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Inheritance Tax on Property: Everything You Need to Know
Tax

Inheritance Tax on Property: Everything You Need to Know

Inheritance tax, often referred to as estate duty or death tax, is a financial obligation imposed on the transfer of property and assets from a deceased individual to their beneficiaries. While many countries levy inheritance tax, India currently does not. However, discussions regarding its reimplementation have resurfaced. This blog explores the inheritance tax concept, its historical background, tax implications on inherited property, and methods to optimize taxation while inheriting assets.

Understanding Inheritance Tax

Inheritance tax is a levy imposed on the assets of a deceased person before they are transferred to legal heirs. In many countries, beneficiaries must pay taxes on inherited wealth. However, in India, no such tax exists, as estate duty was abolished in 1985 due to high tax rates and administrative inefficiencies.

Historical Background of Inheritance Tax in India

Estate duty in India was introduced in 1953 to curb wealth accumulation. However, the tax rates reached as high as 85% for larger estates, making its execution problematic. As a result, the government abolished inheritance tax in 1985, allowing assets to pass on to heirs without direct taxation.

Despite its abolition, the government periodically revisits the idea of reintroducing inheritance tax to ensure equitable wealth distribution. Thus, understanding the tax implications of inheriting and subsequently selling property remains crucial for legal heirs.

Taxation on Inherited Property in India

Although inheritance tax does not exist in India, other tax obligations arise upon inheriting property, such as income tax and capital gains tax when the property is sold.

1. Income Tax on Rent from Inherited Property

If a beneficiary inherits a property that generates rental income, they must declare this income under the head "Income from House Property" in their tax return and pay applicable income tax.

For example, if a deceased parent owned a commercial property generating Rs. 70,000 in rent per month, the legal heir inheriting it must report this rental income and pay income tax per their tax slab.

2. Capital Gains Tax on Sale of Inherited Property

Legal heirs are not liable for taxes at the time of inheritance but must pay capital gains tax if they decide to sell the inherited property. The taxation is determined based on the holding period, including the duration the deceased owned the property.

Short-Term Capital Gains (STCG)

If the inherited property is sold within 24 months from the original acquisition date, the profits are taxed as per the individual's income tax slab under STCG.

Long-Term Capital Gains (LTCG)

If the inherited property is sold after 24 months, it is taxed under LTCG, with a 20% tax rate plus indexation benefits.

Example:

  1. Mr. Ashish inherited a property in 2019, originally purchased by his father in 1997 for Rs. 40,000.

  2. If Mr. Ashish sells it in 2023 for Rs. 5,00,000, the LTCG applies since the property was held for more than 24 months.

  3. He can benefit from indexation, reducing taxable capital gains and lowering tax liability.

How to Save Capital Gains Tax on Inherited Property

1. Section 54EC Bonds

Legal heirs can invest the capital gains from property sales in specified bonds within six months to claim exemption under Section 54EC. Eligible bonds include:

  1. National Highway Authority of India (NHAI)

  2. Indian Railways Finance Corporation Limited (IRFC)

  3. Power Finance Corporation Ltd (PFC)

  4. Rural Electrification Corporation Ltd (RECL)

The maximum investment limit is Rs. 50 lakh per financial year.

2. Section 54 Exemption (Reinvestment in Residential Property)

Heirs can reinvest sale proceeds into purchasing or constructing a new residential property to claim LTCG exemption under Section 54.

  1. The new property must be purchased within two years before or three years after the sale of the inherited property.

  2. Up to two properties can be purchased with a maximum LTCG exemption of Rs. 2 crore.

3. Gifting to Family Members

In India, gifts to specific relatives such as spouses, children, or parents are tax-free. Transferring property before sale to a lower-income family member could reduce tax liability.

4. HUF (Hindu Undivided Family) Tax Benefits

If a property is transferred to an HUF, tax planning can be optimized as HUFs enjoy separate tax exemptions and slabs, reducing tax liabilities.

Calculation of Inheritance Tax (Hypothetical Scenario)

If India were to reintroduce inheritance tax, it would likely be calculated as follows:

Example:

  1. Mr. Ramesh inherits a property worth Rs. 10 crores.

  2. Assuming an inheritance tax rate of 10% on wealth exceeding Rs. 5 crores,

    • Taxable inheritance = Rs. 10 crores - Rs. 5 crores = Rs. 5 crores

    • Inheritance tax payable = 10% of Rs. 5 crores = Rs. 50 lakhs

Since inheritance tax does not exist in India, no such liability applies, but similar laws exist in countries like the USA, UK, and Japan.

