• As NRI what are my options to purchase agriculture land in Maharashtra?

I am an Indian citizen working in the USA for 5 years. I am not a green cardholder. I am working there on H1B. 
My parents are in Pune. My father owns ancestral agriculture property jointly with my Uncle in Pune district. After retirement, he wants to begin farming again which my grandparents were doing. My father retired as a school teacher. 
My question is, what are my options if I need to purchase another agriculture land in Maharashtra? My purpose of purchase would be to allow my parents to have a source of income. 
Can I use my money to purchase property on their name? Funds would come of my salary in USA.
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

Lawyers are available now to answer your questions.

24 Answers

As long as you are not holding a foreign passport you will be considered as Indian citizen only and NRI is none but an Indian national .

So being an Indian you do not face any hurdle to buy a property in India but for acquiring agricultural land you need to be eligible for this likes status of a framer and income criterion etc.

To know in details about eligibility on this count you better contact the department concerned. 

Devajyoti Barman
Advocate, Kolkata
22777 Answers
484 Consultations

5.0 on 5.0

Prior approval from RBI is required to purchase agricultural land in India byNRI.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

Yes. You can purchase on your parents name but you need to pay tax for transferring money.

 

If you're alone than it's okay to purchase if you have siblings than consider the future consequences in the family and act accordingly as of now.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

Your parents can purchase agricultural land in their name 

 

2) you can transfer funds to your parents 

 

3) They don't need to pay tax on this gift. As per the income tax act, exchange of gifts between relatives are exempt from tax.

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Dear Sir,

Though RBI has given general permission to the NRIs to purchase immovable properties in India, the permission does not grant power to acquire any and every property in India. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property.

A non-resident Indian (NRI) or person of Indian origin (PIO), can inherit any immovable property in India, whether it is residential or commercial. They can even inherit agricultural land or a farmhouse, which they are otherwise not entitled to acquire by way of purchase.

You can sell your inherited properties to any person resident in India or to a Person of Indian Origin. However you need RBI's approval to buy it which is not easy.

NRI Can invest in india, but cant hold a property....

 

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

There is no problem purchasing main agricultural land as your father is inherited by the agricultural land and the same land will be transferred to you as well as ancestral property you can purchase land in your name as well as the name of your father jointly or individually as you may think fit

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

See being an NRI you cannot.purchase agriculture land in India. You can use your money and it.can be registered in your father's name.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

NRI can inherit agricultural land.

Yes you can use funds from your salary by transferring the same to you father to purchase of AL in India.

It is exempted under Income Tax Act, if the same is transferred to near relatives (gift).

 

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

It can be only received through inheritance. NRI can't obtain the same on his own name. You can also purchase the same with help of local farmer forming a company

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

You are a NRI cannot purchase agriculture land in your name but you can purchase in the name of parents.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Agricultural land can be bought in the name of your father and the payment can be made by you, as your father already has agricultural in his name which is a prerequisite for buying agricultural land in the state of Maharashtra. 

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

- As per FEMA21/2000 RBI rules , an NRI or PIO cannot acquire agricultural land /farm house/plantation property in India.

- If you will purchase an agriculture land in Maharashtra, then it will be a violation of FEMA laws , that can result in a penalty or even confutation of that property.

- Futher, to purchase an agricultural property in India, an NRI has to take a prior approval from Reserve Bank of India, But you can acquire this property only by way of inheritance.

- Being an NRI , you are only allowed to purchase residential or commercial property in India.

- Yes, you can use money to purchase property in the name of your parent. 

Mohammed Shahzad
Advocate, Delhi
13095 Answers
195 Consultations

5.0 on 5.0

As a NRI you cannot purchase agricultural landed property on your name in India.

No doubt you can fund your father for purchase of the agricultural property  but on his name alone and not on yor name.

In that case you cannot claim your share in it anytime during his lifetime as a right based on the financial assistance you rendered to purchase the said agricultural landed property.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

As per notification No. FEMA21/2000 RBI dated May 3, 2000, NRI or PIO cannot acquire agricultural land or plantatiom (property or farm house) in India Purchase of any property in violation of FEMA laws can result in fine or even Confiscation of such property. To purchase agricultural land approval of the Reserve Bank is necessary but you can transfer money to your parents and they can purchase agricultural in thier name. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

They can bequeath agricultural land to you by will 

 

2) it should be attested by 2 witnesses 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Your parents can execute a will in your favour and you can inherit search agricultural land after their demise. There is no legal infirmity.

Siddharth Jain
Advocate, New Delhi
6303 Answers
102 Consultations

5.0 on 5.0

There's no limitation or any restrictions on them to transfer the said property to your name by  a Will. 

They can very well transfer the entire property to your name  which can be acquired by you after their lifetime. 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

There is no limitations. You can send as much foreign currency in NRE account as you want.

Gift made by you shall be liable to gift tax as law in the hands donee, similarly any income from gifted property shall be taxable in the hands of donee.

You shall not be liable to pay any tax for such transactions.

Once gift is made the donee can purchase any property and again gifted you back except agricultural land.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

No there are no limitation on same they can make a registered will in your favour and you can inherit same without any tax liability.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

No restriction on inheritance of agriculture land.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

you can inherit any immovable property in India, whether it is residential or commercial or even agricultural land or a farmhouse. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

No it can be legally inherited by you without limitations

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

You cannot purchase the agricultural land in Maharashtra.

But you can gift money to parents for purchasing the land because your father can purchase agricultural land.

You can later get the property through inheritance from your family. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Dear Sir,

A: The following are the salient provisions related with purchase and sale of immovable properties by NRIs and PIOs in India.

An NRI can purchase an immovable property in India. He may transfer the property to any Resident, NRI or PIO. However, agricultural land or plantation property or farm house can be transferred only to Indian citizens permanently residing in India.

An NRI or PIO can acquire immovable property in India by way of:

a) purchase out of funds received by way of inward remittance through normal banking channels or by debit to his NRE, FCNR or NRO accounts. Such payments cannot be made either by travelers’ check or by foreign currency notes (Circular AP DIR 5 dt. 16.8.06). No payment can be made outside India.

 

b) gift from a Resident, NRI or PIO.

A PIO may transfer immoveable property by way of

a) sale to a resident.

b) gift to a resident, NRI or PIO.

c) sale or gift of agricultural land, plantation property or farmhouse in India to a resident who is a citizen of India.

NRIs and PIOs can receive inheritance of any immovable property. However, in the case of a PIO, if the property is received from an NRI or a PIO, it should have been acquired by the original holder in accordance with the provisions of the law in force at its acquisition.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer