Month: April 2024

A deed of exchange can be signed by property owners once they make up their minds to transfer rights to their properties to one another, in the process, becoming the owner of the other person’s property. A deed like this can be worked out between two parties for the purpose of exchanging immovable property, cash and other similar assets. According to the Transfer of Property Act 1882, a deed of exchange is different from a sale deed as the latter involves money changing hands for the transaction. In an exchange deed, only the method specified for the transfer of such property by sale may be used to transfer the property once the exchange is completed.

What is recorded in a deed of exchange?

# The date on which the exchange is made

# Specifications of the asset, including location and area of properties

# Names, addresses and contact details of the parties involved in the transaction

# A statement mentioning the property transaction as an exchange

# Signatures of the parties involved along with witnesses

# Registration fee or stamp duty applied on the transaction

Difference between exchange and sale deeds:

Since exchange transactions are different from sale transactions, the parties involved will have to prepare an exchange deed instead of a sale deed in order to exchange an immovable property. In case one of the involved parties chooses to pay in cash for the immovable property, the transaction will be deemed a sale instead of an exchange. Two properties can however be exchanged by the creation of two separate sale deeds.

Stamp duty implications:

In the case two separate sale deeds are created, the parties involved in the exchange must pay stamp duty for both the agreements. The payable stamp duty is usually determined by the property which has a higher market value. It is up to the exchanging parties to figure out the mode of sharing this levy.

Income-tax implications:

If the owner of an immovable property holds it for over two years, any gain or loss made on the exchange is deemed to be “long-term”. However, if the exchange is done inside two years of acquisition of the property, the profit or loss is regarded as “short-term”. In certain cases, just the differential amount is mentioned in the exchange deed. To arrive at the quantum of capital gains in such cases, the owner must find out the present market value according to stamp duty as well as dig deeper to uncover the cost of the property at the time of purchase. If the owner holds the property for over two years, he/she is entitled to indexation benefits and tax reliefs under sections 54, 54 EC and 54 F.

Principles of property exchange:

For an exchange deed, a minimum of two parties and two properties are required, with each party owning a property. The exchange of properties has to be reciprocal, which means Party A must transfer his/her property to Party B, and Party B must likewise transfer his/her property to Party A. It is possible to substitute movable or immovable property for one another. Each of the parties will receive the property through this transaction without any prior interest and will enjoy the privileges and is “subordinate to the seller’s liability concerning what he gives and the buyer’s rights and liabilities with respect to what he takes”. The exchange will be valid only after the properties are physically delivered to the respective parties.

Vastu Shastra is an ancient science that helps us iron out the creases in our lives and keeps evil forces and negative energy at bay. Since proper vastu can create a safe and protective environment for us, it is imperative that all the living spaces in the house are planned with vastu elements in mind. The puja room, which is the holy recess in our house, is no exception. When planned and laid out in accordance with vastu guidelines, the puja room can bring us boundless joy, peace and wealth.

For maximum positive energy to be channelized into your puja room, follow these tips:

# The puja room should be situated on the north, east or north-east direction of the house

# If the ceiling of the puja room can be designed as a pyramid-like structure, more positive energy can be concentrated in the room

# In a multi-storied house, the puja room should be on the ground level, but not in the basement or underneath the stairway

# It’s not a good idea to have your puja space inside your bedroom or having a wall of the puja room adjacent to the bedroom or toilet

# Go for lighter colours like white, light blue or pale yellow and avoid darker or brighter shades. It brings on a feeling of peace

# Ideally, the door to the puja room should be a double-shutter one with a threshold

# Don’t place an idol right at the entrance and make sure that it’s not taller than 9 inches, while sitting at least 6 inches from the floor level

# The person praying should be facing towards the east or north, and fire offerings or yajnas should be done facing east

# It is regarded as inauspicious to keep photographs or paintings of a deceased relative, death or conflict in the puja room

# It is advisable to have a window towards the north-east direction

# Artificial lights can always be used to augment the light coming from diyas

# No broken idols should be kept in the puja room and idols should not face each other

# The puja room should not be used for storage purposes

# Keeping a crystal conch shell in the puja room is considered auspicious

# The puja room must always be kept squeaky clean

# Cabinets in the puja room should be placed in the south-east direction to ensure that natural light is not obstructed

Remember, your puja room is not just about radiating positive vibes in the house, but also a vehicle that helps you connect with divine energies. So, when you follow the vastu guidelines for your puja room meticulously, it can reward you and your family by driving away all the negative energy and inject your home with joy and positivity.

The benefits of a vastu-compliant puja room are many, like improved focus, positive energy flow, peace of mind, spiritual growth, family bonding and an overall sense of well-being.

