The government levies a compulsory tax on the transfer of rights in a property, known as ‘stamp duty’. We examine how it is calculated and ways to save money on this tax amount The government levies a tax when there is a transaction of property (i.e., when a property changes hands, from the seller to the buyer). This tax is known as ‘stamp duty’. It is levied on residential and commercial property transactions, as well as freehold or leasehold properties. Stamp duty is levied by states and therefore, the rate varies…

Stamp duty is mandatorily payable upon registration or transfer of property. Those investing their money need to be cautious about future obligations and such clauses Stamp duty is a compulsory obligation payable on the document which encapsulates the transfer of immovable property, such as real estate. Homebuyers are required to pay this when registering the agreement for sale. “Different rates of stamp duty are payable in different states, depending on the legislation prevalent in that state,” points out Ameet Hariani, managing partner, Hariani & Co. “In Maharashtra for instance, the Maharashtra Stamp…

What is a family settlement and how does it impact your tax liability, with respect to the properties that are involved in the settlement? We explain… Disputes, settlements and arrangements within a family over property, have been a part of human civilisation. The war of Mahabharat happened due to a family dispute over property, which could not be resolved by a settlement or arrangement that was agreeable to all the parties. As the size of a family grows, it is inevitable that some of the branches of the family may choose…

While bequeathing an immovable property through a will, a testator should clearly specify the share of each person to the exclusion of others, in order to avoid disputes Proper succession planning is very important to ensure that the assets owned by you, including any house property, are properly inherited by the people to whom you want these to be passed on to. With respect to property owned in housing societies, it is generally believed that making a nomination will ensure that the property will pass on to the person who is…

Rental properties are presently subject to service tax, under certain conditions. We examine how the proposed Goods and Services Tax and the provisions for tax deduction at source, will impact one’s rental income The rental income from a real estate investment, is taxed under the head ‘Income from House property’ under the income tax laws, which is a direct tax law of the country. Properties that are let-out, are also subject to indirect taxation in the form of service tax, presently. The lessee of the property is also required to deduct…

As the law allows a person to own multiple homes and avail of multiple home loans, we look at the implications on tax exemptions on the home loan for the second house There is no restriction on the number of properties you can own. Similarly, there is no restriction on the number of houses for which you can take home loans and claim tax benefits, either under the tax laws or banking laws. However, the amount of home loan available to you for all the properties taken together, shall depend on various factors…