Methods of Inheritance in India

Inheritance of assets occurs through different legal structures, such as:

1. Will of Succession

A legally executed Will ensures a smooth transfer of assets to intended beneficiaries.

2. Inheritance by Nomination

Assets such as bank deposits, insurance policies, and mutual funds pass to the nominated individual upon the owner’s demise.

3. Inheritance by Joint Ownership

Assets jointly owned by individuals automatically transfer to the surviving owner(s).

Conclusion

While inheritance tax does not exist in India, beneficiaries must understand income tax and capital gains tax implications on inherited property. Proper tax planning through Section 54 exemptions, investment in bonds, and legal restructuring can help minimize tax burdens.

If the government reinstates inheritance tax in the future, legal heirs may need to plan their assets efficiently to avoid substantial tax liabilities.

Secure your inheritance today by drafting a well-structured Will! Seek expert legal assistance to ensure a hassle-free property transfer to your loved ones.
Dividing Assets in Divorce: Everything You Need to Know
Divorce

Dividing Assets in Divorce: Everything You Need to Know

Divorce is an emotionally and financially challenging process that requires careful consideration of asset division. While separating from a spouse is already a difficult decision, the division of assets adds an additional layer of complexity. Understanding the legal implications, financial impact, and available options can help ensure a fair and equitable distribution. This guide covers all the essential aspects of dividing assets in a divorce.

Understanding Asset Division in Divorce

Asset division in a divorce involves splitting property, financial accounts, and investments between spouses. Depending on the situation, couples may settle asset division amicably or require court intervention. Regardless of the method chosen, the process must result in a legally binding agreement that ensures fairness and adherence to applicable laws.

Key Considerations in Asset Division:

  • State Laws: Each state follows either community property or equitable distribution laws.

  • Marital vs. Separate Property: Assets acquired during the marriage are subject to division, while separate property remains with the original owner.

  • Debts and Liabilities: Just like assets, debts must also be fairly divided between spouses.

  • Tax Implications: Certain assets, such as retirement accounts and investment properties, may have tax consequences when divided.

Types of Divorce and Their Impact on Asset Division

Different types of divorces determine how assets are divided between spouses. The process chosen affects the timeline, cost, and level of control over asset division.

1. Contested Divorce

A contested divorce occurs when spouses cannot agree on asset division. In such cases, a judge makes the final decision based on applicable laws and evidence presented in court. This type of divorce is often lengthy and expensive due to attorney fees and court proceedings.

2. Uncontested Divorce

In an uncontested divorce, both spouses agree on asset division without court intervention. This approach is faster, less expensive, and allows for greater control over the final settlement.

3. Fault and No-Fault Divorce

  • Fault Divorce: Requires proving that one spouse's misconduct led to the marriage's dissolution (e.g., adultery or abuse).

  • No-Fault Divorce: Based on irreconcilable differences, where neither spouse is blamed.

4. Litigated Divorce

If negotiations fail, couples may pursue a litigated divorce, where the court decides asset division, child custody, and financial settlements.

5. Mediation Divorce

A neutral third-party mediator helps spouses negotiate and agree on asset division. Mediation is less adversarial and keeps proceedings private.

6. Arbitration Divorce

Similar to mediation, but with a legally binding decision made by the arbitrator, ensuring faster resolution.

7. Collaborative Divorce

Each spouse hires a collaborative attorney to negotiate asset division outside of court, aiming for a mutually beneficial agreement.

Marital Property vs. Separate Property

One of the first steps in asset division is distinguishing between marital and separate property.

  • Marital Property: Any assets acquired during the marriage, including joint bank accounts, real estate, and retirement funds.

  • Separate Property: Assets owned before marriage, inheritances, and gifts given to one spouse.

Exceptions may apply if separate property was commingled with marital assets or used for joint expenses.

Equitable Distribution vs. Community Property Laws

1. Equitable Distribution States

Most states follow equitable distribution laws, meaning assets are divided fairly but not necessarily equally. Courts consider various factors, including each spouse’s financial situation, contributions to the marriage, and future needs.

