What stamp duty applies to a Section 118 purchase?

An ordinance of 18 February 2025 set duty at 12% of the higher of market value or consideration where the State grants permission under section 118(2)(h), up from 6%. The Second Amendment Bill passed in September 2026 is reported to set 6% to 8% for other buyers and 4% to 8% for women, with no effective date reported. Registration is 2% under the 2012 notification; check the current table with the Sub-Registrar.

Can NRIs and OCIs buy land in Himachal Pradesh?

Not agricultural land, plantation land or a farm house. The RBI Master Direction under FEMA 1999 bars it anywhere in India, and a Section 118 permission is a state matter that does not lift the bar. Land recorded as non-agricultural is a separate question for the Sub-Registrar and a lawyer.

How long does Section 118 permission take?

The 1975 rules give the Collector 10 days and the State 10 days, but The Tribune (October 2025) described the process as lengthy, with several NOCs and some cases reaching Cabinet, and gave no figure. We found no published average, so do not plan construction or resale dates until permission is granted.

State guide

Himachal Pradesh

Twelve hill districts under Section 118: who needs State permission, the 12% duty on permitted transfers, the apple, tea and lower-hill belts, and the road, rail and disaster checks before you pay an advance.

12 hill districts
Districts
55,673 sq km
State area
Section 118 permission
Outsider access
12% (ordinance, Feb 2025)
Stamp duty (Section 118)

Himbhoomi — Himachal Pradesh Land Records Portal

State land record — Himachal Pradesh

Rev. 2026 · Farmland India desk

Terrain

12 hill districts

Total districts

State area

55,673 sq km (FSI)

Forest cover

27.72% of area (ISFR 2019)

Land records portal

Himbhoomi (NIC)

Governing act

HP Tenancy & Land Reforms Act, 1972

Stamp duty (Section 118)

12% (ordinance, Feb 2025)

Access

Section 118 permission for non-agriculturists

Himachal Pradesh — land purchase legal rules (Section 118)

⚠ Under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, a non-agriculturist cannot acquire land in the state without prior State Government permission (Section 118 text, Indian Kanoon). Stamp duty on permitted transfers was raised from 6% to 12% by an ordinance of 18 February 2025 (Legitquest copy).

Who can buy without permission? Only an agriculturist, which the Act defines as a person who cultivates land personally in the state (section 2(2), PRS copy of the Act). Out-of-state buyers do not qualify. Nor, according to The Tribune, October 2025, do Himachalis who hold no agricultural land; they need Revenue Department relaxation too.

Section 118 permission: the Act makes a transfer to a non-agriculturist invalid without it, and the section covers sale, gift, exchange, lease and mortgage with possession (Indian Kanoon). In Ajay Dabra v. Pyare Ram (31 January 2023) the Supreme Court held that land cannot pass to a non-agriculturist without prior State permission (LiveLaw, February 2023). The application goes to the Collector on Form LRXIV, with caps of 4 acres for farming, 500 sq m for a house and 300 sq m for a shop (Rule 38A, Rules of 1975). The rules allow the Collector 10 days and the State 10 days; The Tribune (October 2025) describes the process as lengthy, with several NOCs and some cases going to Cabinet, and gives no timeline.

The 12% duty: the Indian Stamp (Himachal Pradesh Amendment) Ordinance, 2025, dated 18 February 2025, sets duty at 12% of the higher of market value or consideration where the State grants permission under section 118(2)(h), regardless of gender (Legitquest copy). UNI reported in March 2025 that the rate had doubled from 6% as a bill was tabled (UNI, March 2025). Budgets drawn up before 2025 on a 6% basis are out of date.

A pending amendment: Bill 25 of 2025 would change Section 118, including a 3 plus 2 year use period and flats in RERA-registered projects up to 500 sq m (PRS bill text). The Assembly sent it to a select committee on 5 December 2025 (The Tribune, December 2025). We found no report that it has passed; until it does, the 1972 text applies.

NRI & OCI buyers: the RBI Master Direction under FEMA 1999 bars NRIs and OCIs from buying agricultural land, plantation land or a farm house (RBI Master Direction FED 12/2015-16). A Section 118 permission is a state matter and does not lift that bar.

Section 118 required
Stamp duty: 12% (Section 118)
Rule 38A application
No open-district carve-out
NRI agri: barred (FEMA)
Himbhoomi

Read the full Section 118 explainer

State overview

Himachal Pradesh — the hardest entry, the highest ceiling

All 12 districts are hill districts, and the state covers 55,673 sq km (State of Forest Report 2019, FSI). Section 118 applies across the state. The farm economy leans on horticulture: Himachal is the second apple state after Jammu and Kashmir, with a 2025 crop of 6.99 lakh tonnes (The Tribune, July 2026), and Shimla and Kullu-Manali carry the main tourism towns.

