Women should know about low pay duty charges and interest in real estate

Women in cities have become an important focal point for developers. Unlike the earlier scenario where they were not just considered decision makers and producers, Indian women today are much empowered and have become independent decision makers in home buying matters. Along with good jobs with fantastic growth prospects - not only in corporate India, but also in government positions in rank, women today are an important target audience for major property developers.

Today a growing number of women believe that owning physical assets like home makes them realize more than marriage at the right age.

The scenario has also changed for married women. With dual-income families as background, many women are now active financial partners with equal say in purchasing decisions.

Shortly before this there was a distinct change in family dynamics and their investment priorities, which were mainly gold and Fixed Deposits. Real estate now occupies an important position in their investment portfolio.

The government and the banking system are also going the extra mile to encourage women into standalone homework. In India, stamp duty fees for property registration are lower in some states if it is executed in the name of a woman. Delhi, UP, Rajasthan, Punjab and Haryana are with stamp duty exemption for women buyers. The exemption on stamp duty is up to 1-2% in different states.

“If the property is jointly owned, there may be additional tax benefit. Like men, women home buyers are also eligible for tax exemption up to Rs 1.5 lakh under Section 80C of the Income Tax Act on principal paid on housing loans, and home loans up to Rs 2 lakh under Section 24 per annum on interest. If a property is let out on rent, full interest is allowed on the home loan as a deduction. However, to avail this additional tax benefit on home loans, the property has to be co-owned,” according to experts.

In addition, many large banks in India pay less home loan interest to women borrowers than men. The discount may vary from 0.05% to 0.25% depending on the bank and loan amount.

Thus, women across urban India are buying properties to diversify their investment portfolios or to have multiple benefits for women, ranging from tax benefits to lower home loan interest rates by some banks and in various states Stamp fees and registration fees are also reduced.

The importance of 7/12 legal extract

The purchase of property is one of the most valuable decisions in the life of all; it contains lots of legal terms, fees and necessary documents. It is our duty to be clear about all the necessary documents involved in the property buying process. There is a 7/12 extract required for property purchase in Maharashtra. This is one of the most important papers, when the buyer is willing to invest in semi-rural areas of the state to buy a plot. We all know that Maharashtra has prohibited the use of this document in the urban areas of the state including the suburban areas of Mumbai, these document only matters in areas where land plots do not have city survey numbers. This document is traditionally called "Saath Baara Utara".

This document provides complete information about each particular land and is defined as an extract from the land register of any district in Maharashtra. This document is issued by the Tehsildar or the concerned land authority of the area concerned. This document contains some important details which are as follows:

Name of the owner and its cultivator

·     Survey number of land.

·     Size of the land.

·     Type of land irrigational.

·     Crops planted on the land.

·     Location of the land with respect to the infrastructure facilities like roads and water bodies.

·     Availability of the loan by the owner or cultivator.

·     Reason for the loan like the purchase of seeds, pesticides, and fertilizers.

·     Loan extended to the landowner by government agencies.

This document originated from the "Bombay Land Reclamation Act 1948". All the records of the land are maintained by the revenue department of the government.

Why is this document required?

This extract will serve as proof of land title. It can be used to check if there are any previous disputes related to the property. All of this is one of the most important documents for sale in the Registrar's Office and for the loan requirement. And also to define the exact location of the land along with all the activities done on the land in the past. For agricultural land, this document will have a description of all the crops that were grown on the land, mutation entries and outstanding debts. It also helps owners identify whether the land is arable or non-agricultural.

7/12 extracts are named after two forms that are used to collect information for extracts:

·     Village Form VII where it records complete details of owner and owner rights.

·     Village Form VII which records the agricultural aspects of the land.

Information on both these forms is set out and set out in the "Maharashtra Land Revenue Records of Rights and Register Rules, 1971". To obtain information, extracts of registers related to that land are given.

How to get 7/12 extracts online?

This document can be availed from the Tehsildar office and you can get the documents online either by following the steps given below:

1.  Visit Maharashtra government’s website.

2.  Select the division, district, taluk, and village name from the list given on the website.

3.  You can search any of the following details:

• Survey number/ group number of the property.
• First name of the owner.
• Ancestral owner of the property.
• Last name of the owner.
• Full name of the owner

The latest update about this document is that from May 1, 2020, zamindars will be able to print 7/12 land record receipts online, and to ensure that the document is provided with a digital signature on it.

