What will happen if NRI buy agricultural land in India?
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What will happen if NRI buy agricultural land in India?
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. If your wife is nri at the time of purchasing land .
Can NRI with Indian passport 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 an NRI inherit agricultural land in India?
Yes, NRIs and PIOs can inherit commercial, residential and even agricultural property in India.
Can agricultural land be gifted to NRI?
An Indian resident can also gift a property to an NRI. Rules say that an NRI or a PIO can only purchase residential or commercial real estate, but not agricultural land or a farmhouse. However, there is no restriction if the agricultural land or farmhouse comes as inheritance or is gifted to the individual.
Can OCI holders buy agricultural land?
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 not permitted to invest in farmland, plantation land, and agriculture land. But, they can inherit the agricultural land/plantation property/ farmland.
Can NRI hold agricultural land?
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.
Is there any tax on agricultural land in India?
Agricultural land in Rural Area in India is not considered a capital asset. Therefore any gains from its sale are not taxable under the head Capital Gains. Under Section 10(37) of the Income Tax Act, Capital Gains on compensation received on compulsory acquisition of urban agricultural land is exempt from tax.
Can green card holders buy agricultural land in India?
Only resident Indians can own agricultural land. NRI’s,PIO card holders and OCI’s cannot own an agricultural land except by inheritance. But, if you owned an agricultural land before you became an NRI/PIO/OCI, then you can continue to enjoy it.