Buying agricultural land near Mysore, Karnataka
I am a resident of Mysore, Karnataka. I am planning to buy an agricultural land near Mysore for farming. I belong to non-agricultural family (none of my family members or my ancestors, do not own any agricultural land, at any point of time). After reading the law, I came to know that, I cannot buy the agricultural land in my name.
My wife comes from agricultural background, her father (my father-in-law) is a farmer and he has agricultural land in his name, so did his ancestors. I have requested my father-in-law to transfer 1 acre of agricultural land in my wife’s name, so that she becomes a farmer, and hence legally eligible to buy agricultural land in Karnataka. So, the current status is, they are in process of transferring the property to her name.
My wife is not working and she is a housewife. She has never filed any Income Tax returns, where as I am from IT background, and I do file my IT returns. There is also a clause that, the land buyer’s family income (income from non-agricultural source) should not be more than 2 Lakhs. So, My question is:
1. Is my wife legally qualified to buy the agricultural land, in spite of me filing IT returns ( My annual income is more than 8 lakhs )
2. Is it mandatory for me to disclose the source of funds and show them the proof, while buying the agricultural land?
3. What documents, does my wife need to have, in order to buy the agricultural land? ( ex:like Paani, Low income certificate, Aadhar card ) etc.
4. Is there any other thing, I need to take care of?
5. Any Advocate from Mysore, who is expert in Property niche?
Please let me know the details.
Asked in Property Law from Mysore, Karnataka
Hi, as per provisions of Karnataka land reforms act,1961 your wife is not entitled to buy a agricultural land even though her father being a agriculturist and as per the section 79(2) (i) says "the aggregate income of all the members of a family or a joint family from source other than agricultural land shall be deemed to be income of the family or joint family, as the case may be, from such source".
A. If you want to purchase agriculture land in Karnataka, As per Section 79A of the Karnataka Land Reforms Act 1961, the non-agricultural income of a purchaser who must be an agriculturist should not exceed Rs 2 lakhs per year and you or your ancestral must be agriculturist But, in your case, your income more than 2 Lakh and it is clinched by IT returns. Hence, you are completely barred by the local law.
B. Under the Income Tax Act a person has to pay taxes on his income. A person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and says that it is not his income.
C. You have to divulge the income proof else your agricultural land will be confiscated by the Karnataka Government even after purchased the land by giving some compensation on market value. Your wife alos cannot purchase agricultural land because of an agriculturist but section 79(A) says " no person who or a family or a joint family which has an assured annual income of not less than rupees two lakhs from sources other than agricultural lands shall be entitled to acquire any land
D. You can contact a local expert advocate with the help of Google.
c.not applicable as u cannot buy it.
Advocate, New Delhi
1) your wife cannot buy agricultural land since family income is more than Rs 2 lakhs per annum . you have filed income tax returns showing your income as 8 lakhs per annum
2) section 79(2) (i) says "the aggregate income of all the members of a family or a joint family from source other than agricultural land shall be deemed to be income of the family or joint family, as the case may be, from such source".
3) you have to disclose income proof while buying agricultural land .
4) for lawyers in Mysore you can contact MR BT Ravi Advocate from this website as he is from mysore
1. No. she is not since her family income of more then Rs.2 lakhs per year disqualifies her from buying agricultural land,
2. It is required for submitting I.T.Return. Income proof is required to qualify to buy agricultural land. In this case is the land being gifted or purchased from your father in law? Source of fund for buying the agricultural land is not required to be shown,
3.Documents evidencing the eligibiity to buy agricultural land including family income proof of your wife will be required.
1. Since your wife's family income is more than Rs.2 lakhs she incurs the disqualification to buy agricultural land..
2. Income proof is required to be disclosed, failing which your land may be confiscated at any time.
3. You may contact Mr. B.T Ravi on this portal who is from Mysore.
As, I cannot buy the agricultural land in my wife’s name. Can I buy the agricultural land in my father-in-law’s name?
1. My father-in-law is an agriculturist by profession & as far as I know, he does not file any I-T returns. He has no other source of income apart from Agricultural Income.
2. My father-in-law stays in his own house, with his wife and son. His Son is around 40 years old and employed in Govt. sector. His ( My father-in-law’s ) daughter-in-law is also working.
3. As per the law “Family” refers to minor son or unmarried daughter, hence, any income generated by his major son and by his wife ( son’s wife ) will not be a part of his Income.
