Application To Fix Assessment Of Property Under: Fill & Download for Free

Checklist of Property documents is very crucial step of property purchase process. Property transaction in India is document intensive exercise because of complex legal, statutory and regulatory framework. Based on queries received from my clients, i can conclude that approx 80% buyers don’t get complete property documents at the time of purchase. These buyers struggle at the time of sale of property. Another problem linked to property documents is that buyer or a seller is not aware why specific property document is required, whether it is required in original or not etc. To help readers of my blog, i have created a comprehensive checklist of property documents. I will keep updating this property documents list as and when required. Also i would like to add that some states in India require additional property documents which vary from case to case basis.1. Sale Deed/Title deed /Mother deed/Conveyance DeedDescription of Property Document: A sale deed acts as the main legal property document for evidencing sale and transfer of ownership of property in favor of the buyer, from the seller. Further, it also acts as the main property document for further sale by the buyer as it establishes his proof of ownership on the property.Normally sale deed is executed after execution of sale agreement. Sale deed confirm that terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller are complied. It is mandatory to register the Sale Deed in Sub Registrar office in whose jurisdiction property is located. It is mandatory to register sale deed within 4 months from the date of execution else you need to pay penalty or it stands invalid.Why it is required: To establish the ownership of seller on title of propertyMandatory: Yes. All previous Sale Deeds are required in originalRequired in Original: YesRequired For: Property Purchase + Home Loan2. RTC ExtractsDescription of Property Document: R.T.C is issued by the Village Accountant. It contains details of the extent of land in a survey number or a sub-survey number, the extent of kharab land therein, the names of the present and previous owners, their respective holdings and names of the tenants. It also include details like the kind of soil/crop, any mortgages, charges made on the properties contained therein, the status of land (whether Inam land or not), the conversion order number, date in case any property converted therein from agricultural to non-agricultural use, the references to mutation and inheritance certificates where there is any change in ownership etc.Why it is required: To establish the Title of Land, if the property is located on converted land e.g. converted from agricultural to non-agricultural useMandatory: NoRequired in Original: NoRequired For: Property Purchase3. Katha Certificate and ExtractsDescription of Property Document: Khata means an account and Khata is an account of a person who has property in the city. There are two types of Khata: Khata Certificate and Khata Extract. In different states it is known by different names. It is basically an entry in record of local municipal committee and indirectly confirms that apartment is constructed as per approved plan.Khata certificate is required for two reasons: For registration of a new property and for transfer of any property. Khata can be obtained from the Assistant Revenue officer (of the respective area). This certificate is must have for any property owner.Khata Certificate is obtained for any new registration after paying the tax. Khata certificate is issued stating that a particular property No ‘N” is in the name of person X. This certificate is required to apply for water connection, electricity connection, trade license and building license. The Khata certificate is given only to the owner of the property or to his family members. No one else can take it on his behalf.Khata Extract is seeking details from the assessment register. The extract is required to get trade license, or to buy a particular property. It is an extract from the assessment register about any particular property. It has the details of the property in a particular format with the name, size of the property, use of the property (commercial purpose, residential), annual value, when assessed last. An extract is the only way to get these details of any property.Why it is required: For transfer of propertyMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan4. Mutation Register ExtractsDescription of Property Document: Mutation Extract issued by the Village Accountant or Tahsildar contains the extract from the mutation register or inheritance certificate with details of previous owner, the present owner, the mode of acquisition of the property, the total extent of the property and the order stating that the Khatha of the property may be transferred to the name of the present owner.Why it is required: To establish the Title of Land if the property is located on converted land e.g. converted from agricultural to non-agricultural useMandatory: NoRequired in Original: NoRequired For: Property Purchase5. Joint Development AgreementDescription of Property Document: An individual landowner and a builder may enter into a JDA. The key feature of a JDA is that the landowner will contribute land and the builder will undertake development activity on it. Depending upon the land price, the joint development ratio is decided among the parties. In most of the cases, the builder will agree to allot X no of flats to the landowner and there is no exchange of money between landowner & builder. In consideration of this, the landowner will part with his share of land in favor of the builder or his nominee. He also allow the builder to construct apartment on his land and sell the agreed number of flats.Why it is required: To establish whether original title of property rests with the Builder or with LandownerMandatory: YesRequired in Original: NoRequired For: Property Purchase6. General Power of AttorneyDescription of Property Document: A “power of attorney” is a legal instrument whereby one person gives another person the authority to act on his or her behalf as his legal representative and to make lawful binding legal and financial decisions on his behalf including Sale or Purchase of Property on Buyer or Seller’s behalf.Why it is required: To establish whether the previous Sale or Purchase was carried out by authorized person on Seller or Buyers behalfMandatory: Yes (If any of previous Sale/Purchase were executed through GPA)Required in Original: YesRequired For: Property Purchase + Home Loan7. Building plan sanctioned by the Statutory AuthorityDescription of Property Document: The building plan approval process relates to the issue of permission for the construction of buildings based on specific set of rules and regulations.Why it is required: To establish