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HOME LOAN

One of the prerequisites of buying a new property is a home loan. The process of acquiring a home loan can be confusing and tedious. To help the customers with this, Today Royal has created a comprehensive guide that offers information on home loans. Browse through this document to gain insight and take the right decision Click here to download FAQ document.


TAX BENEFITS IN HOME LOAN

Availing a home loan comes with multiple benefits. Home loans let you achieve your goal of buying a new home and make you eligible for tax benefits. These tax benefits can contribute towards your EMI flow and savings. Take a look at the following points and calculate your tax benefits based on your loan amount.

The home loan borrower enjoys Tax Benefits on both Interest paid & the Principal re-paid. Under Section 24(d) of Income Tax, the deduction of interest payable on the home loan is up to a maximum of Rs. 1,50,000.

Under Section 80(c) of Income Tax, Principal amount for the repayment of loan along with other savings & investments is eligible for tax deduction up to a maximum limit of Rs. 1,00,000.


EMI CALCULATOR





REAL ESTATE FAQs


Q1.What is the difference between Built-Up Area, Super Built-Up Area, and Carpet Area?

Carpet Area: This is the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover. Built-Up Area: This is the area of the apartment that includes the area covered by the walls.
Super Built-Up Area: This includes the built-up areas such as the lobby, lifts, stairs etc. This term is therefore only applicable for multi-dwelling units, such as flat complexes.


Q2.What is the difference between the lease agreement and the Leave and License agreement?

A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement. License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.


Q3.What are the implications of entering into a lease agreement?

There are various implications of entering into a lease agreement such as you have to pay the stamp duty, the lease agreement has to be registered etc.


Q4.Does a foreign citizen of non-Indian origin require permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.


Q5.What is the definition of Non Resident Indian (NRI)?

NRIs can be defined as:
- Indian citizens who stay in a foreign country for employment
- Indian citizens carrying on their businesses or vocations
- Indian citizens abroad for any other purpose in the circumstances indicating a definite intention to stay outside India for an indefinite period

NRIs can also be:
- Indian citizens working abroad on assignment with foreign governments or international agencies
- Officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad
- Indians who have settled abroad permanently or gone abroad on immigration

Non-resident Indians become residents of India once they come back to India to engage in employment, for carrying on any business or vocation, or for any other purpose indicating a definite intention to stay in India for an indefinite period.


Q6.Why is it considered necessary to register a property? What is the purpose of registration?

By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered.



Q7.I have a flat which I want to sell and buy a new flat bigger in area. What are my tax implications with regard to capital gains?

If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.



Q8.With reference to the Bombay Rent Act, is there a prescribed percentage of tenants willing to form a society?

For instance, 70 per cent tenants out of a total of 32 tenants are ready to form a co-operative housing society.



Q9.Are there any new provisions?

There is no new provision in the new Rent Act regarding the prescribed percentage of tenants willing to form a society.



Q10.Who does a group of tenants of an old building approach to be able to form a society without the concerned landlord's permission?

Approach the Registrar of Co-Operative Societies and file the various relevant documents.



Q11.In case a tenant is not protected by the Rent Act, what is the procedure to ask him to vacate and what is the notice period that is required to be given?

A notice is sent to the tenant, failing which a court case may be filed. It usually takes 10 to 20 years to reach a verdict.



Q12.Bombay Rent Act, can tenats of an old building that was repaired by the tenants in the year 1995-96 form a co-op Housing Soc. without landlord's permission?

Yes, tenants of an old, repaired building can form a co-operative housing society without the landlord's permission. Assume there is a lease agreement for 6 years for a shop with a built-in escalation clause at the rate of 20 per cent after 3 years. The lease expires on a specified date say, March 31, 2000 and the concerned landlord has sent a written letter. It is always advisable to make a new agreement with the landlord.



Q13.How is the market rent determined?

There is no prescribed norm for determining the market rent rate though it can be easily found out by approaching individuals such as brokers, registration authority, etc.