Registration of property documents
Although registration of all documents is
not essential, some documents are compulsorily registrable.
These include document acts as notice to the general public.
The Indian Registration Act 1902 and Transfer
of Property Act 1882 contain relevant provisions regarding
which documents are compulsorily registrableall and which
are exempted. Under section 17 of Indian Registration Act
1902, there are a few documents, which require registration
- A document of gift of immovable property. Any gift deed
irrespective of the value of the gifted property needs registration.
- All non-testamentary documents which create interest,
right, or title in immovable property.
- All non-testamentary documents which cancel any right
or interest in title of immovable property.
- All non-testamentary documents, which declared, assign,
limit or restrict interest or title rights in immovable
- All non-testamentary documents which acknowledge receipt
or payment of any consideration on account of transactions
pertaining to right, title, or interest immovable property.
- All non-testamentary documents transferring or assigning
any decree, order, or award of court, which affect the interest,
rights and title in an immovable property.
The documents may create, extinguish, assign,
declare, limit or restrict the intrest or rights title in
immovable property for the present or for future. In case
the value of the immovable property is Rs 100 or more, they
need to be registered.
Under section 107 of Transfer of property
Act 1882, the lease of immovable property from year to year
for a term exceeding one year, or reserving a yearly rent,
must be done only by registration. The term year to year refers
to a continuous lease from year to year i.e. where the landlord
has no option to terminate the lease at the end of the year
without notice. The term, ‘reserving yearly rents’
means, the lease has no definite period, but the annual rent
is determined. The word ‘yearly’ means that the
lease should run year after year, or at least more than a
year. As such, any lease in excess of a year should be registered.
Under the Indian Registration Act, the State
Government can exempt the registration of any document of
lease the period of which dose not exceeds 5 years and annual
rent dose not exceed Rs 50.
According to the provisions of Section 54
of Transfer of Property Act 1882, any sale of immovable property
of value of Rs 100 or more needs to be registered. In addition,
all types of mortgages need to be registered. The only exception
is mortgages created by depositing of title deeds or equitable
As per the provisions of Section 49 of the
Indian Registration Act, in case any document that is compulsorily
registrable is not registered, the non-registered documents
do not convey or transfer legally valid title to the transferee.
Moreover such documents are not admitted as evidence of any
transaction affecting the property referred to in the document.
However, such unregistered documents may be received as evidence
in a suit for specific performance under the Specific Relief
Act, as evidence of part performance of a contract as per
section 53A of the Transfer of Property Act 1882, and as evidence
in any other related transaction not required to be effected
by a registered instrument.
Only 25 Paise Per Sqft as Tax!
Rich Owners Take Advantage Of Lacunae In CVS
Bangalore: They are rich, but pay only 25 Paise per sqft
as property tax. Not just the creamy layer, a large number
of residential, commercial and industrial property owners
in CMCs of the state have been paying property taxes as low
as 75 paise to Re. 1 per sqft!
This is the story under the capital value system (CVS) based
self-Assessment Scheme for property tax collection. In the
process, the Karnataka government is losing revenue by 15%,
reveals a random sampling of property tax compliance pattern,
carried out by the Directorate of Municipal Administration
in 43 city municipal councils.
It found that every time the government extended the last
date for property tax payment tax payment or whenever it announced
sops to taxpayers, the compliance percentage came down.
Under the sheme, properties were divided into three-residential,
commercial and industrial- which were in turn subdivided into
posh, medium-income and low in come, for residential and commercial,
while large, medium and small for industrial properties.
The study was conducted both before and after the introduction
of CVS-based SAS from 2002. Under CVS, taxes are being calculated
as per the cost of land and cost of construction, based on
sub-registrar’s value and PWD rates. The earlier system
was based on gross annual rent.
The DMA studies 30 properties under each classification
and took samples of 2,541 residential properties, 1,295 commercial
properties and 155 industrial properties.
It found that 36% of owners in posh residential areas paid
taxes in the range of 25 paise to 75 paise per sqft. In posh
commercial areas, 29.6% of owners paid tax ranging between
Rs 2 and Rs 3 per sqft; 48% of large-scale industrialists
paid RE 1 to Rs 2 per sqft. While 60% of tax was being collected
before the CVS, it has dipped to 40-45% post-CVS.
The reasons, the officials said, are: the government Kept
on extending its last date for tax payment, giving a leeway
for defaulters, and it offered concessions on vacant lands
and rebates on payments.
Municipal administration minister S.R.Morey said he will
bring in an amendment to the Karnataka Municipalities (Amendment)