Q697. H1 Visa Holder owning

agricultural land in India . . .

Question: Hello, I have a two queries as below. Could you please help? 1) I'm staying in US on H1 VISA for the last 4 years. Being non-immigrant in US, I bought agriculture land recently 3 months back that is in my home town part of Andhra Pradesh state and was registered on my name. lately we came to know that NRI's should not buy agricultural lands in india. If i transfer it to my parents name will it valid or do i need to cancel original registration and seller needs to redo it again on my parents name? 2) I have savings account in India i have opened as a salaries account when i got my first job, every month house emi will deduct from that account so i am still contuing this account for emi deductions, i am tarnsfering money to that account for emi deductions alone. Please let me know what are the consequences of above 2 cases. Thanks in advance for you valuable information. Meera Answer: Regarding your question number 1, if you were not considered to be a resident when you bought agricultural land in India, then obviously such a purchase would be unlawful. You need to decide for yourself the course of action you wish to take. There may be many other NRIs in the same situation as you, the authorities usually become aware of such case when friends or perhaps relatives of such NRIs make the authorities aware of a persons NRI status.

Continue to hold agricultural land in

India after becoming NRI

H1 Visa holders should be able to hold agricultural land in India that they legally purchased BEFORE becoming NRI. Just because a person in India who owns agricultural land in India decides to for some reason to go abroad, for example on a H1B Visa for employment, they do not have to sell their properties before traveling abroad and can continue to hold even agricultural land.

Resident Indian bank account on

becoming NRI

As for your question number 2, all you have to do is notify the bank where you have your resident savings bank account, that you are now a non-resident and to change your savings account into a NRO account. Get EMI deductions taken out from the NRO account. When you return to India at some point of time and you become resident in India, you can then revert back to resident Indian bank account.