Legal & Tax

Here are some frequently asked queries concerning the legal aspects of purchasing homes. The right know-how of procedures and protocols will only make your housing formalities more secure and legitimate.

Is it necessary to obtain any permission, from the Income Tax authorities if I want to purchase any immovable property?

There is restriction on transfer of immovable property under Section 269UC of the Income Tax act.

Does the Indian Income Tax Act offer any special incentive for purchase of residential property by obtaining finance either from banks or other financial institutions?

Under Section 88 of the income tax you can claim benefit for the principle repayment, interest on loan is deductible u/s 24 from income from House Property.

Whether the benefits attached to a residential property are also available to a commercial property?

No such benefits are not available for commercial properties.

What are the formalities specified under the Indian Income Tax Law, if any, that one has to complete before or after selling any house property, commercial or residential?

You have to obtain Permission u/s 230A of the Income Tax Act if the value of the property to be sold is more than 5 lakh.

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

You are liable to pay Tax on profit arising from sale of a house property under the head Capital Gain.

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?

These expenses are allowable expenses from the full value of consideration of the sale of house property.