Forest cover is 27.72% of the state and recorded forest area 66.52% (FSI, 2019), which leaves little flat, cultivable ground. That scarcity and the permission step together limit how much land reaches outside buyers. We have not found dated price series that would show what this does to prices, so the page quotes none.

For an outside buyer the legal route is a Section 118 application. Buying through a local agriculturist as a stand-in is not a route: the Act's explanation to Section 118 treats benami holdings and control through power of attorney or agreement as covered (Indian Kanoon). Build the permission step and the 12% duty into the plan before paying an advance.

Section 118
Apple Economy
Shimla
Kullu-Manali
12 Districts
Himbhoomi

Understand Section 118 in full

Locator map of Himachal Pradesh showing Shimla, Kullu, Manali, Dharamshala, Solan and Mandi

District guide

District guide and price evidence — Himachal Pradesh

No dated per-acre price series was sourced for this state page, so it shows none. Every district below is under the same Section 118 rule; the table describes the land, not the price.

District	Zone / belt	Farm evidence*	Section 118 status
Shimla	Shimla periphery / Kufri belt	Apple is the largest horticultural crop: 31.95 thousand ha (2013 plan)	Permission needed for non-agriculturists
Kullu	Manali corridor	Apple 19.5 thousand ha (2012 plan); see the Kullu district page	Permission needed for non-agriculturists
Kangra	Dharamshala / Palampur tea belt	Kangra tea has an EU protected GI (July 2023)	Permission needed for non-agriculturists
Solan	Low and mid hills	Maize about 21.7 and wheat about 23.8 thousand ha (mostly 2005-06 data)	Permission needed for non-agriculturists
Sirmaur	Nahan / lower-hill belt	Wheat 25.2, maize 23.1 thousand ha, mostly rainfed maize (2012 plan)	Permission needed for non-agriculturists

*Sources: CRIDA Shimla plan, CRIDA Kullu plan, EU IP Helpdesk, July 2023, CRIDA Solan plan and CRIDA Sirmaur plan. These are district farm statistics from older plans, not prices. Per-acre figures that circulate for this state are usually converted from local area units and were not used. The 12% duty, the registration fee and the cost of the permission process come on top of whatever price is agreed. Past movement is historical, not a projection.

Transaction costs

Stamp duty & registration in Himachal Pradesh

6–8%

General buyers (reported)

6% to ₹40 lakh, 8% above; women 4% to ₹1 crore, 8% above; Sept 2026 bill

12%

Section 118 transfers

ordinance of 18 February 2025, regardless of gender

Registration fee

of the higher of market value or consideration, minimum ₹100 (2012 notification)

For a transfer under a Section 118 permission, duty is 12% of the higher of market value or consideration (ordinance text, Legitquest; UNI, March 2025). The 6% to 8% and 4% to 8% figures come from the Second Amendment Bill passed on 3 September 2026, as reported by ANI, September 2026 and Outlook Money, September 2026; neither report gives an effective date, and the bill text is Bill 4 of 2026 on PRS for a separate undervaluation change. The 2% registration fee comes from the Revenue Department notification of 12 January 2012; we found no later table. The state announced in May 2023 that physical stamp paper would be phased out after 31 March 2024 and that e-stamps would be issued through SHCIL (The Tribune, May 2023). The Registration and Stamps offices have not been consulted for this page, so check the rate table in force on the date of your deed.

Connectivity

How Himachal Pradesh connects — road, rail, air and terrain

Chandigarh is the usual road gateway to Shimla and Kullu; Delhi buyers drive further. Journey times vary with monsoon and winter road conditions.

🚗 By road from Chandigarh

Shimla~119 km · ~3.5 hr

Kullu~312 km

Kiratpur–Manali (NH)232 km cut to 195 km (reported)

🚗 By road from Delhi

Shimla~370 km · ~8 hr

Kullu~570 km

✈️ By air

Shimla Airport (Jubbarhatti)Limited, weather dependent; Delhi flight reported

Kullu-Manali Airport (Bhuntar)~10 km from Kullu; Delhi, Chandigarh, Shimla

Chandigarh~120 km from Shimla by road

🚂 The rail alternative

Shimla has no mainline station; the nearest is Kalka, 96 km away, with 3 to 4 trains daily each way and 103 tunnels on the line (Shimla district administration). The Kalka-Shimla railway was added to the World Heritage List in 2008 (UNESCO decision 32 COM 8B.28). For Kullu, the nearest rail stations are Joginder Nagar (about 120 km) and Kiratpur (about 200 km) (Kullu district administration). Distances above are from the two district pages; times other than Shimla are not published there. Road remains the practical access to most districts.

