Can you sell agricultural land for non-agriculture purpose?

This is one of the frequently asked questions from our readers. I have received a specific question from one of our reader, “I have inherited an agricultural land. I want to sell it some one else. What are the legalities involved?”. The answer is, there is no problem in selling the land to others if you are the only owner of the land. But, there are certain restrictions apply to selling the agricultural land. The rules are much different from selling a normal plot in urban area compare to selling a agricultural land in rural area. The rules vary for each state, these rules are very strict to protect the agriculture in our country.

You must note that agricultural land can be sold to only person who is eligible to hold that land. The requirements are different for each state. For example, in Maharashtra, the buyer would be required to be an agriculturist as per the a land laws and he has to produce the required documents as proof of being an agriculturist.You need to check with your local state rules before selling the land. Otherwise it would become a legal issue. For example, you can not sell a agriculture land for the purpose of constructing commercial complex.

• Agriculture Land and Capital Gains
• When Agriculture Land is Capital Asset?
• Capital Gains on Agricultural Land

If the land is owned by multiple people, others has to provide the no objection certificate for you.The sale deed should be attested by two attesting witnesses and must be duly stamped and registered with the applicable sub-registrar. Hope this helps you to understand the legal formalities involved in selling the agricultural land.

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