Property tax is a levy that is applied on real estate, which consist of buildings and its appurtenant land. This tax is imposed on the owner and is collected by the local governing bodies. This tax is based on the annual rental value. For self-occupied properties, the annual rental value is calculated as a percentage of cost.
To avoid evasion of stamp duty through the undervaluation for agreements and to minimise the disputes on quantum of stamp duty, all state governments publish an area-wise rates of properties, on a yearly basis, known as ready reckoner rates.
Section 17 of the Indian Registration Act, 1908, makes is mandatory for all documents involving the transfer/sale of immovable property to be registered. Registration is the process through which such transaction is legally recorded at the sub-registrar’s office.
These are the charges levied, for registration of a property. The charge can vary from districts and states.
Rental advance, in a lease agreement, refers to a lump-sum payment of rent made by the tenant (lessee) to the landlord (lessor), at the beginning of the lease period. This lump-sum amount is thereafter adjusted against the monthly rent payable by the lessee. The advance amount may be the rent payable for one quarter or one year or any other period that is mutually agreed upon by the tenant and landlord.
The repo rate (also known as ‘repurchase rate’) is the interest rate at which banks borrow money from the Reserve Bank of India (RBI). A lower repo rate, means that banks can also lend money to home loan customers at a lower rate.
A reverse mortgage scheme is the opposite of a home loan scheme. Under reverse mortgage, the borrower receives money in installments which is paid in full later on.
Governed by the Registration Act, the sale deed is one of the most important documents, concerned with the sale of a property. No property purchase is complete unless the sale deed is duly signed by both, buyer/s and seller/s, in the presence of witnesses.
A semi-fixed rate home loan is a combination of fixed and floating rates. The interest rates on such loans remain unchanged for a specified period of time, after which, the rate of interest is converted to floating.
In several states across India, which follow the concept of Cooperative Housing Societies, the premises is owned by the society, while the members own their flats by way of owning shares in the society. Hence, it serves as a proof of ownership of the flat/apartment for the member.
If a property is held by an assessee for less than three years, the gains from the sale of such property are known as short-term capital gains.
Stamp duty refers to the tax that is levied on documents – in this case, the transfer of property. The amount of stamp duty that is payable depends on the value of the transaction and varies from state to state.
It is a legal document that authorises the person or people obtaining it, to represent the deceased individual, for the purpose of collecting debts and securities due to him or payable in his name.
