Theme: Money & Property

Cheque Truncation System

Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form. This is done for transmitting the amount of money mentioned on the cheque to the paying bank. This is also referred to as ‘Local Cheque Clearing’.

In this process, an electronic image of a cheque is sent by the clearing house to the paying branch. This image contains all relevant information like date of presentation of the cheque, presenting bank, data on the MICR [Magnetic Ink Character recognition], etc. By this process, the paying branch gets these details automatically.

This is a much simpler and a faster process of clearing a cheque than physically transferring a cheque from one bank to another. Since cheque truncation speeds up the process of collecting cheques it results in better service to customers and reduces the scope of loss of cheques in physical transit. This process is faster and more secure.

Consumer Complaints against E-commerce Platforms

Consumers can also complain against unfair trade practices involving digital and other products bought through e-commerce platforms and retailers. Any person who owns, operates or manages any digital or electronic platform offering goods or services for sale, is an e-commerce entity. An e-commerce entity is separately governed by e-commerce rules(( Consumer Protection (E-Commerce) Rules, 2020.)) in India.

These rules are only applicable to professional and commercial businesses and not for an individual acting in their personal capacity(( Proviso to Rule 2, Consumer Protection (E-Commerce) Rules, 2020)). For instance, a consumer can complain against Amazon as it is an e-commerce entity regularly engaged in the activity of sale of goods through its e-commerce website. However, if there are issues with a product on a platform like Amazon, Amazon would be held liable for product liability actions, not the product manufacturer.

Interestingly, the product liability for an e-commerce entity extends beyond India. This means that these platforms are equally liable under the consumer protection law, in addition to their own country’s domestic laws(( Rule 2(2), Consumer Protection (E-Commerce) Rules, 2020.)). For instance, a foreign e-commerce entity such as Liyid delivers its products in India; in case of any harm caused due to defective products, a product liability action can be brought against Liyid in India and in the foreign country.

Liabilities of e-commerce platforms

E-commerce platforms are held liable for the following:

  • Price manipulations on their sites,(( Rule 4(11)(a), Consumer Protection (E-Commerce) Rules, 2020.))
  • Negligence in services provided and discrimination against customers(( Rule 4(11)(b), Consumer Protection (E-Commerce) Rules, 2020.)).
  • Misleading advertisements, unfair trade practices(( Rule 4(3), Consumer Protection (E-Commerce) Rules, 2020)) and inaccurate descriptions/information of products.
  • Refusing to refund or return a defective product(( Rule 7(4), Consumer Protection (E-Commerce) Rules, 2020)).
  • Failure to provide warnings or instructions with respect to the goods or services availed by a customer(( Section 85(c), Consumer Protection Act, 2019)).
  • False descriptions, and violations about the authenticity and images of the goods or services advertised for sale on their platform(( Rule 5(2), Consumer Protection (E-Commerce) Rules, 2020)).

However, they will not be liable if the dangers of the product are common knowledge. For example, if a consumer misuses or alters a dangerous product like flamethrowers then the e-commerce entity cannot be held liable for this(( Section 87(1), Consumer Protection Act, 2019)).

Complaining to E-Commerce Platforms

E-commerce platforms must establish a ‘Grievance Redressal Mechanism’ and should appoint a ‘Grievance Officer’ for Indian customers to get their concerns addressed(( Rule 4(4), Consumer Protection (E-Commerce) Rules, 2020)). The details about the Grievance Redressal Mechanism must be displayed on the e-commerce platform. The Grievance officer must acknowledge the complaint within 48 hours and address the concern within a period of one month(( Rule 4(5), Consumer Protection (E-Commerce) Rules, 2020)).

 

Filing a case with Consumer Forum

The Consumer Forum is present at the District, State, and National Levels. You can file a case there depending on 2 factors:

  1. The amount of money you lost:
    • District Forum: Upto Rs. 50 Lakhs
    • State Commission: Rs. 50 Lakhs to Rs. 2 Crores
    • National Commission: Exceeding Rs. 2 Crores
  2. Where the loss happened :
    • You can file the complaint in the place where the money was lost, or where the opposite party (that is, the bank) carries on their business.

