NRI is Non-Resident Indian who holds Indian Citizenship and lives abroad for employment or business. An NRI is someone who resides in India for less than 182 days during the course of the preceding financial year. So here we are clear on who are NRIs, now let us talk about can NRI buy agricultural land in India or not. Now sell your land from anywhere comfortably. Post your land details on NoBroker and get genuine buyer leads.Can NRI purchase agricultural land in India?According to the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations NRIs CANNOT buy agricultural land in India.NRIs are allowed to buy commercial and residential properties however they are not allowed to buy plantation lands or farmhouses in India. But if they wish to buy agricultural land special permission from the RBI must be obtained. NRIs with an intention to buy agricultural land must write and request permission from the Chief General Manager of RBI and post it at the address given below:The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai: 400 001I hope you have your answer now on can NRI buy agricultural land in India or not.If you already own a property in India and intend to rent it out and maintain it then check out NoBroker Property Management ServicesRead moreWhy Should NRI invest in IndiaCan NRI get home loan in IndiaHow can NRI buy property in India
“Can NRI buy agricultural land in India” is a common query among NRIs. Well, let me tell you that according to FEMA Regulations, NRIs are not allowed to purchase any farmhouse or plantation property or agricultural land in India by law unless they obtain special permission from RBI. The RBI will consider the request on a case-to-case basis. Now that you know an answer to “can NRI purchase agricultural land in India”, let’s read about the inheritance of agricultural land for NRIs:An NRI cannot directly purchase a farmhouse, plantation property, or agricultural land in India but they are allowed to inherit it from a resident of India. NRIs are also allowed to inherit such properties from other NRIs subject to certain regulations like special permission from the Reserve Bank of India.Gift of Agricultural Land to NRIs and vice versa
You may be interested to know about NRI buying agricultural land in India. Can an NRI, however,
purchase land in India for agricultural purposes? Agricultural-land or plantation property or
farmhouses cannot be purchased in India by either NRIs or OCIs without special permission from the
Reserve Bank of India. Unless the other person is a spouse, brother, sister, or lineal ascendant or
descendant, an NRI cannot purchase agricultural land in the name of another individual in India.
Questions like can an NRI buy agricultural land in India regularly pop up in mind of NRIs. A farm or
plantation property in India cannot be purchased by an NRI or OCI directly, although it can be
inherited from a Resident Indian. Depending on the circumstances, an NRI may be able to inherit
such property from another NRI with the use of specific permits granted by the Reserve Bank. So you
have found out the answer to the question, can NRI buy agricultural land in India.
If you want to invest in real estate properties in India, then it is really a great idea as the constructions are developing widely across the country. Several NRIs are working abroad in various countries but they have their families living in India. So that is the reason they want to invest in commercial, residential and agricultural properties in India for better future returns and a place to live when they come to India. I also wanted to purchase agricultural land in India 2 years ago, but I couldn't because it’s not allowed to purchase land by NRIs due to some legal reasons and restrictions. Let’s see can NRI buy agricultural land in India.
Can NRI purchase agricultural land in India?
As per the Foreign Exchange Management Act and the Foreign Exchange Management Regulations 2018, NRI cannot purchase any agricultural land, farm house or plantation properties as per the rule of respected government unless they get a special permission from RBI. They can only purchase commercial and residential properties as per the rule of government. When an NRI is unable to travel India to buy the property, a person with a legal power of attorney must do it on his or her behalf and there is no limit of buying properties for them.
Agricultural Land Transfer for Non-Resident Indians
NRI can acquire agricultural property, farm house or plantation property by transferring the property to their name from the person residing in India and from the other NRI person. But this also has some regulations and needs RBI’s approval to process the application of transfer.
Agriculture land as a gift
NRI can get agricultural land, plantation property and farm houses as a gift from the residents of India, but you just have to consider the Benami Act. The Benami Act states that an NRI has to gift the desired property to the resident of India not to the other NRI.
What will happen if NRI buy agricultural land in India?
The Reserve Bank of India's laws allows an NRI to purchase property in India. They do not have the right to get the NRI agricultural land ownership. NRIs can only purchase residential and commercial property in India. It is, however, allowed under certain criteria, and NRI property investments in India will be subject to taxes. When it comes to the purchase of agricultural land by an NRI (non-resident Indian), the outcome is going to be a loud NO as per all the above answers.
NRI’s right to inherit agricultural land from an Indian citizen:
Luxurious apartments may not appear to be appropriate places to call home to you. So you must be thinking of building your own home from the ground up, to your specifications. This is where NRI agricultural land purchases come into play. Many NRIs are eager to invest in open land due to the slowdown in urban real estate and the possibility of better long-term earnings.You as an NRI cannot purchase agricultural land but you can inherit it. NRIs can inherit agricultural land, farmhouses, or agricultural property from a Resident Indian without breaking any RBI laws. You must seek special permits from the RBI authorities in order to inherit such land.The query about whether NRI can buy agricultural land in India must be clear to you now.Let buyer plans from NoBroker help you grab the best deals in the town.Read More:TDS for NRI selling property in India?What is the best investment for NRI in India?What kind of property can NRI buy in India?What is TDS on sale of property by NRI?
