Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
05 JANUARY, 2023
An asset that does not have the capability to move from one place to the other is considered immovable property. In the real estate market, immovable property includes residential properties, warehouses, manufacturing units, and factories. The types of immovable property include:
What Does Immovable Property Refer To?
Immovable property is anything attached to the land, such as plants or trees. Real estate comes under immovable assets, including houses, warehouses, factories, and manufacturing units. The real estate industry is also subject to legal statutes as well as taxation and TDS is applicable on immovable properties as per the prevailing rates as well. On the other hand, movable property refers to assets that can move from one place to another, such as jewellery, money, watches, etc.
Examples : Some Examples of Immovable Property:
Different Types of Immovable Assets
Read Also: Bhulekh: A Complete Guide, Definition, Benefits, & Change Name Online
Differences between Immovable and Movable Properties
In the case of moveable property, no registration is required.
In order to identify the owners, proper registration must be completed in accordance with the Registration Act 1908. It is mandatory to register a property if it is worth more than Rs 100.
Purchases and ownerships of moveable property are subject to tax.
In accordance with the Indian Stamp Act, 1899, stamp duty and registration fee are imposed on immovable property transactions.
There is no difficulty in separating these properties.
There are legal procedures to follow when breaking up or dividing immovable properties.
The process of transferring ownership is very straightforward.
Ownership can only be transferred through a will, a sales deed, a gift deed, or any other agreement.
In security situations, it is referred to as a pledge.
Mortgages or liens are used for security purposes.
Rights Associated with Immovable Property
You can easily get home loans for an immovable property as it is present at a fixed place and easier to track down for financial institutions. However, the immovable property also includes items such as ships, boats and aircraft, as well as shares in companies listed on stock exchanges.
The rights associated with immovable assets are:
Other Rights on Immovable Property
Property owners have the following rights if they own immovable property. The following are among them:
Immovable Property as a Gift-
According to the Income Tax Act of 1961, gifts of immovable property may be taxable. Let's look at the tax implications on immovable property as gifts.
Payable Tax Amount
Unconsidered: Immovable property such as buildings, trees, and land.
50,000 rupees or more in stamp duty.
It equals the value of the property as far as stamp duty is concerned.
In consideration of buildings, trees and land that fall under the category of immovable property.
There is a difference of over Rs. 50,000 between the property's stamp duty value and its consideration.
Subtract the consideration amount from the stamp duty value of the property.
An immovable property can be an evergreen investment option due to its non-depreciating nature. Make sure you research properly to know your rights as an owner or tenant of immovable property.
You have already rated this article