OUR SERVICE IN INDIA :
Filing of Income tax Return and
application for PAN/ also Assessment Procedure / Documentation
WE DO DRAFTING OF DOCUMENTS As Under :
LEAVE LICENCE AGREEMENT
REGISTRATION OF DOCUMENT
POINT FOR REALESTATES :
a Real Estate transaction, the role of the accompanying legal document in
effecting a transparent deal can hardly be overstated. A faulty or
inconclusive document will fail to safeguard against future litigation.We
advise and provide documentation for contracts, agreements or other legal
forms/documents you may need, in a simple and easy-to-use formats. You
can use the sample forms in our section for Lease Deed, Power of
Attorney, Agreement to Sell, Sale Deed/Agreement for Sale, Gift Deed,
Leave and Licence Agreement, Conveyance Deed and Transfer Deed.
can help you draft the perfect legal document. Our services are spread
pan India, thanks to our seamless network of legal experts.
"Deed of Lease" is a written document stating the agreement
between the lessor and the lessee in regards to the terms of transfer of
property by the lessor to the lessee. This document states the subject
matter, consideration and terms of renewal including clauses to cover
every possible scenario that might arise during the tenure of the lease.
The tenure of the Agreement is usually for a year which can be further
lease deed is a vital document admissible in court and stands testimony
to the deal between the parties entering into a transaction. Not having a
lease deed as a proof can go against both the parties in case any one of
them backs off from an initial statement. So this should be made binding
on both parties.
Clauses in a
typical Lease Agreement
Details: Name and addresses of the parties entering into the Deed.
Details: Its location and identification details.
of Demise and Determination: The effective dates of commencement (demise)
and expiry (determination) of Agreement.
of lease: The effective date of commencement of Lease Agreement and the
date till which the Agreement shall remain effective.
of the parties: Promises made for letting the property on lease.
Amount: Amount mutually decided and mode of payment of rent. It also
includes: security deposits (if any), refund circumstances, advance rent
payable (if any).
Increment Clause: Conditions of rent increment including when and by how
much, if applicable.
of Terms: Usually an Agreement is modified if both the parties agree to
new terms. It should be revised at least once a year.
Grounds and conditions of termination of the Agreement and notice period
required for the termination of contract.
Facilities included in rent like any fixtures or fittings provided by
Areas: Access and usage rights to common areas of the property such as:
terrace, stairs, garage.
of Bills/Taxes: The agreement spell out who is liable to pay taxes
incurred on property. (E.g. Municipal taxes, property tax, house tax,
electricity and water bills.)
It outlines who is liable for the payment of any repairs and maintenance
It would specify whether or not the subject matter is allowed for
sub-leasing and circumstances under which it is allowed.
Clauses: Usually the lease is renewed on expiry of tenure if so desired
but clauses already there can support an earlier renewal.
Any additional commercial terms mutually agreed upon by both parties.
A "Power of Attorney"
is a legal instrument whereby one person
is set in place of another to act for him as his legal representative,
and to make binding legal and financial decisions on his behalf.
Power of Attorney can grant extensive power to the person appointed to be
an Agent. Hence it calls for giving careful consideration to the person
to whom you choose to grant those powers and being aware of its scope. If
a person wants to present a document for registration at the proper
registration office and if, for some reason he cannot be present, he may
do so through his representative who is duly authorized by a Power of
Execution of a
Power of Attorney:
Power of Attorney has to be executed and attested as prescribed by law.
The Registrar or the Sub-Registrar or the Magistrate must first satisfy
himself that the Principal has voluntarily executed the Power of Attorney
before he can attest a Power of Attorney.
per Section 33(c) of the Registration Act, 1908, if the principal, at the
time of executing the Power of Attorney does not reside in India, then it
has to be executed before and authenticated by notarized and attested by
an authorized official of the Indian Embassy/Indian consulate or Trade
Commissioner of India in the country where the principal resides.
lack of properly drafted and executed Power of Attorney due to ignorance
of law, can lead to a lot of complications. We advise you about and prepare
for you, the appropriate type of Power of Attorney according to your
needs and the circumstances of your particular case.
gift is a transfer made gratuitously, that is, without any element of
monetary consideration. A deed cannot be dispensed with even for a
property of small value. A gift of immovable property is invalid without
a registered instrument. Hence, attestation by two witnesses is required.
gift of immovable property, which is not registered, is void and cannot
confer any title to the donee under Section 123 of the Transfer of
Property Act. A gift which was not based on fraud, undue influence or
misrepresentation, the Gift Deed can be cancelled only by resorting to
legal remedy in a court of law. While drafting a Gift Deed, these clauses
should be specifically noted:
of gift becoming effective
of monetary consideration
of transfer from donor to donee
clause in the gift deed totally prohibiting alienation is void.
