How can nri buy agricultural land in india

The mere acquisition of property does not attract income tax. However, taxes have to be paid if they are selling this property. Rental income earned is taxable in India, and they will have to obtain a PAN and file return of income if they have rented this property. On sale of the property, the profit on sale shall be subject to capital gains.

However, in case of sale of immovable property, the DTAA with most countries provide that the capital gains will be taxed in the country where the immovable property is situated. Hence, the non-resident will be subject to tax in India on the capital gains which arise on the sale of immovable property in India.

Letting of immovable property in India would be taxed in India under most tax treaties in view of the fact that the property is situated in India. Type of asset: Assets like house property, land and building, jewellery, development rights etc.

Rate of tax deduction at source TDS. The exemption is restricted to the amount of capital gains or amount invested in new residential house, whichever is lower. If the amount of capital gains is invested in bonds of National Highways Authority of India NHAI or Rural Electrification Corporation, then the entire capital gains is exempted, else the proportionate gain is exempted.

As per the financial budget , a cap of Rs. In case the non-resident pays any tax on capital gains arising in India, he would normally be able to obtain a tax credit in respect of the taxes paid in India in the home country, because the income in India would also be included in the country of tax residence.

If the property was acquired out of foreign exchange sources i. For this purpose, repatriation outside India means the buying or drawing of foreign exchange from an authorised dealer in India and remitting it outside India through normal banking channels or crediting it to an account denominated in foreign currency or to an account in Indian currency maintained with an authorised dealer from which it can be converted in foreign currency.

The amount of capital gains, if any, arising out of sale of the property can also be credited to the NRO account. The rental income, being a current account transaction, is repatriable, subject to the appropriate deduction of tax and the certification thereof by a Chartered Accountant in practice. Repatriation of sale proceeds is subject to certain conditions. The amount of repatriation cannot exceed the amount paid for acquisition of the immovable property in foreign exchange.

Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final instalment of consideration amount, whichever is later.

Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property. The person authorizing the other to act is the principal, grantor, or donor of the power. A Power Of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property.

A Power Of Attorney, or letter of attorney, is a document that authorizes another person, known as the agent or attorney-in-fact—usually a legally competent relative or close friend over 18 years old—to handle any combination of financial, legal and health care decisions. A power of attorney is also referred to as a POA.

Generally, one chooses a POA as a provision if he or she becomes incapacitated. An Indian citizen resident outside India does not require any permission to transfer any immovable property, to a citizen of India who is resident in India. An Indian citizen resident outside India does not require any permission to transfer any immovable property other than agricultural or plantation property or farm house, to a person who A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India. Repatriation outside India, including credit to NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraph 13 below.

The rental income being a current account transaction is freely repatriable outside India. For the purposes of transactions, i. An NRI buying an immovable property in India does not require any special permission. However, the payment can't be made in foreign currency. NRIs can make the purchase using Indian currency, the Rupee, through funds received in the country by means of normal banking channels.

There are also no restrictions on the number of immovable properties that an NRI may purchase, either residential or commercial. NRI investments into the property market are treated on par with investment made by resident Indians, but for some exceptions. There is no separate restriction for purchase of agricultural property. In many states there is no bar to by agricultural land white there is such bar for non farmers.

So apply firstly to RBI for permission to purchase agricultural land Sure, there is no bar subject to ITR income tax returns , and you can purchase agricultural land anywhere in India including the AP. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property. RBI has issued a notification granting a general permission to NRIs for purchase of certain immovable properties in India without obtaining any specific permission from RBI.

You can also go through the government regulation with respect to the purchase of properties by NRI's as stated on the Government website.