FAQ

FAQ


01. What is FSI?

02. Is the leave and Licence agreement generally signed in multiples of 11 months or 12 months? Is there any stipulation of time?

03. Can premises already encumbered to a bank be leased out to a Company with a high deposit and in case of a default who holds the first lien? And will the Company/Occupant be evicted?

04. Is Business Centre Agreement done for Commercial Premises safe?

05. What is TDR?

06. Is registration of a Leave and Licence mandatory and what are the consequences if the same is not registered?

07. How do I determine the property tax on the rent received as I have given the premises on higher rent to a Company? Are there any guidelines set by the BMC?

08. Society charges us heavy amounts and even deposits if we give our apartment on Leave and Licence basis without payment of past dues which are in litigation? Would occupation by the occupant create more trouble for him and me?

09. The society refuses to give us NOC for leasing the apartment on leave and licence basis without payment of past dues which are in litigation? Would occupation by the occupant create more trouble for him and me?

10. What is the difference between lease and leave and licence agreement?

11. Do I need permission of the Society to keep a Paying Guest and are there any extra society outgoings I need to bear?

12. Is it compulsory to Register Sale Agreements/ Documents of ownership flats.

13. I have a flat which I want to sell and buy a new flat which will be bigger in area. What are my tax implications especially with regard to capital gains?

14. When a flat is gifted to a daughter what are the legal implications regarding: i) Title- and how is this established. ii) Gift tax- is it leviable and if so when?

15. How to appeal for reduction of property tax if you are an individual in a society?

16. I have a flat which I want to sell and buy a new flat which will be bigger in area. What are my tax implications especially with regard to capital gains?

17. Is it safe to give ownership flat for leave and licence? What are the problems if I give for a longer period?

18. Some residential and commercial properties which I own are occupied by people who are not paying rent and also not vacating. I require help in solving such problems.

19. House on rent for 35 years. Rent receipt is in the name of the mother. If the mother is to pass away, will the daughter be asked to continue staying in the house? The landlord is threatening to vacate them after the mother passes away, what can they do to protect themselves? Will they have a good case in Court? The daughter already has a flat in her name. Will it make a difference?

20. If the landlord does not repair or maintain property, staircase, terrace and the tenants want to do, can they and can they deduct rent from the landlord if he does not share.

21. Do we require permission from the landlord for taking separate water connection, tank etc.

22. How can we evict tenants who do not pay or have made changes in their flats?

23. Some people have constructed in our Society, a Jain temple without the permission of AGM.. Then what are we to do?

24. Our building is going to be broken and reconstructed and the owner promises housing for 15 months during which time he will finish construction. In the event that he cannot, what do we do?

25. I have a property in MHADA which I want to develop into a Hospital….What is the process? Does it amount to change of user?

26. What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission?

27. Can such property be sold without the permission of Reserve Bank?

28. Can sale proceeds of such property if and when sold be remitted out of India?

29. Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?

30. What is the procedure for seeking such repatriation?

31. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

32. Can immovable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organisations in India?

33. Can foreign citizens of Indian origin acquire commercial properties in India?

34. Can they dispose of such properties?

35. Can sale proceeds of such property be remitted out of India?

36. Can the properties (residential/commercial) be given on rent if not required for immediate use?

37. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorised dealers/financial institutions providing housing finance?

38. Can Indian companies grant loans to their NRI staff?

39. Can authorised dealer grant housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-obligant/guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?

40. On buying a flat from a builder in a building under construction, what are the permissions and papers that one should check with the builder, so as to ascertain the genuineness of the builder?

41. How to verify the authenticity of the various documents submitted by the seller of the house, particularly with regard to the possibility that the house has not been sold earlier to a third party?

42. What exactly do we mean by a Free Hold Flat? What are the advantages and disadvantages, if any?

43. Is a POA Revocable?

44. Who is the appropriate authority for knowing the market value of the property?

45. What is meant by the market value of the property and whether Stamp Duty is payable on the market value of the property or on consideration as stated in the agreement?

46. What is the difference between Built-Up Area, Super Built-Up Area and Carpet Area?

47. Is there any way by which I can claim exemption from tax on capital gain?

48. Whether incidental charges like brokerage, registration fees, stamp duty and other charges arising out of sale of house property deductible from profit arising on sale?

