A lot of NRIs want that after retirement they have their own farm hose in a small town but Can a NRI buy agricultural land in India?
Be it financial investments or property rules are a bit different for NRIs.
The rules related to transactions in NRI agricultural lands, plantation properties, and farmhouses are different as compared to those related to residential and commercial property.
Also Check: Should NRIs Get A Life Insurance Cover In India?
Can NRI Buy 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 lands or plantation property, or farmhouses in India unless they acquire special permission from RBI.
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. An NRI can also inherit property from another NRI. But this is subject to certain regulations like RBI’s approval.
Must-Read – Rules for OCI cardholders
Gift of Agricultural Land for NRIs
There is no restriction for NRIs and OCIs to get NRI agricultural lands, plantation property, or farmhouse as a gift from the person resident in India. (but consider Benami act)
“But an NRI or OCI cannot gift such property to another NRI. An NRI has to gift it to a resident citizen of India.” wiseNRI
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. If the NRIs have purchased such lands with permission from RBI, they require approval from RBI to complete a sale transaction.
The sales proceeds can be remitted to an NRO account. The amount up to a maximum of US$ 1,000,000 can be repatriated. The repatriation process requires some documentation. The bank requires the submission of Form 15CA and Form 15CB, Will, legal heir certificate, and death certificate (in case of inheritance), and sale agreement (in case of sale).
Also Check: New Tax Rules for NRI in India
Taxation On Agricultural Land for NRI
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.
Also Check: 10 Best Investment Options For NRIs
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. It will be considered a Benami transaction which is illegal. (please consult a good lawyer as our knowledge is limited in this)
An NRI gives money to a friend or a son-in-law. This person uses the money to buy land, and the gains from that land are passed to the NRIs. This is a Benami transaction, and the persons involved in it are punishable by law.
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 the rules for selling. It might be better to consult a real estate lawyer before entering into the transaction.
If you have any questions or you are aware of NRI agricultural land issues – add them in the comment section.
I have agriculture land in chhattisgarh in rural area which was purchased by me in 1998. I am now USA citizen and OCI holder. Can I sell this land in chhattisgarh and buy land in Punjab with this money?
myself & my wife (Both NRI) registered as partnership firm to buy agriculture land in order to convert the same to non-agriculture with intent to build resort. Can we do so?
I am not a tax expert but my understanding is as NRIs, you and your wife are allowed to register a partnership firm in India and purchase agricultural land for the purpose of converting it to non-agricultural land and building a resort.
However, you will need to obtain the necessary approvals and permissions from the relevant authorities before you can proceed with the purchase and development of the land.
You will need to obtain a “No Objection Certificate” (NOC) from the state government’s Department of Agriculture, stating that the land is suitable for conversion from agricultural to non-agricultural use. You will also need to obtain permission from the local panchayat or municipality to use the land for non-agricultural purposes.
In addition, you will need to comply with all other applicable laws and regulations, such as building and environmental regulations, in order to proceed with the development of the land.
It is advisable to consult a lawyer or a professional in real estate to ensure that you are in compliance with all the necessary regulations and to assist you with the process of purchasing and developing the land.
How can nri buy agricultural property
I have purchased agriculture land in the year 1996 and now I want to sell it as NRI
I am an OCI Holder I want to Buy Agricultural land in India.
Can I get RBI approval for this?
OCI card holders can purchase residential and commercial properties in India. But they are not permitted to purchase agricultural land, including farmland or any kind of plantation property.
Can dual citizenship holder can buy agriculture land in andra prDesh
Hi Jagan Mohan,
What is the process of getting approval from RBI to get special permission for NRI to buy agricultural land? Do they give such permission easily? Normally how much time does it take to get the permission?
Hi uzzal kumar mudoi,
NRI cannot purchase agricultural land in India
You need RBI permission which would not be easily granted
You can visit RBI website for details regarding authority to be approached for purchase of agricultural land
Can agriculture ancestral land can be passed on to NRI as part of Inheritance
There is no restriction if the agricultural land or farmhouse comes as inheritance.
I have own land i am selling
I bought agricultural land in India when I was an Indian citizen and now I am a NZ citizen. What the tax implications of selling this agriculture land?
As per my knowledge, Rural agricultural land is not a capital asset and hence any capital gains arising from its sale will be exempt from taxes. The treatment is the same for an NRI as well so on the sale of the land you will need not pay any taxes.
Can an nri invest in agricultural land ? What are the procedure for obtaining rbi permission
The requests for acquisition of agricultural land/plantation property/ farmhouse 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
Is TDs applicable for sale of agricultural land by a NRI
The sale proceeds from such Land is Tax- Free
As per my knowledge yes it is.
My daughter is staying at Texas – USA, she is planning for purchase for Agricultural land in Telangana, after purchase of agricultural property procedure of registration to her name
Hi K.U.M. Reddy
She can not buy agricultural land in India as she is an NRI.
Hi Reddy Ji,
You should consult your CA for the same.
repatriating funds from agricultural land sale as an OCI holder
You should consult your CA.
is it possible for NRI to buy agricultural land in Madhya Pradesh , who is coming for good?
