Buying agricularald

yeteendra naidu (Querist) 02 September 2015 This query is : Resolved
My son has taken a loan from both the parents for buying a flat in the city
a few years back and wants to return the loan amount by transfer of funds from abroad
thru his NRE Bank account, and we plan to buy a piece of farm land by adding our own savings and on our (parents) own names , individually or jointly.

I request you to kindly advise me if this transaction is legal and in accordance with RBI norms and/or if it is likely to be considered as farm land bought with NRI funds.

Also please suggest best way to go about in this case.

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malipeddi jaggarao (Expert) 02 September 2015
If the property is not purchased in the name of your son (NRI), there is no problem. Agricultural property should not be in the name of NRI, but it can be in the name of parents. Though you receive the funds through his NRE Account, once the amount is transferred by way of bank of transactions to your accounts, it is your own money. Do not entertain doubts.