If you own property in India, you must be aware of the different types of properties and their significance. Land in India can be classified as agricultural, residential and commercial. Some of the properties are again classified as leasehold or freehold properties. Agricultural land is meant to be used for agricultural purposes only and residential property is used for residential purposes. The nature of the land is important for tax purposes as commercial property tax is higher than residential property tax. Further, lands which are classified as leasehold, are leased to the owner, by the government for a fixed period, generally 99 to 999 years. This implies, that the land belongs to the government and you pay tax on the land owned by the government. On the other hand, freehold property belongs absolutely to you, and you are the sole owner of such property. Lands can also be classified as homestead, waterbody, special economic zone, etc.
Classification of land is also important for the conversion of property. Land or property conversion in India can be a complicated process unless you are aware of your rights to the property. Zoning rules, local land laws, and society management rules often define if a residential property can be converted into commercial land or if water body can be converted into homestead land. Today, several cities in India are now allowing conversion of leasehold land into freehold land. If you are seeking land conversion, then you must obtain permission from several departments, including the land development office, local municipality, land revenue office, housing management society, and various others.
Conversion of land can be a cumbersome process unless you obtain professional help from qualified real estate experts. Our constant endeavour is to provide you with the best real estate services across India. You can subscribe to our website today to receive regular housing news, and signup for our monthly housing law updates. For more information, you can also fill out the Contact Form here.