whether the property is authorized or unauthorizedMandatory: YesRequired in Original: NoRequired For: Property Purchase8. NOC from Electricity Deptt/Pollution Control Board/Water Works/ Air Port AuthorityDescription of Property Document: Before starting the construction, builder requires NOC from all key Govt Departments. In some states NOC from at least 19 departments are required ranging from Pollution Control Board to Fire & Safety etc. For example If builder does not get NOC from Electricity Deptt then in all probability, buyer will not get electricity connection thus 100% dependency on generators. It will increase maintenance bill drastically.Why it is required: To ensure Govt approvals are in placeMandatory: YesRequired in Original: NoRequired For: Property Purchase9. Supplementary agreement / Ratification Deed (if any)Description of Property Document: Supplementary agreement captures any extension, change or modification in certain clauses of Principal Agreement. Many a times changes are required in principal agreement and only way to execute the same is through Supplementary agreement. Just check whether any supplementary agreement is executed against Principal agreement.Why it is required: To avoid any future shock on modified clauses which you might not be aware of & is not included in property documents.Mandatory: YesRequired in Original: NoRequired For: Property Purchase10. Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.Description of Property Document: While availing Bank Loan to buy a property, Builder/Housing Society issues an Allotment Letter to the buyer which contain details like description of the said property being sold/bought by the two parties. It also mentions the amount of money which buyer has paid to the builder/housing society so that remaining amount can be financed by the bank.On the basis of this Allotment Letter, banks finance the balance amount.As such the Allotment Letter also gives all the pertinent details of the Property being bought/sold and also detailed specifications of the Project.Agreement of Sale is documented on a Stamp Paper whereas Allotment Letter is issued on Letter Head of concerned authority.Allotment letter is only issued to 1st owner by builder and subsequent owners can demand copy of original allotment letter from previous ownerWhy it is required: For Description of Property & Project specification by Builder or Housing SocietyMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan11. Sale Agreement between Builder and 1st OwnerDescription of Property Document: It is very imp property document. The Sale Agreement must contain the liability of the Promoter/Builder to construct the building according to the plans and specifications approved by the local authority. It should also contain tentative possession date, price to be paid by the purchaser and the intervals at which the installments towards the full payment are to be made specifying the stage of construction. It also contain details like the precise nature of the body to be constituted of the persons who would take the flats i.e. association, details regarding the common areas and facilities. It specify the percentage of undivided interest in the common areas and facilities pertaining to the apartment agreed to be sold & a statement of the use for which the apartment is intended.Why it is required: As mentioned in DescriptionMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan12. Construction Agreement between Builder & 1st OwnerDescription of Property Document: The construction agreement is another imp property document. It is essentially a works contract. In other words, it’s an agreement in writing for the execution of the work relating to the construction of the apartment and it also involves the transfer or sale of the goods involved in the execution of the contract. The nature of this contract is such that a person undertakes to execute work by incorporating various items, things and goods in such work. When completed, these items along with the executed work are owned by the person for whom the work has been executed.Why it is required: As mentioned in DescriptionMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan13. Copy of possession letter from the builderDescription of Property Document: It ensures that possession of the said building is being delivered to the purchaser on the effective date specified in the letter.Why it is required: As mentioned in DescriptionMandatory: Yes (In case of 1st Purchase i.e. from Builder)Required in Original: YesRequired For: Property Purchase + Home Loan14. Payment receipts paid towards the builderDescription of Property Document: Don’t forget to collect original Payment receipts from builder. In case of resale, you can collect payment receipts issued by builder to 1st owner.Why it is required: As mentioned in DescriptionMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan (In case of 1st Purchase i.e. from Builder)15. If any loan on the property (Current or past) / Original Property Documents with BankDescription of Property Document:a. List of original property documents with sellers Home Loan provider.b. Closure letter with penalty (if any).c. If the loan is closed then copy of closure letter / NOC issued by the concerned bank.Why it is required: To ascertain that property is not mortgagedMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan16. Sale agreement with the SellerDescription of Property Document: Sale agreement is executed between the parties for dealing with the property. Sale Agreement creates a right to obtain a sale deed mentioning the property. Normally it fixes a time for completion, payment of earnest money or part payment of purchase consideration. Generally it’s a property document that precedes a sale deed and in such cases does not require registration. Sale Agreement will not confer any charge or right on the property. However in some states the sale agreement is registered and will act as a sale deed. For Home Loan purpose, it is mandatory to pay stamp duty equal to 0.10% of Sale Agreement value.Why it is required: To fix terms and conditions for saleMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan17. Latest Tax Paid Receipt till Date of Registration (Property Tax/Municipal Tax etc)Description of Property Document: It shows property details i.e. area, owners name & other imp details related to property. For income tax purposes in India, property is considered as a source of income and hence, tax is levied on that. Property usually mean real estate including any building, flat, shop etc. as well as the land appurtenant to the building. Under the Income Tax Act, incomes from the properties are regarded as one of the heads of income. The amount of tax is calculated on the value of the property being taxed. Local municipality authority that levies property tax for the maintenance of basic civic