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Suhana Khan & Land Deal Trouble: How To Show Oneself Legally As Farmer & Buy Agricultural Land?
Suhana Khan & Land Deal Trouble: How To Show Oneself Legally As Farmer & Buy Agricultural Land?
Suhana Khan, daughter of Shah Rukh Khan, has recently come under scrutiny over a land transaction in Maharashtra's Raigad district. Reports suggest that the young actress acquired a parcel of land in Thal village that was originally designated for agricultural purposes.
According to IANS, the land, valued at around Rs 12.91 crore, was bought from the Mumbai-based Khote family of Cuffe Parade. The transaction, completed on May 30, 2023, included a stamp duty payment of Rs 77.46 lakh. But according to reports, local authorities are now questioning if necessary permissions and paperwork for transferring agricultural land were properly obtained. An investigation is underway, and the Alibaug tehsildar has been asked to submit an impartial report.
This incident has renewed attention on the rules governing agricultural land purchases in India and how one can legally establish themselves as a “farmer" to buy such property.
How To Legally Show Yourself As A Farmer
In India, farmer status is usually verified through ownership of agricultural land, which is documented through records such as the 7/12 extract or other official land records in one's name.
Additionally, people can apply for a farmer certificate, sometimes called a small or marginal farmer certificate, through local revenue offices or government portals. This usually requires submitting proof of identity and land details. Certain states also issue formal certificates that serve as official proof of farmer status, which can then be used to meet eligibility requirements for purchasing agricultural land.
Rules for Buying Agricultural Land
The rules for buying agricultural land in India differ from state to state, with eligibility often tied to one's farming background. Generally, only those people recognised as farmers, or those whose immediate family members are farmers, are allowed to buy such land. Some states add further restrictions, such as limiting purchases to local residents or requiring specific government approvals. Eligibility may also depend on showing active agricultural activity or meeting income criteria linked to farming.
State-specific rules can vary widely. For instance, Tamil Nadu places no restrictions, allowing anyone to buy agricultural land. In contrast, states like Karnataka, Maharashtra and Gujarat have stricter conditions in place.
Documents You Need To Buy Agricultural Land In India
When buying agricultural land in India, certain documents are essential to ensure the transaction is legal and transparent. The title deed verifies the seller's ownership, while the sale agreement outlines the terms and conditions agreed upon by both parties. Stamp duty and registration legally validate and record the transfer of ownership. Tax receipts confirm that there are no outstanding dues, and an encumbrance certificate ensures the land is free from legal or financial disputes.
The land measurement certificate verifies the actual size of the property, and a power of attorney, if applicable, allows someone to act on behalf of the seller. Collecting and carefully checking these documents is crucial, as it safeguards both the buyer and seller and ensures a smooth, dispute-free purchase.
Tax Benefits Of Agricultural Land
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Agricultural income is generally exempt from income tax in India. Capital gains on rural agricultural land, beyond certain municipal limits, are also tax-free. For urban agricultural land, exemptions under Section 54B apply if proceeds are reinvested in new agricultural land within two years. There are conditions regarding reinvestment timelines and lock-in periods to maintain these tax benefits.
In Suhana Khan's case, the legal focus is on ensuring that all regulatory procedures were correctly followed before the land transfer, highlighting the importance of understanding these rules before purchasing agricultural property.
Source: News18
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