When the ownership rights and responsibilities of a property are collectively held by two or more individuals by a legal arrangement, it is called joint ownership. In this arrangement, each co-owner holds a predetermined share or interest in the property, with equal participation in all kinds of decision-making, financial commitments and potential benefits/losses linked with the co-owned asset. This is essentially a cooperative approach to investing in real estate.

There are primarily four different modes of joint ownership of a property:

# Joint tenancy

In this arrangement, the property’s title deed is based on the principle of unit, providing each owner equal share in the property. The moot factors of unity in this format of co-ownership are unity of title, time, interest and possession. This agreement works on the law of survivorship and in the event of death of one joint owner, his/her share automatically passes on to the surviving owners. Joint tenancy can be created through a will or deed, even if not by intestacy. Also, joint tenancy can be seamlessly transferred, vesting in the new owner the same legal right in the property, according to Section 44 of the Transfer of Property Act, 1882.

# Tenancy in entirety

A variation of the joint tenancy model, this type of joint ownership is exclusive to married couples recognized in some jurisdictions with unique benefits for spouses. Like joint tenancy, tenancy by entirety includes the right of survivorship, which means in case of death of one spouse, the other spouse inherits the entire property. Joint ownership in this model can stand altered in the event the spouses mutually agree to alter the arrangement or file for divorce. Spouses holding tenancy in entirety are not allowed to sell the property or transfer their share to a third party, unless mutually agreed.

# Tenancy in common

This denotes an arrangement when two or more people jointly hold a property, bound only by unity of title, but not by unity of possession, time and interest. Also, tenancy in common does not function on the concept of survivorship, and each common tenant can transfer his/her interest in the property. Interestingly, if a joint ownership agreement doesn’t mention any specific mode of ownership in the document, the ownership model is by default considered tenancy in common. In this format, co-owners can hold unequal sections of the property, thus allowing a more customized holding pattern. Tenancy in common doesn’t include the right of survivorship and in the event of a co-owner’s demise, his/her share doesn’t automatically transfer to the surviving co-owners. It can be passed on to heirs or designated beneficiaries.

# Coparcenary This form of ownership of property among members of Hindu Undivided Families (HUFs) was established by the Hindu Succession Act, 1956, wherein an unborn child can have an equal share in an HUF property, akin to joint tenancy. After the child is born, a coparcener automatically becomes a shareholder of the property jointly held by the HUF. The coparcenary format doesn’t function on the model of survivorship, and the member’s undivided share in the property is passed on to his/her heirs after death, but not to the other coparceners. This model also allows a coparcener of an HUF to sell his/her share in the joint family property.

Your credit score is a three-digit number that summarizes your credit history and reflects your credit behaviour in the past. This is an index of how efficiently you have managed all your credit products, including home loans, personal or car loans, business borrowing, credit cards, etc. More commonly referred to as CIBIL score, this number is a parameter that determines how much you can borrow from banks and NBFCs.

Lenders provide their customers’ credit information every month and the credit score is calculated on that basis. In other words, your credit score tells banks/NBFCs if it’s safe to lend you money, whether you can/will repay a new loan within the stipulated timeframe. So, every time you apply for a loan or a new credit card, the lender runs a background check on your creditworthiness and ability to repay with the credit bureau before accepting your request.

CIBIL score varies within a band of 300 to 900, and your aim should be to keep it on the higher side to improve your chances of securing fresh credit. Banks and non-banking lenders usually consider a credit score of 750 as a reliable parameter to approve a loan or a credit card. Some even make an exception and accept a credit score of 700-plus.

How does one check credit score?

To determine your credit score, you will have to undergo a CIBIL (Credit Information Bureau India Ltd) check. CIBIL is the foremost credit rating agency in India, tracking your creditworthiness, thus making the financial markets more transparent and better structured, while helping them to manage risks better. Since January 2017, RBI has instructed all four licensed credit information companies to provide one free credit score and report annually.

To do an online CIBIL check, these are the steps to take:

# Visit the CIBIL website

# Fill out the form provided with all the essential information sought including personal details like phone number, email address, etc, and proceed to the next step

# Furnish all the supplementary details sought, including your PAN, and proceed to the next step

# Provide accurate answers to all the queries regarding your loans, credit cards, etc, and your CIBIL score will be computed and the complete credit report generated

Once your account is created, there are a few more steps:

# You will receive suggestions on different paid subscription options (in the event of requiring more than an annual report). In case you don’t need multiple reports, it’s free and select “No Thanks”

# You can now use your login and password created in Step 2 and log into your account

# You will then need to authenticate yourself to receive an email on your registered account. Just click on the link and enter the OTP sent in the mail. This will take you to a prompt to change your password and login again

# Once logged in, all your personal details will be visible. You just have to add your contact number and click “Submit”

# Once the form is submitted, your dashboard will reflect your CIBIL score. You can also get your credit report on the dashboard