I’m an Indian citizen. If I’m not capable of keep my non-resident standing in any given monetary 12 months, can I purchase an agricultural land in that 12 months? Will there be any complication if I my residential standing adjustments as non-resident from subsequent 12 months with regard to proudly owning of that agricultural land bought in earlier 12 months?
It appears you’re confused between residential standing beneath Revenue Tax Legal guidelines and beneath International Change Administration Act (FEMA). One is totally different from different. An individual, usually, turns into a resident beneath the revenue tax legal guidelines relying on his bodily keep in India in the course of the related 12 months and which is mostly decided after finish of the 12 months. Residential standing beneath revenue tax legal guidelines is related for the aim of figuring out whether or not a specific revenue of that individual will get taxed in India or not and it has nothing to do with proper of an individual to make investments in India.
The principles governing investments in India by non-residents are ruled by FEMA. Usually, an individual turns into a non-resident, the second he leaves India in three circumstances. Firstly, an individual will turn out to be a non-resident the second he leaves India to take up an employment outdoors India. Secondly an individual can even turn out to be a non-resident for FEMA functions as soon as he leaves India to arrange any enterprise or vocation outdoors India. Along with the above two situations an individual additionally turns into a non-resident if he leaves India with an intention to remain outdoors India for an indefinite interval. So a retired individual will turn out to be a non-resident beneath FEMA if he decides to go to US to stick with his youngsters for remainder of his life.
From the above dialogue it turns into obvious that the residential standing beneath revenue tax legal guidelines might change yearly however beneath FEMA it doesn’t change so incessantly. So the query of you changing into a non-resident beneath FEMA for an intervening interval doesn’t come up until you’ve gotten in truth come again to India for good after which after one 12 months you once more resolve to return outdoors beneath any of the three circumstances talked about above and in such case in case you have bought an agricultural land in India whenever you had been in truth a resident beneath FEMA, there won’t be any drawback in persevering with to carry it after you turn out to be a non-resident.
Balwant Jain is a tax and funding knowledgeable and could be reached on [email protected] and @jainbalwant on Twitter.
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The post I want to buy land. Implications if there is a change in residential status first appeared on StockMarket.