2. Community Property States

Nine states, including California and Texas, follow community property laws, where assets acquired during the marriage are split 50/50. However, certain exceptions may apply.

How Major Assets Are Divided

1. Real Estate (Family Home)

The marital home is often one of the most significant assets in a divorce. Options for handling the family home include:

  • Selling the Property: Proceeds are divided between spouses.

  • Buying Out a Spouse: One spouse pays the other their share of the home’s value.

  • Co-Ownership: The couple may agree to retain joint ownership temporarily (e.g., until children reach adulthood).

2. Retirement Accounts and Pensions

Retirement savings, such as 401(k)s and IRAs, are divided using a Qualified Domestic Relations Order (QDRO). Courts may split these assets equitably, considering each spouse’s contributions.

3. Business Assets

Dividing business assets can be complex. Options include:

  1. One spouse buying out the other’s share.

  2. Selling the business and splitting the proceeds.

  3. Continuing joint ownership under specific terms.

4. Investment Portfolios

Stocks, bonds, and mutual funds may be divided based on their value at the time of divorce. Tax implications should be considered when liquidating or transferring investments.

5. Vehicles

Courts typically award vehicles to the spouse who primarily uses them, considering financial responsibility for payments and maintenance.

Handling Debts and Liabilities

Just as assets are divided, debts acquired during the marriage must also be addressed. Courts consider:

  • Mortgage and Loan Responsibilities: Who continues payments on shared loans.

  • Credit Card Debt: Generally split based on who incurred the debt and the ability to pay.

  • Tax Liabilities: Spouses may need to file separate returns post-divorce.

Steps to Reaching a Fair Property Agreement

1. Inventory All Assets and Debts

Create a comprehensive list of all marital and separate assets, including real estate, investments, bank accounts, and liabilities.

2. Obtain Asset Valuations

Professional appraisals ensure an accurate valuation of homes, businesses, and high-value assets.

3. Determine Separate vs. Marital Property

Identify which assets qualify as separate property to avoid unnecessary disputes.

4. Negotiate with Your Spouse

If possible, reach a mutual agreement through direct negotiation or mediation to avoid costly legal battles.

5. Consult Financial and Legal Experts

Certified Divorce Financial Analysts (CDFAs) and attorneys can provide guidance on tax implications, retirement accounts, and financial stability.

6. Submit the Agreement to Court

Once both parties agree on asset division, the final step is obtaining court approval to make the agreement legally binding.

Tax Considerations When Dividing Assets

Understanding tax implications is crucial to avoiding financial pitfalls.

  • Capital Gains Tax: Applies to the sale of high-value assets.

  • Alimony and Child Support: Tax implications vary based on state and federal laws.

  • Retirement Account Withdrawals: Early withdrawals may incur penalties unless transferred properly.

Protecting Your Financial Future Post-Divorce

Divorce can impact long-term financial stability. Consider the following steps:

  • Create a New Budget: Adjust financial plans based on post-divorce income and expenses.

  • Build an Emergency Fund: Prepare for unexpected expenses.

  • Review Investment Portfolios: Adjust investment strategies to align with new financial goals.

  • Update Insurance Policies: Modify health, life, and auto insurance plans as needed.

  • Revise Estate Planning Documents: Update wills and beneficiary designations to reflect post-divorce arrangements.

Final Thoughts

Dividing assets in a divorce is a complex process that requires legal guidance, financial planning, and negotiation. Understanding marital vs. separate property, state laws, and available options can help ensure a fair settlement. Whether through mediation, arbitration, or litigation, seeking professional advice can make asset division more manageable and financially secure for both parties.
Equitable Distribution: A Fair Approach to Resolving Family Matter Disputes
Family Dispute

Equitable Distribution: A Fair Approach to Resolving Family Matter Disputes

Family disputes, especially those involving divorce or separation, can be emotionally draining and legally complex. One of the most critical aspects of such disputes is the division of assets and liabilities. This is where the concept of equitable distribution comes into play. But what exactly does equitable distribution mean, and how does it work? In this blog, we’ll break it down in simple terms, helping you understand how fairness is achieved in family matter disputes.

People Also Read - Joint Property After Divorce: A Complete Guide for Indian Couples

What is Equitable Distribution?

Equitable distribution is a legal principle used to divide property and assets fairly between spouses during a divorce or separation. The key word here is “equitable,” which means fair and just, but not necessarily equal. Unlike an equal split, where everything is divided 50-50, equitable distribution considers various factors to ensure a fair outcome based on the unique circumstances of each case.

