Can NRI Buy Agricultural Land In India

Can NRI Buy Agricultural Land in India, holds an immense potential in the real estate investments, generally for non-resident Indians (NRIs) looking to diversify their portfolios. However, examine the sale of agricultural land by NRIs demands a strategic concept, which balances returns with risk mitigation. In the present article, we are exploring the art of sale of agricultural land by NRIs, further delve into how instalment payment plans can be leveraged to maximize returns while minimizing risks. There are one such strategy, which is utilization of instalment payments, providing both buyers and sellers a flexible and secure avenue for transactions.

NRI Agricultural Land Purchase

As per the Foreign Exchange Management Act, and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018. In the India’s law, any agricultural land or farmhouse or property of plantation are not buy by both OCIs and NRIs, unless they get a special permission from the Reserve Bank of India (RBI).

Sale of Agricultural Land by NRI

NRIs can sale agricultural land, farmhouse, or plantation property only for a Resident of India. The special permission from RBI is required for buying lands. Property requires to be deposited in the NRO account of the NRI. The maximum remittance permission from an NRO account is capped at US $ 1 million. The repatriation procedure mirrors, which is outward remittances, necessitating the submission of forms 15CA, and 15CB. In addition, supplementary documents like legal heir certificate, sale agreement for sales, legal heir, and death certificate. 

Tax on Sale of Agricultural Land in India for NRI

There is difference in taxation on sale of agricultural land by NRI in urban and rural areas. Urban agricultural land capital gains tax is applicable, on the other side, the rural agricultural land as per Income Tax are not capital assets therefore no capital gains tax is applicable herein. 

Legal Challenges in selling Agriculture Land to NRIs 

Selling agricultural land to NRIs may face several issues, primarily as the regulatory restrictions, and need to impose by the Indian government. Here are certain legal challenges:

• Ownership Restrictions;
• Specific laws and regulations by the state;
• Implication of tax;
• Progressive payment adoption;
• Land ceiling laws;
• Foreign Exchange Regulations;
• Contracts Enforcement as it leads to mitigate the crisis by strategic agreements;
• Documentation and title issues;
• Conversion of land use or transferring extensive areas.

All you need to know about Taxation of Non-Resident Indians (NRIs) in India

Conclusion

In conclusion, we can say that Can NRI Buy Agricultural Land In India, selling agricultural land to non-resident Indians offers promising avenue for both buyers,, and sellers. By meticulous research of market, transparent communication, and legal compliance, sellers can understand the complexities on sale of agricultural land to NRIs with confidence. By providing instalment payment options, sellers are not only attracting to wider pool of potential buyers but also foster flexibility and trust in the process of transaction. The leverage instalment payment plans, sellers can maximize returns while minimizing risks, thereof to know the full potential of their land assets.