You should approach consumer forums only when you feel that the bank has been negligent, and has not given you proper service. The forum does not prosecute the actual culprit.

Generally, cases cannot be simultaneously filed before the consumer courts as well as the Banking Ombudsman.

What should I do when a ‘Right of Way’ dispute arises?

Easements or right of way is an owner’s or occupier’s right over other land, not his own, which allows them to enjoy their own property(( Section 4 of the Indian Easements Act 1882)). It includes the right to pass over the land of another person uninterruptedly to enjoy one’s own land. If there is obstruction of this right, you can sue for an injunction to stop the obstruction or for damages.

How is gifting an immovable property different from sale or purchase of a property?

A gift is a transfer of  movable or immovable property without consideration, i.e., without money. When a transfer of immovable property happens without any payment made while receiving such property, it is considered to be a gift. In such cases, the parties who give and receive property are known as Donor and Donee.  For a gift of immovable property to be valid under the law, the transfer must be:

  • Done through a registered legal instrument signed by or on behalf of the donor
  • Attested by at least two witnesses(( Section 123 of the TP Act.)).

Once it is signed and registered as per the due process of law, a gift deed cannot be revoked or taken back, except if the Donor and Donee agree beforehand that such revocation shall happen in certain conditions.

Time Limit for filing Tax Returns

For the financial year of 2019-20, the Income Tax Return (ITR) general filing deadline is November 30, 2020. The deadline to file belated and/or revised tax returns for the previous financial year of 2018-19 is July 31, 2020.

You can find other important due dates and income tax timelines for the year 2020 in this Tax Calendar.

In your Income Tax Return (ITR) form, you will have to select a category to file the form, depending on:

  • Date of filing the ITR form – You will be filing the form on/before the due date, or after due date
  • Type of income tax return – Generally, you will be filing an original ITR form applicable to that assessment year. After filing the original form, suppose you later have to correct or modify any details in the form. Then, you will be filing another revised or modified return in reference to the original.

Different Timelines while filing tax returns

Thus, different income tax returns can be filed as:

On or before the due date (( Section 139(1), Income Tax Act, 1961))

For example, the filing deadline is 30th November. If Priti files her income tax return on 15th November, then she has filed the ITR before the due date.

Belated return (after due date)(( Section 139(4), Income Tax Act, 1961))

If you have not submitted your income tax return within the time allowed to you, then you may submit the return for any financial year at any time before the end of the relevant assessment year, or before the completion of the assessment (whichever is earlier).

For example, take a situation where you had to submit your income tax return for the financial year 2019-20 by 30th June 2020, but you didn’t do so. In this case, your assessment year will be 2020-21. If the assessment year is ending on 31st March 2021, you will have to submit your return by this date (end of assessment year). If the income tax assessment happens before the end of the assessment year, then you will have to submit your delayed return before the assessment.

Revised return (( Section 139(5), Income Tax Act, 1961))

After submitting a return/belated return, if you discover any omission or any wrong statement, you can submit a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

For example, if you submitted your income tax return for the financial year 2019-20 by the deadline of 30th June 2020, your assessment year will be 2020-21. After submitting the return, if you realise that you have given some wrong information in the form, then you have to submit another revised form. This should have the correct information. If the assessment year is ending on 31st March 2021, you will have to submit your revised return by this date (end of assessment year). If the income tax assessment happens before the end of the assessment year, then you will have to submit your revised return before the assessment.

Modified return (( Section 92CD, Income Tax Act, 1961))

This applies in a situation where you have entered into an agreement after submitting your income tax return. If the agreement is applicable to or affects the financial year for which you have filed income tax, you will have to submit a modified return in accordance with the agreement.

For example, if you submitted your income tax return for the financial year 2019-20 by the deadline of 30th June 2020. Your assessment year will be 2020-21. After submitting the return, if you enter into an agreement that impacts your income tax returns for the financial year, then you have to submit a modified return including the details of the agreement.

The modified return should be filed within three months from the end of the month in which you entered the agreement. For instance, if you have entered into the agreement in July, you have to submit the modified return by the end of October (3 months).

