Introduction to Transfer of Property Act (ToPA)
When selling a property owned by you to any other person, there are certain taxes which are applicable. This is mainly because this transfer of property brings financial gains to the sellers. These taxes applied are regulated by tax laws that fall under the Transfer of Property Act or ToPA.
What is the Transfer of Property Act (ToPA)?
The Transfer of Property Act (ToPA) first came into force on the 1st of July 1882. This act deals with the different aspects which need to be considered during the transfer of property between two parties—buyer and seller.
The Transfer of Property Act (ToPA) is one of the oldest acts in the Indian legal system and is very important for those planning to transfer their immovable property. This immovable property can be a land, home, plot, or anything which is fixed in a place and cannot be moved from one place to another.
This act is applicable to the transfer of all kinds of immovable properties between individuals as well as companies and organisations. However, the properties which are inherited or disposed in the form of will are excluded from this act.
Six types of properties including sales, lease, mortgage, exchange, gift and actionable claim are all included in the Transfer of Property Act (ToPA).
According to this act, any person above the age of 18, who is mentally sane and entitled to a property or authorised to dispose of a property, can transfer the property under the Transfer of Property Act (ToPA).
The act also implies that a written agreement is necessary when making the transfer of the property as the terms of an oral agreement cannot be considered valid under the law. Therefore, even properties of a value of less than 100 rupees need to be transferred by making a proper written agreement.
