• Transfer/gift of agricultural land in Karnataka from elder brother

Hi,
We are trying to buy agricultural land in Karnataka. My father belongs to an agricultural family. However, his income from non-agricultural sources is more than 2 lakh per annum. So, we are thinking of buying the property in my father's elder brother's name, who can then "gift" the land to my father after a period of time. 
Based on existing articles in Kaanoon.com, I understand the risk of Benami transactions. Now, I want to understand below points:
1) Is the word Bequest (frequently used in The land Reforms act) same as Gift?
2) What is the difference between Gift & Will? According to my understanding, Gift can be done at any point of time, whereas a will is executed only after the death of the person.
3) Will a Gift of land from my uncle to my father attract the provisions of Land Reforms Act (income from non-agricultural sources less than 2 lakh per annum)?
Asked 9 years ago in Property Law
Religion: Hindu

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9 Answers

Hi, bequest is entirely different from Gift as per dictionary meaning word "Bequest" means "The act of giving or leaving personal property by will."

2. When you executed a gift deed then property will transfer immediately but when you executed will property will transfer only after your death i.e. means will become come into effect only after your death and one more thing is that you can make any number of will only last will only be valid.

3. For the purpose of Gift Explanation family means: Family in relation to the donor

for this purpose means husband, wife, son,

daughter, daughter-in-law and grand children.

If the property is transferred other than the above relationship you have to pay the stamp duty as per market value.

4. As per land reforms act definition of family means:-

“family” means,—

(a) in the case of an individual who has a spouse or spouses, such

individual, the spouse or spouses and their minor sons and unmarried

daughters, if any;

(b) in the case of an individual who has no spouse, such individual and

his or her minor sons and unmarried daughters;

(c) in the case of an individual who is a divorced person and who has

not remarried, such individual and his minor sons and unmarried daughters,

whether in his custody or not; and

(d) where an individual and his or her spouse are both dead, their

minor sons and unmarried daughters;

and J “joint family” means in the case of persons governed by Hindu Law,

an undivided Hindu family, and in the case of other persons, a group or unit

the members of which are by custom joint in estate or residence;

Pradeep Bharathipura
Advocate, Bangalore
5611 Answers
338 Consultations

1) bequest is under a will .

2)in respect of gift title in property passes on to the donee immediately on execution of gift deed . the gift deed is required to be stamped and registered .

3) will takes effect on demise of testator ie person making will

4) SECTION 79A (3) TO (6)3. Every acquisition of land otherwise than by way of inheritance or bequest incontravention of this section shall be null and void.4. Where a person acquires land in contravention of sub-section (1) or acquires it by bequest or inheritance he shall, within ninety days from the date of acquisition, furnish tothe Tahsildar having jurisdiction over the Taluk where the land acquired or the greater part of it is situated a declaration

5) your uncle has to make application to assistant commissioner for permission to gift such land . Asst commissioner may grant permission subject to condition that your father takes up agriculture within period of 1 year . if your father cease doing agricultural activities within period of 5 years land may vest in Stat govt on payment of compensation

6) section 80 of karnataka land reform act bars non agriculturist from being gifted agricultural land in karnataka .

Ajay Sethi
Advocate, Mumbai
96917 Answers
7819 Consultations

1) As per Section 79A of the Karnataka Land Reforms Act 1961, the non-agricultural income of a purchaser who must be an agriculturist should not exceed Rs 2 lakhs per year

2) for transfer of agricultural land by means of gift deed in favour of family member assistant commissioner may grant permission .

3)there is no such provision that income of donee should be less than Rs 2lakhs from non agricultural sources.

4) to be on safe side better make local en quires with assistant commissioner office

Ajay Sethi
Advocate, Mumbai
96917 Answers
7819 Consultations

) Is the word Bequest (frequently used in The land Reforms act) same as Gift?

Ans:-It refers Will.

2) What is the difference between Gift & Will? According to my understanding, Gift can be done at any point of time, whereas a will is executed only after the death of the person.

Ans:-Will is declaration of the intention of the testator as to disposal of his property after his death only.

3) Will a Gift of land from my uncle to my father attract the provisions of Land Reforms Act (income from non-agricultural sources less than 2 lakh per annum)?

Ans:-No.

Thanking you,

Subash M R
Advocate, Bangalore
176 Answers
8 Consultations

1. The Karnataka Govt. is contemplating to raise the income ceiling from non-agricultural sources to 25 lakhs per annum and you can wait and then take a decision after the same is implemented.

2. The act of giving personal property or money such as stocks, bonds, jewelry and cash left to an individual or organization through the provisions of a will or estate plan. Bequests can be made to family, friends, institutions or charities.

3. A Gift takes immediate effect during the life time of the Donor and the Donee has to accept the same during the life time of the Donor, whereas the WILL takes effect after the death of the Testator.

Shashidhar S. Sastry
Advocate, Bangalore
5408 Answers
329 Consultations

1. Bequest refers to Will which is different from Gift,

2. Gift Deed is required to be compulsorily registered and in such case the title will be conveyed immediately on registration. In case of Will, it is not mandatory to register irt and the title is transferred after the demise of the executor and also after being granted with probate of the will by the Court.

Krishna Kishore Ganguly
Advocate, Kolkata
27457 Answers
726 Consultations

1. A non agriculturist can not buy agricultural land in Karnataka,

2. An Agriculturist having income of more than Rs.2Lakhs from non agriculturist source also can not buy agricultural land in karnataka,

3. An Agriculturist can bequeath his agricultural land to his nephew on being permitted by the Asst.Commissioner on certain conditions wherein his income from non agricultural socurce will not be considered.

Krishna Kishore Ganguly
Advocate, Kolkata
27457 Answers
726 Consultations

1.To buy the agricultural land in Karnataka the annual average income of the person including agricultural income should be less than Rs 2 lakhs. The person must have had an agricultural land in his name before the year 1974. The person should be an agriculturist or an agricultural worker by profession.

2. The land can be purchased in the favour of your father's elder brother who will subsequently be at liberty to make a gift deed in favour of your father. However, the liberty comes with a rider. He shall seek the permission of the District Collector to gift the land. The permission may be granted on the fulfillment of certain conditions which may be imposed by him. If the conditions are found to be onerous then your father may challenge it in the High Court.

Ashish Davessar
Advocate, Jaipur
30773 Answers
972 Consultations

The income from non-agricultural sources cannot be considered while deciding whether the income is below 2 lakhs or not.

Ashish Davessar
Advocate, Jaipur
30773 Answers
972 Consultations

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