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Property being a State Subject, there are different laws in different states all over the country. Thus, it will be a stupendous task to keep track of all the Laws. We shall like to have an indemnity against all claims in respect of questions which we answer and shall not like to take any responsibility, direct or consequential, for the correctness or legal validity of our answers. You are made aware that even Supreme Court reverses its own decisions and, therefore, there is no absolute answer in the field of law. Archive of Questions
Browse through questions posted by our viewers. Q. Recently, the Govt. of West Bengal raised the stamp duty on registration of house property situated in municipal area and corporations other than area falling under Calcutta Improvement Trust and Howrah Improvement Trust from 6% to 8%. I purchased a flat measuring 937 sq. ft. and 120 sq. ft. of car parking space at the ground floor in the same apartment near Lake Town, under South Dum Dum Municipality on March, 2002. The property is yet to be registered in my name. Please let me know how much I should pay for registration at the present rate of fees and what will be the basis of the valuation of the flat at the time of registration. Is the Central Government going to issue a circular effecting the stamp duty rate to be pegged at 5 % for the whole of India as stated by some newspapers?
Ans. What do you mean by purchased in March 2002 and not yet registered? The purchase of immovable property is incomplete until registration. You will now have to pay 8% of the valuation of the flat in question and the valuation will be determined by the concerned Registrar. Stamp Duty, like Sales Tax being a State subject, the Central Government cannot force but impress upon the State Governments to have a uniform rate of duty as has been done in case of many items under Sales Tax. Q. A residential site was sold in 1992 for Rs. 1.38 lakhs through an agrement of sale by the father who is no more now. The buyer wants to register it now with the sale deed amount mentioned as Rs. 4.5 lakhs. If we register the sale deed, will the son have Income Tax problems? The son is not receiving any consideration now. Is there any other way? |
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Read more... [Property laws]
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 (FORM 37 I):
When buying a property that costs over Rs. 25,00,000, the Income Tax Act requires you to inform the Income Tax department, along with all the details of the flat you are buying. There is a prescribed form for this.
The Income Tax Department has the right to purchase the flat at the same price as you have agreed to buy the flat instead of you and auction the flat in the open market. The idea behind this section of the Income Tax Act is that if the Income Authorities feel that the property has been sold below the market value then the Income Tax Department will acquire the property and sell it at the fair market value. The objective of this chapter is to try and cut out the black money transactions from property transactions. [Rule-48(K)]. SECTION 24 (2):
Interest Deductions - The budget presented by the Finance Minister in 2000 has increased the ceiling on the amount of deductions from Rs. 30,000 up to Rs.100,000 from an individual's income if it is self-occupied for the interest paid for a home loan. |
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Read more... [Income Tax Rules]
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