This principle is widely used in many countries, including India, to resolve disputes over property, finances, and other assets when a marriage ends. The goal is to ensure that both parties walk away with a fair share, considering their contributions, needs, and future circumstances.

How Does Equitable Distribution Work?

Equitable distribution involves a step-by-step process to divide marital assets and liabilities. Here’s how it typically works:

1. Identifying Marital vs. Separate Property

The first step is to categorize the property involved. There are two main types:

  • Marital Property: This includes assets and debts acquired during the marriage. Examples include the family home, joint bank accounts, and shared investments.

  • Separate Property: This refers to assets owned by one spouse before the marriage or acquired individually during the marriage (e.g., gifts or inheritances). Separate property is usually not subject to division.

You May Also Read - Property Rights of a Child after their parent's divorce

2. Valuing the Assets

Once the marital property is identified, the next step is to determine its value. This may involve appraisals for real estate, valuations for businesses, or assessments of financial accounts.

3. Considering Factors for Fair Division

The court or mediators consider several factors to decide what constitutes a fair distribution. These factors may include:

  1. The length of the marriage.

  2. The income and earning potential of each spouse.

  3. Contributions made by each spouse (financial and non-financial, such as homemaking or childcare).

  4. The age and health of each spouse.

  5. Future financial needs, especially if one spouse is the primary caregiver for children.

4. Dividing the Assets

Based on the above factors, the court or mediators decide how to divide the marital property. This could mean splitting assets equally, or one spouse may receive a larger share depending on the circumstances.

Why is Equitable Distribution Important?

Equitable distribution plays a crucial role in ensuring fairness in family disputes. Here’s why it matters:

1. Recognizes Contributions Beyond Finances

Not all contributions to a marriage are financial. For example, a spouse who stays home to care for children or manage the household contributes significantly to the family’s well-being. Equitable distribution acknowledges these non-financial contributions and ensures they are valued.

2. Addresses Imbalances

In many cases, one spouse may earn significantly more than the other or have greater financial resources. Equitable distribution helps address these imbalances, ensuring that the less financially secure spouse is not left at a disadvantage.

3. Promotes Amicable Resolutions

By focusing on fairness rather than strict equality, equitable distribution encourages couples to resolve disputes amicably. This can reduce conflict and make the process less stressful for everyone involved.

Examples of Equitable Distribution in Action

Let’s look at a couple of examples to understand how equitable distribution works in real-life scenarios:

Example 1: The Homemaker Spouse

Rita and Raj have been married for 15 years. Rita worked as a teacher, while Raj stayed home to care for their children. During the divorce, the court awarded Rita a larger share of the marital home and savings. This decision recognized Raj’s non-financial contributions to the family and ensured he had financial security post-divorce.

Example 2: The High-Earning Spouse

Anita and Arjun are getting divorced after 10 years of marriage. Arjun is a high-earning corporate executive, while Anita runs a small business with modest earnings. The court awarded Anita a larger share of their joint investments to help her maintain her standard of living and support her business.

Challenges in Equitable Distribution

While equitable distribution aims to be fair, it’s not without its challenges:

  • Subjectivity: What one person considers fair may not seem fair to another.

  • Complexity: Valuing assets like businesses or investments can be complicated and time-consuming.

  • Emotional Factors: Divorce is an emotional process, and feelings of resentment or anger can complicate negotiations.

To overcome these challenges, it’s essential to work with experienced legal professionals who can guide you through the process and advocate for your best interests.

Tips for Navigating Equitable Distribution

If you’re going through a divorce or separation, here are some tips to help you navigate equitable distribution:

1. Be Transparent

Honesty is key. Disclose all assets and liabilities to ensure a fair division.

2. Seek Professional Help

Work with a lawyer or mediator who specializes in family law. They can help you understand your rights and negotiate a fair settlement.

People Also Read - The Role of a Family Dispute Lawyer in Protecting Your Rights During Divorce

3. Focus on the Big Picture

While it’s natural to feel attached to certain assets, try to focus on what’s best for your long-term financial stability.

4. Keep Emotions in Check

Divorce is emotional, but letting emotions drive decisions can lead to unfair outcomes. Stay calm and rational during negotiations.

