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What is FSI?
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Floor
Space Index
(FSI) means
the quotient
of the ratio
of the combined
gross floor
area of all
floors excepting
areas specifically
exempted under
these Regulations
to the total
area of the
plot. |
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Can premises
already encumbered
to a bank be
leased out to
a Company with
a high deposit
and in case
of a default
who holds the
first lien?
And will the
Company/Occupant
be evicted?
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Yes
premises already
encumbered
to a bank
can be leased
out to a Company
with a high
deposit. However
you may require
the No-Objection
of the bank.
If the deposit
monies are
with you and
in case if
you default
on payment
to the bank,
obviously
you will continue
to hold the
deposit money.
The Co./occupant
can be evicted
only if there
is a provision
to that effect
in the lease
Agreement.
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What is TDR?
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Rule 34
of the Development
Control
Regulations
for Greater
Bombay,
1991 defines
TDR which
stands for
Transferable
Development
Rights as
under: ‘In
certain
circumstances,
the development
potential
of a plot
of land
may be separated
from the
land itself
and may
be made
available
to the owner
of the land
in the form
of Transferable
Development
Rights.
These rights
may be made
available
and be subject
to the Regulations
in Appendix
VII hereto.
Appendix
VII lays
down the
rules for
the grant
of Transferable
Development
Rights to
owners/developers
and conditions
for grant
of such
rights:
-
The
owner
(or lessee)
of a plot
of land
which
is reserved
for a
public
purpose
in the
development
plan and
for additional
amenities
deemed
to be
reservations
provided
in accordance
with these
Regulations
excepting
under
certain
conditions
shall
be eligible
for the
award
of TDR
in the
form of
Floor
Space
Index
(FSI)
to the
extent
and on
the following
conditions
set out
below.
Such award
will entitle
the owner
of the
land to
FSI in
the form
of a Development
Rights
Certificate
(DRC),
which
he may
use himself
or transfer
to any
other
person.
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Subject
to Reg.1
where
a plot
of land
is reserved
for any
purpose
specified
in S.22
of Maharashtra
Regional
and Town
Planning
Act, 1966
the owner
would
be eligible
for DR’s
to the
extent
stipulated
in Rules
5 &
6 in this
Appendix
after
the said
land is
surrendered
free of
cost or
after
completion
of development.
-
TDR’s
will be
available
only for
prospective
development
of reservations.
-
DRC’s
will be
issued
by the
Commissioner
himself
giving
details
of FSI
credit.
-
The built
up area
for the
purpose
of FSI
shall
be equal
to the
gross
area of
the reserved
plot to
be surrendered.
6.When
the owner
or lessee
also develops
or constructs
the amenity
on the
surrendered
plot at
his cost,
he may
be granted
a further
DR in
the form
of FSI
equal
to the
area of
the construction/
development
done by
him.
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How do I determine
the property
tax on the rent
received as
I have given
the premises
on higher rent
to a Company?
Are there any
guidelines set
by the BMC?
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The
calculation
of property
tax on rent
cannot be
generalized
and depends
on various
factors, but
however if
the premises
are rented
out to banks,
companies,
multi-nationals,
etc. who are
exempted from
the provisions
of the Maharashtra
Rent Control
Act, 1999
by virtue
of Section
3(1) (B) of
the Act then
the rates
of property
taxes could
be as high
as 60% or
so. If the
premises are
rented out
to others,
who are protected
under the
Rent Act,
the Mumbai
Municipal
Corporation
cannot charge
taxes on the
actual rent
and have to
base their
taxes on Standard
rent defined
under the
Act, which
is, in most
cases lower
than the actual
market rent.
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Do
I need permission
of the Society
to keep a
Paying Guest
and are there
any extra
society outgoings
I need to
bear? |
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Yes,
you need permission
of the Society
for keeping
a Paying Guest.
It depends
on the Society
byelaws and
rules. Some
Societies
keep asking
for extra
outgoings
by way of
Non-Occupancy
charges. |
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If
I want to
sell a flat
and buy a
new flat in
a bigger area.
What are my
tax implications
especially
with regard
to capital
gains? |
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On
the proposed
sale of your
flat you may
purchase another
flat within
two years
of the date
of sale of
the original
flat. If you
have invested
the entire
amount of
capital gain
irrespective
of your area
of the flat,
you would
not have to
pay any capital
gains tax.
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When
a flat is
gifted to
a daughter
what are
the legal
implications
regarding:
i. Title-
and how
is this
established.
ii. Gift
tax- is
it leviable
and if so
when?
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If one has
gifted a flat
to his daughter
one should have
the gift deed
drawn out which
should be witnessed
by two persons.
In case of both
the donor and
the donee it
is preferable
to register
the said gift
deed even if
the flat is
in a co-operative
society. Stamp
duty would have
to be paid on
the gift deed,
which would
be the same
as in case of
the sale of
a flat. However,
there is no
gift tax applicable.
