• 25 lakh per family income limit to buy agri land in Karnataka

1. I am planning to buy an agricultural land in my Mother name in Karnataka . She is from agricultural family. I am working in USA. My income in USA is more than 25 lakh rupees per year. For USA cost of living , 25 lakh per year is small income. But I came to know that family which has more than 25 lakh income from non Agri source cannot buy agri land. Does that rule still exists in Karnataka? Do new law changes allow family with more than 25 lakh non agri income to buy agri land? What is the best way to buy agri land for me? Another option for me is to buy land in my sister name who is married and belongs another agri family. 
2. What are the documents I should verify before buying agricultural land?
Asked 4 years ago in Property Law
Religion: Hindu

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5 Answers

1. There has been an amendment to the Karnataka Land Reforms Act by which a non-agriculturist Indian can buy agricultural land without any income limit.

2. Mother Deed, Family Tree, Encumbrance certificate, R.T.C., Mutation Register Extract, Akarbandh, etc.

3.  An NRI or a citizen of a foreign country cannot buy agricultural land in india.

Shashidhar S. Sastry
Advocate, Bangalore
5457 Answers
330 Consultations

1.  Since you are not residing in India, you can be considered as a member out of your family hence your income shall not be taken into account to compute the annual income of the family for such purposes. 

Since your mother is an agriculturist, the restriction or income limit of Rs. 25 lakhs may not be applicable to her.

2. There are plenty of documents tht re to be verified, the list is exhaustive based on the type of land and number of transactions, etc. 

You may better get a legal opinion from an expert lawyer and then proceed only if recommended. 

T Kalaiselvan
Advocate, Vellore
87695 Answers
2355 Consultations

Section 79A of the Karnataka Land Reforms Act prohibits purchase of agricultural landby any person or family who have annual income of more than RS. 25 lacs from non agricultural sources.

 

2) By looking into the definition of family, it includes only the spouse, minor sons and un-married daughters. At no place, "married sons finds a place under the Karnataka Land Reforms Act.

 

3) your income would not be considered 

 

4) check whether selller has original documents of title 

Ajay Sethi
Advocate, Mumbai
97495 Answers
7881 Consultations

Dear Sir,

1) The Karnataka Land Reforms (Amendment) Bill, 2020 has repealed sections of the Karnataka Land Reforms Act of 1961 which imposed certain restrictions on ownership of farmland. The amendments have done away with Section 79A of the Act that allowed only those earning less than Rs 25 lakh per annum to buy agricultural land, and Section 79B that said only people earning a living through agriculture could buy agricultural land..

Thus you can buy land regardless of income and being from agri family is not a requisite condition to buy agri land anymore.

 

2) under definitions (12) “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;]

As you do not fall within the definition of family your income will not be accessed anyway.

 

3) Documents you should verify are- 

  • Title deed of the land plot and land classification
  • Agreement for sale
  • Stamp duty on the land.
  • Registration of the land.
  • Conveyance deed or sale deed of the land.
  • Tax receipt and bills.
  • Encumbrance certificate.
  • Measuring the land/ survey of land

Thank you

Anik Miu
Advocate, Bangalore
10382 Answers
121 Consultations

- As per rule in Karnataka for purchasing agricultural land:- 

  1. You need to have agriculturist roots ( i.e.: Family /extended family has to have documented evidence of farming)
  2. For a non-agriculturist , your annual income should be less than 25 Lakh P.A .Previously this was only 5 Lakh P.A which was hiked recently to 25LPA. Hence
  3. Since your mother is already an agriculturist root , hence she can purchase extra agriculture land legally.
  4. She can purchase more land , because this 25 lakh slab applied for a non-agriculturist.
  5. Since you are working in USA i.e. NRI , then you cannot purchase in your name .

- You should approach to concerned district Deputy Commissioner‘s office , apply for permission to buy land.

- But the permission is granted with a condition that you will cultivate the land for 5 years from the date of purchasing the land.

Mohammed Shahzad
Advocate, Delhi
14769 Answers
224 Consultations

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