Distances: Shimla district administration, how to reach and Kullu district administration, how to reach. Jubbarhatti: Alliance Air was reported as the only airline there in The Tribune, March 2025. Kiratpur–Manali distance: The Tribune, May 2024; the Diyod and Hanogi tunnels opened on 11 September 2026 and the Mandi–Pandoh stretch was still under construction in February 2026 (The Tribune, September 2026; The Tribune, February 2026). The Atal Tunnel, 9.02 km, was dedicated on 3 October 2020 (PIB).

Growth catalysts

Upcoming infrastructure & developments

Status labels maintained by the Farmland India research desk. Items are as reported by the outlets linked; timelines are not guaranteed.

Under construction · delayed

Bhanupalli–Bilaspur–Beri Rail Line

A 63 km new line. The Railway Ministry told the Lok Sabha on 3 December 2025 that 82 of the 124 hectares needed in Himachal had been handed over, Rs 5,252 crore had been spent, and the state owed Rs 1,843 crore of its share (PTI via The Week, December 2025). No Leh extension appears in that reply.

Reported · no extension planned

Shimla and Kullu-Bhuntar airport runways

Swarajya reported in July 2026 that the Centre told the Rajya Sabha runway extension is not viable at Shimla or Kullu-Bhuntar because of terrain, and that the Kangra project is waiting for land from the state (Swarajya, July 2026). The Parliament reply itself was not opened.

Regulatory shift · in effect

Section 118 stamp duty doubled (February 2025)

Not physical infrastructure, but it changes the cost of a permitted purchase: 12% under the ordinance of 18 February 2025 (Legitquest). A Second Amendment Bill passed in September 2026 sets out a new rate table; no effective date was reported (ANI, September 2026).

Agriculture & terrain

Soil, crops & water across Himachal Pradesh

Himachal's farm economy leans on horticulture, with apple the main fruit crop.

🍎 Apple belt (Shimla, Kullu)

Apple grows at 1,500 to 2,700 m and does best in dry temperate areas (National Horticulture Board crop note). Shimla has 31.95 thousand ha under apple (CRIDA, 2013); Kullu 19.5 thousand ha (CRIDA, 2012). Jammu and Kashmir produces more: about 20.56 lakh tonnes in 2024-25 (Kashmir Life, March 2025) against 6.99 lakh tonnes in Himachal in 2025, with about 4.36 lakh forecast for 2026 (The Tribune, July 2026).

Apple
Stone Fruit

🍵 Tea belt (Kangra)

Tea around Palampur and the Kangra valley sits apart from the apple belt. Kangra tea was registered as a protected Geographical Indication in the EU in July 2023, covering Palampur, Baijnath, Kangra, Dharamshala, Jogindernagar and Bhattiyat (EU IP Helpdesk, July 2023).

Kangra Tea

🌾 Lower-hill belt (Sirmaur, Solan)

Below the apple band the main crops are maize and wheat. Sirmaur had 25.2 thousand ha of wheat and 23.1 thousand ha of maize, 17.4 of it rainfed (CRIDA, 2012); Solan had about 21.7 thousand ha of maize and 23.8 thousand ha of wheat, with tomato the largest vegetable (CRIDA, 2013). The Solan data are mostly from 2005-06.

Maize
Vegetables

🍎 Mandi price reference

Wholesale apple prices are posted on Agmarknet, and the state horticultural marketing corporation publishes procurement rates each season. Neither site was opened for this page, so no price is quoted from them; check the Shimla or Kullu market on the day.

💧 Water & rainfall

Water depends on altitude and slope. In Sirmaur most maize is rainfed (CRIDA, 2012). In Kullu the Central Ground Water Board recorded 10 to 25 litres per second from valley aquifers and 1 to 5 from hard rock (CGWB, 2013). Ask for the parcel's water source and test it before planting.

📐 Land records and area units

Himbhoomi holds the state's jamabandi and shajra nasb records and plot maps for digitised villages (NIC, mHimBhoomi; Kinnaur district page). Local area units vary by district, so compare offers by the area in the revenue record in square metres or acres, not by a quoted local unit.

At a glance

Shimla vs. the other major HP belts

District	Farm figure*	Primary economy	Access
Shimla	Apple 31.95 thousand ha	Apple / tourism	Section 118
Kullu	Apple 19.5 thousand ha	Apple / tourism	Section 118
Kangra	Tea, EU GI (2023)	Tea / agriculture	Section 118

*Figures from the CRIDA district plans (2012-13) and the EU IP Helpdesk, linked in the table above; they are farm statistics, not prices. All three districts carry the same Section 118 requirement.

