NRIs and OCIs Owning Agricultural Lands in India

NRIs and OCIs can own agricultural land in India under certain circumstances and subject to certain restrictions.

For NRIs:

  1. NRIs can inherit agricultural land in India from a resident Indian, and there are no restrictions on the inheritance of agricultural land by NRIs.
  2. NRIs are not allowed to purchase agricultural land in India on their own. However, they can acquire agricultural land in India by way of gift from a resident Indian, or they can inherit agricultural land from a resident Indian.
  3. NRIs can purchase agricultural land in India through a company registered in India, in which they hold a majority stake, provided that the company is primarily engaged in agricultural activities.
  4. NRIs who have acquired agricultural land in India can use it for agricultural purposes or rent it out for agricultural activities. However, they cannot use agricultural land for non-agricultural purposes such as construction of residential or commercial buildings.

For OCIs:

  1. OCIs have similar rights as NRIs to inherit agricultural land in India.
  2. OCIs can purchase agricultural land in India through inheritance, but they are not allowed to purchase agricultural land in India through gift or otherwise.
  3. OCIs can also purchase agricultural land in India by way of gift or inheritance from a resident Indian, provided that they have held the land for at least two years prior to selling it. The sale proceeds can be repatriated to the country of their citizenship.
  4. Like NRIs, OCIs are not allowed to purchase agricultural land in India on their own or through a company in which they hold a majority stake.

Overall, NRIs and OCIs can own agricultural land in India under certain circumstances and subject to certain restrictions. It is recommended that they seek professional advice from experts in real estate, taxation, and legal matters before making any investment decisions.

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