Hi, This one is related to FEMA & OCI & Agriculture Land, and its associated tax or FEMA consequences. If you have direct experience on this matter, would love to hear your thoughts on this.
Status: OCI [Physical Resident: India, Tax resident: India & Foreign]
Situation:
1) A friend is selling a small agriculture land, inside a large developing area, with a mix of agriculture land, residential, residential amenities etc. I need to be able to register that agri land in my name. What would be the process of converting that agri land into residential before I register? Current agri land cannot be registerd in an OCI name, according to FEMA.
2) Once converted, & registered, since it will be in the middle of other agri land, does conversion to "residential" limit it from practically acting as a farmland (ie. growing agriculture produce on it)?
3) In future, once I decide to sell it, are there any consequences of the fact that it was originally agri land? And I am guessing I am able to sell it to a resident or an NRI, at that point?
Appreciate any thoughts on feasibility of above. If there are any red flags in executing above, would love to know. It would really help if you provide a reference to govt publications, so I can read the surrounding details as well. Thanks in advance. Regards.
CAclubindia
