Archive for October 2009


Mortgage is the transfer of an interest in an immovable property. The interest may be transferred for the purpose of:
a.Securing the payment of money advanced.
b.Securing the payment of money to be advanced by way of loan.
c.Securing the payment of an existing or future debt.
d.Securing the performance of an engagement which may give rise to a monetary liability.

The person who transfers the interest in the immovable property is the mortgagor, the person to whom the interest is transferred is the mortgagee .The instrument, if any, by which the transfer is effected is called mortgage deed. There are various types of mortgage like simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, Anomalous mortgage, mortgage by deposit of title deeds etc.

In a simple mortgage, the possession of the mortgaged property is not delivered by the mortgagor. However, in the event of the mortgagor failing to pay the mortgage money, according to the contract, the mortgagee shall have a right to sell the mortgaged property and to realize the mortgage money from the sale proceeds. In a usufructuary mortgage, the mortgagor delivers the possession of the property to the mortgagee. The mortgagee can retain the possession till payment of the mortgage money by the mortgagor. The mortgagee can receive the rents and profits, accruing from the property, and appropriate the same in lieu of interest or in payment of mortgage money.

In a mortgage by deposit of title deeds, a person delivers to a creditor or his agent documents of title to an immovable property with intent to create a security thereon. A mortgage where the principle money secured is more than Rs 100/- can be effected only by a registered instrument. However this is not applicable in the case of mortgage by title deeds.
A mortgagor has a valid right called right to redeem. This means that, at any time principle money has become due, the mortgagor has a right on payment of the mortgage money, to require the mortgagee:

a) to deliver to the mortgagor,  the mortgage deeds and all documents relating to the mortgaged property in his possession.
b) to deliver possession of mortgage property to the mortgagor and to retransfer the  mortgaged property.

A mortgagor who has executed two or mortgages in favour of the same mortgagee, shall be entitled to redeem any one of such mortgage separately, or any two or more of such mortgages together.If any accession or improvement has happened to the mortgaged property during the possession with the mortgagee, then the mortgagor will be entitled to such accession and improvements upon redemption.


TDS stands for Tax deducted at source. Normally payment providers withhold some amount of tax from payments such as salary, commission etc, before the payment and remit such tax to the government. If an asssesee’s income is below the taxable limit and if payment provider insists on tax deduction, then the assesee can file the necessary forms and avoid the tax liability.
The tax deducted at source should be remitted by the deductor to the Government within the time period allowed. To pay the tax deducted into the Government account, a separate Tax Deduction Account Number (TAN) needs to be obtained by the deductor.
Non remittance or misuse of the tax deducted at source is an offence. It may be punishable by imprisonment up to 7 years. The person who deducts tax is liable to issue TDS certificate in form 16 or 16A to the assessee, who can include the same during his tax payment.
Some of the incomes which are liable for tax deducted at source include Salaries, Interest on securities, Dividends, winnings from lotteries or cross puzzle or horse race, Payment to contractors and sub-contractors, Insurance commission, Payments to non resident or sports association, Deposits under NSS, Payments on account of repurchase of units by mutual fund or UTI, Commission on the sale of lottery tickets, Commission or brokerage, Rent, Fee for professional or technical services, etc.