Q.1021 Can Green Card Holder’s

parents buy Agricultural Land in

India

Question: Dear NRI information member, I came across your website and noticed that we can contact you via your email to get free answers for our questions. We appreciate your free service. Could you answer my questions below? Thank you. If this is a paid service, please don't reply. 1) Can a USA Green card holder (still a citizen of India) currently living in USA buy agricultural land in India on his name? 2) If answer to above question is yes, my next question would be: If USA Green card holder (Indian citizen) buys the agricultural land now and later takes USA citizenship, will he still be able to keep the agricultural land in his possession after taking USA citizenship or does he need to gift it or sell it to an Indian resident before taking the USA citizenship? 3) Irrespective of the above questions, can parents of NRI (USA Green card holder but an Indian citizen) buy agricultural land on their name (parents of NRI) by using the money sent by their NRI son? Or will that cause income tax issues to the parents (living in India) of NRI? Please let me know. Also, it would be great if you could point me to authentic government links that support your answers. I will definitely refer your website to many of my friends. Many thanks for your service. Best regards, Krishna G Answer: My website is completely free and there is no requirement of any sort of registration or payment to visit this website. Since I’ve met your first condition of this not being a paid service, I will try and answer your questions. • Regarding your questions 1 the answer is NO, which makes question 2 not applicable • The answer to your question number 3 is YES, assuming that the parents are Indian citizens and NOT green cards holders. NRI son can send money to his parents and no tax in India would apply on this money. If the parents then want to buy agricultural land in their own name as they are resident Indian citizens they can do so. Keep in mind that the parents when buying agricultural land in India would still have to abide with the State Laws in India regarding purchase of agricultural land. I say this because some State Governments in India allow only farmers to purchase agricultural land. I am posting an excerpt from a RBI Circular that may give you some clarification. You can always visit the RBI websites and ascertain information to assure yourself. Excerpt below is from the Circular number shown and from Section 3 of Part II. RBI/FED/2015-16/7 Master Direction No. 12/2015-16 [Updated as on February 4, 2016*] Part II - Acquisition/ transfer by a Non- Resident Indian (NRI) 3.1 Purchase of immovable property An NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India. Kindly be advised that I do not respond to questions by emails. Questions and Answers are posted on NRI Information website FAQ pages so that others in a similar situation can also get the benefit of the postings. I was impressed by your honesty and wanted to alleviate your fear that this may be paid website and am therefore going to make an exception to advise you by email.