Tax Redemption
Tax redemption is a term associated with real-estate taxation. While a tax payer neglects or fails to pay his property taxes, then his mortgages are subjected to threat of acquisition by the government. In order to avoid this, tax payer should acquire an estimate of the Cost of redemption that describes the amount necessary to redeem his taxes so as to remove the threat of losing his property.
Right of Redemption
The legal right of any borrower or real estate owner, to claim security over his mortgages once his back taxes have been settled is called as right of redemption. Sometimes even after the auction of his mortgage he may acquire a right of redemption, if he includes the cost incurred in the foreclosure process in making his back tax payment. Thus the property holder can get back his right over the property through right of redemption, even after the auction of his property.
A certificate of redemption
A certificate of redemption is issued by the tax authority of a India. It is a bond stating that all the late taxes and fees on a mortgage have been paid off. This certificate is considered as the legal document that relieves the property holder of further threat to his property. This Certificate of Tax redemption is also essential when an individual wishes to sell his property, as it is a proof for the buyers that the property is not under any taxation penalties.
How to obtain redemption?
An estimate of the cost of redemption must be requested to the tax authority, stating the index number of the mortgage that is under threat of being ceased. Then a Demand draft or a cheque for the full payment must be obtained from the bank and delivered to the revenue department. After this procedure the city tax collector will be notified and the certificate of redemption will be provided in the due course of time.
Recommended Read :
- What is TDS (Tax Deducted At Source)?
- What is Indexation?
- What is Tax Redemption?
- What is Capital Gains Tax?
- What is Education Cess?
- Tax Forms 15G 15H
- Fixed Deposit and Income Tax Payment
- Tax Impact On Recurring Deposit Tax On Rd
- What is Tax Saving Fixed Deposit?
- How to Save Tax On Fixed Deposit Interest?
- What is The Tax Impact On Gold Investments?
- How to Avoid TDS On RD and FD?
Gosh this is scary news. I hope I never have to go through this.
But it is good to know the facts… Tax redemption gives you a hope when you have lost so much.
Can you get a tax redemption certificate through a normal tax broker, who does it on your behalf - or do you have to ask the tax department directly in person?
I would be more comfortable leaving my tax issues in the hands of a professional.
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