Joint Venture

• TVN strongly recommends a joint venture of land or old house in which the landlord has stayed for long years and still wants to retain the same property but is incapable for conducting new construction or is short of funds to re-develop the same property. TVN ensures that the landlord gets fair amount of share in the land along with liquidity for urgent expenses.

Few important reasons for going in for Joint venture

• Selling a property attracts capital gain tax and one has to pay high stamp duty if one buys an alternate property from its sale proceeds.

• Again selling an inherited ancestral property in India is still not socially acceptable option because of the sentimental value attached to it.

• Also, one pays much lower municipal taxes on the retained portion in the proposed building than if another property is purchased at the market price out of the sale proceeds of the inherited one. So in most cases developing a property through a professional developer is a better alternative than outright sale.

• We enjoy the appreciation on the property which continues to happen for all properties without going through the hardship of negotiating, selling and purchasing another property.

• According to some experts, if the property is converted into flats which its present owners intend to occupy for personal use and occupation in that case they cannot be subjected to capital gain tax.

• In the event we have any requirement of cash the same can be met by the security deposits paid by the developer at the time of signing and execution of the development contract without it being subjected to any kind of Capital or Income tax.

• An alternate accommodation during the development and construction over our existing property is usually provided by the developer for which the owners do not have to pay any tax. In the event the sale of property if the sale proceeds are used for the alternate accommodation no such tax exemption is available.

• When we own and occupy the floor constructed on our own property we are obviously not subjected to any brokerage, legal charges, stamp duty or registration fees etc.

• In most cases the value of the floor acquired by us in lieu of the land or the old property is 50-100 percent higher than the original value of the land or the property.