Introduction to Assessed Valuation in India Assessed valuation is a crucial concept in the real estate sector, particularly when it comes to property taxation. In India, the assessed valuation of real property is the value determined by a taxing authority, such as the municipal corporation, for the purpose of calculating property taxes. This valuation plays a significant role in determining the amount...
When buying or selling a property, one of the most critical steps in the process is determining its accurate value. This is where a property appraisal comes into play. A property appraisal is an official valuation conducted by a certified real estate appraiser or valuer. What is a Property Appraisal? A property appraisal is an objective assessment of a property's value based on a thorough evaluation...
An alley refers to a narrow lane that typically runs behind a row of buildings or between two rows of buildings. Often overlooked, alleys play a significant role in urban planning and real estate, providing various functional and logistical benefits. What is an Alley? An alley is a narrow passageway found in urban areas, usually situated between or behind buildings. Unlike main streets, alleys are...
What is an Alienation Clause? An alienation clause, often found in mortgage agreements, is a provision that prohibits the transfer of property ownership without the lender's consent. This clause is critical because it protects the lender's interest in the property, ensuring that the borrower cannot sell or transfer ownership without paying off the remaining mortgage balance. The Importance of the...
Indexation Changes and Their Impact on Property Sellers Sources from Business Today TV indicate that the government is considering applying the proposed changes to indexation prospectively, starting from the financial year 2025-26, rather than implementing them immediately. This adjustment is intended to provide property sellers ample time to plan their transactions accordingly. The revised taxation...
What is Inheritance Tax? Inheritance tax, also known as estate duty or death tax, is a levy imposed on the estate of a deceased person before the assets are transferred to the heirs. This tax is typically calculated based on the total value of the estate, including properties, investments, and other assets. The concept behind inheritance tax is to tax the transfer of wealth from one generation to the...
The Controversial Move to Remove Indexation The 2024 budget introduced a significant change that has stirred much debate in the real estate market— the removal of indexation benefits for long-term capital gains (LTCG) on real estate. Indexation has long been a tool that helped property owners reduce their tax liabilities by adjusting the purchase price of their assets for inflation. The elimination...
Navigating the New Tax Landscape Post-Budget 2024 Selling a home can be a financially rewarding experience, but it also comes with the burden of Long-Term Capital Gains (LTCG) tax. The Budget 2024 has eliminated the indexation benefits, significantly impacting homeowners who sell their properties. This change means that sellers now face taxes on the full gains rather than the inflation-adjusted...
Budget 2024 and Its Impact on LTCG Tax The 2024 Budget introduced significant changes that shocked many property sellers, especially concerning Long-Term Capital Gains (LTCG) tax. However, there’s good news—Section 54 of the Income Tax Act still offers a way to pay zero tax on LTCG. Understanding LTCG Tax on Property Sales What Is LTCG Tax? Definition: Long-Term Capital Gains (LTCG)...
Why NRIs Are Investing in Indian Real Estate With the rapid growth of the Indian real estate market, many Non-Resident Indians (NRIs) are looking to invest in properties like flats, plots, and farmland. Whether residing in the USA, UK, Middle East, or Europe, NRIs are increasingly interested in owning property in India. 1. Understanding the Legal Framework for NRIs Purchasing Property in...