Acquisition of Agricultural Land in India by NRI/PIO
Acquisition of Agricultural Land in India, Many NRI’s Who stay out of India are keen to know whether they can acquire or Transfer Agricultural land in India or Not. And Some times they are also interested to know whether they can acquire Agricultural land/farmhouses & Plantation Property by the way of Gift, inheritance or not. Therefore, they would be required to refer Foreign Exchange Management Act for the purpose of Acquisition of Agricultural Land in India .
Can NRI purchase agricultural land/plantation property or farmhouses in India?
As per the Foreign Exchange Management (Permissible Capital account transactions) Regulations, 2000 read with Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 NRIs/PIOs/OCIs are not allowed to purchase any Agricultural land/ plantation property/farmhouses in India except with the special permission from RBI.
Can NRI acquire Agricultural land by the way of inheritance?
Yes, NRI can acquire agricultural land/ plantation property/ farmhouses by the way of inheritance from any person who is a resident in India. An NRI can inherit property from some other NRI, subject to RBI approval only.
Can NRI receive agricultural land as a gift?
Yes, NRI can receive/inherit Agricultural land/plantation property/farmhouses as a gift. It is stated as per law that the person who is receiving the land must have completed all the formalities as per the prevalent State laws where the land is situated. The NRI must comply with the RBI and other necessary compliances to transfer the land in thier name. Further, NRI doesn’t require any separate approval from RBI. Our team will be happy to assist you with any such matter.
NRIs are allowed to sell off thier Agricultural land in India?
Yes, NRI can sell off his inherited Agricultural land/plantation property/farmhouses. It is provided only to a citizen of India who resides in India. In the case where the Agricultural land/plantation property/farmhouses are acquired by the permissions from RBI then it can be sold only with the approval from RBI.
Acquisition of Agricultural Land in India
The sale proceeds can be remitted to the NRO account. The Maximum sale proceeds can be US$ 1,000,000 which can be repatriated.
Essential Repatriation Process Requires Some Documentation such as: –
- Submission of form 15CA and form 15CB
- Legal heir certificate
- Death certificate (in case of inheritance)
- Sale agreement (in case of sale)
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