49. What are the tax implications of sale of any house property, commercial or residential?

50. Upon buying a flat from a builder in a building under construction, what are the permissions and papers that one should check with the builder, so as to ascertain the credentials of the builder?

51. Is it advisable for the Society to hand over the Management of the Society to an administrator? When does the Registrar of Cooperative Society appoint an administrator ?

52. Who can claim deduction for interest on housing loan ?

53. Is it necessary that the loan should be taken only from housing finance companies ?

54. Can the loan be taken for renovation or repairs of the house ? Can interest be allowed for purchasing an open plot of land ?

55. How much deduction is allowed from the Income Tax in case of a Home Loan?

56. A community friend wants to gift his residential flat in a co-operative housing society which was purchased by his grandfather in 1970 to me. What will be the gift tax and other implications in stamp duty and co-operative housing society?

57. Should the society going in for redevelopment purchase TDR in the name of the developer or society? What are income tax implications of redevelopment? I had a flat purchased in 1984. A reconstructed flat has been received in redevelopment in 2007 and sold in 2009. What is the tax liability?

58. I am interested to know the details of indemnity bond (rules / regulations) that needs to be furnished by the managing committee of a co-operative housing society. The details are needed especially from the perspective of understanding the powers that a managing committee has in case they have not submitted one. It would also help if you can let me know the details of the actions that other members can take in terms of challenging the orders passed by such a committee. Could you also let me know the any details on the redevelopment front? Any documents or links to this information would also help.

59. UTILISATION OF THE SINKING FUND

60. Members of our Society wish to redevelop our society building themselves using TDR. Each of the members is expected to have an additional area equal to the area already occupied by him/her at the cost price when completed. Members can keep the flats for themselves or sell the flat at prevailing price. Is the profit so earned subject to income tax or any other charges? Each of our memberships ranges from five years to 12 years from 1997, the date of registration of the society. The building was completed in 1994 and occupied since then. Redevelopment would be funded partially by members who can afford it and partially from loans etc.

61. My son was working in a reputed software company and now has been laid off. He has housing and car loans from banks. Now due to the loss of his job, it is not possible for him to pay EMIs. I have taken immediate action by sale of my own flat, I could arrange part payment of bank loans thus to reduce EMIs. Now, my tax related queries are: - Should I repay his housing loan directly to bank to avoid any tax complication? I am a retired senior citizen and have not had taxable income since the last two years. - Alternately, I pay the full amount of sale to my son for him to repay the housing loan. Kindly advise, what shall be the best method to avoid tax implications, either to me or to my son?

62. When I purchased my flat I was the sole purchaser as nobody from my family could be around. In this condition is it necessary to make a will to transfer my property to my brother after me? Or is submitting a nomination for a cooperative housing society enough to ensure that the property is transferred in his name?

63. Our society consists of three buildings and 98 members. The age of our society is five years only. Recently it has been decided to replaster and repair the three buildings and extra funds are being collected for the same. Recently during the last AGM it had been decided by the committee members that the dish antennae kept at the top of the buildings (10-15% have dish antennas) have to removed and it should not be kept at the terrace after repairing; also it will lead to leakage. Due to the unavailability of a signal near our flats we are forced to keep the antennae on the terrace. Does the society have a right to pass such order? Another resolution passed by the society is that plants kept at the windows of the flats also have to be removed during repair work and even after completion of repair they should not be kept at the flats. Instead, they should be kept in the garden. Can the society pass such an order?

64. As per model bye-law no. 38 (e) (vii) fees at the time of transfer of a flat is Rs 500 My society managing committee has proposed the following resolution in the forthcoming special general body meeting, " To approve payment at the time of transfer of the flat, by an outgoing member @2% of the agreement value or market value whichever is higher. I feel this is illegal and hence need your advice on the same.

65. I was staying in Vasai in a cooperative housing society in a flat on ownership basis and was paying Rs.1000/ as monthly maintenance charges. I have shifted to Andheri to government quarters and have retained the flat, which is now locked. The society demands full maintenance charges even though I do not stay there. Are they right in demanding full maintenance charges? What is my defence or right? Should I pay full maintenance charges or only 10% of the service charges? Please let me know.

66. We are planning to keep fixed deposits in the bank in the name of our society towards the sinking fund, repair fund. Kindly advise whether such deposits will attract TDS and then at what rate will the same be deducted.