When delay has been permitted by income tax authorities (( Section 119(2)(b), Income Tax Act, 1961))

The Central Board of Direct Taxes (CBDT) may authorise any income-tax authority to allow an application from you. The application may be for income tax exemption, deduction, refund, relief etc. Your application may be allowed/accepted even after the expiry period. You can take the help of a Chartered Accountant or Lawyer to do this.

Types of Agreements while renting

It is ideal to have an agreement or contract when you renting a house or giving your house on rent so that:

  • When there are any disagreements regarding money, utilities, and repairs, etc. the details of the contract would be enforceable and helpful for you.
  • When you want to file a complaint with the police/court you can show the written agreement/ contract as proof.
  • As a tenant/licensee, you can show your rent agreement as evidence of temporary residence.

Your rights and duties, whether as a landlord/licensor or a tenant/licensee, largely depend on the kind of agreement you sign for the purpose of renting a house. There are two kinds of agreements that are used for renting a property for residential purposes. They are:

Changing a Will

You can change your will as many times as you want. It is possible to make changes to your will even if it’s been registered.

Ideally, if you are making substantive changes to a will in order to convey your wishes properly, you should execute a codicil. A codicil is a written statement which supplements or modifies an existing will. It must be executed in the same manner as that of the original will.

You can also make changes by deleting, modifying or inserting new language in a will, you should sign and get the signature of the witnesses in the margins near the changes or at the end of the will by making a reference to the changes. No other changes can be made to an already executed will (unless it has been made to make it clear or legible).

Endorsing cheques

Endorsing cheques means that if you have an order cheque then you can endorse it to someone else. Endorsing means the payee can use the same order cheque to pay to someone else (the creditor) by writing that person’s name on the back of the cheque and signing it. When a person gets an endorsed cheque, he can collect the cash himself.

Example: Rahul gave a cheque to Raju. If Raju wants to endorse that cheque to Divya, he has to write Divya’s name behind the cheque and sign it.

Endorsing in favour of multiple people

A cheque can be endorsed any number of times. This means that a person can give it to someone, who can give it to someone else and the same can be continued multiple times. However, the bank may seek further information before crediting the amount in the account of the last person to whom the cheque is endorsed i.e. the final beneficiary of the cheque.

For Example

Jeet issued a cheque in favor of Sohini and Sohini decides to endorse the cheque to Adrija, by writing Adrija’s name behind the cheque given to her. Adrija can endorse the same cheque to any other person in the same way. Now, if the cheque has finally come to Param then the bank could ask for details (such as ID card) from Param when he approaches the bank to receive the cash.

Cheque that cannot be endorsed further

If a cheque is crossed and “Account Payee Only” or “Not Negotiable” is written on it, then it means that the cheque cannot be endorsed to anybody else. The cheque has to be necessarily collected by the banker of the payee on his behalf.

For Example

Simran has issued a cheque in favour of Namrata. But, she has written “Account Payee Only” or “Not Negotiable” and crossed the cheque. Then, Namrata cannot endorse it further.

Procedure to file a consumer complaint

A complaint(( Section 2(6), Consumer Protection Act, 2019)) can be filed electronically to the Integrated Grievance Redressal Mechanism portal (INGRAM), or offline with the consumer protection authorities such as district or state commissions to seek relief for consumer rights violations. Further there are helplines as well as phone based applications one can use to register complaints. If the complaint is not resolved, you can take the help of a lawyer to approach the consumer forums as the next step.

Complaint Process: Telephone 

 

Step-1: Check if you are a Consumer under the law

The complainant should be a consumer or an association of consumers(( Section 35(1), Consumer Protection Act, 2019)).

Step-2: Call the Helpline Number

Consumers can call the National Consumer Helpline: 1800-11-4000 or 14404 to register a complaint, except on national holidays. Alternatively, complaints can also be registered through SMS on + 91 8130009809.

Step-3: Give details about the Complaint

Name, contact details and address of the complainant and the seller must be mentioned to the helpline authority, along with the details of the complaint. The authority will register your complaint and give you a Unique Grievance ID.

Step-4: Track your Application

The grievance is then forwarded to the concerned seller, company, regulator, or authority for action. The action taken is updated against each grievance. Your grievance can be tracked with your Grievance ID by calling the helpline or through the Integrated Grievance Redressal Mechanism portal.

