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 lose for the purpose of the same.
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 an Agricultural land/plantation property/farmhouses as a gift provided that the person who is receiving the land has completed all the formalities as per the prevalent State laws where the land is situated, to have the land transferred in their name, also NRI doesn’t require any separate approval from RBI.
Is NRI allowed to sell off his Agricultural land in India?
Yes, NRI can sell off his inherited Agricultural land/plantation property/farmhouses provided only to a citizen of India who resides in India. In case the same is acquired by the NRI with permission from RBI that 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 with a Maximum of 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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