The gift deed
would be the
title document
indicating the
gift to the
daughter along
with the share
certificate
if it is in
a co-operative
society. |
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How to appeal
for reduction
of property
tax if you
are an individual
in a society?
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If
property tax
has been levied
which you feel
ought to be
reduced, you
should write
to the society
stating your
reasons for
the same. The
society would
take up the
matter with
the Municipal
Authorities
and have the
same reduced
if the same
is justified.
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Is it safe
to give
ownership
flat for
leave and
license?
What are
the problems
if I give
for a longer
period?
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Yes,
it is safe to
give ownership
flat for leave
and license
provided an
agreement has
been entered
into to that
effect and the
same leave and
license agreement
has been registered
with the Competent
Authority under
the Maharashtra
Rent Control
Act, 1999. |
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Some residential
and commercial
properties,
which I
own are
occupied
by people
who are
not paying
rent and
also not
vacating.
I require
help in
solving
such problems.
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In
those residential
and commercial
properties owned
by you and occupied
by people who
are not paying
rent you may
serve a notice
in writing to
the tenants
for demand of
the standard
rent in the
manner provided
in Section 106
of the Transfer
of Property
Act, 1882 (IV
of 1882) and
after expiry
of 90 days and
the rent has
yet not been
submitted by
the tenants
you may then
file a suit
for eviction
of the tenants
under the Maharashtra
Rent Control
Act, 1999 and
recover possession
of the tenanted
premises under
Section 16 of
the said Act.
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If
the landlord
does not
repair or
maintain
property,
staircase,
terrace
and the
tenants
want to
do, can
they and
can they
deduct rent
from the
landlord
if he does
not share?
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If
the landlord
does not repair
or maintain
the property,
the tenant could
after giving
sufficient notice
to the landlord
do so carry
out repairs
which are necessary
and deduct the
cost thereof
from the rent.
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Do we require
permission
from the
landlord
for taking
separate
water connection,
tank etc.
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Yes,
you do require
permission from
the landlord
for taking separate
water connection,
tank etc. |
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How
can we evict
tenants
who do not
pay or have
made changes
in their
flats?
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You
can evict the
tenant who is
not paying rent
or who has made
permanent alterations/additions
in the premises
by giving him
notices to this
effect as required
under law and
proceed against
the tenant in
a Court to evict
him. |
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What are
the formalities
required
to be completed
by foreign
citizens
of Indian
origin for
purchasing
residential
immovable
property
in India
under the
general
permission?
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They
are required
to file a declaration
in form IPI
7 with the Central
Office of Reserve
Bank at Mumbai
within a period
of 90 days from
the date of
purchase of
immovable property
or final payment
of purchase
consideration
alongwith a
certified copy
of the document
evidencing the
transaction
and bank certificate
regarding the
consideration
paid. |
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Can such
property
be sold
without
the permission
of Reserve
Bank?
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Yes.
Reserve Bank
has granted
general permission
for sale of
such property.
However, where
another foreign
citizen of Indian
origin purchases
the property,
funds towards
the purchase
consideration
should either
be remitted
to India or
paid out of
balances in
NRE/FCNR accounts.
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Can sale
proceeds
of such
property
if and when
sold be
remitted
out of India?
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In
respect of residential
properties purchased
on or after
26th May 1993,
Reserve Bank
considers applications
for repatriation
of sale proceeds
up to the consideration
amount remitted
in foreign exchange
for the acquisition
of the property
for two such
properties.
The balance
amount of sale
proceeds if
any or sale
proceeds in
respect of properties
purchased prior
to 26th May
1993, will have
to be credited
to the ordinary
non-resident
rupee account
of the owner
of the property.
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Are any
conditions
required
to be fulfilled
if repatriation
of sale
proceeds
is desired?
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Applications
for repatriation
of sale proceeds
are considered
provided the
sale takes place
after three
years from the
date of final
purchase deed
or from the
date of payment
of final installment
of consideration
amount, whichever
is later. |
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What is
the procedure
for seeking
such repatriation?
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Applications
for necessary
permission for
remittance of
sale proceeds
should be made
in form IPI
8 to the Central
Office of Reserve
Bank at Mumbai
within 90 days
of the sale
of the property.
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Can foreign
citizens
of Indian
origin acquire
or dispose
of residential
property
by way of
gift?
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Yes.
Reserve Bank
has granted
general permission
to foreign citizens
of Indian origin
to acquire or
dispose of properties
up to two houses
by way of gift
from or to a
relative who
may be an Indian
citizen or a
person of Indian
origin whether
resident in
India or not,
subject to compliance
with applicable
tax laws. |
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Can immovable
property
held in
India, be
transferred
by way of
gift to
relatives/registered
charitable
trusts/organisations
in India?
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Yes.
