Agriculture Land Purchase Rules in Karnataka in 2025

Have you ever considered purchasing land for business expansion, residence, or agricultural purposes? The complex procedures of claiming land and acquiring ownership often draw away many buyers. However, the recent legal changes in agriculture land purchase rules in Karnataka have simplified the process considerably. 

Agricultural lands in Karnataka are divided into dry lands and irrigated areas. While the irrigated areas are not available for purchase by non-farmers, the dry lands can be held by non-agriculturists. So, if you want to avail the benefits of the new rules and have land under your name with ease, continue reading this blog. 

Who can Purchase Agricultural Land in Karnataka?

As per the new rules established in 2020, Karnataka allows any individual to buy land, even from a non-agriculturist background. With the new norm, Indian residents, institutions, and academic and corporate establishments can easily buy and sell land in Karnataka. The maximum income the buyer can have is increased to Rs. 25 lakh per year from non-agricultural sources. 

How to Register Agricultural Land in Karnataka?

Registering is one of the most important steps when purchasing agricultural land in Karnataka. Hence, here are the steps to follow to register your land: 

• Step 1: Select a suitable land and conduct due diligence to check for legal issues. 
• Step 2: Get documents such as title deeds, encumbrance certificates, tax receipts, and NOC from Tehsildar and Akarband. 
• Step 3: Draft a sale agreement with the sale price, date of transfer, and advance payment. Both the buyer and the seller should sign this. 
• Step 4: To successfully register, pay the registration fees and Stamp Duty to the government of Karnataka. 
• Step 5: After obtaining the sale deed, register it with the Sub-Registrar.  

What is the Karnataka Land Reforms Act?

The Karnataka Land Reforms Act was first introduced in 1961. It laid down the norms for purchasing agricultural land. It established the maximum ownership a family or an individual may have of agricultural land and the penalties imposed in case of violation. 

Other restrictions were also imposed. For example, non-agriculturists with an annual income of more than Rs. 25 lakh could not buy agricultural land. In short, only agriculturist buyers were preferred. 

However, an Amendment introduced in 2020 brought about massive changes in the land regulations. The limit on land holdings was extended, and non-agriculturist buyers were now permitted to purchase land. Even private companies can buy agricultural land with the permission from the state government. 

How to Purchase Agricultural Land in Karnataka?

The purchase of agricultural land in Karnataka can be tricky for many new and existing buyers. The steps can get lengthy and cumbersome as well. Hence, here is the fastest way to buy your desired piece of land in Karnataka: 

• Step 1: Select the right land to buy. 
• Step 2: Draft a sale agreement as an initial contract with the sale’s details. 
• Step 3: Register the land with the Karnataka government, including transferring the land tile to your name.
• Step 4: Conduct due diligence and verify the title deeds. Ensure that the land is free of any legal dispute. 
• Step 5: Hire a professional surveyor to conduct a land survey and check whether the actual dimensions match the numbers mentioned in your deed. 

What are the Documents Required for Agricultural Land Purchase in Karnataka?

Whether it is an individual buyer or a corporation, there are certain document requirements for all. According to Karnataka’s new agriculture land purchase rules, various documents are required to make a successful purchase. Here are the documents you need to present: 

1. Land title deed
2. Sales Agreement (with sale price, time of sale and advance payment) 
3. Stamp duty payment receipt 
4. ID Proof (Aadhar Card/PAN Card/Voter ID Card) 
5. Property Registration Documents
   • Tax Receipts 
   • Original Title Deed
   • Previous Deeds 
6. Sale deed 
7. Encumbrance certificate
8. NOC from Tehsildar
9. Record of Rights extract
10. Mutation Register extract
11. Survey Records
    • Hissa Tippani & Hissa Survey Sketch
    • Atlas
    • Akaraband
12. Village Map 
13. Family Tree
14. Death Certificates (If necessary) 

What are the Eligibility Criteria for Agriculture Land Purchase in Karnataka?

With the relaxation given by the Amendment to Land Reforms Act in 2020, anyone with a maximum income of Rs. 25 lakhs a year can buy agricultural land in Karnataka. The buyer has to be an Indian resident or institution, academic, or corporate establishment. In addition, according to the agricultural land buying rules, the buyer’s family origin does not matter anymore. 

