A: A NRI is a Person Resident Outside India who is a citizen of India or a Person of Indian origin.
A Person resident outside India is a person who has gone out of India or who stays outside India, in either case
- For or on taking up employment outside India, or

- For carrying on outside India a business or vocation, or

- For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

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A: A person of Indian origin is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who:
- At any time, held Indian passport;

- Who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)."

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A: This will depend on the considerations agreed upon to be paid and the status of the sellers and or the purchaser/s.

1. If the seller, being an Indian national, wants to sell his property to a purchaser, being an Indian national, and if the sale consideration exceeds the prescribed limit under Chapter XXC of the Income-Tax Act, 1961, the parties to the Agreement for Sale or Memorandum of Sale should be within 15 days of the execution of such Agreement of Sale/Memorandum of Sale file Form 37-I with the Appropriate Authority, within whose jurisdiction the property is situated, for a grant of 'No Objection Certificate'.

Note: Form 37-I is to be filed only if the sale consideration exceeds the prescribed limits notified and made applicable to a city to which Chapter XXC of the Income Tax, 1961 is applicable.

2. After the receipt of the 'No Objection Certificate' under Chapter XXC of the Income Tax Act, 1961 and before executing the Sale Deed, the Seller will be required to obtain clearance certificates under Section 230-A of the Income Tax Act, 1961.

Note: The Clearance Certificate under Section 230A of the Income Tax Act, 1961 is required only if the sale consideration exceeds INR 5,00,000/- (Rupees Five Lakhs, i.e. Five Hundred Thousand).

3. In case the Urban Land (Ceiling and Regulation) Act 1961 or any similar law is in existence, in the State where the Property is situated, permission also may be required under such law or Urban Land (Ceiling and Regulation) Act, 1976, as applicable.

4. In case the Seller and/or the Purchaser is a foreign national (foreign national not being of an Indian origin), such a Seller or Purchaser would require to obtain permissions for sale or purchase of immovable property in India proposed to be sold/ purchased under the Foreign Exchange Regulation Act.

The requisite Form IPI-1 and/or Form IPI-2 of the Exchange Control Rules are to be filled and permissions for sale and/or purchase of the property should be obtained.

5. In case of the purchaser being an NRI or a Foreign National of Indian Origin (as per qualification), acquires residential/ commercial immovable Property in India from and out of foreign funds, either paid directly or through NRI account, such a purchase is entitled to repatriation of such funds used for purchase after a lock-in period of three years from the date of Sale Deed being executed or possession being taken in part performance, whichever is earlier, provided the Purchaser files for IPI 8 of the Exchange Control Rules within the period of 90 days of the Sale Deed being executed or possession being taken in part performance, whichever is earlier.

Note: An NRI or a Foreign National of Indian origin is not entitled to acquire plantations without prior (Reserve Bank of India) permission as per the provision of the Foreign Exchange Regulation Act.

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1. This depends from State to State in which the Property is situated. Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed.

2. Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the Income-Tax Rules.

3. In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules.

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A: Yes. The following are the details:

1. Stamp Duty is payable on Sale Deed or transfer documents and the amount of stamp duty varies from State to State.

2. Apart from the Stamp Duty, the State may also collect levies/cess which would be in addition to such Stamp Duty.

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A: Yes. Sale/transfer documents of any immovable Property of the value exceeding INR 100/- are compulsorily registrable documents - and such documents are required to be registered in the jurisdictional office of the Registrar of Assurances or Sub-Registrar, as may be provided by the Registration Rules of the State.

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A: Yes. Registration of sale/transfer documents will involve payment of registration fee, as prescribed in the Registration Rules and as applicable in the States in India, where the Property is situated.

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A: Concession is available by way of exemption from income tax on capital gains arising on transfer of a residential property. The exemptions are provided in Sections 54 and 54EC of the Income-tax Act (the Act). The exemption is available on re-investment of the capital gains in specified assets by the assessee.

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A: The exemption under Section 54 of the Act is available to an assessee who is either an individual or a Hindu Undivided Family (HUF). The exemption under Section 54EC is available to any assessee.

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A: The residential property should be a long-term capital asset. To qualify as a long-term capital asset, the residential property should be held by the assessee for a period of 36 months, prior to the date of the transfer.

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A: Under the provisions of Section 54 of the Act, the capital gains should be re-invested in the construction or purchase of another residential property.

Under the provisions of Section 54EC of the Act, the capital gains should be re-invested in 'long-term specified asset'.

