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| What
is the difference between lease and leave
and licence agreement? |
| Lease
is defined under Section 105 of The
Transfer of Property Act,1882 and a
lease of immoveable property is a transfer
of a right to enjoy such property for
a certain time or in perpetuity on consideration
to be rendered periodically or on specified
occasions, while a licence is defined
in Section 52 of the Indian Easement
Act,1882 and it does not create any
interest in the premises in favour of
the licensee excepting a mere right
to use and occupy the premises for a
limited duration. Both documents have
now to be registered. A lease deed is
required to be stamped and registered.
However the stamp duty payable on lease
is more than on Leave and Licence for
a period upto three years. For a period
exceeding three years the stamp duty
is same for both agreements. The implications
of entering into a lease agreement would
be: i) That stamp duty would have to
be paid ii) That the document would
have to be registered iii) That Municipal
taxes may go up iv) Of course, Income-tax
would have to be paid on your income;
and v) The question of Wealth-tax would
have to be considered. One property
is exempt from Wealth-tax. However,
if you have any other property, this
implication would have to be considered.
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| I
have a flat which I want to sell and buy
a new flat which will be bigger in area.
What are my tax implications with regard
to capital gains? |
|
On
the proposed sale of your flat you may
purchase another flat within two years
of the date of sale of the original
flat. If you have invested the entire
amount of capital gain irrespective
of your area of the flat, you would
not have to pay any capital gains tax |
|
| Are
any conditions required to be fulfilled
if repatriation of sale proceeds is desired? |
| Applications
for repatriation of sale proceeds are
considered provided the sale takes place
after three years from the date of final
purchase deed or from the date of payment
of final instalment of consideration
amount, whichever is later. |
|
| Can
foreign citizens of Indian origin acquire
or dispose of residential property by way
of gift? |
| Yes.
Reserve Bank has granted general permission
to foreign citizens of Indian origin
to acquire or dispose of properties
up to two houses by way of gift from
or to a relative who may be an Indian
citizen or a person of Indian origin
whether resident in India or not, subject
to compliance with applicable tax laws. |
|
| Can
foreign citizens of Indian origin acquire
commercial properties in India? |
|
Yes.
Under the general permission granted
by Reserve Bank properties other than
agricultural land/farm house/plantation
property can be acquired by foreign
citizens of Indian origin provided the
purchase consideration is met either
out of inward remittances in foreign
exchange through normal banking channels
or out of funds from the purchasers'
NRE/FCNR accounts maintained with banks
in India and a declaration is submitted
to the Central Office of Reserve Bank
in form IPI 7 within a period of 90
days from the date of purchase of the
property/final payment of purchase consideration.
|
|
| Can
sale proceeds of such property be remitted
out of India? |
|
Yes.
Repatriation of original investment
in respect of properties purchased by
foreign citizens of Indian origin on
or after 26th May 1993 will be allowed
to be remitted up to the consideration
amount originally remitted from abroad
provided the property is sold after
a period of three years from the date
of the final purchase deed or from the
date of payment of final instalment
of consideration amount, whichever is
later. Applications for the purpose
are required to be made to the Central
Office of Reserve Bank within 90 days
of the sale of property in form IPI. |
|
| What
is the difference between Built-Up Area,
Super Built-Up Area and Carpet Area? |
| Carpet
Area: This is the area of the apartment/building
that does not include the area of the
walls. Built-Up Area: This is the area
of the apartment/building including
the area of the walls. Super Built-Up
Area: This includes the Built-Up Area
along with the area under common spaces
such as the lobby, lifts, stairs etc.
This term is therefore only applicable
for multi-dwelling units. |
|
| How
ownership of immovable property is acquired
by a person? |
A
person may acquire immovable property
in any of the following way
By inheritance
of ancestral property.
Through
will.
Acquisition
by oneself such as purchase etc.
Through
gift, trust, settlement deeds.
Grant,
sanad / Inam by the Government
Through
decree of Court.
There
are two ways of acquisition:
1.By act of parties.
Example: Purchase, gift etc.
2. By operation of law
Example: Inheritance, decree of Court
etc. (for details please see Transfer
of Property Act, 1882 (Central Act)) |
|
| Which
are the documents requires to be compulsorily
registered? |
Gift
deed of immovable property.
