Sachi Raichura
Questions Asked
Taxes & Duties
#flat#mumbai#redevelopment#carpet#builder
I own a flat in Mumbai in a building that went under redevelopment. The original carpet area of the flat was 318 sq ft. After redevelopment the builder has given me 100 sq. ft free of cost and I have purchased another 100 sq. ft from him. So now the total carpet area is 518 sq. ft. The agreement is also registered. I want to know what would be my tax liability and purchase value when I sell the flat?
I own a flat in Mumbai in a building that went under redevelopment. The original carpet area of the flat was 318 sq ft. After redevelopment the builder has given me 100 sq. ft free of cost and I have purchased another 100 sq. ft from him. So now the total carpet area is 518 sq. ft. The agreement is also registered. I want to know what would be my tax liability and purchase value when I sell the flat?
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Answered on November 08, 2017
Tax liability will arise on capital gains arising out of difference between sale consideration and purchase consideration. While the sale consideration will be proportionately divided by the area of the flat, the purchase value of your flat will be aggregate of the following:
1. For 318 sq. ft - original purchase value as per agreement.
2. For 100 sq. ft. received free of cost - NIL
3. For 1... (View more)
1. For 318 sq. ft - original purchase value as per agreement.
2. For 100 sq. ft. received free of cost - NIL
3. For 1... (View more)
Taxes & Duties
#sell#flat#city#capital#implications
I bought an apartment seven years ago jointly with my husband. Now if I sell this flat and buy another flat in the same city itself, what are the capital gains implications on this transaction?
I bought an apartment seven years ago jointly with my husband. Now if I sell this flat and buy another flat in the same city itself, what are the capital gains implications on this transaction?
Answered on November 08, 2017
There would be no capital gain tax if you sell the old residential flat and buy another residential flat as the capital gains can be claimed exempt u/s. 54 of the Income Tax Act. The exemption will be to the extent of investment in the new residential flat or the long term capital gains arising on sale of old flat, whichever is lower. If the investment is lower than the long term capital gains,...
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Taxes & Duties
#vat#paid#agreement#builder#flat
I have a doubt on the VAT to be paid on an agreement value. My builder is asking me to pay 5% VAT on the agreement value for a flat bought in June 2008. Please suggest as to who is liable to pay the VAT and how much should it ideally be?
I have a doubt on the VAT to be paid on an agreement value. My builder is asking me to pay 5% VAT on the agreement value for a flat bought in June 2008. Please suggest as to who is liable to pay the VAT and how much should it ideally be?
Answered on November 08, 2017
In Maharashtra, VAT on sale of underconstructed property brought into effect from June 2006. Hence, builder would be liable to pay VAT on agreement to sale effected in June 2008. There are various methods for arriving at the taxable value of transfer of property in goods during construction.
Libality to pay VAT by flat buyer to the builder would be dependent on the contractual arrangement betw...
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Taxes & Duties
#property#registered#construction#possession#loan
Will it be possible for me to get a property registered under my wife's name which I bought when it was under construction and for which the possession is due in August 2017. I bought the property by taking some loan and by adding my own funds as well. I want to gift this property to my wife while keeping the loan under my name only. Also, are there any tax implications for this service?
Will it be possible for me to get a property registered under my wife's name which I bought when it was under construction and for which the possession is due in August 2017. I bought the property by taking some loan and by adding my own funds as well. I want to gift this property to my wife while keeping the loan under my name only. Also, are there any tax implications for this service?
Answered on November 08, 2017
It is permissible to gift the under construction property to your wife by way of a gift deed.
Further as the property is being gifted to wife (relative), there will be no tax liability under section 56 of the Income Tax Act. However stamp duty and registration charges needs to be paid as per prevailing state laws.
However clubbing provisions with regards to any income arising from the s... (View more)
Further as the property is being gifted to wife (relative), there will be no tax liability under section 56 of the Income Tax Act. However stamp duty and registration charges needs to be paid as per prevailing state laws.
However clubbing provisions with regards to any income arising from the s... (View more)
Answered on November 08, 2017
Mahim has been Declared as a Creek in the New CZMP Published and hence the CR buffer is educed from 500mtrs to 100mtrs. Hence Beyond 100mtrs CRZ does not apply.
