FAQs

Asset leasing is a binding agreement between the lessor, who is the owner of the asset, and the lessee, who is the individual or entity using the asset. In this agreement, the lessor allows the lessee to utilize the asset for a predetermined period of time in exchange for regular lease payments. Despite the usage of the asset by the lessee, the ownership remains with the lessor throughout the duration of the lease.

The buyback value is the predetermined price at which the original seller, typically a company, agrees to buy back the asset from the investor at the end of the investment tenure. This value is usually lower than the market value of the asset, but provides the investor with a guaranteed sale of the asset at the end of the investment period.

The buyback value is usually calculated based on the written down value of the asset, which is determined after taking into account depreciation as per the provisions of the Income Tax Act in India.

The investor will retain complete ownership of the asset for the entire duration of the investment. Upon reaching the end of the investment period, the investor will sell the asset to Chloropod (buyback), resulting in a transfer of ownership to Chloropod.

Chloropod takes care of the regular developments, maintenance and performance of the assets.

Individuals, both domestic and NRI, who are 18 years of age or older and have a valid PAN, are eligible to invest.

To update your DOB and PAN details, click on "Update" in the Profile section. It's important to note that once you have successfully made an investment transaction, any changes to your DOB and PAN details will no longer be permitted.

There is no set minimum investment amount, as it varies depending on the specific chosen asset. An individual must purchase at least one unit of an asset type. However, additional units can be acquired, subject to availability, and returns will be proportionate to the number of units owned.

• An individual cannot exit during the lock-in period
• In the event of an exit within the tenure after the lock-in period, a 2% exit fee will be imposed on the total invested amount. The pay-out amount for the periods already paid will be subtracted from the final reversed amount
• For example, if an individual invested ₹50,000 and received rental payments for 6 periods (₹4000 * 6 = ₹24,000), the applicable exit fee would be 2% of ₹50,000, or ₹1000. The final reversed amount would be (₹50,000 - ₹24,000 - ₹1000) ₹25,000
• Once the investor has received rental payments that surpass their original investment, they will not be permitted to withdraw from the plan
• The exit fee does not apply after the end of the lease period

AgriVesh does not impose any charges on rental payouts and doesn’t levy any brokerage fee as well. However, if an individual decides to exit the investment within the tenure, the exit conditions outlined previously will apply.

Lease income is taxed according to an individual's tax bracket. An investor can also book depreciation as a business expense against this lease income to reduce the tax burden. A straightforward tax guide will be provided in your investment dashboard to assist with simple tax filing.

Depreciation refers to the decrease in the value of an asset over time. According to the Income Tax Act 1961, rental income is considered as business income and is taxed according to the investor's tax bracket. However, the investor can claim depreciation as a deduction, which can be subtracted from the total rental income, resulting in only the net income (rental income minus depreciation) being taxed and reducing the overall tax burden.

AgriVesh oversees the rental payments and ensures that they are credited to the investor's bank account in accordance with the payment schedule specified during the investment process.

The rental income will be deposited into the bank account listed by the investor under the personal details section. The investor will receive notification of the deposit via email and SMS on the designated payout date. Only an active bank account is necessary for receiving the rental income, and there is no requirement for a demat account. For NRI investors, an NRO account would be required.

The rental payments are secured through legally binding contracts. If any unexpected circumstances arise, the insured assets will help minimize any potential loss of capital.

There are two types of risks that can be foreseen:

• Payment default risk, meaning an inability to make rental payments
• Asset risk, meaning the risk of theft, damage, or obsolescence

Chloropod mitigates payment risk by guaranteeing rental payouts regardless of asset usage. Asset risk is reduced through insurance coverage of the assets.