buyer's guide

 

TAX BENEFITS IN HOME LOAN

Home loans offer numerous advantages, making them a smart financial choice for purchasing a new home. Beyond facilitating home ownership, these loans also provide significant tax benefits that can positively impact your EMI and overall savings. To determine your tax advantages based on the loan amount, consider the following details.

Borrowers of a home loan can avail tax deductions on both the interest paid and the principal repaid. The deduction for home loan interest is capped at Rs. 1,50,000 under Section 24(d) of the Income Tax Act.

Furthermore, the principal amount of the loan repayment, when combined with other eligible savings and investments, qualifies for a tax deduction under Section 80(c) of the Income Tax Act, up to a maximum of Rs. 100,000. Take advantage of these tax benefits to optimize your financial planning and secure a brighter future.

TDS on Sale Property

As per the Finance Bill of 2013, the Tax Deducted at Source (TDS) is applicable on the sale of immovable property when the sale consideration equals or exceeds $50,000,000 (Rupees Fifty Lakhs). Under Section 194 IA of the Income Tax Act of 1961, effective from June 1, 2013, the purchaser of the property is required to deduct tax at a rate of 1% while making payment of the sale consideration.

To comply with the TDS requirement, follow these steps:

1. Visit the NSDL-TIN website at www.tin-nsdl.com.
2. Click on "TDS on sale of property" and select the option "Online form for furnishing TDS on property."
3. Choose Form 26QB for the Payment of TDS on Property Sale.
4. Enter all the necessary information as required.
5. Save and print the 26QB/Bank Voucher and provide a copy to your designated builder for documentation.

Ensuring proper TDS compliance not only fulfills your legal obligations but also contributes to a transparent and efficient real estate transaction process.

REAL ESTATE FAQ

Welcome to our comprehensive guide that aims to answer all your common questions about buying and owning a property in India. Whether you're a first-time homebuyer or an experienced investor, this resource will help you familiarize yourself with essential rules, laws, and information related to the process.

Q1. What does "Carpet Area" mean?

Carpet Area refers to the net usable floor area of an apartment or flat, excluding the space covered by external walls, service shafts, exclusive balcony or verandah areas, and exclusive open terrace area. It does, however, include the area covered by the internal partition walls of the apartment or flat.

Q2. Why is property registration necessary, and what purpose does it serve?

Property registration is crucial as it creates a permanent public record of the immovable property transaction. Registering the deed is necessary to establish legal ownership or interest in the property.

Q3. I plan to sell my current flat to buy a larger one. What are the tax implications regarding capital gains?

You can avoid paying capital gains tax if you invest the entire amount of capital gain from selling your old flat into a new one within two years.

Q4. How is the market rent calculated for a property?

Determining the market rent rate does not follow a fixed standard. However, you can easily assess it by seeking advice from experts such as brokers, registration authorities, and other relevant sources.

Buying Tips:

Purchasing a home is a significant decision, and GD Group, we aim to offer you the perfect home with the best value and quality. When choosing a property, consider the following criteria carefully.

Our goal is to empower you with the knowledge and guidance necessary to make informed and successful property-buying decisions. If you have any further questions or require assistance, feel free to reach out to us. Happy home hunting!

Parameter	Questions to be asked
Location Of Site	When selecting a location, consider the following factors: proximity to main roads, bus stops, railway lines, transportation services, and civic amenities such as educational institutions, parks, police stations, temples, community halls, hospitals, and auditoriums
Affordability	Is the location within your price range?
Place of work	What is the distance between the office and the desired location?
Market place	Where can I find the nearest market?
School	What is the closest school?
Public transport	Is there easy access to buses/trains from the location?
Builder	Is the builder well-known in the marketplace?
Availability of water and electricity	Is there a consistent supply of both?
Residential/ commercial	Commercial areas face traffic jams during working hours and the level of noise is rather high
Hospital/ Medical services	Are they easily accessible?
Society expenses	Is your monthly outlay for society and maintenance putting a strain on your finances?
Security	Are security systems, such as professional guards or electronic systems, in place?
Parking	If you own a vehicle, you will require parking space.
Type of ownership	In some areas, the property is only available on a power of attorney or “pugree” basis. Obtaining funding for such properties is difficult.
Self constructed property (SCP)	SCP is a situation in which you buy a plot of land and build a house on it. Such projects may not be funded by all banks.
Under construction property at an early stage	Many banks may be unwilling to fund such projects. However, if the builder is well-known, this should not be an issue.

When looking for a ready-to-move-in or resale property, keep the following points in mind.

Parameter	Questions to be asked
Chain of title	It is critical to have all of the necessary registered documents from the proposed seller proving ownership. These documents are required if you want to get a bank loan.
Maintenance	Make sure the building is in good shape both inside and out.
Water leakages	A water-leaking apartment should absolutely not be allowed because it negatively affects the building’s overall condition.
Condition of the flat	Is the concrete cracking or is the paint flaking off?
Neighbours	Living next to grumpy neighbours can be very unpleasant.
Society transfer charges	You must take that into account when creating your budget if they are too high.