[vc_custom_heading text=”FAQs – General” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal”][vc_tta_accordion shape=”square” spacing=”10″ gap=”10″ c_position=”right” active_section=”1″ collapsible_all=”true”][vc_tta_section title=”How property valuation helps?” tab_id=”1644299008960-51fea658-80bc”]

Property valuation is the means by which the buyer comes to know the current property prices. It helps in many ways:

  • It protects the buyer from giving exorbitant price of the land.
  • While taking a home loan from the bank, current prices of the land are taken into account by the bank and then the loan is approved.
  • The insurance companies also ensure that the coverage cost is reasonable thus they get the details of current price of the land to be insured.
  • Property valuation makes the buyer immune from frauds.
[/vc_tta_section][vc_tta_section title=”How is a property’s stamp duty calculated?” tab_id=”1644299008996-17774b50-5a0c”]

Stamp duty is the duty paid when your property is transferred to another person. It is must to pay stamp duty as per Indian Stamp Act, 1899. The factors on the basis of which stamp duty is decided are the market value of the property, the type of the property, its location, gender and age of the owner. On the basis of aforementioned factors one can pay stamp duty in three ways:

  1. Physical stamp papers
  2. Franking
  3. E-stamping

All states may not have all the three facilities and incase if available, one can choose any one to pay stamp duty.

[/vc_tta_section][vc_tta_section title=”What do the terms ‘Leasehold Property’ and ‘Freehold Property’ mean?” tab_id=”1644299832696-d11d595e-df42″]

Leasehold property is a tenure-based property. The ownership lies with the party for a specific period. The lease holder has the right to remain in occupation for a fixed period. As lease is a legal estate, it can be sold or purchased in the open market.

On the other hand, freehold property is ‘free from hold’ of other party than the owner. Here the owner doesn’t need to go through the expiry of lease, unlike leasehold property. And the freeholder has the right to remain in occupation with no specified tenure.

[/vc_tta_section][vc_tta_section title=”What are the income tax considerations while transferring newly acquired property?” tab_id=”1644300132519-7d6c5f76-2d97″]

When immovable property is transferred, the profit or gain in it is considered as capital asset. Capital assets are taxed under the head “Capital Gains”. Taxation on Capital Gains depends on the period for which the capital asset was held before. Therefore capital asset held for 24 months or less is considered short term capital asset and when the period is more than 24 months then it comes under long term capital asset.

[/vc_tta_section][vc_tta_section title=”I have a flat which I want to sell and buy a new flat, bigger in area. What are my tax implications with regard to capital gains?” tab_id=”1644300214832-be6b5dea-1a0a”]

Normally one has not to pay capital gains tax (CGT) on any profit if you are selling your only or main home throughout the entire period of ownership.

[/vc_tta_section][vc_tta_section title=”What constitutes conclusion of sale of a property?” tab_id=”1644815725623-c04d80a8-76d7″]

The transaction of property between a buyer and seller constitutes property sale. The actual possession of the property coupled with an agreement of sale is considered as conclusion of the sale. When the possession is handed over the entire amount is paid. Thus the sale of an immovable property between the parties is executed by registered instrument for a consideration which is in the form of money that is paid, part paid, promised or partly promised. The buyers and sellers have several rights and liabilities resulting from the sale of immovable property.

[/vc_tta_section][/vc_tta_accordion][vc_custom_heading text=”FAQs – Residential Properties” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal”][vc_tta_accordion shape=”square” spacing=”10″ gap=”10″ c_position=”right” active_section=”1″ collapsible_all=”true”][vc_tta_section title=”What is the difference between carpet area, built-up and super built-up area?” tab_id=”1644815230284-cd6fb80d-08d2″]

The area that can be covered by a carpet is termed as carpet area, it is wall to wall distance. Thickness of the wall plus carpet area constitutes the build-up area, it is the comprehensive area, the area spanned by the balcony and terrace is also counted in it. The sum total of built-up area and the space occupied by common areas such as lobby, staircase, elevator etc. constitutes super built-up area.

