As per FEMA Act, NRI cannot buy agricultural land in india without approval.
Can NRI do agricultural activities in India without any approval?
Yes, allowed.
Under section 2 (1A) of the Income-Tax Act, “Rent or revenue derived from land i.e. used for agricultural purpose.” Thus, the agricultural received by NRI is exempt.
NRI’s cannot purchase agricultural land, plantation or farm land in India. NRI’s can inherit and hold agricultural land. However, details of such inheritance must be uploaded on the Reserve Bank of India and the state government websites.
Details of lease agreements, including Batai, between NRI and resident Indians have to mandatorily be registered online, with state governments, by the lessor.
Any income of a NRI who is not citizen of India, from inherited agricultural land given on lease, has to be deposited in a NRO account and income-tax paid thereon.
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