Step-5: Resolution of complaint

If your complaint is not resolved, then you can initiate a legal process by approaching the relevant Consumer Forum. The helpline authority can help in clarifying any doubts that you may have about the legal procedure.

E-Complaint Process: Internet (INGRAM Portal)

The Department of Consumer Affairs has launched a portal known as the Integrated Grievance Redress Mechanism (INGRAM) for bringing all stakeholders such as Consumers, Central and State Government Agencies, Private Companies, Regulators, Ombudsmen and call centres etc. onto a single platform. The portal will also help in creating awareness among consumers to protect their rights and inform them of their responsibilities. Consumers can register their grievances online through this portal.

Step-1: Check if you are a consumer under the law

The complainant should be a consumer under the law, meaning someone who is a consumer of a product or an association of consumers.

Step-2: Register on the INGRAM Portal

The complainant must register themselves as a consumer on the INGRAM portal. The complainant must fill in the required details and documents(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020))to register their complaint, such as name and address of the complainant and the seller, the facts of the dispute and the relief that the complainant seeks(( Rule 12(1), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020)). A one time registration is required for lodging a grievance. For registration, go to the web portal http://consumerhelpline.gov.in and click on the login link. Sign up giving the details required, and verify through your email. The user id and password are created. Using this user id and password, enter the portal and fill in required details of the grievance, attaching necessary documents (if available).

Step-3: Pay the Fee

The complainant must pay the fee(( Section 35(2), Consumer Protection Act, 2019))(if applicable) for complaint registration through digital payment mode, or apps like BHIM App, UMANG App to the respective Consumer Commissions in accordance with the value of the goods(( Rule 7(2), Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020)).

Step-4: Track your Application

Every grievance is registered and a Unique Grievance ID is issued. The grievance is forwarded to the concerned company, regulator, or authority for action. The action taken by them is updated against each grievance. The grievances filed can be tracked through the INGRAM portal.

Consumer Courts/Forums

Through the INGRAM portal, efforts are made to ensure that the grievance is redressed by taking up with the authorities concerned, which may be a company, ombudsman etc. However, if the issue is still pending, a consumer has a choice to approach the appropriate consumer court or forums with the help of a lawyer. Only complaints that are filed within 2 years since the dispute arose will be admitted for a hearing at the Consumer Dispute Redressal Commissions.

 

Customer Liability

The customer must not reveal/share payment credentials with any third party. If a customer does this then the customer’s liability will increase because of his or her negligent actions. It is the bank’s responsibility to prove that the customer is liable (to whatever degree) in case of unauthorised electronic banking transactions. At their discretion Banks may also decide to waive off any customer liability in case of unauthorised electronic banking transactions. They can do this even in cases of customer negligence.

The customer will incur zero liability when:

  • There is an unauthorized transaction due to contributory fraud or negligent behaviour or deficiency in the bank’s services. If you don’t report the unauthorized transaction to the bank, it does not matter because the zero liability occurs whether or not you report it.
  • There is a breach but it is not with the customer or bank, but somewhere else in the system. In this case, you should notify the bank within three working days of receiving communication about the unauthorized transaction.

The customer will incur limited liability if there is a delay of four to seven working days after receiving the communication from the bank about the unauthorized transaction, in such a situation the per transaction liability of the customer will be limited to the transaction value or the amount mentioned in this Table below, whichever is lower.

Maximum Liability of Customer

Type of Account Maximum Liability
Basic Savings Deposit Account Rs. 5,000/-
All other Savings Bank Accounts, Pre-paid Payment Instruments and Gift Cards, Current/Cash Credit/Overdraft Accounts of Micro, Small and Medium Enterprises, Current Accounts/Cash Credit/Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the incidence of fraud)/limit up to Rs.25 lakh, Credit cards with limit up to Rs.5 lakh Rs. 10,000/-
All other Current/ Cash Credit/ Overdraft Accounts, Credit cards with limit above Rs.5 lakh Rs. 25,000/-

Ownership of Immovable Property and related disputes

Ownership rights on land can be acquired by succession, survivorship, inheritance, partition and purchase. Disputes can arise out of objections about validity of rights of owner/seller or eligibility of purchaser and breach of government rules and regulations to hold the land. The manner in which these disputes are dealt with, is very specific to the facts of each case and needs specialized domain knowledge. It is important to consult a lawyer before taking any steps towards litigation. There are ways to check buyer and seller eligibility in a transaction of sale of immovable property. More information on how to check the eligibility is available here

Who do you complain to if there has been an issue related to buying or selling property?

