• Agriculture land hold by my father

My dad is a doctor and We have 4 acres of agricultural land in raichur which we had bought in 2002 and we are not doing any farming activity can I convert this land to non agricultural (NA) or can I sale the land to a person who is not agricultural and who wants to do some business on this land like to start rice mill, resort or petrol pump...want some brief in this matter
Asked 4 years ago in Family Law
Religion: Hindu

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18 Answers

Yes sir you can get converted agricultural land to non agricultural or better sell it to some builder they can get all work done without any hassles.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

, the Karnataka Land Revenue Act 1966 has prescribed the procedure to convert agricultural land to non-agricultural, under Section 95 of the Act.

2)The purpose for the change in use of land must be specified. The Deputy Commissioner may grant permission and may even impose conditions

3)You need to submit the Record of Rights and Tenancy Certificate (RTC) in original issued by the revenue authority along with a photocopy of the atlas of the land (survey number), duly attested by the Department of Survey Settlement and Land Records, showing the dimensions with scale and boundary of the land proposed for conversion. In addition, a photocopy of the revenue survey map of the village showing the location of the land proposed for conversion and the proposed site plan need to be submitted.

4) The fee charged for change in land use is to be paid as per Rule 107 of the Karnataka Land Revenue Rules 1966.

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

1) yes you can transfer agricultural land to non agricultural lands and sale it to builder or any commercial businessmen.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

The land conversion is permitted you can convert agriculture land into non agriculture land by procedure prescribed under section 95 of Karnataka land Revenue Act.

Also yes the land can be sold to a non agriculture on condition that his family income is less.than 25 lakh per annum and deputy commissioner permission is required for same purpose under section 80 karnatak land reform amendment Act. The permission need to be taken by.the purchaser.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Client,

Without converting the use of land, agriculture land cannot used for any other purposes.

Person with annual income not more than 25 lacs can buy agriculture land.

The Karnataka Land Reforms (Amendment) Bill, 2015, which was passed by the state legislature on Friday, raises the annual income limit for acquiring land by persons not engaged in agriculture from Rs 2 lakh to Rs 25 lakh. - See more at: http://indianexpress.com/article/india/india-others/land-acquisition-karnataka-eases-norms-for-people-not-engaged-in-agriculture/#sthash.PC4tpO66.dpuf

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Dear Sir,

You can sell it to an non-agriculturist but it cannot be registered, even if registered provisions under section 79A and 80 of Karnataka Land Reforms Act attracts and land will be forfeited to government. Best thing is get it converted into non agricultural land and sell. it. For more clarifications call me.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

Dear Sir

1. You cant sell to non agriculturist

2. Three options we suggest

a. Sell it upfront - ricemill, resort or anything they buy through the agriculturist and convert the land to Non- Agriculture purpose.

b. You can convert the land to Non - Agriculture

c. You can enter into Joint development Agreement with the builders for plots or business etc for recurring income in a partnership way.

After perusing the documents and location of the place we can advice you better.

This is only opinion.

Shettar SS
Advocate, Bangalore
182 Answers
1 Consultation

4.4 on 5.0

Under section 95 of Karnataka Land Revenue Act 1966, the use of land can be changed.

I would advise you to sell of the land and then let the person to whom the land has been sold get the same converted. In this way you can remain away from the hassles that you will have to face while getting the conversion.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

No extra tax is required to be paid while selling the said land. That is the best way in which you will save maximum tax

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

since land has been held for more than 2 years it would attract long term capital gains

2)Capital gains from sale of any long-term asset can be claimed as tax-exempt under Section 54EC of the Income-Tax Act by investing in notified bonds within six months of the transfer of Asset.

These bonds are issued by the Rural Electrification Corporation and the National Highways Authority of India.

The exemption is equal to the investment or the capital gain, whichever is lower. If you transfer or take a loan against these bonds within three years, the capital gain will become taxable.

These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property.

You are allowed a period of 6 months to invest in these bonds, but before the Income Tax Return filing date (to claim this exemption).

3)You can use the entire sale proceeds (received by selling land) to buy a new house or to build a new residential house.If you use a part of the money, the deduction will be proportion of the invested amount to the sale price.

