What is Carpet Area?
According to the Real Estate (Regulation and Development) Act, 2016 (RERA), carpet area is defined as 'the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment'.
What is Super Built-up area?
Super Built-up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc.
What is Completion certificate?
A completion certification (CC) is document that a builder obtains from the municipal authorities after the completion of a building. The CC attests to the fact that the new building is constructed and completed in accordance with all the safety norms and regulations.
What is a Possession letter?
A possession letter is issued by the developer in favour of the buyer stating the date of possession of the property.
What are Legal/Documentation and professional charges?
Legal/Documentation and professional charges are incurred for the preparation of Agreement Of Sale, Deed of conveyance, and/or Transfer Deed in respect of the said Flat/Unit. It includes all other deeds, documents, and instruments as may be necessary and/or required.
What is GST and its impact on real estate?
Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017, and is applicable throughout India. It replaced multiple cascading taxes levied by the Central and State Governments earlier. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. The effective GST rate on under-construction real estate projects will be 12% after one third abatement for land cost on 18%. However, GST would not be applicable on the units sold after availing completion certificate.
Is GST included in this price? Am I eligible for input credit as per law?
GST would be payable additionally at the applicable rate on the total unit consideration as notified from time to time by the government. Input credit has already been applied for all buyers in the base price. The variable charges would attract GST at the notified rates, which is 18% at present, and is subject to change as per government directives.
What is TDS on property?
The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.
What is Form 26QB?
The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB.
How can one qualify for exemptions on the Capital Gains Tax?
There are a few exemptions available for Long Term Capital Gains, if you buy or construct a new house: If you build a new house or buy one from the money you receive from sale of property, you are exempted from paying Capital Gains tax. However, the new purchase should be done either one year before or within two years of sale and the construction should be completed within three years from the date of transfer. The new property bought or constructed should not be sold within three years from the date of its purchase or date of completion of construction. Capital Gain Account Scheme: Through the Capital Gain Account Scheme (CGAS), you can keep the money in designated banks. CGAS helps you in buying time to look for suitable investments as it serves to inform the Income Tax department that you plan to invest the money received at a later date.
What documents do I need to purchase a flat?
You would need the following documents to purchase a flat in Kolkata:
a. Sale/Conveyance deed:
All Sale /conveyance deeds in respect of the property concerned giving clear flow of title to the property wherein the last transaction is between the developer and the erstwhile owner. All documents must be registered documents, as without registration, title in the property does not pass on to the purchaser, under Law
b. Registered Joint Venture / Joint Development Agreement:
If the land is not acquired by outright purchase, then registered Joint Venture / Joint Development Agreement between the land owner and the present developer. Registered power of attorney given by the land owner to the developer empowering the developer to develop the property and sell the flats constructed thereon.
c. Permission & Sanctions:
What is an encumbrance certificate?
Encumbrance certificate is the certificate issued by a practicing advocate and / or by the Sub Registrar of Assurances giving the details of charges / discrepancies in the title of the property owned by the developer. The encumbrance certificate should be obtained for a period of 40 years.
What are the legal formalities for gifting a flat?
Gift of an immovable property is transfer of ownership of flat without consideration. The gift deed is required to be executed and registered with the Sub Registrar of Assurances after paying the stamp duty as per the applicable Stamp Act.
What are the duties of a seller in the sale of immovable property?
The seller should
a. Disclose all material facts in respect of the property including any defects in title / lacunas in respect of the property to the buyers.
b. Construct the building and all amenities as per the approved plans and sanctions provided by the respective authorities and hand over the possession after obtaining occupation certificate within time as mentioned in the agreement for sale and disclosed on RERA website.
c. The seller should also form a Cooperative society/ condominium/ association of residents / private limited company of the residents.
d. The seller shall execute and register conveyance / Deed of Declaration in respect of the property concerned and complete its responsibilities of handing over title to the property in the name of the society/ condominium.
What are the responsibilities of a buyer?
The buyer should
a. Pay the consideration as agreed in respect of the flat and register the agreement after payment of requisite stamp duty – registration charges.
b. After becoming the owner of the flat, the buyer shall also become a member of the society/ condominium formed by the developer and pay requisite charges for becoming a shareholder of the society.
c. The buyer shall pay requisite maintenance charges for the flat as decided by the managing committee of society/ condominium.
What is the difference between Lease & Leave & License?
Lease is the right given by the owner to the lessee to hold and occupy the property for a particular period or in perpetuity for consideration of lease rent. Limited title in the property is passed on to the lessee with a right to sublease the property. License, on the other hand, is just a permission to enter and occupy the premises for a limited period and for specific purposes which is given only to the licensee. License does not give any rights in the property to the licensee. The lease beyond a period of 1 year is compulsorily registrable.