How Much Land Conversion Fee in Telangana State?

When my father and I went to my native place for the partition of our ancestral property we were told by our lawyer that unless converted into non-agricultural land, agricultural land cannot be used for residential, commercial, or industrial purposes. It was because we wanted to convert some of the agricultural land to residential land. 

Our lawyer told us that land conversion is the process of transforming agricultural land into non-agricultural land. Telangana's Non-Agricultural Lands Assessment Act (NALA) states that agricultural land can only be changed for non-agricultural uses after receiving prior approval from the appropriate authorities. In this essay, we examine the Telangana land conversion process. Let me share details about land conversion fee in Telangana and more.

Non-Agricultural Lands Assessment Act – NALA

In 1963, the Non-Agricultural Lands Assessment Act was first introduced. In Telangana, NALA controls the process of changing agricultural land to non-agricultural land.

Agricultural land is defined by NALA as any area used for growing crops, gardens, orchards, or pastures. Commercial purposes include any trade, commerce, or business. Industrial purposes include the process of producing any item with the use of power, which is any form of energy not produced by the human or animal agency.

Non-applicability of NALA

The following types of land are exempt from the Non-Agricultural Lands Assessment Act:

• For lands in estates that are not under government control, the NALA is not applicable.

• NALA is not significant if the land is owned by the Central or State Government but excludes lands leased for non-agricultural use.

• According to NALA, local government-owned land utilised for non-agricultural purposes cannot be changed.

• NALA is not applicable to land owned by a local government that is used for any commercial activity as long as no income is generated from this land.

• NALA does not apply to any charity, religious, or educational institution's land.

• Lands used exclusively for residential purposes, whose extent does not exceed 100 square metres, are exempt from NALA tax.

How much land conversion fee in Telangana state: NALA Tax

NALA tax must be paid for land utilised for non-agricultural purposes. For turning agricultural land into non-agricultural land, landowners must pay the NALA tax. The following two elements determine the tax rate schedule:

• Utility type, commercial, industrial, and residential

• The locality’s population

NALA Tax concerning locality population is below here:

Cesses are taxable on non-agricultural land assessments at a rate of 0.37 paisa, just like they are for land revenue.

Non-agricultural Land Assessment Act states that if an assessment is made and paid for a piece of land, no land revenue will be due for the land.

Only land revenue must be paid if the assessment leviable on any non-agricultural land is less than the land revenue.

I hope now you understand the agricultural land to residential land conversion fees in Telangana.