You May Also Read - Understanding the Legal Rights of Women in Divorce Cases in India

Conclusion: Fairness for a Better Future

Equitable distribution is more than just a legal principle—it’s a way to ensure fairness and justice in family matter disputes. By considering the unique circumstances of each case, it helps create outcomes that are fair, balanced, and respectful of both parties’ contributions.

If you’re facing a divorce or separation, understanding equitable distribution can empower you to make informed decisions and secure a better future for yourself and your family. Remember, fairness is not about winning or losing; it’s about finding a resolution that works for everyone involved.

LegalKart Editor
LegalKart Editor • 03 min read • 177 Views
Step-by-Step Guide to PM-UDAY Application: How to Get Your Conveyance Deed & Authorisation Slip
Property

Step-by-Step Guide to PM-UDAY Application: How to Get Your Conveyance Deed & Authorisation Slip

The Pradhan Mantri - Unauthorized Colonies in Delhi Awas Adhikar Yojana (PM-UDAY) is an initiative by the Government of India to provide property ownership rights to residents of unauthorized colonies in Delhi. The scheme enables eligible residents to obtain a Conveyance Deed (CD) or Authorization Slip (AS), ensuring legal property ownership. This guide will take you through the step-by-step process of submitting a PM-UDAY application and obtaining the necessary documents.

Step 1: Registration on the PM-UDAY Portal

To begin the application process, follow these steps:

  1. Access the Portal: Visit PM-UDAY Portal or go to the DDA website and click on the PM-UDAY Cell Tab.

  2. Register: Click on the ‘Registration’ button and fill out the registration form with the following details:

    1. Applicant details

    2. Property details

    3. Email ID

    4. Mobile number (ensure it's active)

  3. Submit the form and print the Acknowledgment Receipt.

  4. Note down the Registration Number for future reference.

  5. Check GIS agency details printed on the acknowledgment receipt.

📌 Note: You can also register using the PM-UDAY Mobile App, available on the Google Play Store. The app includes a UC Locator facility to check if your property falls within a UC boundary.

Step 2: Completing the Application Form (Part-1)

  1. Login to the PM-UDAY Portal and click on ‘File Application’.

  2. Fill out the PART-1 details, including:

    1. Colony details

    2. Property details

    3. Floor/Building details

    4. Land details

    5. Ownership details

    6. Declaration

  3. Receive Case ID, which will be sent to your registered email and mobile number.

  4. Download required formats such as Indemnity Bond-I, Indemnity Bond-II, and Self Declaration from the portal.

📌 Tip: You can use the PM-UDAY Mobile App to complete Part-1 of the application.

Step 3: GIS Survey

  1. Contact any GIS agency listed in your Acknowledgment Receipt.

  2. Request a GIS Survey and schedule a visit within 2-3 days.

  3. The agency will take property measurements.

  4. Make the necessary payment and obtain a receipt.

  5. Receive GIS ID (normally within 7 days). If delayed, follow up with the agency.

Step 4: Notarizing Bonds and Self-Declaration

  1. Visit a Notary Public.

  2. Buy two Rs. 100/- stamp papers.

  3. Fill in details for:

    1. Indemnity Bond-I

    2. Indemnity Bond-II

    3. Self-Declaration (on plain paper)

  4. Sign and notarize the documents.

Step 5: Collecting Required Documents

Gather the following property-related documents:

  • Registered Sale Deed/Gift Deed or latest General Power of Attorney, Agreement to Sell, Payment Receipt & Possession Proof

  • Proof of construction before January 1, 2015 (if property is on government land)

  • Electricity Bills

  • Photograph of Property

  • Applicant’s Photograph

  • Signature on a Blank Paper

  • PAN Card & Aadhaar Card

  • Document Chain (history of ownership transactions)

📌 Tip: On a plain sheet, prepare a chain of transactions for your property, as this will be required in Part-2 of the application.

Step 6: Uploading Documents on PM-UDAY Portal

  1. Scan all documents from Steps 4 and 5 into separate PDF files.

  2. Login to the PM-UDAY Portal and click ‘File Application’.

  3. Open Part-2 of the application, fill in the chain of transactions, and upload required documents.

  4. Click Submit to complete Part-2.

📌 Note: If needed, visit a Common Service Centre (CSC) or DDA empaneled Documentation Agency for assistance with scanning and uploading documents.