Carpet area = the area covered by carpet

Built-up area = carpet area + area of walls + area of balcony

Super built-up area = carpet area (1+Loading Factor)

[/vc_tta_section][vc_tta_section title=”Why do co-operative Housing Societies collect a sinking fund?” tab_id=”1644815230392-15bdd726-5728″]

Sinking fund is a fee that one pays as a part of their monthly maintenance fee. It is an important investment for all the housing societies. These are used for major expenses that includes repairs, new equipment and other maintenance activities along with structural activities. As per the law every society needs to collect contribution towards sinking fund. In housing society there are many funds but sinking fund is majorly used in case of structural repairs. After the approval of general body meeting and inputs from other residents, this fund is used. The calculation and collection procedures of this fund may vary from society to society. However the need of it can’t be ignored by the Co-operative Housing Societies.

[/vc_tta_section][vc_tta_section title=”How is the lease agreement created?” tab_id=”1644815230498-e6373148-37a0″]

The lease agreement is normally made in writing but there is an exception where the agreement is for a lease that comes under section 54(2), of Law of Property Act 1925. Leases have to be created by a deed, whereas some cases require no writing.

Lease agreement is created in following way:

  1. Each party’s information is collected.
  2. The utilities and services of the property is considered.
  3. Terms of lease as termination and eviction are also taken into account.
  4. Monthly rent amount, due date and any additional fees is also seen.
  5. Payment method is decided.
  6. Outlining rights and obligations of both the parties and accordingly clear policies are made.
  7. Reviewing and signing the lease agreement is the final step.
[/vc_tta_section][vc_tta_section title=”What are the charges to be paid while gifting property?” tab_id=”1644815230599-441a56a7-fdb0″]

Normally gifts are not taxed when they are gifts from the relatives on the occasion of marriage, by way of will or inheritance.

When it is gifted to any other person, the stamp duty rate is 5% in panchayat areas and 6% in municipal areas, corporation areas and urban areas. If the market value of the property is more than Rs. 40 lakhs, then an additional 1% stamp duty is charged in both urban and rural areas.

Though different states have different laws in this regard.

[/vc_tta_section][vc_tta_section title=”How are the maintenance charges calculated for residential complexes?” tab_id=”1644815230711-9f132638-47fa”]

The builder is responsible to disclose the cost of monthly maintenance charges to the home buyer at the time of buying the property. Therefore, after builder decides the amenities, finish and quality of the building and value added services, the maintenance charges are decided.

The methods to calculate maintenance charges of residential societies are per square feet charge, equal maintenance fee and hybrid method.

Every model has its own pros and cons, thus no method is foolproof.

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[vc_custom_heading text=”FAQs- NRIs Real Estate Investment” google_fonts=”font_family:Roboto%3A100%2C100italic%2C300%2C300italic%2Cregular%2Citalic%2C500%2C500italic%2C700%2C700italic%2C900%2C900italic|font_style:700%20bold%20regular%3A700%3Anormal”][vc_tta_accordion shape=”square” spacing=”10″ gap=”10″ c_position=”right” active_section=”1″ collapsible_all=”true”][vc_tta_section title=”What does the terms NRI, PIO and OCI mean?” tab_id=”1644389800820-6dc80acd-2df9″]

For income tax calculation the term Non-Resident India (NRI) is used. It is a residential status.

Overseas Citizens of India (OCI) is an immigration status of foreigners who have Indian origin so that they can live, study or work in India. It is an immigration status.

Person of Indian Origin (PIO) refers to a foreigner who is holding an Indian passport at any time or whose parents, grand-parents or great grandparents were having citizenship of India.

