Investing in plots of land is a smart choice in 2024. Here’s why buying land could be a great decision for your future:

Tangible Asset with Lasting Value

Owning a plot of land means you possess something real and valuable. Land generally retains its worth over time. As a finite resource, land often appreciates, providing a stable and reliable investment.

Flexible Use

A plot of land offers incredible flexibility. Whether you want to build your dream home, set up a business, or sell it later for a profit, land provides a blank canvas for various uses.

Potential to Increase in Value

Historically, land values tend to rise over time. As populations grow and available land becomes scarcer, your plot’s value is likely to increase. This potential for appreciation can be a significant financial advantage, making land a lucrative long-term investment.

Low Maintenance

Compared to properties with buildings, land requires minimal upkeep. You don’t have to worry about repairs, renovations, or managing tenants. This low-maintenance nature reduces costs and stress, making land a hassle-free investment.

Protects Against Inflation

Land acts as a hedge against inflation. As living costs rise, land values often increase, helping to preserve your investment’s value. This protection against inflation ensures that your asset maintains its purchasing power over time.

Opportunity for Future Income

While land doesn’t provide immediate income, it can be a source of future revenue. You might sell it at a higher price later or develop it to generate rental income. This potential for future cash flow adds to the attractiveness of land as an investment.

Investing in plots in 2024 offers numerous benefits. With its enduring value, flexibility, appreciation potential, and low maintenance, land is a solid investment choice. It provides protection against inflation and opportunities for future income, making it a wise addition to your investment portfolio. Start exploring land opportunities today to secure a prosperous future.

1. Meaning of Benami Property

• Any asset held in someone else's name, while the actual payment was made by another person, constitutes a benami property.
• The person in whose name the property is registered is called the benamidar.
• Beneficial owner means the real payer or the person who receives the benefit of the property.
• The term applies to: Land, plots, buildings, Farmhouses, vehicles, jewellery, cash, shares, financial assets

2. Why Benami Transactions Are Prohibited

These Benami properties are used to:

• Conceal illegal revenues
• Hide assets
• Evade taxes
• Invest black money in real estate.

3. Types of Benami Transactions

A transaction may be benami if:

• Property is in some other person's name, yet money is provided by some other person.
• The owner denies knowledge of the property.
• The actual source of the funds remains hidden.
• A fictitious name or identity is used in the transaction.

4. What is not Benami

Certain genuine situations are exempt, such as:

• Property held in the name of a spouse or child
• Property held for the benefit of a Hindu Undivided Family.
• Assets held by a trustee, company director, or partner on behalf of the organization.
• Property acquired through known and legal sources of income with proper documentation.

5. Important Provisions of the Benami Property Act

All benami transactions are strictly prohibited.

Authorities are empowered to:

• Investigate
• Attach property
• Freeze transfers
• Confiscate assets
• The law applies to both:
• The nameholder (benamidar)
• The beneficial owner -actual payer-

6. Penalties for Benami Transactions

Penalties under the law are stringent:

• Rigorous imprisonment from 1 to 7 years.
• A monetary penalty of up to 25% of the fair market value of the property.
• For furnishing false information or misguiding the investigations, end
• Imprisonment of between 6 months and 5 years.
• A fine of up to 10 per cent of the property's fair market value.

7. Consequences for Individuals

If involved in a benami deal:

• You lose legal ownership of the property.
• Confiscated property is taken by the government without compensation.
• Both parties can face jail and fines: the real owner and the nameholder.
• Even unknowing participation may lead to investigations and legal problems.

8. Why Understanding Benami Laws Matters

• Prevents buying property that might thereafter be seized.
• Helps in ensuring that real estate transactions are clean, transparent, and compliant.
• Safeguards residents and NRIs from fraudulent or illegal dealings.
• Essential for safe investing in land, plots, and property in India.

Conclusion

Laws on benami property in India are designed to ensure transparency and prevent real estate from being misused for illicit financial dealings. Any property bought in someone else's name, when not clearly, legally, and documentedly justified, can be classified as benami. The penalties are strict, and the government has strong powers to investigate and confiscate such assets. It is very important for every buyer, investor, and especially NRIs who wish to invest in Indian property to understand these rules.