Agreement to Sell
to Sell is a record of the terms agreed upon by the contracting parties
in the sale of a property. It is not a document through which the
transfer of title will be effected. Registration of Agreement to Sell is
now compulsory by law.
to Sell is governed by the provisions of the Indian Contract Act, 1872
and the Transfer of Property Act, 1882. It informs about how the seller
got the property, settlement of the sale price, mode of payment, seller's
obligation to obtain statutory clearances to convey clear title, to
indemnify the purchaser against loss or damage due to defect in the
following terms should be part of the Agreement:
of the title held including encumbrances such as lease, mortgage, and
charges on the property.
material defect in the property, defect in the title disclosed by the
and description of the property agreed to be sold.
amount including any part payment of consideration or earnest money,
mode, place and time of payment.
frame to complete local laws and statutory obligations.
55 of Transfer of Property Act makes it mandatory for the seller to
produce documents for scrutiny by the purchaser and his Advocate.
clauses in case of breach of contract by either party.
Leave and Licence
leave and licence does not create any interest in the premises in favour
of the licensee but gives the licensee the mere right to use and occupy
the premises for a temporary period. On the other hand, when premises are
given out on lease or tenancy basis the legal possession of the premises/
interest in the premises is also deemed to be transferred to the lessee
and tenant respectively.
deciding whether to give out premises on leave & licence basis the
following are serious considerations on the following front:
In a leave and licence agreement, the owner is deemed to be in legal
possession of the premises and the licensee in constructive possession of
Tax: In a leave and licence agreement the owner has to pay tax
effectively at the rate of 33% on the license fee earned but gets a
standard deduction amounting to 1/4th of the license fee for repairs.
Tax: In a leave and licence agreement, the Municipal Authorities may
charge taxes (at the rate of up to 60%) of the license fee. If there is a
security deposit amount the Municipal Authorities may charge tax
Rent Control Act, 1999, which has come into effect since March 31, 2000,
provides (Sec 24) for a body known as the Competent Authority responsible
for bringing summary relief to the owner of residential premises. The
Competent Authority on being satisfied that the period of licence has
expired shall pass an order for the eviction of the licensee. Also, the
section provides that the licensee shall be liable to pay damages at
double the rate of the licence fee or charge fixed under the agreement of
the license from the day of default till the date of disposition.
Transfer formalities in CHS
TO BE EEXCUTED AND SIGNED FOR TRANSFER OF SHARES IN A CO-OPERATIVE
entering into an Agreement for the sale of purchase of Flat/shop etc.
before execution of such sale deed the Transferor is required to prove to
the Transferee that he is the true member of the society in which the
said Flat or shop is situated . As a proof of his true membership the
Transferor is required to produce before the Transferee the following
) Original and copy of the Purchase Deed with society/with Builders.
) Original and a copy of Share Certificate.
and a copy of latest societys bill,
and a copy of Best Bill,
sinking fund certificate if any,
Book issued by the society,
after going through these records and on satisfaction of the true
membership of the Transferor. The transferee agrees to sign the form No.
20-B to be filed before the society for its No Objection to admit the
Transferee as its member.
obtaining no objection certificate from the society and if the apparent
consideration of sale deed exceeds Rs. 75,00,000/- ( For the property
situated in greater Bombay ) both the parties are required to sign and
file form 37-I in duplicate before the Appropriate Authority of the
Income Tax Department along with a copy of the Agreement for sale signed
by both the parties. The Appropriate Authority takes minimum 3 months (
excluding the month in which form No.37-I is filed ) time to pass the
relevant order, wherein either it mentions regarding Acquisition of the
Flat/shop or grant of No objection. In case of acquisition of the
property the Appropriate Authority acts as the Transferee and pays the
consideration mentioned in the Agreement after deducting a certain
percentage as per the provision of sec. 269 UA (2) to the Transferor and
the sale deed comes to an end. If the Appropriate Authority has granted
its no objection to the sale of the Flat/Shop then and in such event both
the parties proceed further and execute other relevant documents for the
effective transfer and vacant and peaceful possession of the said
following are the various documents required to be signed by both the
parties at the time of vacant possession of flat. The documents such as :
Agreement of sale ( to be properly stamped ).
to the society requesting them to transfer share certificate in the name
of purchaser and incidental to that use and occupation of Flat/shop etc.
