PROS AND CONS OF BUYING AGRICULTURAL LAND IN INDIA
Investment in different sectors has been quite a profitable business for multiple investors in India. One such investment is the purchase of agricultural land in India that provides the buyer with a high rate of return. The purchased land can either be kept as a valuable asset or be utilized to grow vegetables and fruits that will generate income for the agricultural land investor. Rather than investing in other spheres, one is advised to invest it in India's agricultural land. It has proved to procure greater returns and is safer than other investments because it is a physical land. Continue reading the article to get through the pros and cons of buying agricultural land in India.
Pros that encourage the buying of agricultural land in India
1.Tax concessions: The owner of a particular land is sure to receive tax concessions, a plus for the buyer. The amount generated from agricultural land doesn't come under wealth tax, i.e., the tax required to be paid for income generated from other real estate sources but not for agricultural land.
2.Lease out the land: If you're buying agricultural land in India, you may use it as per your purpose, or, e.g., give it out to the farmers who will grow their crops on your land and pay you for using it. This way, the owner can quickly startup building their income from leasing the land.
3.Establishing proprietary rights: Land value is continuously increasing. Consequently, the agricultural landowner can earn money very quickly if registered in the land bonds.
4.Living on your terms: After you have become the landowner, you can choose to grow crops or have livestock as per your choice and earn your living. In this manner, the landowner will not have to depend upon someone else to feed themselves and will be self-sufficient.
Cons of buying agricultural land in India:
1.No choice left to convert: Once you buy agricultural land, it is meant for farming, which means the land will be fertile. This will hinder if you will ever want to change your agricultural land into a residential building. For the latter, dry land is preferred.
2.Necessary information about the laws relating to it: An agricultural land comes under the state government. If you want to purchase it, you will have to go through the legalities associated with it. Each state has different laws, so be aware before you buy the land.
3.Need to be a farmer: No one else except for a farmer can undertake agricultural land. So, you need to be a farmer by profession if you want to buy it.
Taking all the highlighted points in this article under consideration, one may decide whether or not to move on to invest in agricultural land. Agricultural land sale in rural areas doesn't come under taxable capital gains because it isn't considered an asset. The huge returns from this investment attract many people towards it, but you shouldn't forget the risks expected from buying agricultural land.
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