What are the categories of real estate covered under the general permission for investment by NRIs, PIOs? Does it still require filing any document after the purchase? Please clarify.
Gregory Mathias, Sharjah
Under the general permission, NRIs i.e. that is citizens of India resident outside India and PIOs i.e. individuals (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 or who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, can freely purchase immovable property in India.
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farmhouse in India. Any investment in restricted categories will have to be approved by the Reserve Bank of India which is done in consultation with the Government of India.
I bought an apartment from a developer in Chennai two years ago and it is nearing completion now. The developer has served a notice recently stating that additional fee by way of government infrastructure is payable before taking possession of the premises. He claims that the developers are seeking legal course to resolve this issue and if not succeeding, the amount will have be remitted to the authorities? Please clarify.
Under the general permission, NRIs i.e. that is citizens of India resident outside India and PIOs i.e. individuals (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 or who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, can freely purchase immovable property in India.
The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land/plantation property/farmhouse in India. Any investment in restricted categories will have to be approved by the Reserve Bank of India which is done in consultation with the Government of India.
I bought an apartment from a developer in Chennai two years ago and it is nearing completion now. The developer has served a notice recently stating that additional fee by way of government infrastructure is payable before taking possession of the premises. He claims that the developers are seeking legal course to resolve this issue and if not succeeding, the amount will have be remitted to the authorities? Please clarify.
Satish Kumar, Dubai
Fundamentally the agreement contains all the clauses relating to payment of by a buyer. There are certain issues which may be awaiting a court’s verdict and in such case, a developer collects money on behalf of the buyer and holds it till the verdict and decides in one way or the other after the verdict. If the agreement contains such a clause, then it is obligatory on your part to pay the amount or otherwise you have the right to go the Court and seek their judgement.
I own a flat, which I am planning to sell and reinvest in a larger apartment. Besides I intend disposing of a commercial property and shares to invest the proceeds in the larger apartment. Can I seek capital gains exemption for the long-term capital gains?
Fundamentally the agreement contains all the clauses relating to payment of by a buyer. There are certain issues which may be awaiting a court’s verdict and in such case, a developer collects money on behalf of the buyer and holds it till the verdict and decides in one way or the other after the verdict. If the agreement contains such a clause, then it is obligatory on your part to pay the amount or otherwise you have the right to go the Court and seek their judgement.
I own a flat, which I am planning to sell and reinvest in a larger apartment. Besides I intend disposing of a commercial property and shares to invest the proceeds in the larger apartment. Can I seek capital gains exemption for the long-term capital gains?
Krishna Palemar, Abu Dhabi
If you are the owner of not more than one residential house property and has long-term capital gains on the sale of any other asset like shares, debentures, units, commercial house property, jewellery, urban land, etc. then also you may get 100% tax exemption in respect of long-term capital gains made on the sale of such capital asset provided you invest the same in a residential house property.
However, you will have to invest one year in advance of the sale of the other capital asset or two years of such sale for the purpose of purchase of a residential house property. In case you are interested in constructing a residential property in your own name, you can even construct such residential house property within three years of the date of sale of any other capital asset. Please note that the entire net sale consideration is to be invested in the purchase or construction of the new residential house property.
NOTES:
House shortage
According to the estimates of the Technical Group constituted by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), urban housing shortage in the country at the end of the 10th Five-Year Plan was estimated at 24.71 million for 66.30 million households. The group further estimated that 88% of this shortage pertains to houses for EWS and another 11% for LIG.
For MIG and HIG, the estimated shortage is only 0.04 million. During the 11th Five Year Plan, the group estimated that the total housing requirement in Indian cities (including backlog) by end 2012 will be to the tune of 26.53m dwelling units for 75.01m households. If the current increase in backlog of housing is maintained, a minimum of 30 million additional houses will be required by 2020.35% dip in absorption of commercial realty in H1.
Flat buyers
Easing the process of giving exclusive rights of ownership to flat buyers, the Delhi high court has held that land owning agencies, DDA and L&DO, can execute the deed of apartment in case builders fail to execute the deed. This will enable flat buyers to get exclusive right over their houses and they need not be dependent on the promoter to transfer and mortgage the property.
Allowing a PIL that sought a directive for enforcement of the Delhi Apartment Ownership Act, a bench said, “We are of the opinion that the dispute, whether the promoter or the builder has failed in executing and registering the deed of apartment, would be within the scope of Section 13 (4) of the Act and the competent authority would be entitled to pass an order directing the promoter or builder to execute the deed of apartment.”
The author is a business analyst
covering Indian property markets
covering Indian property markets
Source: gulftoday.ae
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