NALA means Non-Agriculture Land Assessment Act which regulates the process of converting agriculture land to Non-Agriculture and other purposes such as such as industrial, commercial, and 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.
No agricultural land in the State shall be put to nonagricultural purpose, without the prior permission of the competent authority.
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.
If the conversion tax so is found to be less than the tax prescribed, a notice shall be issued by the competent authority to the applicant 5 within 7 days of the receipt of application intimating him the deficit amount.
The applicant shall pay the deficit amount indicated in the notice issued under within one week of the receipt of such notice.
In case no intimation is received by the applicant 5 within 7 days about the deficit payment of conversion tax, it shall be deemed that the amount paid is sufficient for the purpose.
The conversion permission requested shall either be issued, rejected in full or part by the competent authority within fifteen days after such request is received in the office of the competent authority or 5 within 7 days after the receipt of the deficit amount as the case may be, provided that such requests are rejected, the reasons for such rejection shall be recorded in writing and communicated to the applicant:
Provided that, if no order is passed on such request, within the time prescribed, the required permits shall be deemed to have been given.
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.
Authority competent 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.
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.
Act not to apply to certain lands.
Nothing in this Act shall apply to,-
(a) Lands owned by the State Government;
(b) Lands owned by a local authority and used for any communal purposes so long as the land is not used for commercial purposes;
(c) Lands used for religious or charitable purposes;
(d) Lands used by the owner for household industries involving traditional occupation, not exceeding one acre;
(e) Lands used for such other purposes as may be notified by the Government from time to time;
(f) Lands used for Aquaculture, Dairy, and Poultry.
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.
NALA Act does not apply to the below types of lands.
If a land owned by Central or State Government but does not include lands leased out for a non-agricultural purpose, NALA is not significant
Land vested in local authority and used for the non-agricultural purpose cannot be converted as per NALA
If a land owned by a local authority and used for any commercial purpose but so long as no income is derived from this land, NALA is not applicable
NALA is not applicable for the land of any charitable or religious, educational institution.
NALA tax excludes the lands that are exclusively for the residential purpose where its extent does not exceed one hundred square meters
NALA is not applicable for lands in estates that are not under Government
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.