Inheriting Agricultural Land As An NRI

As an NRI, you can inherit agricultural land in India without any special permission from the Reserve Bank of India (RBI). However, there are a few important considerations:

1. Understand the succession laws applicable in the state where the property is located, as they may vary.
2. Obtain a legal heir certificate or succession certificate from the competent court in India to claim the inherited property.
3. Apply for mutation of the property in the revenue records to reflect the new owner’s name.
4. Comply with Indian tax laws, including filing income tax returns if the inherited property generates income.

Selling Inherited Agricultural Land

If you wish to sell inherited agricultural land, keep the following in mind:

1. Obtain a No Objection Certificate (NOC) from the Income Tax Department.
2. The sale proceeds can be repatriated, subject to compliance with FEMA regulations.
3. Consult with a financial advisor who specializes in NRI wealth management for guidance on legal procedures, tax planning, and estate management.

Gifting Agricultural Land

1. NRIs can receive agricultural land as a gift from residents or other NRIs without any issues.
2. If an NRI wants to gift agricultural land to a resident or another NRI, they might need permission from the Reserve Bank of India (RBI) in certain situations.

Buying Agricultural Land

Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) cannot purchase agricultural lands, farmhouses, or plantation properties in India. However, there are a few exceptions:

1. An NRI ownes agricultural land prior to their NRI status. They can keep it without being forced to sell.
2. NRIs can own farmhouses for recreational, tourist, or commercial purposes, provided they are not situated on agriculturally designated land.

Legal Tips for Buying Agricultural Land

If you are planning to purchase agricultural land in India, here are a few legal tips to keep in mind:

1. Check the title deed of the agricultural land to verify the ownership.
2. Verify the documents and sign a land sale agreement under the supervision of a lawyer and two witnesses.
3. Find out the stamp duty on the land, which varies from state to state.
4. Ensure there are no pending tax receipts and bills of land records.
5.  Collect the encumbrance and land measurement certificate. This ensures there will be no legal hassles or complaints related to the agricultural land.

Remember, exploring the inheritance and ownership of agricultural land in India as an NRI involves complying with a myriad of legal and tax considerations. It’s advisable to seek guidance from legal and financial experts.