Other
non-testamentary instruments, which
purport or Operate to create, declare,
assign, limit or extinguish whether
in the present or in future, any right,
title or interest, whether vested
or contingent, of the value of one
hundred rupees and upwards, to or
in immovable property;
Non testamentary
instruments which acknowledge the
receipt or payment of any consideration
on account of the creation, declaration,
assignment, limitation or extension
of any such right, title or interest;
Leases
of immovable property from year or
for any term exceeding one year, or
reserving a yearly rent;
Non testamentary
instruments transferring or assigning
any decree or order of a court or
any award when such decree or order
or award purports or operates to create,
declare, assign, limit or extinguish
whether in the present or in future,
any right, title or interest, whether
vested or contingent, of the value
of one hundred rupees and upwards,
to or in immovable property;
The
documents containing contracts to
transfer for consideration, any immovable
property for the purpose of section
53A of the Transfer of Property Act,
1882 shall be registered if they have
been executed on or after the commencement
of the Registration and Other Related
Laws (Amendment) Act, 2000 and if
such documents are not registered
on or after such commencement, then,
they shall have no effect for the
purposes of the said section 53A |
|
| Can
a registered will be rectified or changed? |
| Executant
of a will wishes to rectify, add to
will may do so during his lifetime.
This is called codicil. This document
does not require stamp duty. |
|
| Can
a will be registered even after death of
testator? |
| Yes,
claiming party under the will have to
produce will, records relating to the
death of the testator, witness and the
scribe before the Sub Registrar. If
Sub Registrar is satisfied about the
truth and genuineness of the execution
of the will, he will register. |
|
| What
is the Stamp duty and Registration fee to
register a will? |
| There
is no Stamp duty on will deed. For registration
of will during the life time of the
testator Rs.200-00 Registration fee
prescribed. To register the will after
the death of the testator Registration
fee of Rs.200-00 and enquiry fee of
Rs.250-00 is prescribed |
|
| Is
the certified copy of a registered will
available to any body? |
| A
certified copy of a registered will
is available to the testator only during
his lifetime. After his death anybody
can obtain after producing proof of
death of testator. |
|
| How
to keep contents of a will confidential
? |
| Will
can be deposited in a sealed cover in
office of the District Registrar. A
fee of Rs.1000-00 prescribed to deposit
will in a sealed cover. Depositor or
authorized person (executor) can withdraw
the sealed cover containing a will,
if desires to do so. A Registration
of Rs.200-00 prescribed. |
|
| What
is the procedure to obtain the sealed cover
containing a will after the death of the
depositor? |
| On
making an application along with proof
of the death of the depositor, District
Registrar will open sealed cover in
the presence of the applicant and it
will be registered. Certified copy will
be issued if desired. A fee of Rs.100-00
prescribed to open a sealed cover. |
|
| What
is the procedure for change of khata of
the properties obtained through will? |
| After
the death of the testator person claiming
through the will have to apply to the
concerned authorities as explained in
question no.2 along with the copy of
the will and death proof. |
|
| How
one can determine direction of his plot? |
| Direction
of a plot can be determined by any of
the two modern simple methods by using
a compass, the device for finding direction
which has a freely moving needle which
always points to the magnetic North.
Make two lines crossing each other dividing
a paper in four equal parts at 90-degree
angle. Place a compass on paper in the
middle of your plot and align it with
two lines in the North and the South
of the needle of the compass. Extend
these lines on the plot and mark it
to have exact direction. |
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| What
are other restrictions to purchase agricultural
land? |
Lands
granted to persons belonging to scheduled
caste or scheduled tribe cannot be transferred
or purchased without prior permission
of the Government. This restriction
does not apply to mortgagee in favour
of co-operative or scheduled banks and
partition among family members
2. Social or Industrial organizations
can purchase with the permission of
the Government (Refer Sec.109 of Karnataka
Land Revenue Act, 1964). . |
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|
What is
the purpose of Registration? |
(a)
By Registration of transaction of immovable
property will become permanent public
record. This is a notice to the general
public. Those getting transfer of property
should verify whether such property
has been previously encumbered.
(b) According to Transfer of Property
Act right, title or interest can be
acquired only if the deed is registered |
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