I am an NRI working in the US on H1B. As per my understanding, any person who stayed out of the country more than 180 days in the current year is as NRI, and he can't buy an agricultural property in India. 1. Can my parent's buy it with the money transferred from me?. 2. What is the right process to transfer money to parents for this purchase?. Any gift over 15000 $ per year is taxable in the US. As per the Indian gift act 1956 or 2013, there is no tax and limit on the gift amount to blood relatives. If I have to lend money to parents as per FED Master Direction No. 6/2015-16, there are restrictions on agricultural land purchase with cash borrowed from NRI. Do I need to gift or lend money to parents for this purchase?. Is there any right option to purchase agricultural land on the name of parents with NRI son's money. Please suggest accordingly.
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
1. You can gift the said amount to your parents and after receiving the same it becomes their money.
2. Thereafter they can buy agricultural land with that amount and the source of the money being gift from NRI son will not be a legal problem for buying the said property.
1. Yes parents on their name can buy the agriculture land.
2. See you can gift parents money so that from same they can purchase.
Gift the money to parents that would be better that is best option to choose.
Buying property in mother's/fathers sole name will qualify it as benami.
You can gift money to parents from that money they can purchase property.
In many states in India only agriculturist can purchase agricultural land
2) your parents if they are agriculturist can purchase agricultural land
3) you can gift money to your parents
4) they are at liberty to purchase agricultural land
1) Do you have to come back in India and settle down here after few years and you're thinking to second option of earning is agricultural land than you can buy in india a land on parents name. But there is draw back if you have siblings than after your parents they can ask their shares in the property. If you're alone than no issues.
2) Start sending money online on your parents name as per the law maximum how much you can transfer, than it's in your parents hand what to do with that money to donate or use for luxurious expenses or buy agriculture land on their name.
3) Ask your parents to open a trust on their name and you transfer your money to trust and later on trust will purchase on your parents name such a land .
Yes they can buy in their names if they are farmers. You can transfer through any authorized banking channel. The land purchasd will be in their names. You can later inherit the same
1. Property, purchased in name of Parents by whosoever's money, can be claimed by other Legal Heirs of the Parents (which would include parents brothers /sisters .... ). This is fraught with futuristic legal disputes. HENCE such type of proposed deal would mean throwing away your hard earned money.
2. AS long you are a Indian Citizen holding Indian Passport, you can buy agricultural land in your own name, provided you prove that you are from a agriculturist family. IF you are unable to be present during Agreement Registration process, you can delegate authority to any close relative /friend, via a Power of Attorney executed in US, and then the POA holder can purchase land in your name.
Dear Sir,
NRIs are not legally eligible to buy an agricultural land in India. An NRI cannot purchase any type of property in India without prior approval from RBI (Reserve Bank of India).
More so, an NRI is also not able to acquire agricultural land by way of gift. They can only acquire agricultural land by inheritance. If you have an agriculture land already registered in your name, you need to pay Income tax on the income generated from that land.
According to FEMA21/2000 RBI rules dated May 3, 2000, an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India.
If an NRI does so, then it will be a violation of FEMA laws that can result in a penalty or even confutation of such property. To purchase an agricultural property in India, an NRI has to take a prior approval from RBI (Reserve Bank of India), or he/she can acquire this property only by way of inheritance.
An NRI can sell his agricultural land/plantation/ farm house in India to an Indian citizen resident only.
1. Your parents can buy the agricultural land on their name, subject to the particular state laws on this.
2. You can transfer the money to your parents on the regular process like how you had been transferring earlier, but please note that it cannot be said that you shall have any rights or claim over the property purchased on your parents name.
You can gift the money to your parents instead of lending them.
Various states follow different procedures for the purchase of agricultural land. In certain states only an agriculturist can purchase such land whereas there are no restrictions in other states. All over India, NRIs and PIOs can’t purchase agricultural land/plantation property/farm houses. They can, however, inherit agricultural lands.
Which state are you planning to buy the agricultural land in?
Dear client
You have to gift the money to your parents for purchasing of land. As they will have the right over the money if they receive it as gift. They can do whatever they want from the money. Just see to your tax limits in USA
