What is Movable and Immovable Property?

Suppose you are living in a house, and you want to move to another place. You take some of your properties along with you. However, you cannot take some properties. Yes, we are talking about movable and immovable property. Whether you’re dealing with real estate, personal belongings or planning for future investments, understanding property ownership is crucial.

In this blog, we’ll break down the key difference between the two, along with clear movable and immovable property examples to help you understand how to apply them in real life. Interested in learning more about this? Continue reading as we unravel the topic!

What is Movable Property?

In another way, we can ask what are movable assets? Movable property is an asset that can be easily transferred from one place to another without altering its original form. It doesn’t attach to any land or permanent structure, and you can move it freely.

Legal Definition

In legal terms, under section 3(36) of the General Clauses Act, 1897: “Movable property means property of every description, except immovable property.” The law broadly defines movable property to include all types of assets not classified as immovable, meaning people can transport them from one place to another without altering their nature or causing damage. People also refer to movable property as personal property or ‘chattel’, and they usually transfer its ownership more easily than that of immovable property.

Movable assets can be further divided into:

• Tangible Movable Property: Physical items like cars, furniture or machinery.
• Intangible Movable Property: Non-physical assets like shares, copyrights or patents.

Indian law widely uses this definition, and other legal systems make similar distinctions under the term personal property.

Common Examples of Movable Property

To better understand what qualifies as movable property, it lies in everyday life assets. These possessions can be easily transported. Below is the list of movable property commonly recognised:

• Vehicles (Cars, Motorcycles, Bicycles)
• Furniture and Home Appliances
• Jewellery and Watches
• Clothing and Personal Belongings
• Electronic Devices (Phones, Laptops, TVs)
• Agriculture Produce (Harvested)
• Cash and Banknotes
• Shares, Stocks and Bonds
• Intellectual Property Rights (Trademarks and Copyrights)

These movable property examples illustrate the breadth and versatility of this category.

Characteristics of Movable Property

Movable property has distinct features that set it apart from immovable assets. Understanding the key types of movable property is key to identifying and managing assets properly. Here are the main characteristics:

• Mobility: You can easily shift movable properties from one place to another without damaging their nature or the land they rest on.
• No Permanent Attachment: These properties don’t permanently attach to the earth or any structure, so they avoid land-related legal complexities.
• Easier Transfer of Ownership: You can transfer ownership of movable property through sale, gift, or delivery without needing legal documentation.
• Subject to Personal Property Laws: Laws governing personal property, not real estate or land laws, regulate movable assets.
• Depreciation Over Time: Most movable property, especially tangible items, tends to lose value with use or time.
• Can Be Tangible or Intangible: Movable properties include physical items (gadgets) and intangible assets (shares or copyrights).

Now that we discussed movable property, let’s dive into the next section, immovable property. Understanding the key factors of movable and immovable property helps you in future, in case of relocating, what things to take with you and what not.

What is Immovable Property?

Immovable property is a property that is fixed to the earth and cannot be moved without causing damage to itself or the place it is attached to.

Legal Definition

In legal terms, under section 3(26) of the General Clauses Act, 1897: “Immovable property includes land, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth.” Immovable property under the Transfer of Property Act of 1882, also governs and emphasises its fixed and non-portable nature. Its key features:

• Cannot be moved without damage
• Includes land and permanent attachments
• Ownership transfer requires registration
• Subject to property tax, stamp duty and legal documentation

Immovable property plays a central role in real estate, inheritance and long-term investment, often involving more complex legal and financial procedures than movable property.

Common Examples of Immovable Property

Understanding what qualifies as immovable property is essential for anyone involved in real estate, legal matters or inheritance planning. Here are some examples:

• Land
• Residential and Commercial Buildings
• Roads and Pathways
• Fences and Walls
• Trees and Shrubs
• Mines and Quarries
• Rights associated with land.

Each example of immovable property mentioned above holds long-term value and typically requires legal documentation for ownership transfer. These assets are governed by land and property laws and are subject to taxation and registration requirements.

Characteristics of Immovable Property

Movable property and immovable property have specific characteristics that distinguish its features from each other. Since we have covered the movable features, now let’s look at the immovable ones:

• Permanently Attached to Earth: Cannot be moved without altering or damaging it.
• Fixed Location: Immovable properties remain in the fixed place and cannot be transported.
• Subject to Land and Property Laws: Governed by specific legal regulations related to ownership, transfer and taxation.
• Requires Legal Transfer Process: Sale or transfer involves formal registration, stamp duty and documentation.
• Long-term Asset: Commonly used for long-term investment and wealth building.
• Attracts Property Taxes: Owners are liable to pay government-imposed property taxes.
• Different from Movable Assets: Unlike assets falling under the movable property intimation limit, immovable properties usually require mandatory disclosure and formal registration regardless of value.

