Can A Gift Deed Be Made In The Name Of A NRI?
Question asked by Anjali Singh from U.S.:
My mom owns an agricultural land in India ( Madhya Pradesh) which she plans to give it to me eventually. I am an NRI living in US.
Is it possible for her to gift the land to me? If yes
1) Is that something she can do in her life time?
2) What kind of taxes will I have to pay to just hold the land and if I were to sell it and repatriate the money.
My another questions is
1) Can an agricultural land be converted to residential land, if all land in and around are residential already.
2) Do I have to wait for the state to in act some kind of boundary changes etc for it to get converted to residential, or I can apply for its conversion.
3) If I can apply for conversion, what all do I need to do? How long does it take.
I will really appreciate some legal advice.
Thanks
Anjali Singh
USA
Vatsala Speak:
You cannot hold the land even as a gift of agricultural land to NRI’s and PIO’s, as it is prohibited by FEMA. (Foreigh Exchange Management Act). Therefore the questions on sale and taxes become irrelevant. In some states, there is no need to convert the land before putting it to use for non agricultural purpose. If conversion permitted in the state you hold property, it could take about 4 months. The documents required for converting agricultural land to industrial use is parent sale deed, Tippany, Akarband, Nil Tenancy certificate, Endorsements under Section 79 A and B (and endorsements about granted SC land) from Tahsildhar , RTC., Mutation extracts, Encumbrance certificate and Application form duly filled up in quadruple. This has to be supported by reports from the Village account and Tahsildhar’s office after inspection. This is forwarded to the Deputy Commissioner who can then issue the conversion order after colleting the conversion charges.Vatsala
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September 22nd, 2008 at 6:56 PM
Hi,
We the children inherited a peice of land from our father near Manglore from our father. The land is mearing about 2.5acres and just kept vacant for many years. We have decided to raise structures in the land for hotel/ hospitality busniess. We are given to understand that the land is in green zone( agriculture) thfouhg all around the plot there are residential houses.
We would appreciate if you please help us to know the following:
1. Do we necessarily have to convert the land to non-agriculture / commercial use before we start out project.
2. If so, what is the process involved and how long does it take to get the same converted into commercial.
3. What legal formalities, we need to go through and what would be the likely expences.
The land is in the name of all children (five) registered in village accountants office.
Appreciating your help.
Gangadhar
June 30th, 2009 at 4:37 PM
If the land is agricultural, you should first check the land use assigned by the master plan in your city. If it not in any restricted zone, green zone or valley zone, then you can get it converted to the zonal use assigned. Simultaneously you can seek permission for change of land use to commercial use. This may be granted or refused, depending on the area, after inspection by the authorities. The whole process will take about 3 to 4 months. The other legal formalities are getting the plan approved and getting all required permissions like environment clearance, airport authority clearance, survey of India clearance, etc., which are again linked to the height of the proposed building. You could also try to get a single window clearance. The cost estimate for Mangalore project cannot be given by me in these columns.