[/vc_tta_section][vc_tta_section title=”Is there a restrictions on the number of properties NRIs can buy in India?” tab_id=”1644389800869-070b65ed-5bd1″]

Non-Residents of India cannot purchase agricultural land or plantation property in India. To acquire such land the approval of RBI and government is required. There is no restriction on the number of property that an NRI can purchase under Foreign Exchange Management Act (FEMA). They are treated at par for the purpose of investing in real estate sector. An OCI card or passport is a must, PAN card, power of attorney are required and apart from this, the current address proof and photographs are also needed to buy property in India.

[/vc_tta_section][vc_tta_section title=”Can NRIs acquire commercial property in India?” tab_id=”1644389870834-3cb69251-d225″]

NRIs can purchase any property in India but purchase of agricultural land, farmhouse and plantation property cannot be done without prior approval from RBI and government agencies. Indian policies have always welcomed initiatives by the Indians residing in other nations and to promote such investments India has started festivals like Indian diaspora for NRIs. The investments by NRI is considered very important for the economic well-being.

[/vc_tta_section][vc_tta_section title=”Is there any formalities required to be completed by NRIs or PIOs for purchasing residential immovable property in India under general permission?” tab_id=”1644389945974-6485190d-6b31″]

If someone holds a foreign passport, then following formalities are needed at every step for purchasing residential immovable property in India:

  • Indian passport, OCI card or PIO card are required.
  • PAN card for such transactions is mandatory.
  • In case one is not in India, power of attorney authorizes the person for such transactions.
[/vc_tta_section][vc_tta_section title=”Which documents are required to buy property in India?” tab_id=”1644389992009-ba7e0564-cd2d”]

One needs some legal documents to purchase property in India. Here is the list of legal documents required:

  • Proof of property ownership
  • Copy of original old sale deed
  • Mutation copy
  • Identity proof
  • Encumbrance certificate
  • NOC by seller
  • Identity proof of Witness parties
  • Map plan and description property
  • Digital photograph of property
  • Tax dues, pending dues
  • Passport size photographs
  • Registration fee receipt
  • Copy of Pan Card
  • Agreement of mortgage
  • Promissory note
  • Property register card
[/vc_tta_section][vc_tta_section title=”Can an NRI obtain loan from Indian financial institution to buy immovable property in India?” tab_id=”1644390126743-3c68a3d5-b6fa”]

Yes, an NRI can avail loan from Indian financial institutions to purchase an immovable property in India. Factors to consider for availing home loans are:

  • Age of a person.
  • It is also taken into consideration whether the NRI is a salaried personnel or self-employed.
  • Overall over-seas work experience is also important and it has to be minimum six months.
  • Minimum income should be 5 lakh in Indian rupee per month.
  • These are essential conditions that make an NRI to get loan in India.
[/vc_tta_section][vc_tta_section title=”What is the tax treatment for income generating from selling/renting property for NRIs/ PIOs/ OCIs?” tab_id=”1644390167482-e99acda3-4f36″]

NRIs do not have to pay taxes while purchasing or acquiring a property in India. However, they have to pay the taxes if they are selling the property. On the sale of property they come under the realm of capital gains. Rental income is also taxable according to the Laws of Government of India.

[/vc_tta_section][vc_tta_section title=”Can NRIs acquire or dispose property in India by gifting?” tab_id=”1644390205584-96a513b3-c9aa”]

The transfer of property is not complicated if you are an ordinary citizen but the scenario is different in the case is of an NRI. Any property or gift given by a citizen residing outside of India as an NRI is taxed according to Foreign Exchange Management Act. When an NRI is involved in gift transaction then additional tax laws may apply.

[/vc_tta_section][vc_tta_section title=”How does double taxation avoidance agreement work in case of NRI?” tab_id=”1644390241440-87423643-f404″]

NRIs can avoid double taxation as per the Double Taxation Avoidance Agreement (DTAA). It is a treaty signed by two countries to make a country attractive destinations and to relieve the individual from paying tax twice. A particular rate is set with a specific country under the treaty and NRIs pay according to the rate decided. India has signed this treaty with many countries namely Canada, USA, UK, Germany, Australia, South Africa, Singapore, Mauritius, Kenya, Sri Lanka etc.

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