Can PUDA object to re-sale of land?

S. C. Vasudeva

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Q. I sold 23 marlas from my six-acre farm in Hoshiarpur city suburbs in 2005, and executed an agreement-to-sell mentioning that the land is agricultural. After receiving full payment, handing over the possession a power of attorney was executed in 2014. The buyer recently paid regularising fees and obtained an NOC from PUDA to regularise the land on basis of the ‘agreement-to-sell’. Last month the buyer sold the plot as residential (through sale deed) using my power of attorney and NOC from PUDA. Is all this normal as I and the first buyer don’t want any problems from PUDA. I understand that sale of land for agriculture does not concern PUDA.

— Rupinder Singh

A. The facts in the query do not indicate the nature of problem envisaged from PUDA. However, as far as you are concerned, the sale of agricultural land of 23 marlas should not be of any concern to PUDA so long as PUDA does not have any rights in agricultural land sold by you. The sale of such agricultural land would have had income-tax implications which I presume, must have been taken care of by you when the agricultural land was sold in 2005. The buyers of the agricultural land also in the ordinary course should have no problem with PUDA as the said authority itself has issued no objection certificate to the party which had purchased agricultural land from you.

What is the definition of ‘transfer’ ?

Q. My father-in-law bequeathed his property through a registered Will (executed in 1989) to his daughter (my wife). He expired in 1995, the property had been in the possession of my wife since 1980 and electricity and water connections were also in her name. The entry in revenue records was changed in the name of my wife in 2010. My queries are;

• Does mutation have any relation with ownership acquired?
• My wife entered into a Sale Agreement in 2009 i.e. before her name was entered in revenue records. Was it illegal?
• What is meant by transfer? Does it mean taking possession or date of mutation?
• What is a legal title? — A.S. Anand

A. Your queries are replied hereunder:

• Mutation means ‘change of form or structure’. Mutation by revenue authorities is, therefore, change in the form of recognition that the person whose name the property has been mutated in is liable to pay taxes, etc., in respect of the said property instead of the person in whose name the property stood mutated earlier.
• Your wife has become a beneficial owner of the property after the death of her father, and therefore, there was nothing illegal in entering into a sale agreement in 2009.
• The word “Transfer” is defined by the Transfer of Property Act 1882, as an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, or to himself and one or more living persons, and ‘to transfer property’ is to perform such act. The aforesaid Act also provides that ‘living person’ for the above purpose includes a company, association or body of individuals whether incorporated or not. The definition of the term ‘Transfer’ in The Act apart from being wider is inclusive and covers sale, exchange, relinquishment of the asset, extinguishment of any rights therein, allowing of possession of any immovable property to be taken or retained in part performance of a contract etc. Mutation on the other hand as explained hereinabove, is only a change of form or structure.
• A legal title is obtained through a sale deed in case of purchase of a property and in case of inheritance either by a succession certificate or in case there is a Will by obtaining a probate of such a Will.

Best rent agreement

Q. I own a flat at Gurgaon and am looking for a tenant for renting out the same on “Lease Deed Agreement”. I have been advised to rent the flat on “Leave & Licence Agreement” to safeguard my interest. Is this agreement the safest one for an owner to get the house vacated on the expiry of the agreement? Also tell me if I can get a Leave and Licence Agreement registered in Haryana? — Krishan Dev Uppal

A. There is no doubt that Leave and License Agreement is the safest way to protect the owner’s interest from an undesirable tenant. This agreement is entered into for a period of 11 months and thereafter the accommodation given on such an arrangement is required to be vacated. Such agreements are usually required to contain certain specific clauses so as to conform to the legal requirements of a ‘Licence’ arrangement. Licence has been defined by Section 52 of the Indian Easement Act, 1882 as under:

“Where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license.”

A Licence Agreement is not legally required to be registered.

Can I claim deduction on loan repayment?

Q. I was allotted a flat by Chandigarh Housing Board (CHB) in a draw of lots held in November, 2008. I paid 10 per cent amount with the application. The allotment letter was issued in 2011 and the balance payment was demanded before December 30, 2011. I took a loan of Rs17 lakh from SBI and the balance payment was made from my own sources before the due date. CHB, however, is not giving any time frame regarding possession of flat. I am paying Rs20,000 per month to SBI as interest and principal amount. Though I have not received the possession of flat, can I claim rebate on interest payment and principal payment under Section 80 C. I will like to mention here that I already own a residential property where I am living at present. Can I claim rebate on second house? — Raman Khanna

A. Your queries are replied here under:

• Section 80C of the Income Tax Act 1961 (The Act) provides that in computing the total income of an assessee being an individual or a Hindu Undivided Family, there shall be allowed a deduction from the total income in respect of the amount re-paid against the amount borrowed from a bank or other specified sources, for the purposes of purchase or construction of a residential house, the income from which is chargeable to tax under the head “income from house property” or which would, if it had not been used for the assessee’s own resident, have been chargeable to tax under that head. In view of the aforesaid provisions of Section 80C of the Act, it would not be possible for you to claim the deduction in respect of installment being paid towards the repayment of principle amount to SBI till such time the possession of the flat is handed over to you. You would, however, be allowed deduction in respect of the interest paid for the pre-construction period in five equal installments as and when the possession of the flat is handed over to you and ‘income from house property’ becomes chargeable under that head.
• You can claim a deduction under Section 80C of the Act in respect of the amount repaid against the amount borrowed for purchase or construction of a house within the overall limit of Rs1.50 lakh even if you own another house. Similarly, you can also claim deduction in respect of interest paid/payable on the amount borrowed for the purchase or construction of a house to the extent permissible under Section 24 of the Act even if you own another house.

Smooth Will

Q. I have executed a registered Will. What steps should I take in my lifetime so that beneficiaries of my moveable and immovable properties mentioned in my Will are not harassed in the court for probate of my Will after my death? — Harinder Pal Singh

A. There are no other steps that you can take at this moment with regard to the issues arising out of the inheritance of the property. A Will takes effect after the death of a testator (executor of the Will) and therefore the executor named in Will is required to comply with directions contained in the Will and if so required to comply with the procedures required for obtaining a probate in respect of the Will. You have indicated in the query that you have executed a Will and got it registered with the Sub-Registrar. As far as you are concerned, no other steps can be taken to avoid the “harassment”, if any, arising to the executor/legal heirs for carrying out your wishes as expressed in the Will as well as for obtaining the probate, if so required.

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