This is where you should answer the most common questions prospective customers might have. It’s a good idea to cover things like your return policy, product warranty info, shipping and returns, etc. Check out the examples below.
Q – What is the FIPB?
Ans. FIPB is a competent body to consider and recommend Foreign Direct Investment (FDI), which do not come under the automatic route. The FIPB has been reconstituted as under:
Secretary, Department of Economic Affairs – Chairman
Secretary, Department of Industrial Policy & Promotion – Member
Secretary, Department of Commerce – Member
Secretary (Economic Relations), Ministry of External Affairs – Member
The Board would be able to co-opt Secretaries to the Government of India and other top officials of financial institutions, banks and professional experts of industry and commerce, as and when necessary.
Q – How does a foreign company invest in India?
Ans. Either through:-
Automatic Approval – by the country’s Central Bank, the Reserve Bank of India (RBI), Mumbai, or
Through the Foreign Investment Promotion Board (FIPB)
Automatic Approval through Reserve Bank of India is available for all items/activities except a few as given in the Press Note No.2(2000 series) dated 11.2.2000. The sector specific guidelines in this regard are given in Annexure IV of the Manual on Industrial Policy & Procedures in India.
No prior approval required. The company is only required to report to RBI within 30 days of receipt of foreign equity/allotment of shares.
Q – FIPB approval is required for all other proposals not eligible for Automatic Approval.
A – Applications to be submitted in Form IL-FC or on plain paper with full details to the Secretariat for Industrial Assistance (SIA) for the cases involving NRI/OCB investment and 100% EOU. For remaining cases, the applications may be submitted to Department of Economic Affairs, Ministry of Finance. The proposals are considered by the reconstituted FIPB in the Department of Economic Affairs. IL-FC Form is available at Website in a downloadable format on the DIPP Website (http://dipp.nic.in ).
Q – May a fund that changes its investment policy from 65% to 80% in order to come into compliance with rule 35d-1 disclose that change in a post-effective amendment filed pursuant to rule 485(b) under the Securities Act?
A: Yes. A fund that changes its investment policy from 65% to 80% in order to come into compliance with the rule may disclose the change in a post-effective amendment filed pursuant to rule 485(b) under the Securities Act of 1933, provided that the post-effective amendment otherwise meets the conditions for immediate effectiveness under rule 485(b). If a fund makes other material changes to its investment policy together with a change from 65% to 80%, it must disclose the other changes in a rule 485(a) amendment. A fund should disclose its policy to invest its assets in accordance with the 80% investment requirement suggested by its name in Item 2(b) of Form N-1A, which requires a fund to identify its principal investment strategies, including the types of securities in which it invests principally
Q: When do new registrants have to comply with the requirements of rule 35d-1?
A: All registered investment companies must be in compliance with the rule by July 31, 2002, regardless of when they initially register. Newly registered investment companies may, however, wish to comply with rule 35d-1 from the time of registration in order to avoid the need to make portfolio adjustments, internal compliance system changes, and/or name changes, as a result of the need to come into compliance with the rule
Q – Is there a procedure to be completed or forms to be filled up on execution of the Sale Deed or Transfer Document?
A – Yes. But the procedure and forms may vary from state to state depending on the location of the property. Every state in India has formulated its own set of forms under the registration rules. These forms are to be filled up and filed at the time of the registration of Sale Deed/Transfer Deed.
Under the Income Tax Act and rules for a sale transaction, it is mandatory for the buyer and seller to provide their PAN card number and in the event of sale; either the seller and/or the buyer would need to fill up Form 60 of the Income Tax.
If the buyer or the seller is a Non-Resident Indian (NRI) not assessed for t axes in India, the person would not need to file Form 60 of the Income Tax
Q – When is the sale of a residential property formalized?
A – The sale of a residential property is said to have been formalized if the seller has received the entire consideration amount, registration of the documents has been carried out and actual possession of the property has been granted to the buyer.
Q – What are the taxes that I need to pay before buying a property?
A- The buyer needs to pay the following taxes:
- TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of property excluding agricultural land.
- Stamp duty
- Service Tax – Applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a `ready to move in’ property is purchased from the seller, service tax is not applicable.
- Value Added Tax (VAT) – If applicable in the concerned state.
- What is the difference between leasehold property and freehold property?
- The difference between a leasehold property and a freehold property lies in its ownership. In a leasehold property, the ownership remains with the concerned local authority or the government (as the case may be). The lease period varies typically between 30 to 99 years. But, this does not prevent the individual owner from selling or perform other transactions with the property, provided the lease deed is registered.
- In case of a freehold property, the owner of the property is the legal owner and can sell/lease/rent the property as per his/her wish.
Q – What is Power Of Attorney?
A – Power of Attorney allows a person to authorize another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney. First ,the ‘General Power of Attorney’ where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc. The second one is the ‘Special Power of Attorney’ where only a specific right is given by the owner to the chosen person.
Q – How can I register my property?
A – Registration of a property includes necessary stamping and paying of registration charges for a sale deed and getting it recorded at the sub-registrar’s office of the concerned jurisdictional area. If a property is purchased from a developer directly, getting it registered amounts to act of legal conveyance. In case the purchased property is a second or third transaction, it involves a duly stamped and registered transfer deed. Nowadays, property registration process is computerized in most states
Q -What documents would I need at the time of possession?
A – Original copies of the chain of title agreements and Building Plan approvals
- Original registration and stamp duty receipts
- Possession Letter
- Original share certificate (In case of societies)
- Proof of payment of all dues like maintenance charges, electricity bills, phone, water and property taxes up to the date of handing possession
- NOC from the Society or other concerned body confirming no objection to the transfer
Q- What documents are required for registration of a new apartment/plot?
A- Sale Deed, No Objection Certificate (NOC) from builder, NOC from banks, Building Plan approvals, Completion Certificate, PAN Card and Photographs.
Q -If I have money, is it still necessary to avail of a bank loan for buying a home?
A – It is generally advantageous to go for a home loan as it helps you in availing tax benefits. However, please consult your CA or tax adviser to discuss the advantages and disadvantages in your case
Q – What is a down payment?
A – Generally, banking finance institutions pay around 75 to 85 percent of the cost of the property bought. The remaining 20 % of the amount is paid up front, which is popularly known as the down payment.
Q- What is residential investment property?
A- Residential investment property is a house, townhouse, villa, apartment or unit, not used as the owner’s Principal Place of Residence (PPOR), but rather rented out to tenants.
Residential property is considered a favorable asset for long-term investment in particular: due to the varied benefits it offers as a relative low risk, high return investment vehicle (with optimal assets selection).
Well purchased residential property assets can be virtually self sustaining, with a number of cash flow streams provided from tax advantages and rental income, alongside strong potential capital gains.
Q – What if I need some money in a hurry?
A – Residential property offers a lot of flexibility for the investor. If for some reason you need money in a hurry, some lenders will allow you to draw on the equity from your own home or investments by refinancing.
It’s important to note however, that at time of writing regulatory restrictions imposed on banks have seen tighter restrictions around this practice. Most lenders will require written proof of how you intend to use the funds and can decide at their discretion whether the reason is sufficient.
Ideally, all investors should have a cash flow buffer in place as well. This can generally be in an offset account or Line of Credit attached to your non-tax deductible mortgage and is intended as a safety buffer for those ‘just in case’ moments.
If you already have an established line of credit, you’ll have access to the money before you need it.