Legal Advice
  • What are the taxes you have to pay when buying a property?

    When you are buying a NEW property, you have to pay Service Tax, VAT and Stamp Duty on the total amount of purchase. When you buy a RE-SALE property, then you do not have to pay these taxes.

     

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • When is the transaction of property sale considered completed?

    The transaction of property sale is considered completed when either the possession is handed-over or a duly executed Conveyance Deed is registered.

     

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • When are the capital gains applicable and can capital gain tax be saved / reduces and how?
    • Capital gain is applicable when the sold property has been withheld by a person for a period of more than three years from the date of purchase/possession.
    • Yes, capital gains tax can be saved/reduced when the sale proceeds are invested in another residential property which is bought one year before the sale or two years after the sale of the first property.
    • Capital Gains Tax can also be saved by investing the sale proceeds in Capital Gain Bonds. Capital Gains Tax are of two types i.e. Long Term and Short Term.
    • Long Term Capital Gain (LTCG) - when a property is withheld by a person for more than three years or 36 months, it results in Long Term Capital Gain on sale of that property, which can be saved by investing that money in another residential property. In case of LTCG, 20 per cent of capital gain has to be paid as tax if the money is not invested in residential property or Capital Gain Bonds, as explained above.
    • Short Term Capital Gain (STCG) - when a property is withheld by a person for less than 3 years or 36 months, it results in Short Term Capital Gain (STCG), which cannot be saved/reduced. In case of STCG, the sale proceeds are treated as income and the same are added to the income of the property owner and tax is calculated according to the applicable slab rates of Income Tax.

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • What documents and formalities are required when buying RE-SALE property?

    When buying property, the basic documents required are Identity and Address Proof i.e. Aadhar Card, Voters’ ID Card, Passport, Driving License, Ration Card and Pan Card.

    When buying RE-SALE Property, you also need to carefully examine the Sale Deed/Agreement as well as you need to cross-check that there are no gaps in the property title transfer chain and the complete property title chain is mentioned in the Deed.

     

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • Things you must check when signing the agreement for NEW Property with the developer?

    The important things to check before you sign the agreement:

    - Specific apartment number, floor and tower number, allotted to you
    - Details of area i.e. super area, covered area and carpet area
    - Other Specifications being committed
    - Costing, basic as well as add-ons, if any
    - Payment plan and schedule, is negotiated to suit your requirements
    - Possession related charges, if any
    - Timeline for possession, and penalty clause, if any, in case of delay
    - Details of Land on which project is constructed and the project sanctions and approval details
    - Exit option and conditions

     

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • How do you know that a project has legal approvals from authorities?

    Legal Approvals: Make an effort to find out about the same from the local people, as the additional information that you will get surely be worth it. Even if you do not plan to take a Bank Loan, do cross-check if the banks are funding the project. Contact one of these Banks, as generally, these banks prepare their own list of approved projects and start disbursement of loans only after all the approvals are in place for these projects.

    Title: Ensure that the Title documents of the property that you intend to buy are clear. A defective Title will always create problems in future.

    Construction Plan: Enquire if the building has been constructed as per the sanctioned plan and deviation, if any, is in the allowed limits and sanctions.

    Clearance Certificate: Ensure that the developer has clearance certificates from all concerned departments i.e. Electricity Board, Water and Sewage Board, etc.

    Occupancy Certificates: Check out the genuineness of Commencement Certificate and Occupancy Certificate issued by the concerned authorities when buying property.

    Sale Agreement/Deed: Cross-check the clauses of the Agreement for Sale and Sale Deed for accuracy and correctness and ensure that the Agreement for Sale and Sale Deed are duly stamped, executed and registered and, are in your possession.

     

    The above list / points are only indicative and are not exhaustive.  Please do take advice from expert in your local area.

  • Mr. Alok
    Property Consultant
  • Mr. Rajeev Chaturvedi
    Advocates & Legal Consultants
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