Ramana Murthy (Engineer) 10 November 2013

Agreculture land purchase in karnataka

My father, who is an agriculturist in Andhra, is planning to buy an agriculture land in Karnataka. The property is of 50Lac worth and the seller want's to register the property for full amount of 50 lac. I am working in IT firm in Bangalore with more than 2 lac non-agricultural income and will be funding(loaning) 80% of this purchase money to my father. I am married and have been managing my finances seperately for last 12 years. As karnataka has a decades old rule that the family non-agricultural income of the person purchasing an agricultural land has to be less than 2Lac, I would like to know if my income also will be considered as family income of my father even though we both have been managing our finances seperately. Also would it be an issue of benami if my father purchases the agricultural property with me funding 80% of total purchase cost?

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T. Kalaiselvan, Advocate (Advocate) 11 November 2013

You have answer to your queries in your question itself. In Karnataka the non agricultural income should not be more than 2 lakhs for purchasing an agricultural land. The property funded 20% out of your income and 80% out of your father's source can be treated as a joint property in the proportion of their investment. The sale deed registration also can be made on this line.

Ramana Murthy (Engineer) 11 November 2013

Hi Kalaiselvan,

Thanks for responding back to my query. I don't want to be co-purchaser of the property as it violates the government rule and want to let my father only purchase & register the property in his name.

But my doubt is, What will be considered as my father's family income? Will it be only my Father's own source of income from agriculture and other businesses given that both his children are majors (myself & my brothers) with their own family and with their own income & expenses? OR will it be combined income of my father, myself and my brother?

If my Father's own source of income is considered as his Family income, then my father can purchase agriculture land in Karnataka since his own source of non-agricultural income is less than 2 lacs. But if my income and my brother income is also considered as my Father's family income, then my Father family non-agricultutal income is going to be more than 2 lacs and this woul bar him from purchasing agricultural land in Karnataka.

Hence can you clarify on what's considered as my Father family income as per Karnataka agriculture land act?

Regards,
Naidu