I am NRI with Greencard and my wife is NRI with American Citizen. Her father is a farmer who jointly owns a farm land near Baroda with his two brothers. They are all NRI with American citizenship and they are ready to sell the farm and. Is my wife considered a farmer even though land is not in her name and she is NRI holding American Citizenship ? I believe that if they sell the land then as an NRIs they can no longer purchase a farm land, correct ? Can my wife inherit land as purchase is not permitted. What are my options to acquire farmer status in this case ? Thanks
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NRI cannot purchase agricultural land .your wife parents can sell agricultural land but cannot purchase agricultural land
your wife can inherit agricultural land on their demise
As NRI /OCI you cannot buy Agricultural land/farm/property without prior approval from RBI
Wife will not be a farmer.yes wife can only inherit in this case
Being NRIs, neither you nor your wife can purchase or acquire agriculture property in India.
Of course your wife can inherit agriculture property in India after the lifetime of her father either intestate succession or testamentary succession.
Therefore being a NRI you cannot get a status in India.
A PIO/NRI can inherit agricultural land in India even if such PIO is foreign national. You FIL can transfer his agreement land by way of registration of gift deed in favor his daughter. There is no tax implication involved in case of transfer of land to legal heir. He can also transfer the land to her by execution of partition deed. FEMA is not applicable for transfer of agricultural to legal heir.
As per law , An NRI can only sell residential or commercial property in India to a person residing in India or to an NRI or a PIO (Person of Indian Origin).
- Further, a foreign national who is a person resident in India within the meaning of Section 2(v) of FEMA, 1999 can purchase immovable property in India, but the person concerned would have to obtain the approvals and fulfill the requirements, if any, prescribed by other authorities, such as, the State Government concerned,
- However, a non-resident Indian (NRI) or person of Indian origin (PIO), can inherit any immovable property in India, however RBI permission is necessary , if the the inheritance results in favor of a citizen of a foreign state, who is a resident outside India.
- Hence, your wife cannot inherit the land , and you also cannot acquire farmer status in this case .
1. Your wife can't be considered as a farmer as she's an NRI.
2. If they sell the farm land, as NRIs they can no longer purchase a farm land.
3. Even though your wife, being an NRI, can't purchase farm land but she can legally inherit the farm land.
Dear client, NRI is not allowed to purchase any land.
You wife can inherit the farmlands from her father. There is no legal impediment in inheritance of farmlands from parents.
Thank you all for answering my question. So wife can only acquire farmland through inheritance from her father. My follow up question is: Does my NRI status change to RESIDENT INDIA if I stay in India for 182 days or longer during my retirement ? Do I then become eligible to purchase farm lands ? Thanks
A resident taxpayer is an individual who satisfies any one of the following conditions:
2) you need to be a farmer to purchase agricultural land
You are a green card holder.
Therefore your status may not be reverted to resident Indian.
You may still be considered as NRI only hence you may not become eligible to purchase agriculture property until you may surrender your green card status
Dear client, the residential status of a person does not change even if he leaves for 182 days in a particular country like India however there are some tax implication if you leave in a country for 182 days
- As per rule for purchasing agricultural land:-
Hence, even if you are a non-agriculture roots ,then also you can purchase the agriculture land in Gujrat , if your income from all sources is less than 25 lakh.
- However, you will have to approach to concerned district Deputy Commissioner ‘s office , for permission to buy land.
- But the permission is granted with a condition that you will cultivate the land for 5 years from the date of purchasing the land.
- Yes, after your retirement , the status of NRI will convert into the Resident India.
Thank you Ajay Shethi, Prashant Nayak, T. Kalaiselvan, Ravi Shinde, Mohammed Shahzad, Shashidhar Sastry, Anik Miu, and Siddharth Jain for answering my questions. I truly appreciate your time and value your expert knowledge.. Mr. M Shahzad, I didn't know that the non-agriculturist with less than 25 lakhs income can purchase agriculture land in Gujarat. In this case many people will qualify and approach to Deputy Commissioner's office and buy farm land under family member's name. Is this a new change in current law in Gujarat ? Thanks
Non agriculturist cannot purchase agricultural land in Gujarat
2) Previously, only those from the state of Gujarat were allowed to invest in agricultural land. The Gujarat High Court passed a decision allowing any farmer across the country to buy agricultural land in Gujarat.
The law what you refer to about a non agriculturist with income less than 25 lakhs pertains to land reforms law of Karnataka state and not by Gujarat state.
In Gujarat the law is that only a farmer can purchase agriculture land
You would not be allowed to purchase farmland in India even after your stay for 182 days or more in India.
According to the Foreign Exchange Management (Acquisition and transfer of immovable property outside India) Regulations, 2015, NRIs, OCIs and PIOs may acquire any immovable property in India except agricultural land/farmhouse/plantation land. They can only inherit the land from their ancestors.
Non- agriculturist cannot buy agricultural land in gujarat.
No
A non- agriculturist cannot buy agricultural land in Gujarat. Previously, only those from the state of Gujarat were allowed to invest in agricultural land. The Gujarat High Court passed a decision allowing any farmer across the country to buy agricultural land in Gujarat