What are the pros of buying agricultural land?On August 22, 2020 by Valentin Nickens
There is potential for a high return on investment if you choose to buy a agricultural land. The agricultural land is available in both rural and in urban areas. Daintree Residence Condo is a great example of residential property. There might be huge opportunities for an agricultural land in the future. Due to the increase in economic growth and the need for the increase in highways and all. Agricultural lands are promising investment into a future that seems brighter for the investors. The return on investment is quite huge for agricultural lands. There was an act that was passed in the year of 1984, especially for the land acquisition. The government io India said that the government will be able to acquire any privately held land for the purpose of public development and infrastructure development. This is but usually occupies by the government for the development of the infrastructure. Based on the value of the old and the improvements that has been made to the land which is quite higher when comparing the case of the rural land and the urban land areas.
Also, understand that the rural agricultural land is not mentioned or considered as an asset for the capital. Therefore, when you tend to sell this land in the rural area, it can be completely and generously exempt from the income tax which is under the head of the capital gains. The compensation that is received on the acquisition that is compulsory of the land by the ac that has been passed by the government is kind of no taxable. You will not be taxed for that.
Tips for buying farmland
It is great to own farmland. It will actually give you a lot of benefits by owning farmland. The income earned from the land will be exempt from taxation. This is nthe most important benefit of owning a agricultural land. But, the rules that are said to govern the sale of the land that is considered as agricultural is pretty much different for different types of states. For instance, the Telangana government will let you own an agricultural land not depending on whether you have any experience as a farmer or in the field or not. It lets you purchase any cultivated land if you just have the money. Whereas, on the other hand, Karnataka will let you buy cultivatable land-only and only if you are registered as a farmer.
Some other prerequisites for buying farmland:
Before buying an agricultural land you must ensure that the sale has a clear cut title and also do not forget to check if that property does not contain any litigation that is happened in the before time. Rules that are subject to any state must be first verified because some states would have a ceiling in the area where the farmland that you want to own is situated. There are also others that will not allow you for any conversion of the land that is agricultural to residential land. You have to first verify that the land is completely and correctly registered with the land and revenue authority as agricultural land.