Indian Registered Partnership Firm, where TWO partners are Indian Citizens, Residence and Ordinary Resident Status.
The third partner, who owns 50 % share in above FIRM is an Indian Citizen, Non -Resident, residing in Dubai
The Firm has bought Agricultural Lands and Farm House . IS this legally allowed as per RBI Guidelines / Income Tax
First the investment of partner in India should be on NON REPATRIATION BASIS.
Also the firm or the proprietary concern should not be engaged in any agricultural/plantation activity or real estate business, i.e. dealing in land and immovable property with a view to earning profit or earning income therefrom.
So for what exactly the said firm has acquired Agricultural Lands and Farm House needs to be verified.
From the question raised, it looks that there has been contravention of FEMA.
Anuj
+91-9810106211
femaquery @ gmail.com
CAclubindia
