how can nri buy agricultural land in india

• 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.
• Gift of Agricultural Land for NRIs. “But an NRI or OCI cannot gift such property to another NRI.
• 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.
• Taxation On Agricultural Land for NRI. Rural agricultural land is not a capital asset hence capital gains tax is not applicable. …
• 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.

Full
Answer

Can an NRIs buy agricultural land in India?

 · 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.

How to buy agricultural land in India without inheritance?

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. So, to simply answer the question “Can NRIs buy agricultural land in …

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 – …

Can NRIs and OCIS sell agricultural land?

 · This brings us to our next point- NRIs can certainly inherit agricultural land from resident Indians although they cannot purchase the same. However, NRIs may invest freely in residential and commercial properties throughout India. Those wishing to buy agricultural land should apply to the RBI for permission (which is rarely given).

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 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.

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.

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.

Can NRI avail agri loan?

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

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.

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.

How can I buy farmland 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…•

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 buy land India?

Moreover, there is no restriction as to the number of residential or commercial property, an NRI can purchase in India. For purchasing permitted immovable properties in India, the NRI has to either pay through banking channel by remittance from abroad or the NRI can use balance in his NRE/NRO or FCNR account.

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 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)

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 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.