what will happens if nri buy agricultural land in india


According to FEMA21/2000 RBI

Reserve Bank of India

The Reserve Bank of India is India’s central banking institution, which controls the issuance and supply of the Indian rupee. Until the Monetary Policy Committee was established in 2016, it also controlled monetary policy in India. It commenced its operations on 1 April 1935 in accordance wit…

rules dated May 3, 2000, an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India. If an NRI does so, then it will be a violation of FEMA laws that can result in a penalty or even confutation of such property.


Can I Sell my agricultural land in India to an NRI?

NRI cannot buy an agricultural land in India if you do so the FEMA authorities could send you a notice and your land can be confiscated by the government and they can even charge you …

Can I inherit agricultural land in India?

 · Nri buying agriculture land in india hello 1.-NRI cannot buy agriculture land in india,and if he has purchased land he is bound to pay panelty under section 13 of FEMA act.

What are the tax benefits for NRIs buying property in India?

NRIs are not legally eligible to buy an agricultural land in India. An NRI cannot purchase any type of property in India without prior approval from RBI (Reserve Bank of India). More so, an NRI is also not able to acquire agricultural land by way of gift. They can only acquire agricultural land by …

Do NRIs pay tax on inheritance of agricultural land?

Are illegitimate children legal heir?

Yes. Illegitimate children that are born form a man and a woman out of wedlock or they are not married will be considered as legal heirs.

What are Intellectual Property Rights?

Intellectual Property Rights (IPR) are legal rights given to the inventor or creator to protect his invention or creation for a certain period.

What is a Copyright?

Copyright denotes the right to copy or reproduce the work in which the Copyright subsists. However, it only protects the expression of an idea; it…

What is a Patent?

A patent is conferring a property right by an authority (government) to the inventor for his invention (product or process) for a certain period. A…

What is a Trade Secret?

A trade secret is sensitive or secret business information that gives a trade or business an edge over a competitor.

How can I get a succession certificate?

To get a succession certificate, a petition must be prepared and filed in the relevant district court as per the jurisdiction. The relevant jurisdi…

How much time does it take to get a succession certificate?

The process to get a succession certificate may take 5 to 7 months. At least 15 to 30 days are required to issue a legal heir certificate.

Is a married daughter a legal heir?

Yes. Both married and unmarried daughters will be considered legal heirs. They will have the same rights as that of a son according to the amendmen…

Is a second wife a legal heir?

Yes. If the second wife of the deceased is married legally under the provisions of the Hindu Marriage Act, 1955, then she will be considered as the…

How many arbitrators can be appointed to an arbitration tribunal?

The parties mutually decide the number of arbitrators and the procedures for the appointment of the arbitrators. If the parties do not concede to a…

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.

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,

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.

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

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 …

Can parents buy land in your name?

1. Yes parents on their name can buy the agriculture land.

Can farmers buy in their names?

Yes they can buy in their names if they are farmers. You can transfer through any authorized banking channel. The land purchasd will be in their names. You can later inherit the same

Can an agriculturist buy land in India?

Various states follow different procedures for the purchase of agricultural land. In certain states only an agriculturist can purchase such land whereas there are no restrictions in other states. All over India, NRIs and PIOs can’t purchase agricultural land/plantation property/farm houses. They can, however, inherit agricultural lands.

Can NRI sons buy land?

2. Thereafter they can buy agricultural land with that amount and the source of the money being gift from NRI son will not be a legal problem for buying the said property.

Can NRIs buy land in India?

NRIs are not legally eligible to buy an agricultural land in India. An NRI cannot purchase any type of property in India without prior approval from RBI (Reserve Bank of India).

Leave a Comment