Key Differences Between Movable and Immovable Property

Understanding the difference between movable and immovable property is essential for legal, financial and investment decisions. Here are the main differences:

Grey Areas and Special Scenarios

While the distinction between movable and immovable seems straightforward, there are several grey areas and special scenarios where classification isn’t always clear-cut.

• Fixtures: Items like air conditioners, ceiling fans or modular kitchens can start as movable but may be considered immovable once permanently installed in a building.
• Standing Timber and Crops: These are generally classified as movable property, but disputes can arise depending on the stage of growth or purpose of use.
• Leasehold Rights: Though tied to an immovable property, leasehold interests may sometimes be treated as movable for specific legal or contractual purposes.
• Intellectual Property Rights over Land-Related Assets: For instance, mineral rights or transferable development rights (TDRs) relate to land but are treated as intangible movable property.
• Mobile Homes or Caravans: Although designed for movement, once fixed to land or used as a permanent residence, they may be treated as immovable property.
• Infrastructure Components: Pipelines, bridges, or wind turbines may fall into grey areas, especially when used across multiple properties or jurisdictions.

These scenarios highlight why understanding the context and purpose of the asset is just as important as the physical characteristics when determining whether something is movable or immovable.

Legal and Practical Implications

Here’s the difference between movable and immovable property in property law: legal and practical implications.

Case Studies on Movable and Immovable Property

1. Case Study: Fixture Disputes

Scenario: Mr. Sharma buys a house, and the seller has installed a large, built-in air conditioning unit. After the sale, Mr. Sharma wants to remove the AC unit and take it to his new house.

Issue: Is the AC unit movable property (which Mr.Sharma can remove) or is it immovable (part of the house and can’t be removed)?

Legal Considerations:

• How permanently is the AC unit attached?
• Was it intended to be a permanent fixture or a temporary appliance?
• Removing it would damage the wall or structure?

Outcome: The court ruled that because the AC unit was permanently fixed and removing it would cause damage, it was part of immovable property and could not be taken away.

2. Case Study: Sale of Crops

Scenario: Farmer Singh sells his standing wheat crop to a buyer before harvest. Later, the buyer claims the wheat is immovable property since it is attached to the land, but Singh argues it is immovable since it will be harvested and moved.

Issue: Is the standing crop movable or immovable property?

Legal Considerations:

• Crops that are naturally growing on land are considered part of immovable property until harvested.
• Once harvested, they become movable property.

Outcome: The court held that standing crops are immovable property while on the land, but become movable property once harvested.

TDS on Immovable Property

If a buyer tries to buy an immovable property, then the buyer must deduct 1% of the sale value if the property costs ₹50 lakhs or more. Tax Deducted at Source, TDS on purchase of immovable property is a tax that the buyer must deposit this amount with the Income Tax Department on behalf of the seller.

TDS on sale of immovable property refers to the 1% tax deducted by the buyer from the sale amount if the property value is ₹50 lakhs or more and deposited with the Income Tax Department on behalf of the seller. The seller can later adjust this TDS against their total tax liability while filing their income tax return.

Further Reading: What Is Property Tax Assessment and How it Works

To Conclude

In the world of property ownership, knowing the difference between movable and immovable property isn’t just legal jargon; it’s crucial for making smart decisions. Movable property offers flexibility and ease of transfer, while immovable property involves long-term value, legal formalities and often significant financial commitment.

At Confident Group, we believe that real estate is more than just buildings, it’s about clarity, trust and secure investment. Whether you’re purchasing your first home or expanding your property portfolio, our expert team ensures that every aspect of your property journey is clear and legally sound. With the right guidance, navigating the world of property, both movable and immovable, becomes a confident step towards your future.

Frequently Asked Questions

1. What is the meaning of movable and immovable property under Indian law?

Under Indian law, movable property refers to assets that can be transferred from one place to another without altering their nature, while immovable property includes land and things permanently attached to it, which cannot be moved without damage.

2. What is an example of a movable property?

The example of movable property is a car, as it can be easily moved from one place to another.

3. What are examples of immovable?

Examples of immovable property include land, buildings, houses, and anything permanently attached to the ground.

4. Are trees movable or immovable property?

Trees are generally considered immovable property as it is attached to the earth, but once they are cut down, they become movable property.

5. Is salary movable property?

Yes, salary is a movable property because it is a monetary asset that can be paid from one person to another.

6. What taxes apply to immovable property in India?

In India, immovable property is subject to taxes like property tax (levied by local bodies), stamp duty, registration charges, and capital gains tax on sale. GST applies only to under-construction properties, not to completed ones.