[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:
- Physical stamp papers
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:
- Each party’s information is collected.
- The utilities and services of the property is considered.
- Terms of lease as termination and eviction are also taken into account.
- Monthly rent amount, due date and any additional fees is also seen.
- Payment method is decided.
- Outlining rights and obligations of both the parties and accordingly clear policies are made.
- 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.