NALA means Non-Agriculture Land Assessment Act which regulates the process of converting agriculture land to Non-Agriculture and other purposes such as industrial, commercial, residential, venture development for plotting, or Construction activities for habitation, etc.
Conversion of agricultural land into non-agriculture purposes by taking prior permissions from competent revenue authorities by paying prescribed tax.
To cater to the misuse of agricultural land use the government has imposed the guidelines in the Telangana Agricultural Land (Conversion Of Non- Agriculture Purpose) Act 2006. The NALA Act extends to the whole state of Telangana.
Revenue Deptartment is the competent authority to convert agricultural land for the non-agricultural purpose.
The Revenue Divisional Officer or any officer to be notified by the Government on this behalf shall be competent to order, in respect of the lands situated within his territorial jurisdiction, conversion of land use from agricultural purpose to non-agricultural purpose. An application for such conversion of the agricultural land for non-agricultural purposes shall be made before the competent authority in the form prescribed along with conversion tax as specified.
The penalty will be imposed if the land is used without obtaining permission.
If any agricultural land has been put to non-agricultural purposes without obtaining the permission as required, the land shall be deemed to have been converted for non-agricultural purposes.
Upon such deemed conversion, the competent authority shall impose a fine of 50% over and above the conversion tax for the said land in such manner as may be prescribed.
The owner or occupier of the land shall pay the fine so imposed in such manner as may be prescribed.
Any tax or penalty which remains unpaid after the date specified for payment, shall be recoverable as per the provisions of 10th Telangana Revenue Recovery Act, 1864. Appeal to competent authorities.
Any person aggrieved by an order of the Revenue Divisional Officer may file an appeal before the Collector within sixty days of receipt of such order by the applicant.
Power to give directions to the officer.
For the purpose of giving effect to the provisions of this Act, it shall be competent for the Government to issue such directions as they may deem fit to any officer, authority, or person subordinate to the Government. Taxes levied and collected for conversion.
With effect on and from the date of commencement of this Act, every owner or occupier of agriculture land shall have to pay a conversion tax for non-agricultural purposes, at the rate of 3% of the basic value of the land in areas as may be notified by the Government from time to time.
Provided that the owner or occupier of agricultural land in the areas covered under Greater Hyderabad Municipal Corporation, an individual shall have to pay a conversion tax for non-agricultural purposes, at the rate of 2% of the basic value of the land.
For the purpose of this section, the basic value of the land shall be fixed in such manner as may be prescribed.
Documents required to applying for conversion.
Application form for Land Conversion
Basic Value certificate from Sub-Registrar
Land title deed
Procedure for land conversion
The landowner needs to submit the land conversion form online through the MeeSeva center by paying prescribed fees.
After approval of the application, a competent authority (Revenue inspector) will issue a notice of demand. MeeSeva operator will provide the Receipt of Intimation of payment for land conversion.
The assessment is payable within 30 days from the date of service of demand notice. The landowner can pay a one-time conversion tax to the Government by challan. After paying the tax, obtain a copy of the challan. After-Tax payment, the Revenue officer will issue a certificate within 30 days.
After the landowner receiving the certificate, he or she will have to convert agricultural land to non-agriculture purposes such as industrial, commercial, and residential purposes.
The Revenue inspector will inspect and measure the converted agricultural land. In the case of deceitful land conversion, the officer will issue a notice to the landowner.
The District Collector will review the records for every three months, whether the converted land is used for the intended purpose.
The penalty is imposed on landowners using the agricultural land for other purposes without taking permission from competent authorities the land is deemed to be converted to non-agricultural purposes. Upon such deemed conversion, the revenue officer imposes a penalty of 50% for conversion fees.