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

See on conversion to NA you have to pay the appropriate stamp duty. If your are planning to sell it then the location of land matter you can get a good amount without conversion also but due to the ceiling of income to purchase agriculture land It can be advisable to sell it after conversion for good profit.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

No LONG term capital gain tax will be levied on sale of agriculture land in rural area.

Depends on which use of land will give u more sale consideration, according to same, get it convert or not.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Dear Sir

1. Agriculture land selling tax will be very less.

2. Convert to Non Agriculture you will get good money. There are thousand ways to benefit out of it.

This requires some more information information about the land situated and how far from highway, city etc sketch to understand correctly. I am from same area. Help you to take it further.

This is only opinion.

Shettar SS
Advocate, Bangalore
182 Answers
1 Consultation

4.4 on 5.0

2) After converting to N.A. Land it will give you good income. Any way you have to pay tax. Tax depends upon your selling price cost. More costly you sell the amount will increase, if you sell for less price you have to pay for less.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

Once you sell a property it comes under capital gain I guess..so you may need to buy new property within two years with that money or you may need to shell out tax to government.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

For NA conversion you may have to obtain permission from authorities for DC conversion.

Under section 95 of ther Karnataka land revenue act, 1964;

The owner or the legal entity of the land has to make an application, to the competent Revenue Authority (Tahsildar or the Assistant Commissioner or the Deputy Commissioner, as the case may be, depending on the area to be converted). The revenue authority request the Department of Town and Country Planning for issue of No Objection Certificate or opinion for conversion of land for various uses (Residential / Commercial / Industrial / Others)

The concerned Revenue Authority, after verifying the documents, will forward the application and the documents to the concerned authority

The concerned authority will examine the application based on the proposals and furnish the opinion to the concerned Revenue Authority.

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

Is there any tax to be paid for selling agricultural land without converting to NA or I should convert to NA before selling.how can I earn a good money without paying much tax which way should I go

There is no LTCG tax payable for agricultural landed property while selling it

In certain specific cases where the change of land use is sought from commercial or industrial to residential or from industrial to commercial uses and purposes, the planning authority will collect a stipulated fee and on such collection, the change of land use shall be deemed to have been granted.

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

I have answered this question earlier.

You can convert a agricultural land into industrial land by paying a fee. You can get a 'change of land use' after obtaining the necessary approval from the local authorities. You have to apply to the commissioner of the land revenue department, explaining the purpose of conversion. You have to submit with the application, documents like ID proof, mutation letter, original sale deed/ gift/ partition deed case to case basis, latest tax paid receipt and certified survey map of the said land.

Other details of extent of land, names of the present and previous owners if the said land, kind of soil and crops, mortgages if any also need to be provided.

The district or deputy commissioner, or collector, who is authorised, may permit conversion of land if satisfied that the prescribed conditions have been met and there are no pending dues or litigations on the property. The conversion should also be permissible under the master plan of the area. The outstanding dues should be paid in full and copies of same should be attached.

A conversion order permitting the change in land use alongwith a conversion certificate will be issued.

The Karnataka Land Revenue Act 1966 has prescribed the procedure to convert agricultural land to non-agricultural, under Section 95 of the said Act. The purpose for the change in use of land must be specified in that case to the appropriate authority. The Deputy Commissioner may grant permission and may even impose conditions if any.

You need to submit the Record of Rights and Tenancy Certificate (RTC) in original issued by the revenue authority along with a photocopy of the atlas of the land (survey number), duly attested by the Department of Survey Settlement and Land Records, showing the dimensions with scale and boundary of the land proposed for conversion. In addition to this a photocopy of the revenue survey map of the village showing the location of the land proposed for conversion and the proposed site plan need to be submitted.

The fee charged for change in land use is to be paid as per Rule 107 of the Karnataka Land Revenue Rules 1966. The fee varies for different districts and locations in Karnataka and is mentioned in the website for your reference.

Got doing other business in agricultural land you have convert the same as NA. Its illegal to sell agricultural land to non farmer if above conditions are not met.

Prashant Nayak
Advocate, Mumbai
27278 Answers
88 Consultations

4.4 on 5.0

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