Step 7: Uploading GIS ID

  1. Login to the PM-UDAY Portal.

  2. Open Part-3 of the application.

  3. Enter your GIS ID (received from the GIS agency).

  4. Click Submit.

Once you complete this step, your application is submitted to the DDA Processing Center. You can check the Application Status online.

Step 8: DDA Field Survey

  1. DDA survey officials will visit your property for verification.

  2. Be ready with construction proof documents.

  3. Survey officials will take statements from two neighbors or an RWA member confirming your possession.

  4. No charges are required for the DDA Field Survey.

Step 9: Addressing Deficiencies in Application

  1. If deficiencies are found, you will receive an Online Deficiency Memo (DM) via SMS and email.

  2. Login to the PM-UDAY Portal and check the Deficiency Memo section.

  3. Submit online replies and upload additional documents if required.

  4. Resubmit the corrected application.

Step 10: Final Decision by DDA

  1. DDA officials will review your application.

  2. Approval or Rejection status will be updated on the portal.

  3. If approved, payment details will be displayed.

Step 11: Payment of Charges

  1. You will receive a Payment Reference Number via SMS/email.

  2. Login to the PM-UDAY Portal and click ‘Make Payment’.

  3. Complete the online payment process.

Step 12: Providing Witness Details

  1. Login to the PM-UDAY Portal and enter witness details.

  2. Upload notarized Affidavit (format available on the portal).

  3. Book a time slot for the execution of Conveyance Deed (CD) or Authorization Slip (AS).

Step 13: Execution of CD/AS

  1. Visit the DDA Processing Center with your original documents and witnesses.

  2. Final verification of documents will be done.

  3. The Authorization Slip or Conveyance Deed will be executed.

Step 14: Registration of CD/AS

  1. Purchase e-Stamp Papers of the requisite amount from an authorized bank.

  2. Schedule an appointment with the Sub-Registrar via the DORIS Application.

  3. Visit the Sub-Registrar’s office with your documents and witnesses for final registration of CD/AS.

Conclusion

Following these steps carefully ensures a seamless application process under PM-UDAY. By registering and obtaining legal ownership, residents of unauthorized colonies in Delhi can secure their property rights effectively. If you encounter difficulties, utilize the Common Service Centres (CSC) or DDA empaneled Documentation Agencies for assistance.

For real-time updates, keep checking the PM-UDAY Portal and respond promptly to any deficiencies. By completing all steps diligently, you can obtain your Conveyance Deed or Authorization Slip without hassle.

Nikhil Chachra
Nikhil Chachra • 09 min read • 121 Views
DDA Extends PM-UDAY Single-Window Camps Till March 2025: Key Updates
Property

DDA Extends PM-UDAY Single-Window Camps Till March 2025: Key Updates

Introduction

The Delhi Development Authority (DDA) has extended the single-window camps under the PM-Unauthorised Colonies in Delhi Awas Adhikar Yojana (PM-UDAY) scheme until March 2025. The extension aims to facilitate property ownership for residents of Delhi's unauthorised colonies. Initially scheduled from November 30, 2024, to December 29, 2024, these camps have now been extended to ensure greater participation and accessibility. This initiative is a crucial step toward formalising property rights for thousands of residents.

Understanding PM-UDAY: A Game-Changer for Unauthorised Colonies

Launched in 2020, PM-UDAY is a Central Government initiative designed to grant legal ownership rights to residents of 1,731 unauthorised colonies in Delhi. These colonies have been home to millions of people who, despite residing there for decades, lacked formal property ownership. The scheme provides a streamlined process to obtain conveyance deeds and authorisation slips, ensuring rightful ownership of properties.

The Role of DDA in PM-UDAY Implementation

The Delhi Development Authority plays a pivotal role in implementing PM-UDAY by setting up single-window weekend camps. These camps offer a one-stop solution for property-related formalities, including:

  1. Submission of applications for property ownership

  2. On-the-spot verification and approval of applications

  3. Issuance of conveyance deeds and authorisation slips

  4. Facilitating property registrations through sub-registrars

Key Updates on the Extension of Camps

1. Increased Participation and Accessibility

Since the launch of the single-window camps, a total of 19,313 applicants have visited these centres, with 3,599 being new applicants. The overwhelming response highlights the necessity of extending the initiative to March 2025, ensuring more residents benefit from the scheme.

