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"Can a foreign national of non-Indian origin acquire property in India?"

Get all your property-related queries sorted out here. Yasmin Carnac, advocate, will be happy to clarify your doubts.

Can you give me the most recent cost breakup in percentages for registration, stamp duty and/or any additional applicable taxes for purchasing a new apartment in Mangalore, Karnataka or direct me to any site that has such information. Your help is well appreciated.

— Poornima Prabhu

Each state has its own Stamp Act so if you want to know the stamp duty, registration charges etc leviable on purchase of a new apartment in Mangalore, you have to refer to the Karnataka Stamp Act.

In your case, it is advisable to refer the matter to an advocate who has an office in Karnataka to find out the latest duties on the purchase of a new apartment in Mangalore. Proper stamp duty, registration charges etc should be paid because if there is a shortfall in payment, then you will need to pay a penalty. In case your payment is in excess, then it takes a long time to get a refund of the same from the government.

My agricultural land in Karnataka was converted to non-agricultural in November 1997 by the Deputy Commissioner (Revenue). Does it attract Wealth Tax consequent to this conversion and if so, from when. I recently converted my agricultural land to non-agricultural after the order. Does the converted land attract Wealth Tax and if so from when?

— M Shankar Rao

According to Section 2(e) of the Wealth Tax Act 1957, assets chargeable to the Wealth Tax include property of every description, movable or immovable, but there are certain exemptions to this definition which are recorded in the Act and agricultural land is one such exemption. As your agricultural land is converted for non-agricultural purposes by order of the Deputy Commissioner (Revenue) in November 1997, this non-agricultural land will attract wealth tax from valuation date March 31, 1998 and thereafter.

I am planning to purchase a vacant site on the outskirts of Bangalore. It is a 50x80 site and located in an agricultural land. No conversion has been made from agricultural to residential/commercial (not DC converted). It does not belong to Bangalore Development Authority or Corporation or Municipal Council. It belongs to the Village Panchayat. The seller (owner) says that he is going to register the site in the Sub-Registrar's Office on Form 10. How safe is it to buy such a site? What are the procedures/precautions to be taken?

— Raghavendra B K

If you are interested in buying the aforesaid property then you will have to let the seller (owner) register the said site (property) with the Sub-Registrar's office. Mere lodging of the document in the Sub-Registrar's office for registration is not enough. The seller will have to obtain Index-II/Property Card from the Sub-Registrar's office, evidencing the aforesaid property in his name.

Thereafter, you may enter into an agreement of purchase with the seller for the said property and your agreement will also have to be registered with the Sub-Registrar's office. For registering your document, you will need your seller's Income Tax Clearance Certificate under section 230-A of the Income Tax Act 1961, if the total consideration of the transaction is Rs 500,000 or more.

With FEMA, is it possible for a foreign national of non-Indian origin (eg a German) to acquire a property in India, and if so, what is the regulation applicable?

— A F Cordeiro

Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, does not state anything as regards acquisition of property in India by a foreign national of non-Indian origin. There is only one prohibition recorded in Regulation 7 for acquisition or transfer of immovable property in India by citizens of certain countries ie: "No person being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan without prior permission of the Reserve Bank of India shall acquire or transfer immovable property in India, other than lease not exceeding five years."

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