services in the city. Unlike UK where the occupier is liable to pay the property tax, it is the liability of the property owner to pay the property tax India to the concerned municipalities.Why it is required: As mentioned in descriptionMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan18. EC up to date for latest 13 years or from the date of registration till dateDescription of Property Document: One of the most crucial property document. You can get Encumbrance Certificate from the sub registrar’s office. This office is directly under control of the Inspector of Registration of Properties, operated by the state government. The certificate shows that in a given period of time from when the property was bought/sold has there been any transaction or mortgaging. Buyers/sellers ask for this certificate when a new transfer (sale) is taking place, so that the buyer knows detail of all property transactions till date.Depending on type of transaction, the certificate is issued in two different forms. Form 15, will have details of transactions during the period of registration in the name of the owner. A person will get a ‘nil encumbrance certificate when no transaction has taken place. this certificate would appear on Form 16.The encumbrance certificate confirm that the property is still in the name of the person who is selling it.Why it is required: To establish ownership of seller on the title of the propertyMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan19. Demand Letter from the vendor before disbursementDescription of Property Document: Demand letter is issued by builder to 1st owner, demanding payment due as per schedule agreed between builder & 1st owner.Why it is required: As mentioned in descriptionMandatory: Yes (For 1st Purchase)Required in Original: YesRequired For: Property Purchase + Home Loan20. Own contribution receipt along with the bank statementDescription of Property Document: It is required by the institution i.e. bank or HFC which is providing loan for the property to ascertain that buyer has pooled & paid his own contribution to the seller.Why it is required: For availing Home Loan it is mandatory for purchaser to contribute 20% of Purchase Value from his own sources and bank only approve loan upto 80 % of the purchase valueMandatory: YesRequired in Original: NoRequired For: Home Loan21. NOC from the Society/Building association.Description of Property Document: An upto-date no objection certificate from the apartment’s owners association. It should clearly mention that Association does not have any objection on ownership transferWhy it is required: To avoid any future objection by apartment associationMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan22. No-due certificate from the building association.An upto-date no dues certificate from the apartments owners association is required.Further a certificate from the Association that no charge of any Bank or financial institution is recorded with them with respect to the apartment.Yet another certificate from the Apartment Owners Association that they are custodians of all the Original documents and approvals of the entire property is a MUST.Why it is required: To ensure owner has cleared all the dues & association is custodian of all original documentsMandatory: YesRequired in Original: YesRequired For: Property Purchase + Home Loan23. Approved plan of construction/extension & license for construction.Description of Property Document: Before starting the construction, Builder obtain approval from local development authority for construction.Why it is required: To ensure building has approval in place for constructionMandatory: Yes (For 1st purchase from builder)Required in Original: NoRequired For: Property Purchase + Home Loan24. Detailed cost estimate/valuation report from Chartered Engineer/Architect (if applicable)Description of Property Document: Before approving loan, Bank carry out property valuation e.g. if you have applied for loan of 80% for property worth 60 Lacs & valuation report of bank estimate property value as 50 Lac then bank will only fund 80% of 50 Lac.Why it is required: To fix loan eligibility based on property valuationMandatory: No (Normally its bank’s internal document)Required in Original: NoRequired For: Home Loan25. Conversion order/Betterment Charges paid receipt.Description of Property Document: Generally the land pockets available are agricultural in nature, as the major occupation is agriculture and the Government has taken various measures to secure & preserve it. The general use of all such lands is agriculture and if it has to be used for any other purpose other then agriculture, the property owner must obtain legal permission from the competent authority by following defined procedures.Conversion is a legal process by which the property owner changes the use of the land from agriculture to non agriculture purpose. It is also called CHANGE OF LAND USE / DC Certificate. The legal sanction/ conversion/ order/grant/permission is necessary to use the land for any other purposeWhy it is required: For converted landsMandatory: YesRequired in Original: NoRequired For: Property Purchase + Home Loan26. Sanctioned Layout Approval planDescription of Property Document: The layout plan should be approved by the local development authority. In the absence of this you could face Khata transfer and plan sanction problems. The development authority has a right to demolish the apartment and restore the land to status quo ante if layout approval plan is not in place. The title of the site itself can be fairly safe (if property documents are clear) but the development/construction activity can be unauthorized.Why it is required: As mentioned in DescriptionMandatory: YesRequired in Original: NoRequired For: Property Purchase + Home Loan27. Auction Sale confirmation letter from Local Development AuthorityDescription of Property Document: If any site/land is purchased by builder or by independent house owner by ways of Auction by Local development authority then this letter is definitely requiredWhy it is required: As mentioned in DescriptionMandatory: Yes (As applicable)Required in Original: NoRequired For: Property Purchase + Home Loan28. Release deed (If applicable)Description of Property Document: Release Deed is executed to Release rights whereby a person renounces a claim upon other person or property. If you are purchasing a property, which might have been inherited by seller or was part of settlement between legal heirs of original owner then definitely you will come across release deed. It is very imp property document.Why it is required: As mentioned in DescriptionMandatory: Yes (As applicable)Required in Original: YesRequired For: Property Purchase29. Completion CertificateDescription of Property Document: This certificate is issued by Municipal Authorities showing whether the building