For the purpose of this provision, long-term specified asset means any bond redeemable after 3 years, issued on or after 1 April 2000, by National Bank for Agriculture and Rural Development or by National Highways Authority of India.

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A: Under the provisions of Section 54 of the Act, the assessee should, within a period of one year before or 2 years after the date on which the transfer took place, have purchased or within a period of 3 years, after the date of transfer, constructed a residential house.

Under the provisions of Section 54EC of the Act, the assessee should invest the capital gains in the specified capital asset, within a period of 6 months, after the date of such a such transfer.

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A: Under Section 54 of the Act, there are no restrictions on transfer of such newly acquired or constructed property.

Under Section 54EC of the Act, where the long-term capital asset is transferred or converted into money at any time, within a period of 3 years, from the date of acquisition, the exemption stands withdrawn.

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A: Under Section 54F of the Act, capital gain arising on transfer of any long-term capital (other than a residential property), would be exempt from income tax if the capital gain is re-invested in a residential property.

Under the provisions of Section 54F of the Act, the assessee should, within a period of one year before or two years, after the date on which the transfer took place, purchased, or within a period of 3 years, after the date of transfer, constructed a residential house.

The exemption under this provision would however not be available if the assessee:

· owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

· purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

· constructs any residential house, other than the new asset, within a period of 3 years after the date of transfer of the original asset.

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A: The exemption under Section 54F of the Act stands withdrawn if the assessee transfers the residential property, within a period of 3 years of the purchase or construction.

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A: Generally speaking Carpet Area is the area of the apartment/building, which does not include the area of the walls. The actual used area of an apartment/office unit/showroom etc. In simple terms, it is that area within the walls where you can actually lay a carpet. It is the super built-up area minus the thickness of the walls and the proportionate share of the common areas. Built up Area includes the area of the walls also. Includes the carpet area, the wall thickness and the balcony.Super Built up Area includes the built up area along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc.

This break up is extremely essential as builders can place anywhere from 65 per cent to 85 per cent of the super built area as carpet area. That means, if the quote is on 1,000 sq ft, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the builder mention it in the sale deed.

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A: A valuation process is undertaken to ascertain the fair market value of a property. A scientific valuation goes beyond the parameters of the demand and supply forces that dominate the real estate market. Other factors that form vital inputs for a scientific valuation would be maintenance, quality of construction, location, the infrastructure of the area, the nature of the property, -whether freehold or leasehold, if leasehold then the period of lease etc. A valuer would normally adopt two or three different techniques separately to determine the property value and then compare the results to arrive at the correct value.

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A: Have you ever thought of getting your house officially valued? Probably not. The three bedroom forth storied flat which you acquired for a couple of lakhs 2 decade ago is probably worth a good deal more today.

You can always ask your neighborhood property dealer the same and he would immediately tell you that if put up for sale your house is likely to fetch around Rs 20-25 lakhs. His estimate would more or less reflect the current worth of your property in the real estate market given the fact that his information would be based on recent sale-purchase deals of similar properties in the neighborhood.

Now, this is not quite true since, there are a number of situations where an official valuation of your property will carry a lot more weight than a broker's estimate. For Eg. if you are thinking of taking a loan to meet some of your short term or long term financial obligations, -could range from a marriage in the family to meeting the higher education expenses of your children, and have offered your house to be mortgaged against the loan, the loan appraisal then is likely to be faster, easier and hassle free if the property sought to be mortgaged is valued and certified by a registered valuer. Infact nowadays most banks and other lending institutions do insist upon an official valuation of any property that is offered as security against a loan. What's more, the value certified by the registered valuer also plays a fairly significant role in determining the size of the loan.

Apart from this, there are a host of other transactions where an official valuation either comes in handy or is mandatory. Official valuation may be required at the time of drafting a statement of will, for insurance or for the purpose of accounting for fixed assets in a business balance sheet.

Besides official valuation will always be very handy while negotiating the sale of the property.

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A: The transfer of a flat is coupled when you have a agreement of sale coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with handing over of physical possession. If you give possession after having entered a sale agreement, you would be liable to be taxed even if you have not received the full consideration.

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A: While selling a plot of land, you should first of all find out more about the promoters past dealing. Check whether he has honoured all his commitments with all other persons with whom he has had prior dealings. Then you must identify a promoter. Later discuss the basic terms and conditions with the promoter. It is at this stage you must appoint a competent lawyer for yourself. As regards the sharing ratio there is no fixed rule and it is subjective.

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