BackSociety members entitled to free redeveloped flat
When a society goes for redevelopment, existing members are entitled for new premises in lieu of their respective old premises, free of costIt is to be noted that the funds credited to the NRO account shall be subject to payment of applicable income tax in India
PremiumIf I purchase a flat in a co-operative housing society, I become a member of the society. But do I also become the owner of the land? Say the society is getting redeveloped after 30 years, will the existing members have to pay for the flat fully like other new members or do they have to pay only the redevelopment cost?
—Krishna Pratap Singh
All the buyers who have purchased the premises in the building on an “ownership" basis require to come together to manage the building. One of the ways to do it is forming a co-operative society, which is regulated by the Maharashtra Co-operative Societies Act, 1960.
There are different types of housing societies: (1) Tenant Ownership Housing Societies, where the land is owned by the societies and the superstructure is owned by the members. (2) Tenant Co-Partnership Housing Societies, where the societies hold land on ownership or on lease and construct flats for and on behalf of its members. The societies thus hold both the land and buildings and its members are allottees.
When a society goes for redevelopment, existing members are entitled for new premises in lieu of their respective old premises, free of cost. If the existing member wishes to purchase additional area, then he/she has to pay extra for the additional area.
Can an NRI take foreign currency (Euro) bought from his NRO account to the country where he stays? Can he remit the same to his account abroad?
—Name withheld on request
We assume that your country of stay and the country of residence is the same. Any person resident outside India may open and maintain NRO account with an authorised dealer or an authorised bank for the purpose of putting through bonafide transactions denominated in Indian rupees. The NRO account can be either a savings or current account and are laid down under Foreign Exchange Regulations and guidelines.
The NRO account can be debited for the purpose of local payments, transfers to other NRO accounts or remittance of current income abroad on submission of documentary evidence.
The balance in the NRO account can be repatriated abroad by NRIs up to $1 million per financial year subject to conditions specified in the Foreign Exchange Management (Remittance of Assets) Regulations, 2016. It is to be noted that the funds credited to the NRO account shall be subject to payment of applicable income tax in India.
Aradhana Bhansali is partner, Rajani Associates. Queries and views at mintmoney@livemint.com
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