2. Faster Property Registration and On-the-Spot Approvals

To expedite the process, sub-registrars have been deployed at these camps. Over eight days, officials issued 1,152 conveyance deeds and authorisation slips, while 283 properties were registered by sub-registrars. This ensures property owners can complete their legal formalities in a single visit.

3. Addressing Property Mutations and Electricity Connections

Apart from ownership formalities, special camps were held to clear property mutations due to inheritance. Additionally, the scheme addressed long-standing electricity connection delays caused by land-pooling policies, benefiting 14,000 applicants.

The Impact of PM-UDAY on Residents of Unauthorised Colonies

The extension of these camps is expected to have a far-reaching impact on residents of unauthorised colonies:

  • Legal Recognition of Properties: Residents will receive legal ownership documents, reducing property disputes and ensuring asset security.

  • Improved Access to Public Services: With formal ownership, residents can easily access public utilities such as electricity, water, and sanitation services.

  • Enhanced Property Value: Regularisation increases property value, making it easier for owners to sell, mortgage, or rent their properties.

  • Reduction in Litigation: Legal ownership rights eliminate ambiguities that lead to property disputes, offering relief to thousands of families.

How to Apply for Property Ownership Under PM-UDAY

Residents of unauthorised colonies can apply for property ownership under PM-UDAY through the following steps:

  1. Online Application: Visit the official PM-UDAY portal and fill out the property ownership application form.

  2. Document Submission: Submit the required documents, including proof of residence, property details, and identity verification.

  3. Verification Process: Attend the nearest single-window camp for on-the-spot verification by DDA officials.

  4. Issuance of Conveyance Deed: Upon approval, applicants receive conveyance deeds or authorisation slips, legalising their property ownership.

  5. Property Registration: Sub-registrars present at the camps facilitate immediate property registration, granting final ownership rights.

Challenges Faced and the Way Forward

Despite its success, PM-UDAY has encountered several challenges:

  • Complex Documentation Requirements: Many residents lack the necessary documents, leading to delays.

  • Limited Awareness: Some residents remain unaware of the scheme’s benefits and application procedures.

  • Infrastructure and Accessibility Issues: Not all unauthorised colonies have easy access to these camps, affecting participation rates.

To address these issues, authorities plan to:

  1. Increase awareness campaigns through community outreach programs.

  2. Simplify documentation requirements to accommodate a larger number of applicants.

  3. Expand the number of processing centres to ensure broader accessibility.

Conclusion

The extension of PM-UDAY’s single-window camps till March 2025 is a significant move to ensure more residents of Delhi’s unauthorised colonies obtain legal property ownership. With streamlined processes, on-the-spot approvals, and property registration facilities, the initiative continues to transform lives by offering security, stability, and improved public utility access. Residents are encouraged to take advantage of this extended window to secure their property rights and build a legally recognised future for themselves and their families.

LegalKart Editor
LegalKart Editor • 09 min read • 183 Views
PM-UDAY Yojana 2025: A Complete Guide to Registration, Application & Grievance Redressal
Property

PM-UDAY Yojana 2025: A Complete Guide to Registration, Application & Grievance Redressal

Introduction

The Pradhan Mantri Unauthorised Colonies in Delhi Awas Adhikar Yojana (PM-UDAY) was launched to provide property ownership rights to residents of unauthorised colonies in Delhi. Implemented under the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorized Colonies) Act, 2019, the scheme aims to regularise properties and empower over 40 lakh residents with legal ownership.

As we step into 2025, PM-UDAY remains a crucial initiative for formalising land ownership, enhancing infrastructure, and providing access to financial services for thousands of residents. This guide covers registration, application procedures, grievance redressal, and benefits under the scheme.

Extension of PM-UDAY Camps till March 2025

Delhi’s Lieutenant Governor (LG), VK Saxena, has directed the Delhi Development Authority (DDA) to extend the Single Window Special Camps under PM-UDAY until March 2025. The initiative, which initially ran from November 30 to December 22, 2024, on weekends, witnessed a significant turnout, with over 19,000 residents participating.

Key Highlights of the PM-UDAY Camps:

  • A total of 19,313 applications were processed.

  • 1,152 conveyance deeds and authorization slips were issued.

  • 283 properties were officially registered by sub-registrars.

  • The initiative has played a crucial role in providing legal ownership rights to residents of unauthorised colonies.

