Can NRI'S Spouse Purchase Agricultural Land

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Rahul

3 Points Joined August 2024

Dear Sir,

Hope this email finds you well!

I moved UAE for business purposes in 2022 and in the same financial year, I become NRI because I stayed more than 180 days in UAE.

But my spouse purchased agricultural land worth 32 Lakhs. Some amount was given by me and some amount was her own income as she has proprietary business in India and Indian resident.

Could you please clear my doubts below?

1. Is there any issue in future for the purchased land by her?

2. Can she buy new agricultural land now ( again - she has her own income and file ITR. However, I gifted some money to her as well)

I would be very thankful for your suggestions.

Looking forward to hearing from you!

Thanks,

Rahul

Replies (3)

SOURAV SAMANTA

106 Points Joined January 2019

1. There was no issue
2. Yes she can purchase land again

Rahul

3 Points Joined August 2024

Thanks for the response 👍

Here are the answers to your questions regarding the agricultural land purchase in India:

1. **Future Issues with the Purchased Land**:
- As long as your spouse is an Indian resident and has legally acquired the agricultural land, there should not be any issues in the future. She is allowed to purchase agricultural land as an Indian resident, and since she has her own income and files income tax returns, it complies with legal requirements.
- However, it’s important to ensure that all necessary documentation is in order and that the land was purchased in compliance with local laws and regulations.

2. **Buying New Agricultural Land**:
- Yes, your spouse can purchase new agricultural land as an Indian resident. As she has her own income and files income tax returns, this will support her eligibility to buy more land.
- Since you mentioned gifting some money to her, it’s crucial to document the gift properly. Under Indian tax laws, gifts between spouses are generally not taxable, but it’s good to maintain clarity in transactions for record-keeping and tax purposes.

### Recommendations:
- Keep records of the financial transactions related to the land purchases, including your gifts, as this may help clarify the source of funds if needed.
- Consult a legal or tax professional to ensure compliance with all regulations and to get advice tailored to your specific situation.

If you have further questions or need more details, feel free to ask!