complies with the rules related to permissible building height, distance from road etc. whether it is built according to approved plan and is ready for habitation.Why it is required: To ensure building is constructed as per approved planMandatory: YesRequired in Original: NoRequired For: Property Purchase + Home Loan (Mandatory for 1st Purchase)30. Occupancy CertificateDescription of Property Document: The occupancy certificate is issued after construction is completed. Once the builder applies for the certificate, an inspection is done again to confirm if the construction is completed as per sanctioned plan. This certificate is mandatory for any builder before he allows people to take possession of the property.Why it is required: To ensure flat is ready for occupancy and construction is completed as per sanctioned planMandatory: YesRequired in Original: NoRequired For: Property Purchase + Home Loan (Mandatory for 1st Purchase)31. Loan/Charge/Mortgage by the Builder:Description of Property Document: If the Builder or the Land Owner has created a charge in favour of any Bank or Financial Institution, a NO OBJECTION LETTER from the institution is required. NO OBJECTION letter should clearly mention the property details, the name of the borrower, the borrower’s account number, the apartment, floor, area, car park etc. and shall be addressed to the Purchaser. The original letter should be in the safe custody of the Purchaser. If in “No Objection letter” if it is mentioned that all the payments by the Purchaser shall be through the financial institution, the same should be complied.If the Builder states that they have not availed any loan or have not created any charge on the property, the same shall be stated in definite words in the agreement/s to be entered into with the Developer. There should be clause that “all original documents, deeds and approvals are held by the Developer in their safe custody and that the Developer shall continue to hold the same in their safe custody in trust for all the purchasers of apartments, and shall never part with the Originals and that as soon as the Association of Apartment Owners is formed. All the Original documents, Deeds and approvals will be handed over to the Association.” This shall be over and above a declaration in the agreement/s by the Land owner and the Developer that the property is free from all encumbrances.Why it is required: To ascertain property is not mortgaged by the BuilderMandatory: YesRequired in Original: NoRequired For: Property Purchase32. DEED OF DECLARATIONDescription of Property Document: A copy of the Deed of Declaration of the Apartment Owners Association and the Bye Laws annexed to the same can obtained from association office. It should confirms to the sale deed/title deed. It is also advisable to check any additional burden/costs in the form of transfer fee payable by the Transferee.Why it is required: To establish transfer of ownership to original buyer by builderMandatory: NoRequired in Original: NoRequired For: Property Purchase33. Latest Electricity BillDescription of Property Document: Always insist on Latest Electricity Bill and Payment receipt from previous owner as Electricity bill is the another solid proof to establish the ownership of current owner.Why it is required: To establish ownershipMandatory: NoRequired in Original: YesRequired For: Property Purchase

With 99.3% of banned notes back as stated by central bank RBI, can we conclude that demonetisation was for nothing?No, we can't. This is going to be a long one, so, I humbly request you to kindly bare with me.(6–7 minute read. Implore you to read till the end.)Modi, on his 7th Nov speech vaguely referred to 3 target areas which he sought to remedy with Demonetization, which were-Black Money, primarily.Terror financing.Fake note menace.Black MoneyThe most common complaint against Demonetization has been the return of cash into the system. This has led some people to interpret Demonetization as some sort of a purging exercise and that the resultant money is squeaky clean.Nothing could be further from the truth.A bit about how Income Tax works and how long does collection of taxes take-These are some of the modes of collection of income tax-The most unpopular and widely hated way is through the TDS.Applicable to Self Employed Businesses and Professionals- Self Assessment Tax, Advance Tax.Other Routes- Tax Collected at Source.As you might have gathered, not all people pay taxes properly, as and when they are required to. Therefore, the Income Tax department cross checks the details submitted in the returns with other information that it gets it's hands on via various routes, inter alia, including submissions from the taxpayer himself. This procedure of ascertaining the correct tax liability is called an assessment.Assesments can be broadly divided into two parts- Summary Assessment & Scrutiny Assessment.Summary Assessment- sort of like a Preliminary Examination. Mundane Mistakes are weeded out at this stage like arthmetic errors, TDS mismatches and so on. The officials/software could either send a Notice(to request more details) or an order to complete the 'Summary'.Scrutiny Assessment- This is serious business. The officer goes through every number, every explanation, every justification in great detail. He may call for more information, summon such other people as he may think fit. At the end of this procedure, he issues an order recomputing the Income and imposing such Tax, Interest & penalty, if any.Typically, it takes close to 2 years for the abovementioned procedure to meet it's rightful conclusion, which is also the legally allowed time limit for completion(21 months to be precise).Translated into English, returns filed in the aftermath of Demonetization, the assessments would only be completed by 31.12.2018.The fun part- the taxpayer, if aggrieved by the order, may prefer an appeal with the higher authorities which could last anywhere between 1 year-5 years, depending upon whose doors the taxpayer chooses to knock.Therefore, all the post Demonetization proceedings, additions, demand orders, assessments have not even completed 50% of their tax lifecycles. Those are still cruising through stage 2 i.e. the Scrutiny Assessment.Bonus fact- the order copies of the proceedings upto the Assessment (Summary+Scrutiny) & 1st appellate authority-Commissioner of IT(Appeals)- cannot be made public. Order copies of only the second level appellate authority-ITAT- & above can be made public.