FAQs

Super Area or Super Built-up Area (SBUA) consists Built up Area the proportionate area under common spaces in a building like lobby, staircases, elevators or other Common Area.

 

Covered Area or Built-up Area (BUA) consists carpet area area covered by inner outer walls, Pillar or any shaft in any space.

 

Carpet Area is defined as net usable area from inner sides one wall to another excluding wall area.

When you rent out a residential property for residential purpose, it is exempt from GST. Any other type of lease or renting out of immovable property for business would attract GST at 18%, as it would be treated as a supply of service. After GST was implemented, the threshold limit for applicability of GST has been increased to Rs.20 lakh from Rs.10 lakh that was in the pre-GST era. This makes many landlords – who were earlier covered under the service tax regime to be at ease now up to another Rs.10 lakhs earned.
If the house is held for less than three years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term Capital Gain. There are no tax exemptions for short-term Capital Gains and one needs to pay it according to the applicable tax slab. However, if the property is sold after holding it for more than three years, it is treated as a long-term capital asset and the gain arising from it is called the long-term Capital Gain. Such gains attract a flat exemption rate of 20%.

The difference between a leasehold property and a freehold property lies in its ownership . In a leasehold property, the ownership remains with the concerned local authority or the government (as the case may be). The lease period varies typically between 30 to 99 years. But, this does not prevent the individual owner from selling or perform other transactions with the property, provided the lease deed is registered. In case of a freehold property, the owner of the property is the legal owner and can sell/lease/rent the property as per his/her wish .

Yes, you can sell the property with the consent of the banking institution. If the buyer wants to take a loan to buy the property, the process is much easier if he approaches the same bank. In these cases, the bank does not need to release the property papers to another bank before getting the payment. If the buyer wants to make a payment outright, he can make it to the bank directly. The property papers will be released only after the bank has recovered the entire loan amount.