You can approach the court to raise disputes over land and property for various reasons including claim on ownership, contestation over land acquisition, disagreement / disputes over real estate transactions, conflict over property inheritance, and misuse of rented property among others. There are different laws and procedures which explain how an individual can seek redressal on these issues, depending on the particular circumstances under which the dispute arises.  Such issues are better dealt with through lawyers specializing in land disputes. However, it is best to conduct your due diligence beforehand to make sure that your property is not stuck in a court dispute. Please talk to a lawyer or ask us any questions through the Ask Nyaaya Helpline.

Filing Tax Returns

Filing tax returns is a detailed and long-drawn process. Some legal aspects to keep in mind are:

Step 1:

Initially, for filing an Income Tax Return (ITR), you need to find out what category of taxpayer you are. This involves calculating your taxable income based on standard tax rates. There may also be certain tax deductions that you can avail to reduce your tax liability.

Step 2:

When it comes to actually filing tax returns, you must most importantly ensure that you submit your returns within the specified dates/timeline by selecting the correct ITR Form that is applicable to you.

Step 3:

There are various ways in which your ITR can be filed i.e., physically or electronically, and each filing option comes with a different procedure. Even within electronic filing, you have the offline and online options. Irrespective of how you file your ITR, you will have to verify it upon submission. Sometimes, you might have to correct certain details in your ITR Form, or claim a refund if you have paid excess tax.

Step 4:

Accurate information and filing on time is essential while filing taxes. If you violate any laws related to income tax, you can be punished. Hence, if you are doubtful about any aspect of filing returns, it is advisable to seek help by contacting the income tax authorities.

Leave and License Agreement

In some cities, instead of a rent agreement, a leave and license agreement is used. By using this form of an agreement, the owner of the property gives you permission to use the house for a specific purpose.

In a Leave and License agreement, the person giving the house on rent is called the licensor and the person renting the house is called a licensee.

Keep in mind the following when you enter into a Leave and License Agreement:

Tenant Protections Not Available to a Licensee

You are technically not a tenant as per law and hence you do not have certain rights. Instead, you are a licensee who has acquired a limited right to use the premises for a specific time period.

Guided by Agreement

The rights and duties of both licensor and licensee are primarily decided by the agreement. If any of the terms of the agreement are violated, it is treated as a violation or breaking of a contract, the remedy for which is going to Court to file a civil suit.

To see a sample leave and license agreement, refer here.

Please refer to this checklist to ensure you have all the essential points covered in your agreement.

Probate Process of the Will

In certain cases, it is necessary to obtain a probate of the will in order to establish your right as a beneficiary of the will. You will have to apply to the court for a probate. It is a certification by the court with respect to the genuineness and validity of execution of the will. Getting a probate does not, however, mean that your title to the property has been established. This is essentially an official evidence of the executor’s right to administer the estate of the deceased. While there is no specific deadline by which you need to obtain the probate, you should avoid long delays.

A probate is compulsory for wills of Hindus, Buddhists, Jains and Sikhs in Chennai and Mumbai or if their property is in Chennai and Mumbai. It is also applicable to Christians outside Kerala and Parsis (who died after 1962) in Kolkata, Chennai and Mumbai. Please confirm with a lawyer if you should get a probate for the will.

Speed Clearing for Outstation Cheques

Cheques can be issued to a person holding a bank account in a bank branch in the same city or outside. When the cheque is issued to a person outside the same city then it becomes an outstation cheque.

Speed Clearing is a process that makes it possible to clear such cheques, locally. With the help of MICR and Core Banking System (CBS), the entire process of clearing such cheques has become easier and faster. It is also referred to as ‘Grid-Based Cheque Truncation System’.