General permission
has been granted
by Reserve Bank
to non-resident
persons (foreign
citizens) of
Indian origin
to transfer
by way of gift
immovable property
held by them
in India to
relatives and
charitable trusts/organisations
subject to the
condition that
the provisions
of any other
law, including
Foreign Contribution
(Regulation)
Act, 1976, as
applicable,
are duly complied
with. |
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Can they
dispose
of such
properties?
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Yes. |
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Can sale
proceeds
of such
property
be remitted
out of India?
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Yes.Repatriation
of original
investment in
respect of properties
purchased by
foreign citizens
of Indian origin
on or after
26th May 1993
will be allowed
to be remitted
up to the consideration
amount originally
remitted from
abroad provided
the property
is sold after
a period of
three years
from the date
of the final
purchase deed
or from the
date of payment
of final installment
of consideration
amount, whichever
is later. Applications
for the purpose
is required
to be made to
the Central
Office of Reserve
Bank within
90 days of the
sale of property
in form IPI
8. |
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Can the
properties
(residential/commercial)
be given
on rent
if not required
for immediate
use?
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Yes.
Reserve Bank
has granted
general permission
for letting
out any immovable
property in
India. The rental
income or proceeds
of any investment
of such income
are eligible
for repatriation.
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Can NRIs
obtain loans
for acquisition
of a house/flat
for residential
purpose
from authorised
dealers/financial
institutions
providing
housing
finance?
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Reserve
Bank has granted
general permission
to certain financial
institutions
providing housing
finance e.g.
HDFC, LIC Housing
Finance Ltd.,
etc., and authorised
dealers to grant
housing loans
to non-resident
Indian nationals
for acquisition
of a house/flat
for self-occupation
subject to certain
conditions.
The purpose
of the loan,
margin money
and the quantum
of loan will
be at par with
those applicable
to housing loans
to residents.
Repayment of
loan should
be made within
a period not
exceeding 15
years out of
inward remittances
or out of funds
held in the
investors‘
NRE/FCNR/NRO
accounts. |
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Can Indian
companies
grant loans
to their
NRI staff?
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Reserve
Bank permits
Indian firms/companies
to grant housing
loans to their
employees deputed
abroad and holding
Indian passports
subject to certain
conditions.
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Can authorised
dealer grant
housing
loan to
non-residents
of Indian
nationality
where he
is a principal
borrower
with his
resident
close relative
as a co-obligant/guarantor
or where
the land
is owned
jointly
by such
NRI borrower
with his
resident
close relative?
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Yes.
General permission
has been granted
by Reserve Bank
to non-resident
persons (foreign
citizens) of
Indian origin
to transfer
by way of gift
immovable property
held by them
in India to
relatives and
charitable trusts/organisations
subject to the
condition that
the provisions
of any other
law, including
Foreign Contribution
(Regulation)
Act, 1976, as
applicable,
are duly complied
with. |
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What particulars
must 'Deeds
of Apartments'
under the
Apartment
Ownership
Act contain?
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Deeds
of Apartments
must contain
the following
particulars,
namely:
- Description
of the land
as provided
by Section
11 of the
Act or the
post office
address
of the property,
including
in either
case the
liber, page
and date
of executing
the Declaration,
the date
and serial
number of
its registration
under the
Registration
Act, 1908
and the
date and
other reference,
if any of
its filing
with the
competent
authority.
- The apartment
number of
the apartment
in the Declaration
and any
other data
necessary
for its
proper identification.
- Statement
of the use
for which
the apartment
is intended
and restrictions
on its use,
if any.
- The percentage
of undivided
interest
appertaining
to the apartment
in the common
areas and
facilities.
- Any further
details
which the
parties
to the deed
may deem
desirable
to set forth
consistent
with the
Declaration
and this
Act.
A true copy
of every Deed
of Apartment
shall be filed
in the office
of the competent
authority. |
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Housing
Society?
What should
be the contribution
from members
towards
Sinking
Fund? When
can the
amount collected
for Sinking
Fund be
spent by
the society?
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The
purpose of collecting
Sinking Fund
is to accumulate
and keep sufficient
funds with the
society so that
the property
of the Society
i.e. building
can be reconstructed
in future. The
contribution
to Sinking Fund
is a statutory
obligation.
Sinking Fund
has to be contributed
as decided by
the General
Body of the
Society. It
should be at
least @1/4 per
cent per annum
on the cost
of the each
flat excluding
the cost of
the Land. On
the resolution
passed at the
meeting of the
General Body
of the Society
and with the
prior permission
of the Registering
Authority, the
Sinking Fund
may be used
by the Society
for reconstruction
of its building/s
or for carrying
out such structural
additions or
alterations
to the building/s
as in the opinion
of the Society's
Architect is
required for
carrying out
such heavy repairs
as may be certified
by the Architect.
However permission
is not usually
granted by the
Registrar to
withdraw amounts
from the sinking
fund. |
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