{Therefore, the ones that are claiming that it was a failure would not even have the data required to arrive at such a conclusion}.Information is king in the world of any law enforcement authority. A return is just one of the many ways the tax department gets its information from. Other prominent places include, inter alia, the authority responsible for registration of sale & purchase of property, Banks & other Financial Institutions, Jewelry merchants, other law enforcement agencies, Businesses & so on. These persons are required to file an additional statement called the Annual Information Return(AIR).However, in order to bolster the existing framework of the AIR, and, enable the department to get information relating to the deposits during Demonetization, in a time bound manner, new provisions were added. Instance, this-Cash deposits during the period 9th November, 2016 to 30th December, 2016 aggregating to—(i) Rs. 12,50,000 or more, in one or more current account of a person; or(ii) Rs. 2,50,000 or more, in one or more accounts (other than a current account) of a person.(iii) Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable.Persons who are required to report:(i) A banking company or a cooperative bank(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898By virtue of these provisions, among others, IT department was able to get it's hands on comparative information, which is capable of being used to fix culpability since the pre Demonetization data could be used to set a benchmark to compare the post demonetization activity with.Armed with a truckload of rich information, the Government has :Identified about 18 L suspect cases where transactions could raise a stinkbeen able to bring close to ₹ 30,000 Crores under tax net by way of disclosures & seizures[1]identified 13.33 L accounts belonging to ~9 L persons, netting ₹ 2.9 L Cr, where notices have been shot off and response has been sought(Yes, scrutiny assessment)[2]unearthed over 14000 properties valuing over ₹ 1 Cr, the owners of which had not even filed Returns of Income. [3]revved up the number of search proceedings(a Raid, sort of) from 447 to 1152 in a pre & post Demonetization context.[4]ramped up the number of surveys by 300% to 12500+(sort of like a Pre-Assessment proceeding that usually leads to reopening of Prior Assessments and admission of concealed Income) [5]managed to achieve remarkable uptick in the Tax Compliance, not just in the number of people filing returns but also the Number of People paying Advance Tax, TDS & Self Assessment Taxes.managed to clock above 15–20% YoY growth rates in collection of Income Taxes. This is no mean feat.[6]managed to steadily increase the buoyancy of tax collections{Growth in Tax Collections/Growth in GDP} to ~1.7(+). Meaning, every % point growth in the GDP will realize a 1.7% growth in the net tax collections.[7] Read more about that here.TAKEAWAY-Since most accounts are still in 2nd stage and not yet complete, the process is a long time coming from being able to be judged.The orders will start going out from mid September & early October extending all the way upto December. This will get reflected in the Tax Collection data of 2018–19 & 2019–2020.So, everyone claiming that all the money in the banks is now white is either shooting from the hips or woefully ignorant about how assessments work in the context of Income Tax Act.Rest Assured, the Income Tax department isn’t stupid, and, the money that made it’s way into the Bank is not white!Second Charge against the exercise was that intermediaries were employed to get in line by the wealthy hoarders of Black Money.While there is no denying that such a method was used, but, to think that such a crude method was employed to launder close to 16L crores is plain facetious. Not to take away the fact that such crude methods are always fraught with logistical nightmares & could lead to potentially loss of all that money should the conduit turn their backs on the kingpin.An important aspect of being rich is always being somewhat less stupid. And the above method done on large scale is just plain stupid.This method could have been employed by the uneducated Slumlords & other hoodlums who have the kind of loyal manpower at their disposal, but the quantum of their collective Black Money might, at best, run into a few thousand crores.NB: These transactions are subject matter of Benami Transactions Act. If caught, such benamidar will be required to pay around north of 70% in Taxes.Also, S 115BBE was introduced to plug this hole, the gist of which is as follows-Any credit in your account or Books, the source of which you can't explain, shall be taxed at 60% and will attract a 25% flat surcharge, and education cess to the boot.In other words, if I was to deposit ₹ 100 in somebody's Bank A/c and the software picks it up (which it does a lot of time, for outliers), the Assessing Officer will shoot a notice to that person to come see him in order to explain the source of that cash. Should the account holder be unable to explain the source, the AO will pass the order demanding tax of ₹ 77.25 to be paid within 30 days.It is pertinent to note that, whether the money is still lying in the bank or not is irrelevant.And, I've not even started about the penal provisions. In addition to the above demand, there will be levied a penalty and interest.The worst criminals buckle under the IT pressure because they don't care much about putting you in the Jail, which a lot of hardened criminals seem to have gotten accustomed to, but they take away your money by employing whatever means necessary, and available under the law, so I don't imagine the poor conduit not blurting out the name of the real beneficial owner of that money.However, a few very efficient laundering schemes that have been extensively used in the past and how have they been bucked in the recent pastUsing Slumfolk to launder unaccounted cash: Companies followed this smart idea of using less fortunate people with no tax history to launder money.The M.O- The errant companies usually gathered a bunch of people, typically slum-dwellers and got their basic KYC done. Then, probably with the help of an employee of the Bank, Companies opened large number of Bank Accounts.Thereafter, the companies deposited ~ ₹ 2.5 L in the bank accounts, and, using the same money applied for the shares in their own company.At this point, the Company is sitting atop (₹ 2.5L * No of Inidividuals) of laundered cash. The process however is not yet complete.The companies then makes fake calls for further deposits from the applicants for shares, who do not pay up leading the company to forfeit the application money under the pretext of non payment of calls.Following the above steps, the companies laundered money bucking the legal framework.Bonus: The forfeited money was not taxable under Income Tax(The difference between capital expenditures and revenue expenditures).The Income Tax officers could only stand watch since persons making deposits earned less than 2.5L. The Company could not be compelled to give details of the persons making the deposit( This was due to a court ruling).Post Demonetization:Cash credits.68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year :Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless—(a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and(b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactoryThat scam has now been laid to rest!Method 2: Shell Companies & Value InflationAnother very rampantly used method. Letterbox companies would be floated, typically in Mumbai, Delhi & Kolkata(most prominent). Shares would be bought for a very nominal sum.Then, the books would be fudged with bogus transactions thereby strengthening the financial position on paper. Cash would be laundered and deposited into the Bank Accounts. Parallelly, the owners & their representatives would also indulge in fictitious Buy/Sell transactions in shares of company, thereby, perking the value of the share up with every transaction. This way, one step at a time, a lot of cash would be laundered gradually over a period of 3–5 years typically. Then, using the long term capital gains exemption, which was available hitherto, pocket all of the laundered money without paying a penny in Income Taxes. (The long term capital gains exemption is also done away with w.e.f 01/04/2018.)Post Demonetization:With the introduction of GST, cooking books has become much more difficult than it already was due to the stringent invoice rules under which issuing invoice with value upwards of ₹ 50K/transaction has been made mandatory. Coupled with the mandatory requirement of filing invoice wise details of sales & purchases has dealt a body blow to easy fudging of books. This part has hit a lot of unruly traders in India and had to face stiff resistance before its promulgation.Also, a Special Task Force under the joint chairmanship of the Secretaries of the Ministry of Corporate Affairs & the Ministry of Finance was constituted in order to tackle the shell company problem. And, the Government and it’s agencies have:Struck off 2.25 L companies off the register of companies.[8] [9]Disqualified over 3 L directors for not failing to comply with the requirements of the Companies Act, 2013[10]Invoked the Serious Fraud Investigation Office to look into the matters of the companies[11]made it mandatory to disclose the amount of cash deposited during Demonetization on their Balance Sheet & Profit & Loss Accounts[12]Put out a list of companies you should be wary of dealing with[13] check for companies in your area using the link.Put out a list of Directors who are disqualified from holding Directorships[14]- You can check the names of the Directors from your area using the given link.Outlawed having more than 2 layers in their Corporate Structure for the purpose of Investment in order to curb obscure corporate structures.[15]Constituted a super regulatory-NFRA- authority to keep the CA, CS, CWA in check.via the Enforcement Directorate, conducted raids across the country at over 110 locations spanning all major metro cities. Benami Transactions will be invoked on whoever is found guilty.[16]Method 3: Treaty ShoppingAnother time tested way was to route the money out of India by Hawala networks, and then bring the money back into India via shell companies registered in Tax Havens such as Mauritius, Cyprus and some times, Singapore. The exemption from payment of any tax in India was the chief allure of the famed Mauritius route. However, the Mauritius route was sealed in May of 2016. Other routes also followed suit behind it.Sealing of these tax-free routes has probably had an effect on the levels of deposits in the Swiss Banks.[17] [18]2. Terror FinancingI’m no expert on issues concerning national security, so I would refrain from making long commentaries on the efficacy of the exercise.However, I would like to quote a few news pieces in order to drive home a point that demonetization indeed had a good effect on Terror Financing as well.A record number of over 276 maoists had surrendered post Demonetization. This was unprecedented.[19] [20] (Don’t go by the headlines for link no. 20. That’s the Indian Media for you)The Insurgency in NE India & Maoists were set back by ₹ 800 Crores due to Demonetization [21]Kashmiri Militants- were in a real scramble. They had to resort to robbing ATMs, Banks and also stealing guns because, there’s no Azaadi without the money [22]90% decrease in stone pelting incidents: DGP, J & K.[23]NIA got it’s hands on incriminating material leading to several raids across Delhi-NCR and the epicenter of Terror itself-Srinagar, J & K. Led to the busting of Hawala networks which contributed to the above decrease and led to arrests of several people connected with the Money trail.[24]Normally, this is the Hurriyat time of the year, when it issues a calendar for protest dates, and detailed SOPs. Coincidentally, this is also the time of the year when Kashmir gets a lot of tourist footfall. Therefore, Hurriyat’s M.O is to choke the population of the cashflow and income, in order to get them to revolt and do nasty things destroying their collective futures. However, we have not heard a lot of untoward incidents this & the previous years as compared to the 2016 year.3. Counterfeit Currency, High Value NotesCounterfeit notes have shown a marked decline from being pegged at 7.62 L pieces in pre-Demo days to 5.21 L pieces in the post demo phase. That’s a neat ~32% gain.[25]#Introduction of a Higher Value currencyThis is another pet peeve of the critics of the demonetization. This is a legitimate concern since it makes hoarding black money twice as easy as it was with ₹ 1000 notes.However, the post Demonetization phase is seeing a steady decline in the High Denomination Notes as a % of Total Notes in circulation.The pre demonetization High Denomination Notes to Total Notes stood at 86.4%, while, the post Demonetization one stands firm at 80.4%.[26]#The Infamous ₹ 2000 noteThe supply of ₹ 500 is being beefed up by the month. ₹ 500 now stands at double the demonetization levels at 42+ %.[27] [28]4. But Black Money doesn’t exist in the physical form. It exists in the form of Real Estate, Jewelry etc.This claim is a valid one. However, artificial inflation can be kept up only if the cash is in steady supply. But, post demonetization, the system was in a state of supply shock due to which the realty developers undersold their assets leading to the fall in prices of various assets. Perhaps, Real Estate was the hardest hit sectors.This is the reason why property prices fell after demonetization.[29]Acclaimed property consultants and researchers claimed that price of properties could fall by as much as 30% due to Demonetization.[30]Demonetization also hit the secondary market pretty bad leading to cheaper properties thereby making lives easier for the homebuyers.