As per my knowledge you cant buy the agricultural land in India.
We have inherited land in India through our mother we need to sell .
You should consult a CA.
Same case with me What can I do now ? Please advice ..I am an nri with Indian citizenship and not knowingly bought an agricultural land. Value of the land is very less 2 lac inr but I spent a lot of money on doing the boundary’s etc .please guide what should I do next .. thanks
Kindly consult with your CA.
I also did not know about this rule and mistakenly bought an agricultural land . What can I do now ? Please advice ..it’s just been 2 months since I bought less than half acre land in jharkhand ..I am an nri with Indian citizenship..please guide what should I do next .. thanks
Kindly consult with your CA.
Hi, I am NRI from UAE, holding Indian Passport, can I gift my mother specific amount, and she in turn purchase agricultural land in her name, with that gifted amount. Kindly inform
Yes, you can do that.
Dear Sir, presently I am an Advocate by Name G. GOWRI SHANKAR from Sainikpuri,Secunderabad. One client approached me to buy the Agricultural land in Telangana, for guidance and with clarity with latest / present regulations on purchase of Agriculural land for a minimum of a FARM HOUSE as the said NRI took birth in INDIA and presently works in AMERICA , who had already become a AMERICAN CITIZEN, THOUGH HOLDING A pan card AND a AADHAR CARD wish to hold the immoveable property or the Agricultural land . PLEASE l do required a guidance in specific regulations for purchase of said Agr. lands. Thanks, Please Respond.and others reasons have not been asked to the said person.
Hi Gowri Shankar
By law, NRIs cannot purchase agriculture land.
I am not an Indian citizen. Can I buy agricultural land in India?
How an nri will inherit agricultural land from parents
kindly consult your tax consultant.
I am an NRI having OCI card.Can I sell my agricultural land which is in India to an Indian resident.
Yes, you can sell.
my wife is indian with usa passport and has oic visa for india can she purchase agriculture land in india and can she also POA in my name so that io can sell land later and also get payment in my name or can she give me land as gift so i can sell it later i have india passport and has usa green card thaNKS please answer
An NRI is not allowed to buy agricultural and plantation land in India.
What happen if a nri buy a agricultural land without knowing the law what’s the next step.
It is not possible to buy agricultural land for an NRI without prior permission of RBI.
I am an OCI , can my brother or my mother gift me agricultural land in the state of Telangana?
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.
I am not finding any data that NRI’s can get agricultural land in the form of gift from indian resident. Can you please share me an article from RBI or any other on this information.
This rule about NRI’s not able to buy agricultural land in India is in place after 2018 ? If so, what happens to the land purchased by NRIs before that ? Can they sell it anytime ?
I want to buy agricultural land. Can I pay for the land but the lands title is on my mother’s name
NRIs and OCIs are not allowed by law to purchase lands or plantation property, or farmhouses in India unless they acquire special permission from RBI.
Hi My name is srujan i am a Indian living in Dubai I expected to buy agriculture land , i have sbi bank NRI account, how I can get loan, and how much I can get maximum, please let me know.
As far as I know, NRI cannot buy agricultural land.
Foreigner Indian people can buy land for farming in India?
As per my Knowledge, NRI can Only buy Agricultural Land in India with the Permission of RBI.
Noted tq Abhishek
I am an NRI I want buy a agricultural land india
As per my Knowledge, NRI can Only buy Agricultural Land in India with the Permission of RBI.
Hi please advise what are the requirements for RBI to take permission to buy agricultural land in India buy NRI
what are the terms to define if a person is nri or not
Hi i want to buy 3 acres of agricultural land in India I understand i have to inform RBI what are the conditions set by RBI i am prepared to pay any tax due on the transfer
As per my opinion, It’s better to Consult with a CA on this matter.
Can oci card holder sell inherited farmland & buy farmland in other town in India?
You can sell inherited farmland but as an OCI holder you cannot buy.
I âm an NRI. What happens if I own a farm land under my name in India?
Ya can hold or sell the farm land. But you cannot buy other farmland.
I am OCI card holder, however i am living in India since last 8 yrs. Am i eligible to buy Farm House with land? I know that OCI card holder are not eligible to buy agricultural land and farm house land. However. does living in India since last 8 yrs makes us resident and allow us to buy Farm Land.
Now, as your status is resident. So now you can buy the
I am NRI like to buy farm land for personal use only not business what are the rules apply?
As per FEMA rules, NRI cannot buy farm land whether it is personal or business.
Can an NRI OCI make a foundation that in turn buys a farmhouse? Are RBI and Home Ministry approval required?
I am an NRI living in Dubai. I wish to purchase farmland in Kerala under my wife’s name. will it be ok?
We bought agricultural land in 2013 as NRI’s. We were not aware of FEMA. is that transaction legal?
Hi Raj have you faced any consequences from the government. Or u still hold the land
What if one buys agricultural land when he/she is residing in India and later years if they leave India and become an NRI?
He can hold or sell that agricultural land.