The
government has made tax payment mandatory before the registration of property
transfers. However, ambiguities in the new Income Tax Act and related
regulations regarding tax obligations on ‘Heba’ or gift deeds have created
confusion at the field level. As a result, the registration of land and
apartment deeds involving such transfers has been suspended. Officials at
sub-registrar offices say the current law contains unclear provisions regarding
tax collection.
Under a Heba
deed, a...