Land Conversion: Converting Agricultural Land for Non-Agricultural Purposes

According to the Karnataka agricultural land buying rules, converting land from agricultural land to non-agricultural purposes is tedious. Often, the approval of the Commissioner of the Land Revenue Department is required. Here is the process according to Karnataka land conversion rules: 

• Step 1: Fill out Form 1 for land reform and tenanted lands. The application for the Patta Lands is to be filled out in Form 21. 
• Step 2: Bring the necessary documents such as property title deed, ID proof, Khata certificate, NOC of village accountant and latest receipt of tax deposit. 
• Step 3: The documents attached to the forms are sent to the Deputy Commissioner or the Collector for approval.
• Step 4: A conversion order and a certificate will be issued upon granting the land conversion.   

Key Legal Requirements for Buying Agricultural Land in Karnataka

Agriculture land purchase rules in Karnataka state various requirements for the buyers to meet before purchasing the land. Not meeting these rules and requirements might result in a penalty. Hence, here are the most common necessities:

• Income Slab: After the Land Reform Amendment in 2020, Section 79A was declared void. This means there is no income slab under which the buyers were earlier deemed eligible for purchase. 
• Land Ceiling: The limit for land holding has been increased from 10 units per individual to 20 units. This translates to an increased limit of holding 108 instead of 54 acres. 
• State Laws: State government laws determine who can buy agricultural land. Even non-agriculturists can buy agricultural land in Karnataka except for the largely irrigated areas. 
• Land Measurement Certificate: A land measurement certificate is given to the buyer after a thorough land survey. This is done to ensure that the physical land dimensions match the ones mentioned in the title deed. This certificate is important for land ownership.  

Restrictions and Exceptions in Agricultural Land Purchase in Karnataka

With the introduction of new land reform norms, the purchase of agriculture lands in Karnataka has become easier and more accessible. However, there are still certain restrictions that you should be aware of.

• Agricultural Usage: Agricultural lands are only available for purchase if the buyer continues to use them for farming purposes. First, the land would need to be converted to pursue non-agricultural activities. 
• Private Institutions: Private companies and institutions must acquire permission from the state government of Karnataka to buy agricultural land. This is done to ensure that the land quality is maintained. 
• Irrigated Lands: Class A Lands irrigated by dams, canals, or water reservoirs are reserved for agricultural purposes and unavailable for sale to non-agriculturists. 
• Government-Owned Land: Lands owned by the state government of Karnataka, forested land, and grazing areas are not available for sale. 

Role of the Agricultural Income Tax in Land Purchase in Karnataka

Agricultural income tax only affects large landowners, businesses, and farmers who sell processed products. The income is tax-free for small and marginal farmers, subsistence farmers, and farmers earning from traditional crops. Here are more details: 

• Agricultural Land GST: No GST applies to the sale of agricultural lands. This is because the lands are not classified as goods or services per GST norms. 
• Tax-Free Agricultural Income: Income from agricultural sources such as cultivation and harvesting is exempt from taxes. In addition, any income from agricultural sources below Rs. 5000 per annum is also tax-free. 
• Income from Rent: The taxpayer must be an owner or a mortgagee to receive a tax-free benefit from rent obtained from the land. 
• Income from Agricultural Operations: The cultivator, who may be a tenant or a sub-tenant, is allowed tax benefits even if they do not own the land.

Government Schemes and Subsidies for Agricultural Land Buyers

Here are the government schemes and subsidies for agricultural land buyers that aim to provide financial support to farmers in need: 

• Land Purchase Scheme: Financial assistance in subsidies and loans is provided to SC/ST women participating in agriculture. This aims to help them own 2 acres of dry land and 1 acre of wetland. 
• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): The government provides Rs. 6000 annually in three instalments to small and marginal farmers. This aims to assist farmers in sustaining agricultural and household needs. 
• Pradhan Mantri Fasal Bima Yojana: This plan provides insurance coverage to farmers if their crop fails due to natural disasters, diseases, or pests. Low premium rates are provided for kharif, rabi, and commercial crops. 
• Kishan Credit Card (KCC) Scheme: This scheme aims to give farmers easy access to credit facilities. The government ensures that the interest rates remain low and that flexible repayment options are provided.  

Navigating Agricultural Land Purchase in Karnataka with NoBroker

Agricultural land purchase rules in Karnataka have changed several times over the years. From allowing only agricultural workers to own land to declaring non-agriculturists eligible to purchase lands, the rules for land purchase have made it easier to acquire land for agriculture, business, and residence purposes. 

However, the land registration, tax benefits to be aware of, the eligibility and the conversion processes might be tricky and tedious. Hence, get the help of NoBroker to resolve your doubts and speed up the process of acquiring fresh land ownership.

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