Transferor is required to indemnify the Transferee against any claim made
by any third person by signing the Indemnity Bond. It is also advisable
to take a special power of Attorney in favour of Transferee and also to
send letters to the society for issue of share certificate in the name of
Transferee and to the B.E.S.T. for transferor further is required to sign
a declaration in support of his possession and also acknowledge the
receipt of the consideration amount by signing the receipt. As per the
urban land ( Ceiling and Regulation Act ) 1976 the Transferor is required
to give declaration in the form 24 that he does not hold any vacant land
the area of which together with the area of the proposed flat to be
transferred does not exceed 500 sq.mtrs. similar declaration is required
to be given by the Transferee too in Form No.25.
Transferee is also required to send letter to the society and undertake
to pay stamp duty and execute a document and sign the same. He is also
further required to make an application to the society to admit as a
member of the society by signing application for membership and filing
the same with the society.Further it is to be noted that all the original
documents relating to the transfer of title, rights and interest in the
society such as
No Objection Certificate from society,
No Dues Certificate from society.
(Latest) society bill and Receipts.
( Latest ) BEST Bill.
Book issued by the society.
other original/documents of title to the Flat.
of the said Flat/Shop to be obtained from transferor.
one the above mentioned formalities are completed and vacant and peaceful
possession of the Flat/shop is handed over to the Transferee the sale
deed is said to be finalized and completed.
TRANSFER OF SHARES
24 of the M.C.S. Rules, 1961
Transfer of shares shall be effective unless :
A ) It is made in accordance with the provisions of the bye-law.
B ) A clear fifteen days notice in writing is given to the society
indicating therein the name of the proposed transferee, his consent, his
application for membership, where necessary and the value proposed to be
paid by the Transferee.
C ) All liabilities of the Transferor due to the society are discharged ;
D ) The transfer is registered in the books of the society.
charge in favour of the society on the share so transferred will continue
unless discharged otherwise.
(1) Notwithstanding anything contained in any other bye-law, no member
shall be permitted to transfer any shares held by him/or his interest in
the property of the society unless he had held such shares or interest in
the property for a period of not less than one year from the date of his
admission to the membership of the society. Application for transfer
shall be in the form set out in schedule II appended to the Bye-law.
of Transfer :
the transfer of shares is registered, no right shall be acquired against
the society by the Transferee, nor shall any claim of the society upon
the Transferor be affected.
Law No.20 :
20 ( 1 ) The society shall issue within six months of allotment, a share certificate
showing the number of members register, the number of the shares
and the holders anme in full under the signature of officers
authorised in this behalf and duly sealed with the society seal.
Committee shall keep a share register in which there shall be entered the
name, occupation and address of the member, the date of admission and the
number of shares allotted or transferred from another member
holding. The Register shall also show the number of shares transferred,
repaid, forfeited or cancelled and the date of such repayments,
forfeiture or cancellation.Up on each transfer of any shares there shall
be paid to the society such fee not exceeding Rs.50/- as the committee
part from transfer of share and interest of a member in the
capital/property contemplated under section 29 of the M.C.S. Act 1960,
Rule 24 of the MCS Rule 1961 and the Bye-Laws No.19 and 20 of the model
bye-laws for co-op, housing societies, transfer of shares and interest of
a deceased member in the capital/property of a society to his nominee or
heir has to be considered by the society. Section 30 of the M.C.S. Act
1960, the Rule 25 of the M.C.S. Rule , 1961 and the bye-laws No.15 and 15
deal with transfer of shares and interest of a deceased member in the
capital/property of the society. The said Rule also deals with the
procedure to be followed for the transfer of shares and interest of a
deceased member in the capital/property of the society if the deceased
member had not made any nomination. The said provisions are reproduced
filing income tax returns , assessments , appeals , registration etc.
contact us at and for sales tax registration assessment , appeals, or any
other tax matter contact us visit site at www.glisters/taxation.html