- No legal issues can raise you can account of remissions. You can remit any amount from abroad.
- Mother has every right to purchase land being herself agriculturalist.
- As the land is being purchased in the name of agriculturalist no permission is required from RBI or under FEMA.
- It is the seller who has to pay TDS not the purchaser.
- You are right NRI/OCI cannot buy land in his name.
NRI but still an India citizen wants to purchase agricultural land in India on parent's name
Hi All, I want to purchase agricultural land in Maharashtra, India. I am an Indian citizen since birth but presently working in Singapore. I pay all the taxes in Singapore, but no tax in India since I have no earnings in India. I work outside of India for more than 6 months/year and hence I am considered an NRI/OCI and thus legally cannot purchase agricultural land in my name. My Indian parents are currently owners of agricultural land in Maharashtra, India and thus they are legally eligible to buy any additional agricultural land in their name. My grandparents were also farmers in Maharashtra. MY QUESTIONS ARE: 1] Can I legally send 1 crore INR at one time to my mother from my NRO bank account. (This 1 crore is my salary earnings in Singapore which I had transferred to my NRO bank account in India)? 2] Can my mother legally purchase agricultural land in her name with the 1 crore I have transferred to her bank account (my mother already has agricultural land in her name)? 3] Do I need any permission from RBI as per FEMA 2018 regulations to purchase agricultural land in my mother's name since I am actually providing the money to my mother? 4] Do my mother need to pay any taxes for the 1 crore I am giving her from my salary earnings as a gift in Singapore? 5] Is my understanding "I being an NRI/OCI cannot buy agricultural land on my name because of FEMA regulations" correct? Please help with the above questions categorically based on the detailed information I have provided. Thank you.
Asked 3 years ago in Property Law
Religion: Hindu
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12 Answers
Your understanding is correct that you are an NRI and cannot purchase agricultural land in India
2)
there is no tax and limit on the gift amount to blood relatives.
3) When an NRI gives gifts in the form of cash, cheque, items, or property to a Resident Indian who is a relative, both giver and receiver are exempt from tax in India.
4) you don’t need permission from RBI for purchase of agricultural land by mother
6] In the future, can my mother transfer the ownership of this agricultural land to me(mother's son) by 6.a] the gift deed or 6.b] the will(testament) while I am still an NRI? 7] Which one of the gift deed and the will is a better choice legally and a watertight solution for an NRI to own an agricultural land in India?
Asked 3 years ago
Mother cannot execute gift deed in your favour of agricultural land As you are an NRI
she can execute will in your favour bequeathing agricultural land to you
1. You can send the money as gift to your mother.
2. Yes, she can purchase the property on her name out of the gifted amount.
3. Since you are not the purchaser, there's no requirement to obtain permission from RBI for this.
4. She may have to pay tax out of income derived from this gifted amount.
5. Your understanding is right that you cannot purchase agricultural land in India being a NRI.
She cannot transfer the property to NRI during her lifetime however you can acquire/inherit the same through a Will after her lifetime.
Thus, Will would be the better option.
As an NRI, you can send your mother the money as a gift so that she can purchase the agricultural property on her name. If the act is to be conducted in this manner, RBI approval is not required.
Executing a will infavour of you is the way to get back the property in future.Please do understand that a Will or a Testament means a document made by person whereby he disposes of his property, but such disposal comes into effect only after the death of the testator.
1. Yes
2. Yes she can if it's already taxed to you.
3. No not on your mothers name.
4. Yes
5. Yes you need special permission from rbi
Will is better
Dear Sir
As an NRI, you will not be able to buy the property in your own name.
However it is fine if the property is bought in your mother's name.
If she mentions you as her heir in her will, then the property will come to your name after her time without any problems.
Thank you
- Yes , you are right that being an NRI, you cannot purchase an agriculture land in India without getting the permission of RBI.
- However you can purchase the same in the name of your mother
1. Yes, this amount can be gifted by you to your mother. , there is not tax imposition.
- As the Income Tax Act defines a gift as any asset received without consideration.
2. Yes
3. No, she is purchasing in her name and not you , then RBI and FEMA will not come here
4. Gift from NRI Relative to a Resident Indian relative is exempt from tax in India for both giver and receiver .
5. Yes , as I mentioned above.
- She can transfer the said by way of only WILL
1 - you can legally send your mother while Singapore bank or even tajmahal also after buying it legally.
2 - Yes, she can purchase anything with that money. Even tajmahal if possible to buy.
3 - For any indian citizen to buy, no approval is required.
4 - No, NRI transfer is exempt.
5 - You are absolutely correct. "I being an NRI/OCI cannot buy agricultural land on my name because of FEMA regulations"
6.a] If you can not buy then you can not get a gift also.
6.b] the will(testament) is the solution if there are no other siblings.
If siblings then there is risk.
7] gift deed is not even possible so the will is the only choice legally and a watertight solution for an NRI to own an agricultural land in India without siblings.