Locations Covered in the PM-UDAY Camps:

The camps were held in multiple unauthorised colonies, including:

  • Burari, Raj Nagar, Maidan Garhi, Rohini, Mohan Garden, Baprola, Sangam Vihar, Raja Vihar, Patparganj, and Aya Nagar.

Officials from the DDA, Revenue Department, and sub-registrars collaborated to ensure quick processing of applications. The on-site presence of sub-registrars enabled immediate property registration, allowing beneficiaries to secure legal ownership rights on the spot.

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Objectives of PM-UDAY Yojana

The primary objectives of the PM-UDAY Scheme include:

  • Granting ownership/mortgage/transfer rights to residents of unauthorised colonies.

  • Facilitating development and redevelopment of these colonies.

  • Providing access to bank loans and legal property transactions.

  • Enhancing urban infrastructure and basic amenities for the beneficiaries.

Key Benefits of PM-UDAY Yojana

Residents of unauthorised colonies in Delhi can benefit from the scheme in multiple ways:

  • Legal ownership: Residents receive official property ownership rights.

  • Access to bank loans: Property owners can avail loans from financial institutions.

  • Improved infrastructure: Regularisation promotes civic amenities and services.

  • Legal property transactions: Owners can buy, sell, or transfer properties legally.

  • Building plan approvals: Property owners can apply for construction and renovation approvals.

List of Unauthorised Colonies Under PM-UDAY

Before applying, residents must verify if their property falls under an unauthorised colony covered by the scheme. To check:

  1. Visit the PM-UDAY website: https://dda.gov.in/pm-uday

  2. Click on 'List of Colonies'.

  3. Use the UC Locator feature in the PM-UDAY App.

This step ensures eligibility before proceeding with the registration process.

PM-UDAY Yojana 2025: Registration Process

Residents can register for the scheme online through the official PM-UDAY portal.

Steps to Register

  1. Visit the PM-UDAY portal: https://pmuday.ncog.gov.in/login

  2. Click on ‘Registration’ and fill in the required applicant and property details.

  3. Generate and print the registration and GIS survey details.

  4. Verify details via OTP authentication.

Documents Required for PM-UDAY Yojana

Applicants must upload the following documents during registration:

  • Property Documents (Registered Sale Deed, Power of Attorney, Agreement to Sell, Payment Receipt, Possession Proof)

  • Construction Proof (if on government land) before January 1, 2015

  • Electricity Bills

  • Applicant's Photograph

  • Signature of Applicant(s) on blank paper

  • PAN Card

  • Aadhaar Card

  • Document Chain (Proof of ownership history)

PM-UDAY Yojana: Application Process

Once registered, applicants must file an application for property regularisation.

Steps to Apply

  1. Log in to the PM-UDAY portal and click on 'File Application'.

  2. Fill Part-1 details:

    1. Colony details

    2. Property information

    3. Floor/building details

    4. Land ownership details

  3. Generate Case ID (sent via email/SMS).

  4. Download and fill Indemnity Bonds & Self-Declaration Forms.

  5. Notarise Documents and upload them to the portal.

  6. Make Payment as per property size.

  7. Visit a Processing Centre for document verification.

  8. Obtain e-stamp papers and complete the final conveyance deed registration.

PM-UDAY Registration Fees

Plot Size Fee (INR)
Up to 100 sqm ₹5,000
Flats with circle rate of ₹20,000 (4 flats built) ₹5,000 per floor

For vacant plots, charges are based on property size and circle rate.

PM-UDAY Grievance Redressal Mechanism

Residents facing issues can file grievances online:

Steps to File a Grievance

  1. Visit the PM-UDAY Grievance Portal.

  2. Click on 'New User' and select ‘PM-UDAY’.

  3. Fill in the grievance form and submit.

The complaint status can be tracked through the same portal.

Conclusion

The PM-UDAY Yojana 2025 continues to empower residents of unauthorised colonies in Delhi by granting property ownership rights, facilitating infrastructure development, and ensuring financial inclusion. The extension of PM-UDAY camps until March 2025 reflects the government's commitment to ensuring smooth and efficient property regularisation for residents.

If you are a resident of an unauthorised colony in Delhi, register today to secure legal ownership and enjoy the full benefits of the scheme.

For more details, visit PM-UDAY Official Portal