The real estate industry in India is booming right now and In India, everyone desires to purchase some assets for their future security. Even NRI wants to invest in the real estate industry in India. Because of high demands, the Government of India has made some guidelines for NRIs willing to purchase land in India. Let us understand if NRI can buy agricultural land in India.Sell your property online with expert assistance through NoBroker. Check out Seller Plans nowGet your legally verified Sale Agreement drafted by NoBroker easily at an affordable price. Opt for NoBroker Legal Services and let their experts answer all your queriesNRI can invest in residential property and commercial property. As per the Income Tax Act of India, NRIs can also avail of tax exemption by purchasing property in India. But when it comes to NRI agricultural land ownership it is very hard to purchase agricultural land. Not only NRI, but any person residing in India also cannot purchase agricultural land if they are not a farmer. India generates a large amount of revenue by exporting crops to different countries which is why agricultural land is highly valuable in India. With flexible rules and regulations, it won’t be possible for India to initiate farming and grow crops. I will try to give you a solution to your query ‘ can NRI buy farm land in India?’ But as mentioned by Mr Siddharth and Ms Punam, as an NRI you can buy agricultural land after obtaining special permission from RBI. As an NRI, you must have the vision to help India grow in the agricultural industry and then only you can try to purchase agricultural land in India. I hope you get the gist regarding the question ‘if NRI can buy agricultural land in India?’Read more:Can NRI Sell Property In India Without Physical Presence?How Can An NRI Make A Rental Agreement?
In general terms, NRI cannot buy agricultural land in India. So, both NRIs and OCIs must obtain special permission from the Reserve Bank of India in order to purchase any agricultural land, plantation property, or farmhouses in India, as per the Foreign Exchange Management Act and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018. (RBI).
Can NRI hold agricultural land in India?
The Foreign Exchange Management Act, 1999 (FEMA), is a statute that unifies the foreign exchange laws in order to enable international payments and trade as well as to support the orderly growth and upkeep of the Indian foreign exchange market.NRIs are not allowed to purchase farmland, plantation property, or farmhouses in India under Fema and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, which were both passed in 2018.However, one may ask the Reserve Bank of India for special authorization, which will only be given after taking into account a number of considerations. So, now you know why NRI cannot buy agricultural land in India.
Taxation on sale of agricultural land by NRI
If your question is can NRI sell agricultural land in India, then let me tell you that agribusiness land sales are subject to varied taxes in rural and urban locations. In contrast to urban agricultural property, which is subject to capital gains tax, rural and agricultural lands really aren't considered capital assets and are therefore not subject to capital gains tax.Have land which you wish to sell? Click here to post a free ad of your land on NoBroker and get buyers in no time.
Can NRI get agricultural land by gift?
An agriculture or plantation land, or a farmhouse, may be given as a present by a resident Indian to an NRI or OCI, but an NRI cannot give similar properties as gifts to other NRIs. These properties may only be gifted by an NRI to an Indian resident.
It was clarified in 2018 that NRIs are not allowed to buy land and related properties in this category. There is still a solution. NRIs can request special authorization from the Reserve Bank of India, which will be granted as soon as several conditions are taken into account. Only Indian citizens are allowed to inherit agricultural land. But any income derived from using or giving away inherited property in India (in the case of NRIs' acquired assets) will also be subject to local taxes.Any property that is purchased in violation of FEMA regulations may be fined or possibly restricted. The Reserve Bank must approve the purchase of agricultural land. These are the consequences of NRI buying agricultural land in India.
What is the rule for agricultural land sold by an NRI?
The non-resident person is required to deposit the selling proceeds in an NRO account. One can transfer a total of $1,000,000 USD from an NRO account. The method for return is identical to that used for forms 15CA and 15CB. Additional paperwork is needed, including a will, a legal heir certificate, a death certificate (for inheritance purposes), and a selling agreement (for sale purposes).I hope you understood the FEMA NRI agricultural land regulations and rules.Read More:What kind of property can NRI buy in India?How can an NRI buy a property in India?What is the best investment for NRI in India?
I see you wish to know, can a NRI buy agricultural land in India? Let me shed some light on the subject for you.The non-resident Indians (NRIs) are not allowed to purchase agricultural land in India, except in specific circumstances and with certain restrictions.The acquisition and transfer of agricultural land in India are governed by state-specific laws, and these laws often restrict or prohibit non-agriculturists, including NRIs, from purchasing agricultural land.In some states, NRIs may inherit agricultural land if they have inherited it from a relative. However, there are often restrictions on selling or transferring such inherited land along with buying agricultural land in India by NRI.While NRIs may not be able to directly purchase agricultural land, they can invest in agricultural activities through other means such as:
Agricultural bonds
Agricultural businesses
Partnerships with Indian residents who are eligible to own agricultural land
NRIs are generally allowed to invest in residential and commercial properties in India, subject to certain conditions and restrictions imposed by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA).Since laws and regulations related to land ownership can vary significantly between states in India, it's essential to research the specific rules and restrictions in the state where the agricultural land is located and to consult with legal experts for personalised advice.Your query about can a NRI buy agricultural land in India should be solved.Find properties for investment in India on NoBroker without any brokerageRead more:Can NRI Sell Agricultural Land in India
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Can NRI buy agricultural land in India?
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September 24, 2021
2021-09-24T15:15:35+00:00 2021-11-23T12:13:23+00:00Comment
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