What is the difference between Built-Up Area, Super Built-Up Area, and Carpet Area?
Carpet Area: It's the area of the apartment that does not include the area of the external walls, balcony area and common area.
Built-Up Area: It's the area of the apartment that includes the carpet area, External wall area and balcony area.
Super Built-Up Area: It's the area of the apartment that includes the built-up area and common area such as the lobby, lifts, stairs etc. It applies only for multi-dwelling units, such as flat complexes.
What is the difference between the lease agreement and the Leave and License agreement?
As per Section 105 of The Transfer of Property Act, 1882, a Lease is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. Under a lease agreement, the lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
A License as per Section 52 of the Indian Easements Act, 1882, does not allow any interest in the premises on the licensee's part. A License Agreement merely gives the licensee the right to use and occupy the premises for a limited duration.
A lease agreement needs to be stamped and registered and the amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. However, for a period exceeding three years, the stamp duty is same for both agreements.
What are the implications of entering into a lease agreement?
There are many implications when entering into a Lease Agreement. They include the payment of the stamp duty, registration of the Lease Agreement, etc.
Is it essential for a foreign citizen of non-Indian origin to take permission from the Reserve Bank of India (RBI) for acquisition of immovable property?
Yes, it's essential. The RBI grants permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.
What does Non Resident Indian (NRI) mean?
A NRI means an Indian citizen who stays in a foreign country
• For employment or carrying on their business or any kind of vocations.
• Working on an assignment with foreign governments or international agencies.
They also refer to officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad.
Why is it considered essential to register a property? What is the exact purpose of registration?
One who registers a property say, the transaction of an immovable property, will ensure that the said property becomes a permanent public record. In addition, Title or interest can be acquired only if the deed is registered.
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?
If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.