizens own 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.
Can OCI holder buy land?
A. As per the guidelines issued by Reserve Bank of India, an NRI or OCI card holder can invest in any residential or commercial property. The guidelines also state that one can buy any number of residential or commercial properties.
Can OCI lease agricultural land?
You have to file an application to RBI to seek its leave to buy agricultural land. – OCI cardholder cannot purchase agricultural/plantation property/farmland land in India. – Having said hat, you can lease it for some years.
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 …
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.
Do OCI holders need to pay tax in India?
Overseas Citizens of India (OCI), or Foreign Citizens and who are residents of India for more than 182 days have to pay tax and file income tax return in India. The income tax filing is usually based on his/her global income and is subject to the conditions of DTAA (Double Tax Avoidance Agreement).
Can OCI card holders sell their property in India?
According to the latest rules regarding the OCI cardholders, Indian origin people who moved out from India for employment or business, NRIs with foreign citizenship, and OCI (Overseas Citizenship of India) cardholders are not allowed to buy and sell properties in India.
What are the disadvantages of OCI card?
For OCI CardholdersAdvantagesDisadvantagesLifelong multiple entries for visiting India.Not eligible for purchasing agricultural land.No requirement for registering with local police authorities after 180 days.Not eligible for a government job.2 more rows
Can I buy a agricultural land in India?
Rules & Restrictions The maximum extent of agricultural land one can purchase is 59.95 acres. By the orders of the district collector, the land can be converted into non-agricultural land if no agricultural activity is carried out during the period of the last ten years.
Can OCI holder live permanently in India?
Overseas Citizenship of India (OCI) is a form of permanent residency available to people of Indian origin and their spouses which allows them to live and work in India indefinitely.
Can OCI buy property in India without Aadhar card?
As per rule 114C, it is not compulsory for an NRI/PIO to have an Aadhar card for Buying/selling his/her property in India.
What is OCI in India?
Overseas Citizens of India (OCI) is an immigration status permitting a foreign citizen of Indian origin (excluding Pakistan and Bangaladesh) to live and work in the Republic of India indefinitely. Although the term Citizenship is used, the OCI cardholder is not a citizen of India but needs no visa, reporting requirements on entry into India.
Why is agricultural land illegal?
Agricultural land has often been illegally dealt with leading to agriculturists losing their wealth and property because of lack of knowledge. Therefore, State governments of virtually every state in India have severely restrictive laws on transactions relating to agricultural land.
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).
Do foreigners have to pay taxes in India?
But a foreign national ( which all OCI card holders are) has to pay taxes for his income in India, irrespective of the source of the income ( job, business, property etc). You will have to submit documents proving to that you are a descendant of an Indian citizen plus that you have inherited the said property.
Can an OCI inherit land?
Yes, NRI or OCI can inherit agricultural land/ or plantation land in India . According to FEMA guidelines NRI can acquire agricultural land or plantation land only by inheritance if they acquire through any other way the FEMA authorities can issue a notice to the NRI they can also confiscate the land and fine the NRI with the penalty. , Lawyer.
Can an OCI card holder buy land in India?
No, an OCI card holder can not buy agriculture property in India. As per the guidelines issued by Reserve Bank of India, an NRI or an OCI card holder can invest in any residential or commercial property. The guidelines also state that one can buy any number of residential or commercial properties.
Is there capital gains tax on agricultural land?
The taxation on sale of agricultural land is different for rural and urban areas. Rural agricultural lands are not capital assets therefore no capital gains tax is applicable whereas in case of urban agricultural land capital gains tax is applicable.
Can NRIs give money outside India?
NRIs can sell an inherited property or gift the same and remit the money outside India. However, NRIs can give an inherited property as a gift only to an Indian resident or to another NRI/ Persons of Indian Origin (PIO) (apart from agricultural land).
Can an NRI give a farmland?
An NRI can only give such properties to a Resident India as gifts. In easy terms:
Can an NRI inherit land?
