Propbazzar.in

Were you thinking of gifting someone close to you an expensive gift? Maybe a house or an apartment? Think twice! If the receivers of your gifts are not your blood relatives, the Tax Department will be after you in no time. That is because any cash or non-cash gifts exceeding 50,000 INR, given by a person to another who is not a blood relative, would be considered as the person's income. Hence, he would be liable to pay tax for that gift as well.

Want to know if there is a way out?

Well, there is... If you gift property which is movable to any of your blood/close relatives, you would be deemed to pay taxes. A list of close/blood relatives would include: Spouse, brother/sister of spouse, brother/sister of individual, brother/sister of person's parents, and any other relatives.

The only people whom you can gift such property without being completely charged for are your dependent major children, who is above 18 years of age. That way they would be taxed as well.

With the rise in corruption surrounding land plots, it has become really tricky to obtain a plot of land in a hassle-free manner for yourself. The flourishing of fake land documents and unsolved land disputes have made everyone aware to be extra careful while thinking of making any land-related deals.

It is easy to get a land loan from registered banks. One may opt for a personal loan as well, but it has higher interest rates and, hence becomes costlier. But the main work is the buyer's. It is the duty of the buyer to check the following details of the land before taking any decisions:

* The Deed Title of the land should be registered under the name of the owner of the land, who is also the seller. Further, the seller should have all the rights to sell the property in question.

* The Encumbrance Certificate is the declaration that the land to be bought is free from any disputes. This document can be obtained from the sub-registrar's office (the deed is registered in the sub-registrar's office)

* The buyer should not forget to ask for the original Tax receipts and Bills so as to ensure that the dues for the land have been paid timely. This would help one avoid any cost related problems in the future.

After checking the necessary documents from the seller's end, the buyer should procure the Land Title deed under his/her name as soon as possible. It should be written by a document writer with a government license to do the needful. The payment receipt with stamp duty charges should be registered in the sub-registrar's office as well.

Then comes a few more steps...

The State Municipal Act makes it mandatory that a person who wishes to construct on a piece of land in the future, should obtain a sanction. It would be wise for a buyer to follow the same rule.

Once the construction activities start, the new owner should make every decision keeping the future costs in mind. Construction plan should be simple, and the materials should be within budget. Sometimes, when the prices of building materials fall in the market, one should purchase it in big amounts then itself, even if it might be used at a later point of time. This is cost-effective solution.