[31]Thereafter, the government passed the Real Estate (Regulation & Development) Act, which has made further strides in formalizing the sector & protecting the Buyer. Under RERA, the builder is required to deposit 70% of the booking money in an escrow account and issue a receipt to the Buyer. This gives an idea of the Revenues of the Builder by simple extrapolation.A few more hits Demonetization managed:Demonetization led to formalization of savingsIn and of itself, this is not the mindblowing news you want to hear, however, put in perspective, this is a great inflection point in the economic future of India.The Equity funds saw a steady flow of ₹ 2.86 L crores as against ₹ 1.35 L crores seen in the previous year.[32] The above was also achieved because of the slash in the Interest Rates on fixed deposits & Savings Bank account.The gross Asset under Management reached ₹ 21.41 L crores, an all time high, and the equity AUM reached upwards of ₹ 6.5 L Crores.The money in these funds, is then invested in the Public Offerings floated by companies in order to finance their new project requirements. This money is the fuel that propels the economic growth.Demonetization & Interest RatesAwash with funds, the Banks lowered lending rates on fresh loans, thereby making the cost of doing Business cheaper.The RBI had, during 2014–16, reduced 1.75% in repo rates, however, that had translated in only 0.5 % reduction in lending rates.Post demonetization, a mere reduction of 0.25% in repo rates, has resulted in the same effect of reduction of 0.5% in lending rates.[33]If you have stayed on till here, can only mean either of the two things- You’re one big fan of it, or, a vehement critic. I hope, I have been able to do justice to the sensibilities of both types of people, since I’ve based the entire answer on facts, and not opinions.They say, it ain’t over till the fat lady sings, and, I can vouch that she hasn’t sung, yet.In my humble opinion, it would be extremely wrong to proclaim it was all for nothing. The facts are there for you to see. I hope you had a good time reading.Footnotes[1] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[2] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[3] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[4] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[5] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[6] What demonetisation did to tax collections[7] What demonetisation did to tax collections[8] Ministry of Corporate Affairs (MOCA) identifies more than one lakh directors of shell companies for disqualification[9] Govt cancelled 2.24 lakh suspected shell companies post demonetisation, disqualified 3.09 lakh directors - Firstpost[10] Govt cancelled 2.24 lakh suspected shell companies post demonetisation, disqualified 3.09 lakh directors - Firstpost[11] http://www.mca.gov.in/Ministry/pdf/Commencementnotification_25082017.pdf[12] http://www.mca.gov.in/Ministry/pdf/AmendmentinScheduleIII_Notification31032017.pdf[13] Ministry Of Corporate Affairs[14] List of Disqualified Directors u/s 164 (2)(a)[15] http://www.mca.gov.in/Ministry/pdf/CompaniesRestrictionOnNumberofLayersRule_22092017.pdf[16] How Modi’s crackdown on shell companies has waged war on black money post demonetisation[17] Deposits by Indians in Swiss bank accounts down 80% during NDA tenure: Govt[18] Money held by Indians in Swiss banks fell by 34.5% in 2017[19] Maoists worst hit by Demonetisation - The Sunday Guardian Live[20] Maoist papers show how note ban didn’t hurt them[21] Demonetization has hit terror funding[22] Jammu and Kashmir bank robberies reflect just how hard militants were hit by demonetisation - Firstpost[23] 90% dip in stone-pelting incidents in Kashmir in 2017: J&K DGP - Times of India[24] Hurriyat, hawala raids are a body blow to terror funding network in Kashmir[25] Cut the politics, D-Street says cash ban was worth it & why![26] Cut the politics, D-Street says cash ban was worth it & why![27] Reserve Bank of India[28] Cut the politics, D-Street says cash ban was worth it & why![29] http://Property prices fell after note ban, likely to go down further, says economic survey (https://www.hindustantimes.com/real-estate/property-prices-fell-after-note-ban-likely-to-go-down-further-says-economic-survey/story-wW8qCrwfnRlaYfV5JER2CL.html)[30] Impact of Demonetisation[31] http://Demonetisation hits secondary market: Will property become cheaper now? (https://m.economictimes.com/markets/stocks/news/demonetisation-hits-secondary-market-will-property-become-cheaper-now/amp_articleshow/55537864.cms)[32] http://Inflows in equity mutual funds surge to Rs 2.86 lakh crore after note ban (https://m.economictimes.com/mf/mf-news/inflows-in-equity-mutual-funds-surge-to-rs-2-86-lakh-crore-after-note-ban/amp_articleshow/61638985.cms)[33] The impact of demonetisation on interest rates

Here is a list of important property documents required to buy an apartment or an independent house.1. Sale Deed:A Sale Deed is the core legal document that acts as proof of sale and transfer of ownership of the property from the seller to the buyer. A Sale Deed has to be mandatorily registered. It is important that before the Sale Deed is executed one should execute the sale agreement and should check for compliance of various terms and conditions as agreed upon between the buyer and the seller. Before executing the Sale Deed, the buyer should check whether the property has a clear title. He/she should also confirm if the property is subject to any encumbrance charges.* A seller should settle all the statutory payments such as property tax, cess, water charges, society charges, electricity charges, maintenance charges etc., (subject to the agreement) before executing the Sale Deed.2. Mother Deed:Mother Deed, also known as the parent document, is an important legal document that traces the origin/antecedent ownership of the property from the start (if the property has had various owners). It is a document that helps in the further sale of the property, thereby establishing the new ownership. In case of absence of the original Mother Deed, certified copies should be obtained from the registering authorities. Mother Deed includes the change in ownership of the property, be it through sale, partition, gift or inheritance. It is very important that the Mother Deed records the references to previous ownership in a sequence and should be continuous and unbroken. In case of a missing sequence, one should refer to the records from the registering offices, revenue records or the recitals (preamble) in other documents. The sequence should be updated until the current owner.3. Building approval plan:A building plan is sanctioned by the BDA (Bangalore Development Authority) or BBMP (Bruhat Bengaluru Mahanagara Palike) or BMRDA (Bangalore Metropolitan Region Development Authority) or BIAPPA (Bangalore International Airport Area Planning Authority) without which the construction of the building is illegal under the Karnataka Municipal Corporations (KMC) Act. A building owner has to get an approved plan from the jurisdictional Commissioner or an officer authorized by such Commissioner. However, the