An NRI can acquire any immovable property like commercial and residential properties in India as a gift from anyone either residing in India or abroad. But he/she is not liable to acquire any agricultural land, farm house and plantation property.
However, there is no such bar on inheritance. So, NRIs can inherit agricultural land in India but cannot transfer or sell the agricultural property.
Tax on Inherited Property
Some NRIs who are well settled abroad may inherit properties from parents or other relatives. In such cases, NRIs need not pay any Inherited tax in India but may require to pay some other taxes. Click here to know what taxes NRIs have to pay for inherited properties in India.
NRIs have to pay wealth tax on immovable properties in India. Some assets like one residential property or land area less than 500 square meter is exempted from wealth tax. To know more about the assets that are exempted from wealth tax click here.
Selling inherited Properties
Sometimes, NRIs may want to sell the inherited property in India. Selling the inherited properties can be at times confusing. However, the tough job can be done easily if they follow the proper guidelines in order to do so. Click here to know the steps NRIs should know to sell their inherited properties in India.
Therefore, it is quite clear that according to the FEMA Act an NRI cannot invest in any kind of agricultural lands in India. However, he/she may inherit such properties fro parents or relatives as there is no such bar on that.