can oci holder buy agricultural land in india

Can an OCI inherit agricultural land in India?

1. An OCI Card Holder residing in India is not permitted to buy agricultural land in India. 2. However, an OCI Card Holder can inherit the agricultural/plantation property/farmland in India.

Can OCI Card holders buy property in India?

It is not only the OCI card holders but even Indian citizens by birth are prohibited by law to buy the agricultural lands unless they themselves are farmers or cultivators already. It is illegal even for Indians . This rule has been prevalent in most of the Indian states .

Can NRIs and OCIS sell agricultural land?

Can OCI card holder buy property? As per the guidelines issued by Reserve Bank of India, an NRI or OCI card holder can invest in any residential or commercial property. … However, they are …

What are the rules applicable to NRI/OCI residing out of 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 …

Can OCI buy agricultural land?

While OCI cardholders are permitted to purchase immovable property in India, they are not allowed to buy agricultural land, farmhouse or plantation property.

Can OCI holder inherit agricultural land in India?

NRI/OCI can inherit any immovable property (including agricultural land, farm house, plantation property) from Person resident in India or from Person resident outside India.

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 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 OCI holder buy farmhouse in India?

A: 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.

What is the new OCI rule?

The requirement of carrying old and new passports, along with the OCI card, has been done away with. Henceforth, an OCI cardholder traveling on the strength of existing OCI card bearing old passport number is not required to carry the old passport. However, carrying the new (current) passport is mandatory.

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.

Who can buy farmland 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.

Can OCI buy agricultural land in Karnataka?

– Further , as per FEMA21/2000 RBI rules , an NRI or OCI/PIO cannot acquire agricultural land /farm house/plantation property in India. – If you will purchase an agriculture land in Karnataka, then it will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.

Can OCI holder sell property 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.

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 foreign nationals inherit agricultural land?

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 sell inherited property in India?

Firstly, YES! An OCI can sell inherited property in India as they are given the similar benefits as an NRI. The taxation on the sale of property by OCIs is the same as it is for an NRI.

Can OCI holders own property in India?

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 holder sell property 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.

How much can I remit from an NRO account?

The proceeds from the property needs to be deposited in the NRO Account of the NRI. The maximum amount that can be remitted from an NRO Account is US$ 1 million. The process of repatriation is the same done for outward remittances involving the forms 15CA and 15CB. In addition to these, other documents like will, legal heir certificate, death certificate (in case of inheritance), and sale agreement (in case of sale)

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 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 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).

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.

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 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 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.

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 a person hold an immovable property?

Yes, he/she may continue to hold the immovable property under holding license obtained from the Reserve Bank.

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.

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)

Is Hemant Beniwal a financial planner?

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.

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 …

Who is issued OCI cards in India?

I hope that you are already aware that only foriegn passport holders ( except Pakistani, Bangladeshi and Afghani passport holders/ citizens) are issued OCI cards by the Government of India.

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).

What is RERA in India?

Recently, Government of India implemented RERA (Real Estate Regulatory Act). As per this act, a real estate developer has to register all ongoing and future projects under RERA. Therefore, you can find out the RERA compliant realty projects and that will make sure your investment is safe.

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.

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 NRI acquire land?

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 a US citizen of Indian origin buy agricultural land in India?

A US citizen of Indian origin cannot buy agricultural lands in India. However, can he inherit an agricultural land as heir after the demise of his father?

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 OCI repatriate funds?

The above Regulation also permits NRO/OCI to transfer or sell the immovable property without prior permission from RBI, to a person resident in India, NRO or OCI. They can repatriate the funds up to USD 1 million per year; provided in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

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 …

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 NRI acquire immovable property in India?

Similarly, an NRI or an OCI can acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired the property in accordance with the provisions of the foreign exchange law in force at the time of acquisition or can also acquire any immovable property in India by way of inheritance from a person resident in India