Architecture & Interiors
#reduce
What steps can residents of an existing building take to go green and reduce their environmental footprint?
What steps can residents of an existing building take to go green and reduce their environmental footprint?
Answered on November 08, 2017
This a hypothetical question if not superficial. You must accept that we as Indians are 'green' from birth. No amount of recycling, reuse, optimisation , energy conservation ,etc. can be better in our country than any part of the world. At the same time your personal effort can barely impact environmental footprint but for the self satisfaction. We must push governments to impose policies for '...
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Legal
#nri#property#loan#selling
I am an NRI, I plan to jointly buy a property along with my father. The funding would be from a loan that I take and from the old property that we would be selling. Is it possible to buy a property in these circumstances? Also, could you guide us on the tax implication?
I am an NRI, I plan to jointly buy a property along with my father. The funding would be from a loan that I take and from the old property that we would be selling. Is it possible to buy a property in these circumstances? Also, could you guide us on the tax implication?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
No harm in buying property in the manner suggested by you. There would not be captial tax implications if the property you intend to be is residential property and if all gains from selling of the earlier property are invested in buying of the new residential property .
Legal
#sell#land#bank#loan
My dad want to sell out piece of land in Varanasi, but he is facing a number of problem regarding the same. Can we avail a bank loan on this plot? The evaluation of the land is about 22-24 lakhs so what would be the loan amount we can avail.
My dad want to sell out piece of land in Varanasi, but he is facing a number of problem regarding the same. Can we avail a bank loan on this plot? The evaluation of the land is about 22-24 lakhs so what would be the loan amount we can avail.
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
Usually, the loan depends on the availibility of the person seeking such loan to repay the same. However, security of the land, the market trend is to give 60-70% of the land value as loan.
Legal
#buyer#promised#sell
I am facing some problems with a buyer for my plot in lucknow. He wanted to buy it, gave a 10% advance and then promised to pay the rest of the amount after 90 days. It has been 19 months and he wishes to buy it, but on the old rate. The rate has gone up by 25%. I don't wish to sell it at the old rate. Now he is threatening me and saying he would take me to civil court. I also tried to return his advance, but he did not accept it. What can I do about it?
I am facing some problems with a buyer for my plot in lucknow. He wanted to buy it, gave a 10% advance and then promised to pay the rest of the amount after 90 days. It has been 19 months and he wishes to buy it, but on the old rate. The rate has gone up by 25%. I don't wish to sell it at the old rate. Now he is threatening me and saying he would take me to civil court. I also tried to return his advance, but he did not accept it. What can I do about it?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
If the terms of your sale were documented when you struck the deal, then you can terminate the agreement that you had with the buyer on the basis of such terms and in case the terms are oral, then you could issue a notice to the buyer termianting the deal and forwarding the cheque towards the amount that had been paid by him to you.
Legal
#property#paid#completely
My husband and I own a joint property for which I paid completely. Now, we are headed for a divorce and I want the property to myself but my husband is not agreeing to this. What can I do to get this done?
My husband and I own a joint property for which I paid completely. Now, we are headed for a divorce and I want the property to myself but my husband is not agreeing to this. What can I do to get this done?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
You will have to file a suit to prove that the entire amount for puchase of the Flat has been paid by you and that the name of the husband was added in the Sale Deed for convenience only. Also, the provisions of the Income Tax act provide for ownership of a property in proportion to the amount paid for acquiring the same.
Legal
#property#gifted
Is there a possibility that a property will get attached even if it is gifted to my wife and son
Is there a possibility that a property will get attached even if it is gifted to my wife and son
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
If you have gifted the property to avoid payment of any government dues including income tax and/or to avoid repaying of any dues owed by you to third parties, then the Gift Deed can be defeated on the grounds of Fraud and the property or your share in the property can be attached, despite the execution of the gift deed.
Legal
#lease#deposit#term#landlord#refuses
What do I do if at the end of the lease term the landlord refuses to refund my deposit?
What do I do if at the end of the lease term the landlord refuses to refund my deposit?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
Depends on the terms of the lease deed, either you can hold on to the property or file a suit for recovery of the deposit
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