purchase of agricultural land by non agriculturists
Syed ibrahim
(Querist) 05 October 2015
This query is : Resolved
Dear experts, reposting this as I didn't know how to remove the anonymous status: Recently Govt. Of Karnataka had come to a decision to allow non agriculturists with income limit upto Rs.25 lakhs to purchase agricultural land. Wish to know has this been passed in gazette & when will it be enforced. Also can a person after selling residential property use the sale proceeds to purchase any agricultural land. The residential property is in joint name of me & my friend & also purchase the farm in joint name as we intend to start polyhouse organic farm near tumkur.
Regards
SURESH BV, Advocate
(Expert) 07 October 2015
Dear Syed Ibrahim,
1. Gazette Notification is already passed.
2. In order to buy an Agricultural land, you should be an Agriculturist and your income from sources other than Agriculture should not exceed 25 Lakhs p.a. If these two conditions are fulfilled you can buy an Agricultural land. Now the question would be the sale proceeds of residential property should be considered as income from sources other than agriculture? In my opinion, the sale proceeds of residential property is a Capital gain and therefore a person after selling residential property can use/utilize the sale proceeds to purchase an agricultural land and for the purpose of buying an agricultural land the sale proceeds of residential property should not considered as Income from sources other than agriculture.
Syed ibrahim
(Querist) 08 October 2015
Thank you suresh sir. In mean time I had consulted a CA known to my friend he says that after paying capital gains tax only we can use that income for purchase if not we need to reinvest it in residential property & construct or buy a constructed house.