(ITAT) The Income Tax Appellate Tribunal , Chennai Bench, has held that simply owning agricultural land is not sufficient to justify claims of agricultural income. In a significant ruling, the Tribunal upheld the addition of 50% of the assessee’s declared agricultural income as unexplained under Section 68 of the Income Tax Act.

The assessee had filed his return declaring substantial agricultural income.

A search was conducted at his premises, after which assessment proceedings were reopened.

Assessment Officer’s Findings

The taxpayer claimed ownership of about 47 acres of wet and dry land.

However, he failed to provide supporting evidence of cultivation, such as:

• Land-revenue records (Chitta, Adangal)
• Details of agricultural expenditure
• Proof of sale of agricultural produce

Due to lack of documentation, the Assessing Officer treated the entire agricultural income as unexplained credit.

CIT(A) Observations

Only patta documents (land ownership) were submitted; no cultivation-related records were provided.

The assessee was unable to demonstrate actual agricultural operations.

Considering the circumstances, the CIT(A) accepted 50% of the declared agricultural income as reasonable and treated the remaining 50% as unexplained.

ITAT’s Decision

The Tribunal upheld the view of the CIT(A) and dismissed the assessee’s appeals for both assessment years.

Key observations:

Ownership of land does not automatically prove agricultural activity.

No evidence of expenditure, crop details, yield, or sales was produced.

Income claimed as agricultural income must be backed by verifiable records.

The ITAT concluded that treating half of the agricultural income as unexplained was justified.

Key Takeaways

Taxpayers claiming agricultural income must maintain:

• Cultivation records
• Expense details
• Sale receipts or proof of buyers

Mere possession of agricultural land is not enough to support agricultural income claims.

Inaccurate or unsubstantiated claims may lead to additions under Section 68 as unexplained credits.

1. What is Khudkasht?

The word Khudkasht comes from old land-revenue systems in India.

It means land that is personally cultivated by the owner.

Cultivation can be done by:

• the owner himself,
• the owner’s family members,
• or hired labour working under the owner’s supervision.

It also includes land earlier recorded as Sir, Havala, Niji-jot, etc., in old settlement records.

2. Legal Meaning of Khudkasht

Indian tenancy and land revenue laws clearly define what counts as “personal cultivation.”

Even if owners like widows, minors, or disabled persons cannot personally supervise cultivation, the land can still legally be considered Khudkasht.

Courts have explained that Khudkasht land must be under direct control and use of the landowner, not tenants.

3. Key Features of Khudkasht Land

• Land is directly cultivated by the landowner, not rented out.
• Land is recorded in revenue records specifically as Khudkasht.
• Rights are connected to personal use, not to tenancy.
• Transfer of Khudkasht land can have restrictions, depending on state laws.
• These rights can be passed on to legal heirs.

4. Why Khudkasht Matters in Real Estate

A. Ownership Rights

Khudkasht holders have strong rights because they cultivate the land themselves.

These rights often continue even after changes in land laws.

B. Transfer Restrictions

Khudkasht land usually cannot be sold or transferred freely like normal freehold land.

Some transfers may require government permission or may not be allowed at all.

C. Effect on Land Value

Because of limited transfer rights, Khudkasht land often has lower market value compared to freehold land.

D. Loan & Finance Impact

Banks may be hesitant to lend large amounts on Khudkasht land.

Restricted ownership lowers the land’s mortgage value.

Summary

• Khudkasht = land personally cultivated by the owner.
• Includes owner’s labour, family labour or supervised hired labour.
• Clearly defined in law and supported by court judgments.
• Transfer often restricted → lower market value.
• Important for inheritance, loans, and development.
• Always check revenue records before buying.

1. What is an Occupant?

• A person who legally holds and uses government land (unalienated land).
• Not a tenant, not a trespasser, not a temporary user.
• The Maharashtra Land Revenue Code (MLRC 1966) divides such landholders into classes.

Class I, Class II and Class III (Government Lessee)

2. Occupant – Class I

• Full rights over the land.
• Can sell, gift, transfer or mortgage the land without restrictions (in most cases).
• Land is almost like freehold land.
• Land is highly valuable and easy to transfer.
• People who had strong land rights before 1966 usually fall in this class.

