• Buying agriculture land in my mother's name and gifting it to me

Dear Sir/Madam,

I am resident of Karnataka. I work for an IT company in Bangalore. My income is more than 2 lakhs and My wife is also working and her income is also more than 2 lakhs.

Currently we hold around 2.4 acres of land in my mother's name, my name and my brothers and sisters, which is transferred to our name after my father's death. The land was self purchased by my father. 

In future I want to shift to Agriculture field and now I want to buy around 5 to 6 acres of land and start the work. Once it is established I will quit IT and move to Agriculture field. My queries are -

1) Shall I buy the agriculture land in my mother's name and execute gift deed after 3 months of purchase to my name?

2) In the gift deed execution, whether my mom's signature enough as it is self purchased or my brothers' and their wives and my sisters' signature required?

3) To show the source of income for my mother to buy agriculture land, can we show the below incomes combined?
   i) agriculture income from 2.4 acres of land from last 9 years,
   ii) non agricultural income of hers as she runs a grocerry shop (which is < 2 lakhs per annum)
  iii) loan against property of 2.4 acres of land
Asked 10 months ago in Property Law from Bangalore, Karnataka
Religion: Muslim
1) the income limit from non agricultural sources for purchase of agricultural land has been increased to Rs 25 lakhs per annum in karnataka 

2) your mother can purchase agricultural land if her income is below the limit 

3) she can execute gift deed of agricultural land 

4) consent of your brothers and sisters is not required 

5)SECTION 79A (3) TO (6). Every acquisition of land otherwise than by way of inheritance or bequest in  contravention of this section shall be null and void.4. Where a person acquires land in contravention of sub-section (1) or acquires it by bequest or inheritance he shall, within ninety days from the date of acquisition, furnish to  the Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration


Ajay Sethi
Advocate, Mumbai
23165 Answers
1216 Consultations
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A really good move. 
Professionals like you should really invest in agriculture which is again like a start-up.
My replies to your queries are 
a) Plan to buy property in your name only . Buying in your mom's name is a good idea.but when you have siblings and their spouses, we do not know who will do what. hence buy outright on your name only.
b) Source of Income- You can show agricultural income and non agricultural income if you do not have a choice or when questioned by IT authorities(if at all they question).
 From what you have said on your current earnings, (husband and wife combined income of 4 lakhs), this is sufficient for you to buy a property worth about 50lakhs straight(2lakhs  *2(husband +wife working)*(12- assuming both of you have put 6 years experience each) 

Since you also plan to take loan against property, declaring ource of income should not be a problem at all.
Go for it as you have a good idea. 
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
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There is no need of taking gift of agricultural land from your mother since there is an amendment to the ceiling on income from other than agricultural sources up to Rs. 25 Lakhs for buying agricultural land in Karnataka and you can buy agricultural land without resorting to the circuitous route as planned by you, since basically you are an agricultist.
Shashidhar S. Sastry
Advocate, Bangalore
1233 Answers
59 Consultations
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1. The income ceiling has been raised from 2 lakhs per annum to 25 lakhs per annum. Be that as it may, if your mom executes a gift deed then nobody else is required to sign it. 

2. If you are employed, you need to produce salary certificate to have the income certificate. 

3. You will require old RTC/pani/agriculture certificate issued in your name or your parent(s) name. In addition to this, income certificate from local panchayat/taluk office to show that income is less than 25 lacs, adress proof and ID proof along with Akarband will also be required.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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1) your brother and sisters signature is not required in gift deed 

2) amendment to Karnataka land reform act has been passed by state legislature 

3) you can do Google search and obtain details of amendments made  online 
Ajay Sethi
Advocate, Mumbai
23165 Answers
1216 Consultations
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Hi, as per latest Amendment of the Karnataka Land Reforms Act, the income has been increased 25 lakhs so you are eligible for buying agricultural land.

2. You need not to show any document with regard to income while purchasing the property before Sub-Registrar.

3. The Assistant commissioner has the power to initiate the proceedings against you, provided if you violate the provisions of the Karnataka Land Reforms Act, on that case only you have to produce relevant documents to show that you are eligible to  buy the agricultural land.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. Yes.
2. The notification has been published in the gazette and also sent to all the concerned offices.
3. Google to get the soft copy.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1) Shall I buy the agriculture land in my mother's name and execute gift deed after 3 months of purchase to my name?
It is absolutely your decision, you are the better judge of the situation.  Since you belong to an agricultural family there is nothing wrong in buying the property on your name too.



2) In the gift deed execution, whether my mom's signature enough as it is self purchased or my brothers' and their wives and my sisters' signature required?
Since your mother is the absolute owner of the property proposed to transfer on your name by executing a registered gift deed, her signature alone will be sufficient and neither your brother nor anyone can dispute the same or claim any share in it in future. 




3) To show the source of income for my mother to buy agriculture land, can we show the below incomes combined?
   i) agriculture income from 2.4 acres of land from last 9 years,
   ii) non agricultural income of hers as she runs a grocerry shop (which is < 2 lakhs per annum)
  iii) loan against property of 2.4 acres of land
All are okay but the third item is slightly a glance which need not be included.

T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
5.0 on 5.0
Based on the replies I have some queries
1) According to the replies, I understood that my mother can purchase the Agriculture land and execute a gift deed and it is not mandatory to get signatures from my brothers and sisters (If signed good). Am I right?
Yes, your understanding is very much right.




2) There is an amendment about the ceiling of non agricultural income. It has been increased from 2 lakhs to 25 lakhs. 
Has the circular been passed to all sub registrar offices?
Has the order been passed and it is updated in the law books?

Yes the bill has been enacted in the Karnataka government.
The following are the details:
KARNATAKA ACT NO. 33 OF 2015
(First published in the Karnataka Gazette Extra-ordinary on the thirteenth day of
August, 2015)
THE KARNATAKA LAND REFORMS (AMENDMENT) ACT, 2015
(Received the assent of the Governor on the twelfth day of August, 2015)
An Act further to amend the Karnataka Land Reforms Act, 1961.
Whereas it is expedient further to amend the Karnataka Land Reforms Act, 1961 (Karnataka
Act 10 of 1962) for the purposes hereinafter appearing.
Be it enacted by the Karnataka State Legislature in the sixty sixth year of the Republic of
India.
T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
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