Here are some concerns that should be addressed before making an investment in a plotted development
Establish The Seller’s Identity
Conversion And Land Use Approvals
Give Due Consideration To The Locality
Have A Quick Checklist Ready Before Inking The Deed
Do Not Hurry
FSI Of The Plot
Receipts Of Property Tax
It is earmarked for the use of agriculture and related activities. The rules and regulations vary for different states and as a substantial population is engaged in agriculture, there are restrictions in place too. State laws determine land ceilings and also how much land can be bought by an individual. Some states even bar outsiders from buying land in their sate.
These are meant for the construction of houses. If the land was previously designated as agricultural and later changed to residential, the buyer needs necessary approvals from the concerned authorities which varies across states. Loans against residential plots are in fact eligible for relief under section 80C.
Are allocated for establishing offices, shops and different trades. Developed through shared ownership models, a group of investors come together to build a a plot. These generally are levied upon with a steeper government fee and taxes. It is imperative to find out whether the land has been zoned as commercial while purchasing a commercial property and also the FSI. As many commercial plots have to be developed as vertical structures, the zoning laws need to be studied thoroughly, especially if the land is in the vicinity of the airport as there might be certain restrictions on the height of the project. As commercial land is expensive, it is advisable to establish the funding requirements early on. Also, an application needs to be submitted to the concerned authorities (the District Collector in most cases) if there is any conversion of land from agricultural to commercial. In terms of taxation, it should be clear that there is no income tax benefit in the case of commercial plot loans. In fact, a fixed rate of 20% will be levied on the seller as capital gains tax at the time of sale of the plot. It is common practice for most local bodies to charge a higher property tax for a commercial property.
These are plots that reserved for specific purposes like setting up a college, maybe a school or even a company’s headquarters. A local government authority permits the sale or the transfer of such land pieces as per norms.
These are promoted by government bodies to promote industrial corridors in a given region. They mainly cater to logistics, factories, cold storage facilities etc. As industrial units might have an impact on the neighborhood, special permissions are needed to acquire a plot to set up an industry. Certain permissions are also required from an industry specific body to get the licenses to set up an industrial unit. As heavy vehicular movement is expected in such an area, due consideration is also given to the approach roads. What do the different land zones mean
Red Zone –
Are meant for dedicated services like schools, hospitals, places of worship or similar infrastructure developments. They cannot be developed as high rises and are also termed as semi – developmental lands.
Green Zone –
Is marked for open and green spaces. Can be used for horticultural development or for setting up plant nurseries.
Yellow Zone –
This is the land classified for mixed use development, both commercial (darker shade of yellow) and residential (lighter shade of yellow).
Blue Zone –
It indicates the commercial and retail spaces on a map. Darker shade denotes retail and hospitality spaces, the lighter shade marks the places where offices and business centers can be set up.
Grey Zone –
Designates the areas for establishing heavy industries and manufacturing units.
Purple Zone –
Also called violet zone in some places, represents factory establishments and general industries. A darker shade at times specifies technology-oriented industries.