3. Occupant – Class II

• Have land in perpetuity (permanent), but with restrictions.
• Cannot sell or transfer land freely.
• They need Collector / Government permission for any sale or transfer.
• If they transfer without permission, the land can go back to the government.
• Land value is lower due to restrictions.
• Some older leaseholders (long-term leases) also fall under this class.

4. Class II Land Conversion (Upgradation to Class I)

• Class II land can be changed to Class I by applying to the Collector.
• Requires paying a premium (a fee decided by the government).
• After conversion, the land becomes fully transferable and more valuable.

5. Occupant Class III (Government Lessee)

(Commonly known as Class III, although legally called Government Lessee)

• This land is leased by the government to a person or institution.
• You do not own the land — you only have the right to use it.
• Very strict rules and almost no right to sell or transfer.
• Mostly given for special purposes like:
• School, hospital, public use land
• Temple or religious land (Devsthan Inam)
• Old service-related grants (Saranjam)
• Banks usually do not give loans on such land.
• Market value is very low because it cannot be sold freely.

6. Why Understanding These Classes is Important

• Helps you know whether you can buy or sell the land.
• Helps you understand whether you can get a loan on the land.
• Helps avoid legal problems if land has restrictions.
• Helps you plan construction, development, or investment safely.

7. How to Check the Land Class

• Check the 7/12 extract or land documents.
• Ask at the Talathi office, Tehsildar office or Collector office.
• A property lawyer can confirm the land class easily.

8. Summary

• Class I = Full rights, free to sell, best for investment.
• Class II = Restricted rights, need government permission to sell.
• Class III (Government Lessee) = No ownership, cannot sell, very restricted.

Understanding land type is very important before buying, selling, or developing land. In Maharashtra, the government has clear rules that tell whether land is agricultural or non-agricultural (NA). Here is a simple guide.

1. Check the 7/12 Extract (Satbara Utara)

This is the most important document for land in Maharashtra.

• It shows land ownership, type of land, and current use.
• If it says “agricultural land”, then the land is legally for farming.
• Always check the latest or updated 7/12 extract.
  

2. Check the Zoning in the Development Plan / Regional Plan

• Every area has a Development Plan (DP) or Regional Plan (RP).
• This plan shows which land is for agriculture, housing, commercial use, green zone, etc.
• If the zoning allows non-agricultural use, the land can be converted or may already be NA.

3. Look for NA Permission (Non-Agricultural Permission)

As per the Maharashtra Land Revenue Code, land used for non-agricultural purposes MUST have NA permission.

• NA permission is given by the Collector of the district.
• If the land does not have NA permission, it is still agricultural by default.

Some lands with approved building permissions automatically get an NA certificate under the newer rules.

4. Check the Land Tax / Assessment Records

• Agricultural land has an agricultural tax.
• Once land becomes NA, the government charges non-agricultural assessment (N.A. tax).
• If the NA tax is charged, the land is officially non-agricultural.

5. Observe the Current Use of the Land

• If crops are grown, it's probably agricultural.
• The construction of homes, businesses, or factories may result in NA or improper use of the land.
• Verify the documents thoroughly if the land has been plotted and sold for development. 

6. Check Conversion Documents

To change land from agricultural to NA, the owner must apply to the Collector's office.

• After approval, the Collector issues a Conversion Order.
• A fee or premium must be paid for conversion.
• Ask the owner for a copy of the conversion order if they claim the land is NA.

7. Meet Local Authorities or Experts

• Visit the Talathi, Tehsildar, or Collector’s office to confirm the land status.
• Town Planning departments can confirm zoning and permitted land use.
• A property lawyer or consultant can help check all documents properly.

8. Stay Updated with New Government Rules

• Maharashtra has recently made some processes easier.
• In certain cases, separate NA permission is not required if building permission is already approved.
• Check the latest state circulars before purchasing land.

Summary (Quick Checklist)

✔ Check 7/12 extract

✔ Check zoning in DP/RP

✔ Verify if NA permission exists

✔ Check tax records for NA assessment

✔ Ask for conversion order

✔ Visit local government offices

✔ Consult a property expert

✔ Stay updated with the latest rules