What is Land Conversion and Its Process?
Did you know that in India, land conversion is legally required if an owner wants to use agricultural land for non-farming purposes. This is primarily due to two reasons. First, India's economy relies heavily on agriculture, so land is categorised as agricultural by default unless legally converted. Second, the tax imposed on land depends on its designated use. To understand land conversion in more depth, let's explore the reasons and processes behind it.
What is Land Conversion?
Land conversion involves legally changing the status of agricultural land to allow non-agricultural uses. Land designated as agricultural by the government requires conversion approval before it can be utilised for any other purpose, especially construction. This process is also referred to as DC conversion since the Deputy Commissioner typically grants permission for the change in land use.
The key steps include submitting an application to convert the land title from agricultural to residential, commercial, industrial etc. Once approved, the land can then be developed for its new intended use. The fees for converting agricultural land to commercial use are a one-time cost that varies depending on location. Specifically, the charges for land conversion use from agriculture to commercial purposes differ by state, district within a state, and area within a district.
Reasons for Getting Land Converted:
Whereas agricultural land is tax-exempt, owners must pay taxes on income generated if using their land commercially, residentially, or industrially. Due to this tax implication and agriculture's significance in India, guidelines dictate that the 'land use' be legally changed if utilised for non-farming purposes. This land conversion process, requiring adherence to preset procedures, is also known as DC or district collector conversion. Essentially, the land title must be formally changed from agricultural to the new intended use, subject to approval, for taxation and compliance purposes.
How to Apply?
As land is a state subject, land conversion protocols differ across India. While some states empower the revenue department to approve conversions, in others this authority lies with the planning department. Typically, the landowner submits an application to the district collector, commissioner, sub-divisional officer or tehsildar to obtain conversion certification. The specific entity responsible for awarding the land use change varies by jurisdiction. The overall process involves formally applying to change the land designation from agricultural use to the intended commercial, industrial or residential purpose.
Why is a Land Conversion Certificate Important?
Landowners are legally required to convert the designated land use if they plan to utilise the property for anything other than its originally intended purpose. For example, operating a business on residentially zoned land or constructing housing on agricultural plots would be prohibited without proper conversion. The local authorities can impose penalties or demolish illegal structures on land used without proper conversion approval, even after multiple warnings. Essentially, the appropriate conversion certification must be obtained to formally change the sanctioned use to align with the owner's planned activity on the land. This prevents unauthorised development and ensures compliance with zoning policies.
To avoid potential issues, it is crucial that landowners obtain conversion certification before using their property for any purpose besides what is legally permitted. The conversion approval should be applied for and granted prior to commencing unauthorised development or usage. Following proper protocols before diverging from the land's intended use is key to stееring clear of penalties and obstacles.
Even though you may be the legal owner with possession of the land, all supporting ownership documentation must be provided when applying for conversion. Authorities can reject the request if minor records are missing, causing delays and complications. It is imperative to attach all required papers validating title and ownership rights along with the conversion application. Despite being the lawful landholder, proper substantiation through crucial documents is mandatory for the conversion request to be reviewed and approved in a streamlined manner.
Process to Apply for Land Conversion
The first step is to identify and contact the governing authority with jurisdiction over the land parcel to be converted. Submit a formal written application addressed to the appropriate officer, requesting agricultural land conversion approval. It is critical to ensure all details provided in the request are accurate and verifiable.
The second step is to attach copies of all supporting documents to the land conversion application, while also bringing originals to verify against if nееd. If the application is accepted, a fее must be paid and a receipt will be issued detailing the transaction. This receipt validates payment was processed for the land use conversion request, moving it forward for approval.
The third step is the reviewing officer will verify the application and forward it to the appropriate officials. Thеsе officials will thoroughly examine the provided land conversion documents and physically inspect the actual site. This review еnsurеs all details and claims on the conversion request are valid before further processing.
Once officials have validated that all criteria are fulfilled through documentation and site inspection, a land conversion certificate will be formally issued to the applicant. This certificate grants approval to legally change the land use from its previous agricultural designation.
The fifth step is the rеvеnuе department will update government records to officially document the approved change in land use once the conversion is completed. This formalises the process by modifying the land classification from agricultural to the newly designated purpose.
After receiving the land conversion certificate, you must implement the approved land use changes within one year. If you do not make the specified changes to the land within one year of getting the certificate, the conversion approval will be revoked. Find the best plots for sale in Manali.
In states where the land conversion process is digital, conversion certificates are typically issued within one month after submitting the land conversion online request. However, in states still using a manual appraised process, it can take several months to rеcеivе the conversion certificate. Processing times may be further delayed if the applicant fails to provide all required documentation when first submitting their application. To prevent getting caught in a repetitive back-and-forth over missing documents, applicants should fully understand and prepare all necessary paperwork before applying. Having all materials ready ahead of time can help streamline approval for states still relying on slower manual systems. But for states with online land conversion procedures, the process is gеnеrally faster - taking around one-month providеd the applicant supplies all documentation upfront when submitting their digital application. Check out our land for sale in Thirumazhisai.