authorities sanction a building approval plan based on the zonal classification, road width, floor area ratio (FAR) and plot depth. A set of documents are required to be submitted by the owner in order to obtain a building approval plan. The documents include- Title Deed, property assessment extract, property PID number, city survey sketch (from the Department of Survey and Settlement and Land Records), up-to-date tax paid receipt, earlier sanctioned plans (if any), property drawings, 2 copies of demand drafts, foundation certificate (if any) and a land use certificate issued by the competent authority (viz., Dy. Commissioner). It is mandatory that the building owner hires a registered architect who will draw a plan meeting the applicable bye laws. One can get a building approval plan within 4-5 working days if all the requirements are met, via the newly invented BBMP software- Automated Building Approval Plan.4. Commencement Certificate (For under construction property):A Commencement Certificate is a legal document issued by the local authorities (BDA/BBMP & alike) after the inspection of the site. This document states that project meets the give criteria and helps in the commencement of a construction on a site by the builder. Failing to acquire a Commencement Certificate will result in the construction being considered illegal, levy penalties and can even attract an eviction notice.5. Conversion Certificate (Agricultural to Non-Agricultural land):With a vast amount of land being agricultural in nature in Karnataka, a Conversion Certificate is mandatory to be obtained from the legal body for the property. A Conversion Certificate is issued to change the use of the land from agricultural to non-agricultural purpose from the competent revenue authority. Further, the competent revenue authority requests the Department of Town and Country Planning to issue an NOC for the conversion of land for residential purpose. There are a certain set of documents to be submitted by the owner to acquire a Conversion Certificate. The documents required to obtain a Conversion Certificate are;3 copies of the R.T.C extracts, Village map, land sketch, certified copy of the land tribunal, zonal certificate, Title deed, no dues certificate by village accountant and Mutation Records (MR) copy.6. Khata Certificate and Khata Extract:Khata is derived from the word ‘account’. It is an account of a person owning a property. It typically consists of (a) Khata Certificate and (b) Khata Extract. A Khata Certificate is mandatorily required for the registration of a new property and the transfer of a property. Khata Extract is nothing but obtaining the property details from the assessment registrar. It is needed while property buying and acquiring trade license. The Khata is widely referred to as A Khata and B Khata (Revenue records extract). ‘A’ Khata has properties listed under BBMP jurisdiction with legal property construction and ‘B’ Khata has properties under local jurisdiction with violated property constructions. One should avoid buying a B Khata property as it will be deemed as an illegal construction. Nevertheless B Khata may be converted to A Khata under certain schemes by paying penalty to the Government.7. Encumbrance Certificate (EC):Encumbrance means charges in the ownership or liabilities created on a property that is held against a home loan as security. An EC consists of all the registered transactions done on the property during the period for which the EC is sought. Simply put, it is a certificate sought for a particular period evidencing the property purchase/sale, the presence of any transaction or mortgage. One should submit a copy of the Sale Deed to obtain an EC. A person applying for an EC should fill in the Form 22, affix a non-judicial stamp and submit it to the jurisdictional sub-registrar’s office. Complete residential address, property survey number, property location, the sought period, property description, its measurements and boundaries should be mentioned in the Form. A nominal fee amount will be charged on a yearly basis. The time taken to obtain an EC will be between 3-7 working days or more depending on the period sought.8. Betterment charges receipt:Betterment charges are also known as improvement fees/development charges that are to be paid to the BBMP before a Khata can be issued. Currently the developers are entitled to pay a fixed amount as betterment charges to the municipal body. A receipt of the same should be obtained at the time of property buying.9. Power of Attorney (POA):A POA is a legal procedure used to give authority to another person by the property owner on his/her behalf. One can either give a Special Power of Attorney (SPA) or a General Power of Attorney (GPA) to transfer one’s rights over one’s property.10. Latest tax paid receipt:Receipts for property tax bills ensure that taxes for the property are paid up-to-date to the government/municipality. For properties falling under the BBMP jurisdiction, it is mandatory for property taxes to be paid up to date so a buyer could get a Khata issued in his name. It is therefore important for the buyer to make enquiries with the government/municipal authorities to ensure that all the dues are cleared by the seller. The buyer should ask the seller for the latest original tax paid receipts and bills and check the details of the owner’s name, the tax payer’s name, and the date of payment on the receipt. If the owner does not have the tax receipt, the buyer can contact the municipal body along with the survey number of the property to confirm the ownership of the land. Nevertheless, the buyer should also ensure that other bills such as the water bill, electricity bill etc. are paid up-to-date.11. Completion Certificate (for a constructed property):A Completion Certificate is issued by the municipal authorities denoting that the building is in compliance with their rules in terms of height, distance from the road, and is constructed as per the approved plans etc. This document is important at the time of purchasing a property and seeking a home loan.12. Occupancy Certificate (for a constructed property):When the builder applies for this Certificate, an inspection is carried out by the authorities to ensure that the construction meets all the specified norms. This certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan, before the builder allows people to take possession of the property and, for the transfer of Khata. Basically, it certifies that the project is ready for occupancy.While it is important to seek all the above documents from the seller at the time of buying a property, it is also critical you deploy a competent property lawyer for vetting of the said documents. Specific advice should be sought about your specific circumstances.Courtesy: http://www.homeshikari.com/blog/12-important-documents-check-buying-property-2-795/