Before the Speed Clearing Process existed, if you deposited an outstation cheque at your bank, it would first go to the local clearing house in your city and then the cheque would be physically sent to the outstation branch to process the payment. Now, with speed clearing, the cheque is sent to the local branch of the drawee bank for clearance.

Hence, clearance becomes faster with the Speed Clearing System.

Fee for making complaints

Every complaint(( Section 2(6), Consumer Protection Act, 2019.)) filed under the consumer protection law must be accompanied with a nominal fee that is payable in the form of a demand draft of a nationalized bank or through a postal order(( Rule 7(1), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020)), or in electronic form(( Section 35(2), Consumer Protection Act, 2019)). The fee structure based on the value of goods or services is given below(( Section 35(2), Consumer Protection Act, 2019)):

 

Fee payable to the District Consumer Disputes Redressal Commission:

 

Value of Good or Services Old Fee New Fee
Upto one Lakh – Upto to one lakh rupees – For complainants who are under the Below Proverty Line holding Antyodaya Anna Yojana cards No fee No Fee
Upto one lakh Rupees – For complainants other than Antyodaya Anna Yojana card holders No Fee Rs. 100
Rs. 1 lakhs – Rs. 5 lakhs No fee Rs. 500
Rs. 5 lakhs – 10 Rs lakhs Rs. 200 Rs. 1000
Rs. 10 lakhs – Rs. 20 lakhs Rs.400 Rs. 2000
Rs. 20 lakhs – Rs. 50 lakhs Rs. 1000
Rs. 50 lakhs – Rs. 1 crore Rs. 2000

 

Fee payable to the State Consumer Disputes Redressal Commission:

Value of Good or Service Old Fee New Fee
Rs. 20 lakhs – Rs. 50 lakhs NA Rs. 5000
Rs. 50 lakhs – Rs. 1 crore NA Rs. 10,000
Rs. 1 crores – Rs. 2 crores Rs. 2500 NA
Rs. 2 crores – Rs. 4 crores Rs. 3000 NA
Rs. 4 crores – Rs. 6 crores Rs. 4000 NA
Rs. 6 crores – Rs 8 crores Rs. 5000 NA
Rs. 8 crores – Rs. 10 crores Rs. 6000 NA

Fee payable to the National Consumer Disputes Redressal Commission:

 

Value of Good or Service Old Fee New Fee
Above Rs. 1 crore NA Rs. 25,000
Above Rs. 5 crore NA Rs. 50,000
Above Rs. 10 crores Rs. 7500 Rs. 1,00,000

 

An important thing to note is that the collected fees go to the Consumer Welfare Fund, at the State level or the National level, as the case may be. Where such Fund does not exist, it is directed to the State Government(( Rule 7(2), Consumer Protection (Consumer Complaint Redressal Commissions) Rules, 2020)). The fee is utilized to continue consumer welfare projects.

 

Reversing an unauthorized transaction

After receiving the notification from the customer of the unauthorized transaction, the bank will reverse the transaction and will credit the amount involved in the authorized electronic transaction. This should be done within 10 working days from the date of the receipt of notification from the customer. The banks should not wait for settlement of insurance claims to do this. The Bank will credit the money as per the value as of the date of the unauthorised transaction.

If I have a dispute with someone about land or other immovable property, which court should I approach?

The location of your property is one of the main considerations in deciding which court you should approach to file a suit about immovable property(( Under Section 16 of the Civil Procedure Code, suits for various disputes relating to immovable property must be instituted in the Court within the local limits of whose jurisdiction the property is situated)). The court must have jurisdiction over the place where the disputed property is situated. If a property is located across jurisdictional boundaries of more than one court, the suit can be filed in any of those courts(( Section 17 of the Civil Procedure Code)). Please consult a lawyer before taking such steps.

Besides approaching courts, disputes can be settled with the help of Lok Adalats. This is an alternate dispute resolution mechanism recognized under the Legal Services Authorities Act, 1987.

Lok Adalats are a forum where disputes/cases pending in the court of law or at pre-litigation stage, like land and property disputes, are settled/ compromised amicably. The decision of the Lok Adalat is final and binding; there is no provision for appeal. However, if the party is unsatisfied with the award, they can initiate the litigation process.

