Indian citizens and non-resident Indians (NRIs) can purchase non-farming land in the Karnataka state. However, there are a lot of limitations when it comes to buying an agricultural property. Before 2015, the only individual who could purchase agricultural land was a peasant from the Karnataka state, having an agricultural history and ownership of agricultural property. Non-agriculturists in Karnataka refer to individuals who had no agricultural land or earned more than two lakhs a year from non-agricultural activities. Therefore, a non-agriculturist was unable to purchase agricultural property in Karnataka before 2015.
Karnataka abolished a decades-old law prohibiting non-agriculturalists from purchasing and selling agricultural land in 2020. There are no restrictions on who may own farmland in Karnataka anymore, including non-agriculturally based institutions, corporations, or academic institutions in India. Legally, anybody with a maximum non-agricultural income of 25 lakhs per year can own agricultural property, regardless of their family background. In June 2015, the income threshold was increased from Rs 2 lakh to Rs 25 lakh.
The District Commissioner has the authority to award agricultural property ownership to non-agriculturalists.
See also: How tax is imposed on your agricultural income?
Due to restrictions in Karnataka, several high-net-worth people acquired the property in adjacent Andhra Pradesh and Tamil Nadu. Due to Tamil Nadu’s pro-farming policies and proximity to Bengaluru, many residents own city property in and around the Anekal region.
Most of the 98.95 million acres of agricultural land in 2022 in Karnataka are held by families who have given up farming, leaving 22 million acres of land uncultivated. Buyers were compelled to submit false statements to tax officials under the 1974 A&B provisions. This is why Section 63 was amended to allow a family or person to purchase more property, and sections 79 A, B, and C were eliminated to facilitate the transfer of agricultural plots.
Limits have been relaxed, allowing farmers to receive more competitive prices for their property and enhance their agricultural methods with more resources and modernity.
See also: What is guidance value and government land rates in Bangalore
Relative summaries of Section Acts from 1961 to 2020
| The Sections | The Karnataka Land Reforms Act (1961) | The Karnataka Land Reforms Act (2020) |
| Section 80 | Agricultural land cannot be owned by someone who is not an agriculturist. | Restrictions have been placed on land transfers instead of a full ban. |
| Section 79A | Agriculture land cannot be owned by any household that makes above two lakhs a year outside of farming. | There is no longer a segment for non-agricultural land acquisitions, and the annual income ceiling has been lifted from Rs 2 lakh to Rs 25 lakh. |
| Section 79B | Non-farming families are not allowed to possess agricultural land in Karnataka. | Karnataka has removed Section 79B, allowing anybody from a non-farming Indian family to buy agricultural property in the state. |
| Section 63 | Individuals are restricted to 10 units of agricultural land. | The maximum number of agricultural land units a person may possess has been increased to 20. Individuals are restricted to 10 units of agricultural land. |
See also: igrs.ap.gov.in market value in Andhra Pradesh (AP)
A year after owning a farm property, farmers must begin farming. If you stop farming within five years after starting, the state has the power to seize your land.
See also: Stamp duty and registration charges in Karnataka
Documents required to buy agricultural land in Karnataka 2022
- Document proving the seller’s identification and right to sell the property
- Sales contract including selling price, timing, and advance payment
- Stamp duty receipt
- Registries of property
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- Deed of Title in Its Original Form
- Deeds of the Past
- Tax Payments
- For the Registration of the Land, two witnesses are required
- Deed to transfer title from seller to buyer in real estate transactions.
- Conveyance document or Patta book (EC)
- Tehsildar’s NOC
- Extract from the Record of Rights
- Extract from the Mutation Register
- Records of Surveys
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- Hiss Tippani & Hissa Survey Sketch
- Akaraband
- Atlas
- Map of the Village
- Family history
- Any identification, for example, an Aadhar Card, a Pan Card, or an Election Identity Card.
- Death certificates (if relevant)
See also: All about land conversion
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