Can NRI buy agricultural land in India? (2024)

FAQs

Can a 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.

Going through the above it is clear that an NRI /OCI cannot buy Agricultural land/farm/property without prior approval from RBI, however, they can inherit the property.

Besides, the income of the buyer from a non-agriculture occupation should not exceed more than Rs 25 lakh per annum. The Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs) and foreign citizens also face restrictions with respect to agricultural land purchase.

according to FEMA an NRI cannot buy an agricultural land if you do so there are consequences as the land can get confiscated and you can be fined also. The only legal way is to inherit the agricultural land. NRI cannot be gifted the 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.

Under the exchange control law, NRIs can't own agricultural land in India. However, they may acquire such agricultural land through inheritance from a person resident in India.

An NRI can gift residential and commercial property to a person residing in India, or another NRI. However, if the property is agricultural land, plantation property or a farmhouse, it can only be gifted to a citizen of India residing in India.

Who can buy agricultural land in India. In some states like Telangana, anyone can buy agricultural land, regardless of whether or not they are farmers. However, in other states, like Karnataka, only registered farmers or those from farming families can buy agricultural land.

So Yes! Relax NRIs – You CAN buy property jointly with resident Indians or other NRIs.

Under these guidelines the NRIs are allowed to purchase residential or commercial properties in India but they are not allowed to purchase any agricultural land, farm house or plantation property in India.

Can NRI buy property in India in parents name? ›

Being an NRI, it's understandable if you want to buy property in India in your parents' name. Buying any property in your parents' name makes the purchase a gift and not subject to tax in India.

Answer: A person resident outside India, not being a Non-Resident Indian or an Overseas Citizen of India, who is a spouse of a Non-Resident Indian or an Overseas Citizen of India may acquire one immovable property (other than agricultural land/ farm house/ plantation property), jointly with his/ her NRI/ OCI spouse ...

Getting a power of attorney for NRI to buy property in India

If you're not able to travel to India to complete your property purchase personally, you can still buy property in India as an NRI by giving power of attorney (PoA) to a representative.

Purchasing power is at an all-time high for NRIs, and they should tap into this situation. Property and land prices are still stable in the Indian market with nominal increases expected in 2022.

Ans:- Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Not everyone can buy: As per the law, you need to be a farmer to own agricultural land in India. While most states have such a ruling, some have eased this prerequisite. You may also get receive such a land, through a gift or through inheritance.

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.

As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act.

Special provision related to investment income

When NRIs invest in certain Indian assets, they are taxed at 20% on the income earned. If the special investment income is the only income the NRI has during the financial year and TDS has been deducted, then such an NRI is not required to file an income tax return.

Does NRI have to pay tax in India? ›

By default, income earned by an NRI abroad is not taxable in India. But if the income in India through aspects like capital gains from investments in shares, mutual funds, property rental and term deposits exceed the basic exemption limit as defined in the Income Tax Act, an NRI would have to file a tax return.

Power of attorney: NRIs must provide a power of attorney in case they're not in India for executing the purchase transaction. Please note that you will need a special power of attorney which is registered and notarized and not a general power of attorney to execute a property transaction.

In the case of a newly married couple, if the spouse accompanies her NRI spouse abroad, with an intention to stay for an uncertain period (i.e., through a family visa), he / she will immediately be classified as a non-resident.

Well the answer to the question is yes, an NRI can get a home loan just like any resident Indian by any Indian bank or Non Banking Financial Company (NBFC).

The maximum extent of agricultural land one can purchase is 59.95 acres.

In the case of an adult unmarried person or a family consisting of a sole surviving member the ceiling limit is five standard acres subject to a maximum of seven and a half acres. A family consisting of two or more but not more than five members can hold ten standard acres and up to a maximum of fifteen acres.

For your kind information, with my travelling knowledge, i found Keral in india Has the cheapest agricultural land. There are many states that have cheap land but they are not so productive for farming but Keral has it all.

Can NRIs buy property in India without Aadhar card? As per rule 114C, it is not compulsory for an NRI/PIO to have an Aadhar card for Buying/selling his/her property in India.

So, deriving from that, an NRI is one who is: Present in India for less than 182 days during that fiscal year, or. Present in India for less than 60 days during that fiscal year and cumulatively 365 days or less during the preceding four fiscal years.

Advocate Pipli Datta. 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.

Can a NRI buy property in India without physical presence? ›

For those NRIs who can't be physically present in India to buy property, there is such a thing known as Power of Attorney or POA. This means that you as an NRI can choose someone close to you such as a trusted relative, friend or even colleague and allow them (legally) to complete the transaction on your behalf.

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.

As per the provisions of the land law, fertile land in India can only be used for agricultural purposes and nothing else. To use it for residential, commercial or industrial purposes, it is mandatory to seek land conversion permission from the authorities.

An NRI can invest in residential/commercial properties but is not allowed to invest in agricultural or plantation property or a farmhouse. An OCI can invest in various financial investment opportunities available in India.

YES. An NRI (whether minor or adult) with a valid Indian Passport can apply for Aadhaar from any Aadhaar Kendra.

The NRI status in India is attained by people who are Indian citizens but stay in India for less than 182 days in the preceding financial year or people who live outside India for employment, business, or any other purpose for an uncertain period.

If you are an NRI and want to sell your property in India, you actually don't need a PAN card. But when it comes to sending money back to your home in abroad, you need to have a PAN card.

What is the procedure to buy property from NRI? ›

Here are a few points Understand the tax applicable and the process of payment Get a Tax Deduction and Collection Account Number (TAN) Ask for the PAN of the seller Check if there are single or multiple owners of the property Know about the location of the seller.

1. It's not legally permissible for an N.R.I. to get the leased agricultural land. 2. Whether as an individual NRI or a corporate company owned by NRI can't take agricultural property on lease.

An NRI can sell property anytime but he or she will need some documents like: Title of the property (which is in the seller's name) Occupation Certificate from the municipal corporation in India. Sanction Certificate.

NRIs can give and receive gifts in cash or kind (jewelry, antiques, property) to and from relatives and non-relatives in 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.

PAN Card: This is mandatory for property transactions. Power of attorney: NRIs must provide a power of attorney in case they're not in India for executing the purchase transaction.

As an NRI, if you sell a property in India, the buyer deducts 20% as Tax Deducted at Source (TDS) as Long Term Capital Gains Tax for properties sold after two years. For properties sold before 2 years, the TDS rate is 30%, deducted as Short Term Capital Gains Tax.

Yes, a Non-Resident Indian can buy property in India. This can be residential land, homes, or flats in India, but not agricultural land, plantation, or farmhouse properties. An NRI is defined as an Indian citizen residing outside the country for more than 182 days a year.