Inheritance of Agricultural Land for 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 an NRI gift land to an Indian?
NRI to Resident Indian gift of property. Yes; Can be gifted. NRI to NRI gift of property. No; Can’t be gifted. Gift of Agricultural Land to NRI and vice versa. Note: Property in the above table refers to agricultural land, plantation property and farmhouses. Also, consider the Benami Act while gifting properties.
Can an NRI buy a house in the name of another person?
An NRI can’t buy a property in the name of another person unless that person is a spouse, brother, sister or lineal ascendant or descendant. Buying a property in the name of someone else is considered illegal under the Benami Act.
Can NRIs buy farmland 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 Reserve Bank of India (RBI).
How long can a person lease property in India?
However, he/she can acquire or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking any permission of/ or reporting to the Reserve Bank of India.
Who is on the onus to prove his/her residence status?
The onus to prove his/her residential status is on the individual as per the extant FEMA provisions, if required by any authority. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of the Reserve Bank.
Can a foreign national buy property in India?
A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India.
Can OCI card holders buy land in India?
OCI card holders can purchase residential and commercial properties in India. But they are not permitted to purchase agricultural land, including farmland or any kind of plantation property.
Can I transfer my property to someone in India?
Yes. He/she may transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India and is a citizen of India or to an OCI card holder resident outside India.
Can an Indian citizen buy land in India?
A: Yes, a person who had bought residential/commercial property/agricultural land/ plantation property/farm house in India when he was an Indian citizen, can continue to hold that property without the approval of the Reserve Bank after becoming an OCI card holder. Yes.
Can OCI card holders rent out their properties in India?
Yes, OCI card holders can rent out their properties in India. For more information on this matter, please follow the link: https://www.rbi.org.in/scripts/FAQView. Q: A foreign national of non-Indian origin resident in India or outside India had earlier acquired immovable property in compliance with the relevant FERA guidelines with …
What is OCI card?
Overseas Citizenship of India (OCI) cardholders are individuals of Indian descent. PIO’s who are citizens of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan will require prior RBI approval to purchase property in India. 2.
What does NRI mean in India?
Non-Resident Indians (NRI) meaning Indian citizens residing outside of India. Person of Indian Origin (PIO) is an individual who. previously held Indian passport or. who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955) …
Can a non-resident pay capital gains tax in India?
In case the non-resident pays any tax on capital gains arising in India, he would normally be able to obtain a tax credit in respect of the taxes paid in India in the home country, because the income in India would also be included in the country of tax residence.
Is rental income taxable in India?
Rental income earned is taxable in India, and they will have to obtain a PAN and file return of income if they have rented this property. On the sale of the property, the profit on sale shall be subject to capital gains.
Can a foreigner buy property in India?
No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he/she can acquire or transfer immovable property in India, on a lease, not exceeding five years.
Can I transfer my property to someone in India?
Yes. He/she may transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India and is a citizen of India or to an OCI cardholder resident outside India.
Can OCI invest in residential property?
As per the guidelines issued by RBI, an OCI/PIO can invest in any residential or commercial property. The guidelines also state that they can buy any number of residential or commercial properties. Further, they can inherit agricultural land or farmland.
What is an OCI cardholder?
The Overseas Citizen of India (OCI) Cardholder is a foreign national holding passport of a foreign country and is not a citizen of India, but falls under the definition as per The Citizenship Act , 1955 is entitled to certain benefits . The benefits are –. 1.
Can an NRI acquire land in India?
As per the latest, updated on 11 th April 2018, an NRI or an OCI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India. Further, an NRI or an OCI can acquire by way of gift any immovable property (other than agricultural land/ plantation property/ farm house) …
Can an OCI cardholder buy immovable property?
Yes . OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions. As per FEMA, RBI frames the Directions / Regulations concerning the Acquisition and Transfer of immovable property in India. As per the latest, updated on 11 th April 2018, an NRI or an OCI can acquire by way of purchase any immovable property …