Published on Apr 25, 2025Updated on May 8, 2025
When managing your assets, it’s important to know the difference between movable and immovable property. This fundamental classification influences how property is owned, transferred, and taxed.
In this article, we’ll focus on the meaning of immovable property, its various types, ownership rights, and how it differs from movable property.
Immovable property refers to assets that are fixed to a specific location and cannot be moved without causing damage. Common immovable asset examples include land, buildings, and structures permanently attached to the ground.
As per Section 3(26) in The General Clauses Act, 1897 , immovable property includes:
In simple terms, if you cannot pick up an asset and move it without altering or damaging it, it's an immovable property.
Investing in immovable property offers several advantages:
Common immovable property examples include:
Immovable property can be categorised based on its use:
|
Aspect |
Movable Property |
Immovable Property |
|
Definition |
Items that are not attached to the Earth and can be easily moved, like vehicles or jewelry. |
Assets fixed to the Earth, such as land, houses, and buildings. |
|
Ownership Transfer |
Simple and quick; usually does not require legal registration. |
Requires formal registration and legal documentation for transfer. |
|
Taxation |
May attract sales tax or GST depending on the item. |
Involves stamp duty, registration fees, and sometimes capital gains tax. |
|
Legal Complexity |
Generally less complex and easier to handle. |
Often involves more legal steps due to property laws and real estate regulations. |
Owners of immovable property possess several rights, including:
Gifting immovable property in India is subject to specific tax rules under the Income Tax Act:
However, gifts received from specified relatives (for instance, from father to son) are exempt from this tax.
Understanding immovable property is essential – whether you're buying land, inheriting a house, or planning to leverage your property to acquire funds.
If you’re looking to unlock the value of your residential or commercial property, consider a Loan Against Property from SMFG India Credit. We offer competitive interest rates and flexible repayment tenures of up to 180 months* to ensure a hassle-free borrowing experience. Apply online today or contact us for more details.
* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us
Immovable property refers to assets that cannot be moved without altering or damaging them. It typically includes land, buildings, and structures permanently attached to the land.
Examples include houses, commercial buildings, plots of land, and trees or structures permanently affixed to the ground.
The owner is the individual or entity whose name appears on the legal title deed or ownership document. Ownership can be acquired or transferred through sale, inheritance, gift, or other legal means.
The key principle is that immovable property rights must be registered and legally transferred. This ensures transparency and legal protection for buyers and sellers.
TDS (Tax Deducted at Source) of 1% must be deducted by the buyer when purchasing a property worth more than INR 50 lakhs, as per Section 194IA of the Income Tax Act.
An NOC (No Objection Certificate) ensures that there are no legal disputes, dues, or objections from concerned authorities or societies when transferring or registering the property.
Common types of immovable assets include residential properties, commercial buildings, industrial land, agricultural land, and inherited or ancestral property.
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