Q597. Owned agricultural land in

India taken away by govt . . .

Question: Mr. Chand, Sorry, my previous e-mail was sent incomplete. I owned a agricultural land in India. It was taken over by government for the use of Indian Oil. Can I still buy an agricultural land in India? I am a NRI (PIO) US Citizen. I am retired now and would like to stay 4 months in winter in India. Can you please explain the implications of stay and taxes? Thank you for your help. Suresh Wattamwar Answer: Not sure under what circumstances your land was taken over by the government and what compensation was given for the land. Since you are now a US Citizen, under current rules you cannot purchase agricultural land in India. If you are interested in purchasing a property in India for your use, then you should consider buying a house or flat. Independent houses are difficult to leave unattended for long periods, a flat/apartment in a safe, society may be more appropriate. As for implications of stay and taxes. • For staying in India, as a US citizen you would need a visa, getting OCI is the best route for PIOs who plan to spend time in India on a regular basis. OCI visa is for lifetime and allows the holder to stay in India as long as they wish (provided their foreign passport remains valid) without worrying about an Indian visa. • If you own property in India, you would have to pay the property tax yearly and any society/maintenance charges for the property. • Unless you meet the threshold of taxable income in India, you won’t have to worry about income tax for a few years. For the financial year 2013- 2014, their is no tax on income up to Rs. 200,000 in India. If you have a specific question, I would be glad to answer it.