Fenced orchard plot with stone pillars and young apple trees on a terraced hillside in Himachal Pradesh

State report — Himachal Pradesh

Farmland India view

Why investors look at Himachal Pradesh

Four reasons this desk keeps Himachal Pradesh on its list despite the entry barrier. These are our views, not forecasts.

Barrier-driven scarcity value

Section 118 limits how much land reaches outside buyers; 215 permissions were reported for the three years to July 2025 (The Tribune, October 2025). Whether that supports prices is not shown by any series we found.

Horticulture income

The apple economy was valued at about Rs 5,000 crore, with a 2026 crop forecast to fall about 40% (The Tribune, July 2026). Yields swing with weather.

Tourism income floor

Shimla and Kullu-Manali are the main tourism towns, which suits homestay land. Kullu-Manali arrivals fell from 4.62 lakh in June 2023 to 19,124 in July 2023 after the floods, as reported by The Tribune, August 2024.

Few buyers complete the permission step

The permission step deters casual buyers, so serious ones face less competition for land they are allowed to buy.

Browse reviewed land

Farmland India's review does not certify Section 118 status. Confirm eligibility and permission status before any advance.

STRAIGHT TALK

Risks & challenges in Himachal Pradesh

Read these before shortlisting. In Himachal the legal barrier comes first, then terrain and weather.

Void-from-the-start purchases

A transfer to a non-agriculturist without Section 118 permission is invalid, and land that is diverted or left unused can vest in the State (Indian Kanoon; LiveLaw, February 2023). Possession and a registered deed do not prove a valid purchase.

The 12% duty changes the budget

Projections built on 6% for permitted transfers double at 12% (UNI, March 2025). The September 2026 bill adds a new table with no reported start date (Outlook Money, September 2026).

Permission timing risk

The rules give the Collector and State 10 days each, but The Tribune (October 2025) calls the process lengthy and reports several NOCs and Cabinet-level cases (The Tribune, October 2025). Do not commit to construction or resale dates before permission is granted.

Nominee arrangements and forged papers

Section 118's explanation reaches benami holdings and control by power of attorney or agreement (Indian Kanoon). The Tribune reported a sale in Palampur allegedly made on a forged agriculturist certificate in September 2024; the outcome was not reported (The Tribune, September 2024).

Seasonal access and construction constraints

The district administration says Jubbarhatti airport works only in suitable weather (Shimla district administration), and hill roads close in bad weather. Kullu roads damaged in July 2023 were still not fully restored a year later (The Tribune, July 2024). A draft rule reported in September 2024 would charge non-agriculturists 150% higher building-plan fees; the final rule was not found (The Tribune, September 2024).

Landslide and terrain instability

The state disaster authority's cumulative report, as carried by Punjab Kesari, counted 380 deaths and Rs 4,306.76 crore of public-asset loss between 20 June and 10 September 2025 (Punjab Kesari, September 2025). The Supreme Court said in July 2025 that ecological imbalance had worsened and revenue cannot come at the cost of the environment (SCC Online, August 2025). Assess drainage and slope before any construction plan.

Who to contact

Local revenue & registration offices

Section 118 applications go to the Deputy Commissioner / Collector of the district on Form LRXIV (Rule 38A; the Collector is the Deputy Commissioner per State of H.P. v. Vinod Gupta, High Court, 2023), and the State Government decides. Sale deeds are registered by the local Sub-Registrar. Land records are on Himbhoomi (NIC). The state's Section 118, Himbhoomi and registration portals could not be opened for this page, so we do not link them; ask the Deputy Commissioner's office for the current application route.

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KEEP EXPLORING

Districts & guides in Himachal Pradesh

Districts

Guides & research

COMMON QUESTIONS

Frequently asked questions

Everything buyers, NRIs and investors ask before their first reviewed farmland purchase in Himachal Pradesh.

Visit full wiki

01 of 04

Can outsiders buy agricultural land in Himachal Pradesh?

Only with prior State Government permission under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972, unless the buyer is an agriculturist, meaning a person who cultivates land personally in the state. A transfer to a non-agriculturist without permission is invalid, and the Supreme Court said so in Ajay Dabra v. Pyare Ram in January 2023. The application goes to the Collector on Form LRXIV. Bill 25 of 2025 would amend Section 118 but went to a select committee in December 2025, and we found no report that it has passed.

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Transparency

Sources and references

Where a claim is marked as reported, the outlet named in the link is the only source we reached for it. The state's own Section 118, Himbhoomi and registration portals could not be opened, so they are not linked.

Law and courts

Government

News

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