Can you transfer a title to a 7/12 extract?

Industry experts state that this extract is not proof of any established title and therefore one cannot transfer title based on 7/12 as it does not serve as proof of ownership.

The comment of Section 43 Bombay Tenancy and Agricultural Land Act 1948.

In this extract the land will be purchased by the tenant under the related provision of the law, but now the tenant needs to obtain permission from the District Collector to transfer or sell the land. If this happens without the permission of the collector, the sale will be considered illegal.

The remark of section 36 Maharashtra Land Revenue Code 1966.

This section deals with tribal land transfer. This section states that if any land is occupied by tribal people, it cannot be transferred to non-tribal people without obtaining permission from the District Collector. This transfer has no legal stance and cannot be accepted.

Regarding fragmentation of land:

If certain portions have been sold by the title holder, the entry will be made in the right column, as it is transferred due to fragmentation of the land, this means that the land has been sold to the government and the rest of the land sold. Cannot be obtained without obtaining permission from government officials.

Entry of protected land:

Section 4-A of the Bombay Tenancy and Agricultural Land Act 1948, in this law, if a person lawfully cultivates any land belonging to any other person, it shall be deemed that the tenant, subject to the condition of any such land, shall be deemed to be the owner. In this case, the land cannot be transferred without the permission of the government if it is not a family member or servant of the landowner. These entries need to be carefully examined while purchasing any land.

Affordable Rental Housing For Migrant, Finance Minister Gives Push to Urban Poor

To relieve the real estate sector of some tension, Finance Minister Nirmala Sitharaman said that the government was extending a one-year extension to the CLSS or Credit Linked Subsidy Scheme which started in 2017 and ended on March 31, 2020. Until March 2021. This will help boost the demand for affordable housing.

The extension of the credit link subsidy scheme for a year will encourage many potential house buyers to buy houses, thereby increasing demand for affordable housing. There is currently a lot of untold inventory in the industry.

The mega-move will also help in maintaining employment as real estate is one of the largest labor intensive industries supporting around 200 allied industries. The proposed affordable rental accommodation under PPP is a welcome step. This will effectively help the issues of majority migrant laborers. Most of these urban poor live in miserable condition

Industry experts believe that the government's move to affordable housing in the last six years has been a great step forward. Its 'Housing for All by 2022' project has resulted in many soaps and incentives. In the last few years there has been a significant increase in buyer activities in the affordable segment.

Allowing new units and players to enter the affordable housing segment to build these rented dwellings, allowing manufacturing units and industries to take concessions and follow the same BOT model as road projects will do.

Tamil Nadu government declare “No registration fee, stamp duty for new apartment”

The welcome move comes shortly after some sub registrar offices demand registration of apartments attracting stamp duty and registration fees.

The registration department in Tamil Nadu has clarified that there is no need to pay stamp duty and registration fees when they are ready to occupy new apartments and buildings. The move comes in the wake of an effort brought in during the COVID-19 crisis and is set to provide some relief for house buyers.

It should be noted that this is only applicable to the first sale of the property.

The Inspector General of Registration  issued an order that defines the Undivided Share (UDS) of a property under the bracket of stamp duty and registration fee.

If a document is submitted for registration for the first sale of an undivided part of the land, the registration authorities are instructed that the subject of the sale document for the sole reason of issuance of completion certificate being competent to the building. Do not demand or urge to be included. A communication from the Inspector General of Registration for Sub-Registrars said.

This will help house buyers save a combined 11% stamp duty and registration fees that they will have to pay for the new apartment.

State Treasurer of the Builders Association of India S Ramaprabhu said that the order is subject to UDS only for stamp duty and registration fee.

For example, the price of a new flat is Rs 60 lakh, out of which UDS is Rs 20 lakh and the remaining Rs 40 lakh is the price of the apartment. House buyers do not require stamp duty and registration fees on the building. This is a welcome step for property buyers in completed projects as it does not attract GST,” he said.

Real estate has not grown well in the last few years due to several policy changes. The current epidemic has also dealt a severe blow to the industry. It is anticipated that the move will boost consumer sentiment and help in faster recovery of the sector.