Can NRI Sell Agricultural Land in India?

Yes, to answer your query: “can NRI sell agricultural land in India?” I’d like to say that you can sell an agricultural land in India, but there are specific restrictions and procedures governed by the Foreign Exchange Management Act (FEMA). NRIs are generally not permitted to purchase agricultural land, plantation property, or farmhouses in India without prior RBI approval. However, they may retain ownership if the property is inherited or gifted from a resident Indian.

Can NRI Sell Inherited Agricultural Land in India?

An NRI can sell agricultural land but only to an Indian resident, not to another NRI or a foreign national. This restriction aligns with FEMA rules to ensure agricultural land remains within the control of Indian residents.

The sale of agricultural land attracts Capital Gains Tax unless the land qualifies for exemptions.

For example:

If the land is in a rural area (as defined by the Income Tax Act), it may not be classified as a capital asset, and gains from its sale could be exempt. If the land is in an urban area, it is considered a capital asset, and long-term or short-term capital gains tax will apply based on the holding period.

Tax Deducted at Source (TDS) at 20%-30% is applicable on the sale proceeds, and the NRI can claim a refund or exemption through tax filings.

Sale proceeds can be repatriated up to $1 million per financial year, subject to RBI rules and submission of required documentation such as Form 15CA/CB, proof of inheritance, and tax clearance certificates.

Your query about can NRI sell agricultural land in India should be solved.

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Wondering can NRI sell agricultural land in India? Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can sell agricultural land, plantation property, or farmhouse property in India. However, there are specific guidelines to consider:

1. Buyer Eligibility: NRIs can sell such properties only to a Resident Indian. The buyer must be an Indian citizen residing in India.

2. Sale Transactions: If the NRIs purchased the land with permission from the Reserve Bank of India (RBI), they need approval from RBI to complete the sale transaction.

3. Proceeds and NRO Account: The proceeds from the property sale should be deposited in the NRO (Non-Residential Ordinary) account of the NRI. The maximum amount that can be remitted from an NRO account is US $1 million.

I hope this answers your query on can NRI selling agricultural land in India.

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Hi there. Yes, a Non-Resident of India can sell agricultural land in India. There are some processes attached to it, which you must be aware of. I too, am an NRI, who has been living in Canada for over 8 years. I wished to sell my inherited agricultural land and was able to do so by following a few steps. I would like to share a detailed note regarding whether can NRI sell agricultural land in India or not in a bit more detail. This will help clear your doubts about the subject.

Can NRI Sell Inherited Agricultural Land in India?

To simply put it out there, yes an NRI is permitted to sell any property, be it agricultural land or any other property type. The condition is that they can sell the land to only a person residing in India. 

The taxation rate is the same in the case of selling the property to an NRI or an Indian resident. The tax will be dependent on the NRI's holding period over the land. This will also vary based on the period for which it was under the previous owner’s possession, who had acquired it for consideration.

The buyer will deduct taxes at the appropriate rate from the consideration under both circumstances. 

So, I hope my explanation helps you understand whether NRI selling agricultural land in India is possible or not. Have a good day.