67. Social responsibility Commissioner of Cooperative Department & Registrar of Cooperative Housing Societies (Maharashtra) Dr Krishna Lavekar, IAS, talks to Tapan Banerjee about critical issues

68. Our society structures have developed severe cracks and openings in beams and columns in many flats, and also, many members are complaining of water seepage and plaster peeling from walls as well as ceiling. After doing a structural survey by a Licenced structural engineer, the estimate for the urgent recommended work comes to Rs.15 L. What guidance I seek from you is, which are the repairs that 'Society' has to take action on, and which repairs should be done individually by the members themselves, and under which co-operative society rules/acts?

69. Ihave mutually exchanged my flat with the other member having same area (So as to combine my flat with my son's Flat) as per society byelaws 41,42 & 65 Society made the transfer entries in the share Certificates. Do I have to pay stamp duty and register this deed or the exchange on the Society books and share Certificate is sufficient?

70. If the building completion certificate, occupation certificate, and approved building plan are required for getting the conveyance deed in favour of the society.

71. Ours is a big housing society consisting of 256 units. The society is formed and was registered in November 2003. All the units are sold and occupied. The developer has given a few plots to a sub-developer for development and constructing housing units and selling. In their agreement, one of the conditions is that on developing all plots, the sub-developer will approach the developer for handing over the conveyance. Now the position is such that only one plot is yet to be developed by the sub-developer. The sub-developer is not ready to execute conveyance for our society because all plots are not developed. In fact, there is no connection of the undeveloped plot and our housing society. Six years have already passed and there is no sign of developing the vacant plot.

72. I wish to gift my flat which is in a cooperative housing society, to my cousin. Would there be any gift tax or income-tax payable, being a gift to a relative? I have held the flat for many years. What about stamp duty? Is there any concession? If the gift does not work out I can make out a will in favour of my cousin.

73. We wish to enter into a leave and licence agreement for a period of two years with a possibility for renewal for one more year. If we put a renewable clause, will it be necessary to enter into a new agreement after two years? It is difficult to go through the process of registration again, so can the same agreement continue?

74. Transfer of a share certificate is not a relevant aspect for the purpose of transfer under the Income Tax Act, 1961 In a co-operative housing society, can the loan be obtained for purchasing a flat without permission of the society? Are loan processing charges allowable as deduction from income from house property under income tax?

75. Can a society deal with admission of a new flat purchaser in the annual general body meeting only, which will take place after many months? Would a long delay in transfer by the society have adverse implications under the Income tax Act? Can a partnership, company purchase a residential flat and under income tax in whose hands it will stand?

76. I have purchased a re-sold property. The procedure for this transaction is as follows: First the builder made an Agreement between himself and Mr Patel. They registered the agreement. But before possession, Mr Patel sold that flat to Mr Naik after receiving the builder's NOC. Mr Naik also registered the agreement. However, due to some reason he too, sold the flat to Mr Sathe. Up till this procedure the builder had not given any possession letter because of some pending work. Now, does Mr Sathe require any NOC letter from the builder?

77. I have booked a 2BHK flat and the builder has mentioned other charges which are fine with me but if the builder increases these other charges demand for the excess, then what we will I do? Is there any law against the builder? What precaution can we take while booking or signing the buyer seller agreement? Please advise.

78. My apartment construction has been completed and it is up for possession. Recently all flat owners have received a legal notice from a few persons stating that the land has been encroached. The builder has clarified and is insisting this has been a false case without any basis and builder had filed a complaint with district RDO (Revenue Divisional Office) and the RDO decided in favour of the builder. We have received the legal notice after the RDO decision. Since the flats are ready for possession, should we take a written letter from the builder that the flats are free from land encroachment so that we are safe from all future legal hassles? Kindly advise.

79. I wish to know about Free Hold plots. Can we convert agriculture land into residential plots? If yes, then, how?

80. I booked a flat in March 2008. The agreement was executed in February 2010. In the brochure as well as in agreement, the builder promised to give a club house for which a proportional amount was paid with all paid installments, but the builder has not commenced even foundation work for the club. He has, though, completed construction of the flat and building in which the flat is located but has not obtained the Completion Certificate. I have yet to pay the final installment i.e. 5% of cost of the flat which as per the terms of agreement, is to be paid after taking possession. Will it be legally correct to take possession in absence of Completion Certificate?

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