We have a Warsardar Dhakla (widow and two daughter).A buyer has agreed to buy this property,he has given 1%advance.He has applied for loan from HDFC bank,he is saying that all formalities have been done,just sign the agreement then bank will give the DD.i want to know will the bank give DD in favour of all the three in Warasdar Dhakla or is there any other way we can give it to my mother inlaw.the property has a share certificate in my father inlaws name, taxes are also paid on his name but 7/12 is name of builder.I want to know how did he get the loan on this property when all the papers are in the name of my father inlaw.we gave him original share certificate and copy of Warsdar dhakla.Is he a genuine buyer,can he get loan from HDFC bank on these paper,what should i do or what questions should i ask him .Please help and reply soon,as my mother inlaw needs money
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1)sale deed should be signed simultanreously with receipt of DD from bank for sale consideration
2) it would be given in favour of all 3 legal heirs
3) on demise of father in law mother in law and 2 daughters would be legal heirs
4) apply to society for transfer of share certificate in name of the legal heirs
5) enclose father in law death certificate
i want to know about what tax will be deducted if i sell this property.My mother in is a widow and she has no income she is a housewife.is there any rule that she can pay minimum tax on property selling
1) when did father in law purchase the property?
2) if it has been held for more than 2 years it would attract long term capital gains tax
3)The long-term gain arising from the sale of a capital asset is exempt under Section 54 and 54F if invested in purchase or construction of a house property subject to certain conditions. To get the exemption, the taxpayer has to purchase the residential house within a period of 1 year before or 2 years after the transfer of the original house. Under construction properties must be completed within 3 years from the date of transfer of the original house. The investment on the house property must be situated in India.
4)You can also save tax by investing the capital gains in special Capital Gains Account Scheme (CGAS) with the bank. Another option is to invest in specified bonds such as Rural Electrification Corp. Ltd. and National Highways Authority of India within 6 months from the date of sale of the property.
If it is your father in law property, then he is the vendor who will be paid by the bank.
Check with the bank whether he has taken the loan.
Banks will insist for a sale agreement, in that event, the buyer has to pay the initial amount.
May be 25% can be paid and the balance to be paid by the bank.
Unless, bank or the purchaser pay full sale consideration, do not hand over any documents except sale agreement.
Get 2 sale agreements in original and keep a copy.
It depends on the bank. Actually loan is in favour of the person having valid title of property. But in your case you are a buyer you don't have to worry once you get the our sale price you can execute sale deed.
It appears your father in law is no more then no payment can be made on the name of a dead person.
The recording of name in revenue records of your mil and her two daughters would take time.
So the buyer has made no illegality in making payments to them whi alone are its lawful owners and hence entitled to payment.
1. Since the father-in-law is dead his property has devolved on his widow and daughters. The DD has to be in favour of all three of them.
2. The long-term gain arising from the sale of a capital asset is exempt under Section 54 and 54F. To get the exemption, the taxpayer has to purchase the residential house within a period of 1 year before or 2 years after the transfer of the original house. Under construction properties must be completed within 3 years from the date of transfer of the original house.
1) you can sell the property with the help of legal heirs. And he is genuine buyer , bank will give loan in flat.
2) Yes, you have to pay capital gain tax as per Index formula or if your mother in law can purchased new property to save the tax.
3) If you require further legal advise you can select consultation call.
The papers in your possession are not sufficient to the buyer to obtain loan from bank, however HDFC is a private bank, their rules may be flexible and they may rely on execution of registered sale deed.
When the problem comes it will be the buyer who will face it and not the bank, hence the bank will be generous to grant loan for the present.
The share certificate is not the title document.
The property if inherited by your father in law then the revenue records on his name and his death certificate besides his legal heirship certificate, the original title deed are the components basically needed to verify by the buyer or his bank.
i want to know about what tax will be deducted if i sell this property.My mother in is a widow and she has no income she is a housewife.is there any rule that she can pay minimum tax on property selling
The long term capital gains tax is to computed from the date of original purchase of this property by applying the index formula.
If there is any tax to be paid, she has to pay them after availing other exemptions.
Hello Sir,I want to know is there any way(affidavat,POA or some procedure ) through which the bank can give us the DD just in favour of my Mother inlaw and not in favour of three of us.What should we do if it gives in favour of all the three,should we open a joint account in all three persons name.We want to transfer the money to my mother inlaw .Will we be taxed double for transfering the money.
All the beneficiaries can give a joint authorisation letter to the bank authorising one among them to draw the mooney individually for disbursement to others after withdrawal.
This is permissible as banking laws.
You may approach the bank manager who will guide you on further procedures on this.
1) obtain letters of administration from district court in favour of mother in law
2) other 2 legal heirs can execute consent affidavit to relinquish share in flat
3) LA would be issued only in name of MIL
4) flat would be transferred in name of MIL only
5) then cheque can be issued by builder in name of MIL only
1) The husband property especially if that is flat it goes on first name of his wife and legal heirs as children.
2) Any how you will be getting cheque on your mother-in-laws name. If they didn't do so you can insist to give on her name.
3) Tax is charged on property sold and how much capital gain profit has happened. To on your transfer amount. There is Index for capital gain tax formula.
4) Please give rating for my me and for further you have questions can select consultation call.
If it is joint ownership, then the bank to safeguard its interest will deposit the amount as per the terms in the sale agreement entered between 3. It shall be a single sale agreement by 3 vendors in favour of 1 buyer and the amount shall be deposited in joint account after obtaining the DD.
1. The bank will not issue the DD or cheque, as the case may be, in favour of mother-in-law unless the other heirs execute a relinquishment deed in her favour thereby making her the absolute owner of the property.
2. The remaining legal heirs can then file an application before the competent civil court to obtain Letters of Administration in mother-in-law's favour. Once the Letters of Administration is issue in her favour and the heirs relinquish their share in her favour then bank can issue the DD in her favour without any qualms.
Hi, it is better to open a joint account having transaction rights only to mother in law.
