Sunday, February 17, 2013

What is Possession Letter, Occupation Certificate and Completion Certificate?

Which Are Required for IT Exemption?


Mr. Rahul Gandhi purchased a ready possession flat from a builder at Kharadi Pune.
After receiving the entire payment, in January, the builder gave possession of the flat to Rahul.
But, at the time of handing over the flat, builder did not give "possession letter" to Rahul.
Rahul & Priyanka also didn't mind and shifted to their new flat.

As promised, the builder gave possession letter of his flat to Rahul in the next month - February.
To get Income Tax benefit, Rahul submitted the builder's possession letter to accounts department of his company.
Looking at the builder's possession letter, the accounts department asked Rahul, "Where is the Completion & Occupation Certificate?"
Shocked Rahul asked, "What is Completion & Occupation Certificate? My builder only gave me - this possession letter!"
"Only possession letter is not enough. To get income tax benefit - you must submit - Completion & Occupation Certificate too," returning the papers accountant said.

Disappointed & frustrated Rahul went back to his office and started asking his colleagues, "What is Possession Letter, Occupancy Certificate, Completion Certificate? Are all these required for IT?"
If you know the answer, please, help Rahul.
Share your knowledge & experiences in the comments!

Related Stories:


1) Possession Letter

2) Baap ka maal

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8 comments:

  1. Dear Ravida,
    I always wonder about the ignorant way in which most even the educated client looks at the deal as important as his own home! Two vey basic tings never book the flat unless u confirm the flat u are booking is sanctioned by proper authorities like PMC/ Collector & never take possession unless u have occupation certificate with ur flat number from the same authority. Another thing also do check u have separate mseb meter for ur unit , do confirm this also before u take possession!
    sanjay deshpande
    sanjeevai dev

    ReplyDelete
  2. Possession or occupation certificate is like a noc by the local sanctioning authority saying construction work of ur unit is complete in all respect & u can occupy the same for the purpose it has been sanctioned for. That is final doccument saying ur units work is complete so its been of extreme importance for IT dept as well most home loan banks consider it as must for final installment release.
    Sanjay Deshpande

    Sanjeevani Dev.

    Envo-Power Committee, Credai, Pune

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    ReplyDelete
  3. Thank You Mr. Sanjay... this is absolutely true...

    but many companies accept Provisional Home Loan Interest Statement without any Possession Letter..CC...OC.... & dont even check if Flat is under Construction????
    This is ground reality!

    ReplyDelete
    Replies
    1. Good for those who are more interested in income tax exemption than the safety of their family & property. Isn't it Sachin?

      Delete
  4. I booked a flat in Serene County, Sinhagad Road, from Darode Jog builder. Each time i called builder to know the status of the building. From last six months i am being told that flats are ready but builder is waiting for the completion letter from PMC. what action i can take in this case......??????

    ReplyDelete
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    ReplyDelete
  6. Hello Sir, could you kindly help me understand the process to obtain a completion certificate for an independent house built in Pune?

    ReplyDelete
    Replies
    1. Ask the city engineer of PMC. His number & email id is on the PMC website.

      Delete