Can NRIs buy agricultural land in India? 

 

 

No, direct purchase of agricultural land, plantation property, or farmhouses is generally prohibited for NRIs. This restriction aims to preserve food security and prevent land speculation. 

 

However, there are a few exceptions:

 

  • Inheritance: NRIs can inherit agricultural land from a resident Indian relative. They can retain ownership but cannot purchase additional land or sell it to another NRI. Inheritance from other NRIs may require special permission from the Reserve Bank of India (RBI).
     
  • RBI permission: In rare cases, NRIs can obtain special permission from the RBI to purchase agricultural land for specific purposes, such as setting up agricultural projects or promoting rural development. This process is complex and requires meeting strict criteria.

 

Can NRIs gift agricultural land or receive agricultural land as a gift?

 

  • Resident Indian to NRI: Yes, NRIs can receive agricultural land as a gift from a resident Indian.

 

  • NRI to NRI: No, NRIs cannot gift agricultural land to other NRIs. They can only gift it to a resident Indian.

 

Can NRIs sell inherited land? 

 

  • NRIs and Overseas Citizens of India (OCIs) can sell inherited agricultural land, plantation property, or farmhouses only to a resident Indian.

 

  • Proceeds from the sale must be deposited in the NRI's Non-Resident (Ordinary) Account.

 

  • Special approvals are required for sales of land purchased with RBI permission.

 

Important documents for land transactions:

 

  • Mother Deed – a main document proving ownership
  • Inheritance documents (if applicable)
  • Sale agreement (if applicable)

 

Additional considerations:

 

  • Benami transactions (buying property in another person's name) are illegal for NRIs, except for spouses, siblings, parents, or children.

 

  • Taxation on agricultural land sale differs between rural and urban areas

 

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