4. So, as per my understanding, My father-in-law is qualified to buy an agricultural land and he also not fall in 2 lakhs bracket income – Is my assumption right?
5. If my assumption is right, I will buy agricultural land in my father-in-law’s name, then in his WILL, he can write/allocate this agricultural land in my wife’s name. In this way, my wife will be a legal owner of agricultural land by inheritance.
6. Am, I right in my understandings? Let me know your expert opinion and Suggestions.
KARNATAKA LAND REFORMS
SECTION 79A (1) TO (2):-NO ONE CAN ACQUIRE AGRICULTURAL LAND IN KARNATAKA WHOSE ANNUAL NON AGRICULTURAL INCOME IS TWO LAKH RUPEES AND ABOVE:-
On and from 20-10-1995,no person who or a family or a joint family which has an assured annual income of not lessthan rupees two lakhs from sources other than agricultural lands shall be entitled toacquire any land whether as land owner, landlord, tenant or mortgagee with possession orotherwise or partly in one capacity and partly in another.
INCOME HOW CALCULATED
The aggregate income of all the members of a family or a joint family from sources otherthan agricultural land shall be deemed to be income of the family or joint family, as the casemay be, from such sources during a period of five consecutive years preceding such day. Aperson who or a family or a joint family which has been assessed to income tax under theIncome Tax Act, on an yearly total income of not less than rupees two lakhs for fiveconsecutive years shall be deemed to have an average annual income of not less thanrupees two lakhs from sources other than agricultural lands.
(a) in the case of an individual who has a spouse or spouses, such individual, the spouse or spouses and their minor sons and unmarried daughters, if any;(b) in the case of an individual who has no spouse, such individual and his or her minor sons and unmarried daughters;(c) in the case of an individual who is a divorced person and who has not remarried, such individual and his minor sonsand unmarried daughters, whether in his custody or not; and(d) where an individual and his or her spouse are both dead, their minor sons and unmarried daughters;]
INHERITANCE AND BEQUEST
SECTION 79A (3) TO (6)3. Every acquisition of land otherwise than by way of inheritance or bequest incontravention of this section shall be null and void.4. Where a person acquires land in contravention of sub-section (1) or acquires it bybequest or inheritance he shall, within ninety days from the date of acquisition, furnish tothe Tahsildar having jurisdiction over the Taluk where the land acquired or the greaterpart of it is situated a declaration containing the following particulars, namely:
I have seen many politicians, many IT professionals and Business people buying agricultural land around Karnataka, I don't know, what method they use. As far as I am concerned, I prefer going the legal way.
Thanks for all your inputs and suggestions.
Asked 2 years ago
1) your father in law can buy agricultural land but it is not necessary that he will bequeath property to his daughter .
2) if he dies intestate his wife, son , daughter would be legal heirs
3) further even if father makes a will now he can always revoke it later
ur FIL can buy agriculture land but what is the surety that he will make will in favour of his daughter/ ur wife. therefore, think with a cool mind about spending ur hard earned money for buying that agriculture land.
Advocate, New Delhi
Hi, your father in law can buy the land in his name after some years he can gift the same in the name of your wife so that the property will be transferred immediately and if the will has been execute it will come into effect after the death of the testator.
1. Your arrangement to acquire agricultural land in the name of your wife being bequethed by your agriculturist FIL is legally alright,
2. Only rider here is, should your FIL changes his mind in the long run and gives it to someone else, then you loose heavily in the deal.
A. If you have an ample faith on your father in law, you can purchase the agricultural property in the name of FIL. But it would attract Benami transaction. Benami purchases are purchases in false name of another person, who does not pay the consideration but merely lends his name, while the real title vests in another person who actually purchased the property and he is the beneficial owner. Section 3 of the Act, 1988 prohibits benami transaction which reads as under:-
"3. Prohibition of benami transactions.-(1) No person shall enter into benami transaction,’ It is an expressly forbidden by Statute and hence illegal,.
B. However If you are ready to take risk, you can follow this reply read with "A" : your FIL can make a gift or Will in your wife's name with respect to agricultural property.
1. The land may be purchased by you in the name of your FIL who can then make a gift or will in favour of your wife. This arrangement does not suffer from the vice of any illegality.
2. However, it is to be noted that after the land is registered in your FIL's favour he shall be the absolute owner thereof, and he will subsequently be at liberty to refuse to gift or will the land to your wife.