Buyers Guide
Your Ultimate Handbook for Novice Home Buyers in India A Comprehensive To-Do List
This is the basic home loan you can opt for purchasing new home. This type of Home Loan is offered by all kinds of Banks and HFCs. This kind of loan covers the cost of the flat, deposits and charges, stamp duty and registration charges.
Home Improvement Loans helps you upgrade your existing home to a contemporary design and a more comfortable living space. Loans for enhancing your home in many ways such as tiling and flooring, internal and external plaster and painting etc. comes under Home Improvement Loans.
This loan is for people who intend to sell their existing home and purchase new one and need finance for the new home until a buyer is found for the old one.
This loan indicates paying off of an existing home loan of higher interest rate to avail a new loan with a lower rate of interest.
This type of loan is basically taken to pay off the debt incurred from private sources such as relatives or friends for the purchase of your present home.
Refinance loans are taken to pay off the debt incurred from private sources such as relatives and friends, for the purchase of your present house.
These are meant for Non-resident Indians who wish to build or buy a home or property in India.
Anyone be it Indian or Non-Resident Indian, if he/she has a steady source of income then he/she can borrow funds for financing the cost of a flat from housing finance companies and banks.
Firstly, the payment of adequate stamp duty on the Agreement for Sale Secondly, Execution of the Agreement for Sale by the Developer/Promoter and the Purchaser and Thirdly, Registration of Agreement for Sale.
Unless there is an agreement to the contrary, the stamp duty shall be borne and paid by the Purchaser as per Section 30 of the Maharashtra Stamp Act, 2013.As per prevailing laws, the stamp duty to be paid on the Agreement for Sale shall be an amount equivalent to 5% on the market value of the unit as per prevalent ready reckoner rates.
Market value means the price at which a unit could be bought in the open market on the date of execution of such instrument. This price is determined on the basis of the ready reckoner issued each year.
The Mode of payment of stamp duty is E-Payment through GRAS (Govt. Receipt Accounting System).
After the payment of stamp duty on the Agreement for Sale, the same shall be duly executed by all the parties, i.e. the Developer/Promoter and the Purchaser/s. All the pages of the document should be signed by all the parties. The Agreement should be witnessed by at least two witnesses giving their full names, signatures, and addresses.
The duly stamped and executed Agreement for Sale should be presented at the office of the concerned Sub-Registrar of Assurances for registration within 4 (four) months from the date of execution of Agreement for Sale.
In case of delay in presenting within the stipulated four months from the date of execution of Agreement for Sale citing unavoidable circumstances by the Parties, the Registrar may condone the delay after collecting penalty under section 25 of the Indian Registration Act, 1908; provided the delay in presentation of the executed Agreement for Sale does not exceed 4 (four) months from the date of expiration of the aforesaid stipulated 4 (four) months (i.e. does not exceed 8 (eight) months from the date of execution of the Agreement for Sale).
Registration of the Agreement for Sale is compulsory as per Section 17 of Indian Registration Act, 1908.
Purchasing a home on a loan is a lot more than pure happiness, you enjoy multiple tax benefits with it too! These benefits and exemptions not only help you save tax, but they also help in managing smooth cash flows.
The interest paid on capital borrowed for the acquisition, construction, repair, renewal or reconstruction of property is entitled to a deduction. Rs 2, 00,000 is the maximum amount eligible for deduction. In the case of self-occupied property and for rented out property, there is no limit on the amount of deduction.
You can get a maximum Rs.1, 50,000 deduction from the Income, on repayment of principal during a financial year. Stamp duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the assesse is also considered under this amount. All these deductions should not exceed the overall limit of Rs. 1 lakh. However, deduction under Section 80C is not available in respect of payments made towards the cost of any addition, alteration, renovation or repair carried out after the issue of the completion certificate.
Any person of Indian origin (Indian Citizen) living abroad for purpose of education, employment, carrying on business etc. for an long duration abroad is a non-resident Indian. Non-residents foreign citizens of Indian Origin are also treated on par with non-resident Indian Citizens (NRI’s) for purpose of certain facilities.
