Dear sir/mam, I am selling an agriculture land near Bangalore rural and after the sale agreement buyer made the conversation of land as residential through my name . Now I came to know from multiple auditors that I may face huge tax for converted land because buyer converted the land on my name . Initially I didn't know this tax consequence so I allowed him to convert the land and now I asked him to pay the tax before registration. He says he cannot pay huge tax instead he will register it as agriculture land only and if not possible then he will apply for revoking the conversation. Now my questions are. 1) is it possible to register any converted land as agriculture land ? 2) is it possible to revoke the conversation and make it as again agriculture land .? Kindly advise
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1. It will be cheating & fraud on the Govt., to registered NA land into Agricultural Land, more so since it involves Stamp Duty variations on the same.
2. NA land can be converted to Agricultural land, ONLY with permission of the district collector /revenue dept., by following due procedures of law.
Once land has been converted into NA registration cannot be done as agricultural land
2) approach authorities for cancellation of conversion orders
Dear Sir,
Yes it is possible and within the powers of the Deputy Commissioner. But it is unwise to do so. Better cancel the said sale agreement and sell the same to somebody else who is ready to pay taxes. It is very difficult for converting to residential land and your land get 100’s time more value if you layout the same. Just release newspaper ad or on the internet several builders come to you.
If it not build any construction on land then there are some possibility to convert it. There you can show whole land still belongs to agricultural field and show them whole procedure of agricultural is performing in your land form digging , seeds sowing etc.
1. If the land is already converted then its wrong to describe as agricultural. Moreover even if you do the Registrar on updating of land can refuse to register unless land type is properly described.
2. Talk to the authority on this subject as the same is permissible in many states.
Otherwise cancel the agreement and seek refund.
There is a provision in KLR Act that if the purpose for which the land was converted is not carried out in a certain period of time, the permission is cancelled and the land reverts back to agricultural.
So, any agricultural land, converted for a non-agricultural purpose, should be used for such converted purpose within the specified time from the date of issue of the conversion order, failing which the conversion order will be withdrawn and the amount of premium deposited will be forfeited to the State government.
Hence based on the above provision the conversion approval order can be revoked.
Sale consideration on agricultural land after its conversion to non-agricultural Land constitutes business income. Revoke the conversion than sell it as agriculture land.
NO, it will be illegal and false declaration to avoid tax.
Apply for cancellation of conversion. Office order will pass than only sell.
1. Yes
2. Yes
Yes it can but only if legally converted
Yes you can do revocation also
A. Legally you can't mention like that as stamp duty for registration is variable towards converted land. If you registered the same as agricultural land, notice may be issued against you from the DRO office towards insufficient stamp duty.
B. You can revoke the conversion. But you may loose conversion charges and expenses.
- Under Section 95 of the Karnataka Land Revenue Act , agriculture land can be converted from agricultural land to non-agricultural , and the Deputy Commissioner has right to grant permission.
- Further, under the Rule 107 of the Karnataka Land Revenue Rules , for changing the land use , there is provision of charging Fee ,and varies for different districts and locations in Karnataka.
- Further , if any agricultural land, converted for a non-agricultural purpose, should be used for such converted purpose within the specified time from the date of issue of the conversion order, failing which the conversion order will be withdrawn and the amount of premium deposited will be forfeited to the State government.
1. Since buyer has applied for conversion and no registration has been taken place , hence you can move an application before the office of competent authority to cancel the same , on the ground of inability to pay the tax.
This cannot be done. Once it has been converted to a commercial or residential area it cannot be undone. The tax liability has to be paud by him. In fact he committed a fraud by doung this. Lodge an fir against him if he evades the liability.
1. Why did you let the seller apply for conversion on the basis of agreement to sell alone?
2. He ought to have done that only after the execution of sale deed in his favour. Agreement to sell does not transfer title from seller to buyer, hence for conversion done before transfer of title the liability would fall on you.
3. For revocation of conversion there has to be an application for revocation.
Approach before concern authorities to cancel said Conversation land.
Revocation is possible. First let him revoke on his own cost.
If not done then show the sale documents to tax authorities.
1. No, it's not possible to register converted land as agricultural land.
2. Yes you can make application for change of land use back to agricultural.