What should I consider when I am selling a house or land?

If you are planning to sell a property, one of the most critical factors you must consider during the sale is the process of registering the transaction.

Registering the Sale

Registering the transaction or sale is beneficial for both parties since it means that the government recognizes the transfer of property from the seller to the buyer. In India, all individuals must register((  The Registration Act, 1908.)) the sale of an immovable property for which the transaction costs exceed Rs.100. Since the cost of land or a house is much higher, this effectively implies that sale of such a property must be registered. Furthermore, all transactions involving gift of an immovable property, as well as lease for a period exceeding 12 months also need to be registered.

Disclosure of Information

As a seller, it is important to ensure that the transaction is carried out with absolute honesty and in full agreement with the buyer. This is necessary to ensure that there is no conflict or dispute that arises over the transaction in the future. When the buyer shows an interest in the land or house you wish to sell, you, as the seller, must:

  • Disclose to the buyer any material defect in the property of which you are aware but of which the buyer is not aware, and which the buyer cannot ordinarily discover.
  • Make available all the relevant documents to the buyer for examination, including all documents of title relating to the property.

Procedure for Electronically Filing Tax (Offline Filing)

The offline electronic filing (e-filing) mode is applicable for all Income Tax Retun (ITR) Forms. In the offline e-filing mode, you have to fill the ITR form offline, and then submit it on the Income Tax Department website.

Step 1: Select ITR Form

For offline mode, you have to download the appropriate ITR Form from the Income Tax Department’s e-filing portal. If you want to know which ITR form you have to fill, read here.

A pre-filled form can also be downloaded if you log in to the e-filing portal. From your account, you can choose to ‘Download Pre-Filled XML’. Import this to fill personal and other details into your ITR forms.

Step 2: Fill in Details

You can fill in the downloaded ITR form offline. Ensure that you fill the form completely and provide all the necessary details correctly. Validate all the tabs in the form.

Note that ​​​​​​​​​​ITR forms are attachment less forms and, hence, you are not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income. Keep the ITR forms safely as they may be asked by the tax authorities when demanded in situations like assessment, inquiry, etc.

Step 3: Compute your Tax Liability

Compute total income for the financial year and compute your tax liability. You can also take the help of a Chartered Accountant for this. After this, collect all the documents and verify all the taxes deducted from your income. This way you can compute the total income chargeable to tax. After computing your total income, you have to calculate your tax liability. You can do this by applying the tax rates in force as per your income slab.

Step 4: Deductions

Once you have computed your tax liability, deduct the taxes that have been already paid by you through TDS, TCS and Advance Tax, and add interest payable (if any). This will tell you if all the taxes are already paid by you or any additional tax has to be paid, or if you have paid any excess taxes and a refund is due to you.

Step 5: Submit ITR Form

Generate and save the form. After preparing the form offline, you can then submit it online by logging in to the e-filing portal.

Step 6: Upload ITR Form in XML Format

After selecting the ‘e-File’ menu, leading to the ‘Income tax return’ page, you will have to select the assessment year, ITR form number, and whether your ITR is an original/revised return. You can then upload your form in the XML format. You have several options for verifying your form, and can choose to verify your form at the time of submission or later.

Once the verification is done, you can check your ITR status here.

Lease Agreement

A lease deed/agreement is the most common form of agreement used in many cities like Delhi, Bangalore, etc. It is also commonly referred to as ‘Rent Agreement’.

Rights Under a Rent Agreement

As a tenant, if you have signed a lease deed with your landlord, you have certain rights that you would not have in case of a leave and license agreement, such as:

Interest in Property

You have a right over the property in terms of its occupation and use since you are paying rent.

Right to Possession

You get exclusive possession to occupy the house being rented to you. This means that if the landlord has rented you a house or space, he cannot use the space assigned to you. It is for your exclusive use for the duration of your lease.

Protection from Eviction

The landlord cannot unilaterally end or shorten the duration of your lease without providing proper legal justification. You have certain protections available against eviction.

Please refer to this checklist to ensure you have all the essential points covered in your agreement.

