realestate2022

How is money refunded when a property deal is cancelled What are the financial and income tax consequences that follow, if a property deal is called off or cancelled? We examine Property deals need not always culminate in the execution and registration of an agreement. Sometimes, the deal may not go through and may be abandoned halfway, after the payment of token money or even after some of the payments have been made. The deal may be cancelled by either the seller or the buyer, for any reason. Treatment of token money under the income tax laws, if a property deal is cancelled In case of deals for the purchase of any real estate, the buyer generally pays some amount as token money, when the other terms and conditions for the transfer of the property are agreed upon. The amount of token money may vary, from being merely a token to a substantial percentage of the value of the property. If the seller backs off from his commitment to sell his property, there are no immediate financial impl...

Model Tenancy Act could boost rental housing, say experts The centre’s proposed ‘Model Tenancy Act’ is a promising initiative that could boost rental housing in the country, say experts The Union Housing and Urban Affairs Ministry has put the draft of ‘The Model Tenancy Act, 2019’ in public, for consultation. Reacting to the development, Swapan Dutta, director (east) of property consultant Knight Frank, said: “It is a step in the right direction… as rentals or housing lease is expected to become a major segment in real estate.” National Real Estate Development Council (NAREDCO) president Niranjan Hiranandani said rental housing can gain traction, with a conducive policy framework. “It also gives a lucrative proposition for real estate investment trusts (REITs) and foreign direct investment players with steady income, as well as appreciation in the property value,” he said. Dutta, however, cautioned against possible tinkering with the act by states, a view echoed by other experts. “Like...