Valid cheques

A valid cheque is one that can be presented to the bank in order to receive money from the drawer’s account. The validity of the cheque will depend upon the date it was issued. Once a date has been written on a cheque at the time of issuance, it will only stay valid for up to 3 months from that date. For example, if a cheque has been issued on 1st January, 2019, then it will only be valid till 1st April, 2019. There are two broad categories of valid cheques:

Punishments for Consumer Rights Violations

The Central Consumer Protection Authority has the power to penalize an individual or entity for violating consumer rights. This is ensured through various means such as fines, taking back the defective goods(( Section 20(a), Consumer Protection Act, 2019)), reimbursements for such goods/services(( Section 20(b), Consumer Protection Act, 2019)), or discontinuation of unfair trade practices(( Section 20(c), Consumer Protection Act, 2019)).

Punishments for false or misleading advertisements

The manufacturer, advertiser or endorser is liable for false or misleading advertisements. However, the endorser’s liability in these cases only arises when they have not done their research(( Section 21(5), Consumer Protection Act, 2019)) before endorsing such an advertisement. The punishment is:

  • For the first offence: A fine which may extend up to Rs. 10 lakh and jail time up to 2 years5(( Section 89 & Section 21 (2), Consumer Protection Act, 2019)).
  • For every repeat offence: A fine which may extend up to Rs. 50 lakh and jail time up to 5 years may be awarded(( Section 89 & Section 21 (2), Consumer Protection Act, 2019)).
  • The Central Authority can also prohibit them from endorsing any product for up to 1 year. In case of subsequent offences, it can be extended up to 3 years(( Section 21(3), Consumer Protection Act, 2019)).
  • Failure to comply with these directions of the Central Authority can result in jail time for up to 6 months or a fine extending to Rs. 20 lakh(( Section 88, Consumer Protection Act, 2019)).

 

Punishments for sale of adulterated products

Any action of the manufacturer or retailer involving the sale, import, storage or distribution of adulterated food is punishable. The following punishments apply:

  • When there is no injury(( Section 2(23), Consumer Protection Act, 2019)) to the consumer, like any kind of pain or death, jail time for up to 6 months and a fine of up to Rs. 1 lakh may be granted(( Section 90(1)(a), Consumer Protection Act, 2019)).
  • When the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be granted(( Section 90(1)(b), Consumer Protection Act, 2019)).
  • When there is grievous hurt to the consumer, jail time for up to 7 years and a fine of up to Rs. 5 lakhs may be granted(( Section 90(1)(c), Consumer Protection Act, 2019)).
  • When the adulteration has caused the death of the consumer, jail time for not less than 7 years and extending up to life, and a fine of not less than Rs. 10 lakhs may be granted(( Section 90(1)(d), Consumer Protection Act, 2019)).

Additionally, the Consumer Authority may suspend the license of the manufacturer for up to 2 years, when it is the first offence or cancel the license of such manufacturer altogether if the offence is repeated(( Section 90(3), Consumer Protection Act, 2019)).

Punishments for sale of spurious goods

Spurious goods are those which are falsely claimed to be genuine(( Section 2(43), Consumer Protection Act, 2019)) or are fake or imitative of real, original goods. These are often of inferior quality and infringe upon the trademarks and copyrights of legal owners of the original goods. A crucial example is that of medicines or cheap make-up products found in local markets. Any action of the manufacturer involving the sale, import, storage or distribution of these goods, is punishable as follows:

  1. If the injury does not amount to grievous hurt to the consumer, jail time for up to 1 year and a fine of up to Rs. 3 lakhs may be awarded15(( Section 91(1)(a), Consumer Protection Act, 2019)).
  2. When such spurious goods cause grievous hurt to a consumer, jail time up to 7 years and a fine up to Rs. 5 lakhs may be awarded to the manufacturer16(( Section 91(1)(b), Consumer Protection Act, 2019)).
  3. When the good bought has caused the death of a consumer, jail time for a minimum period of 7 years extending up to life jail time and a minimum fine of Rs. 10 lakhs may be awarded17(( Section 91(1)(c), Consumer Protection Act, 2019)).