OUTGOINGS FOR YOUR APARTMENT
The total outgoings of the apartment would generally include the following:
- – Land value of the apartment
- – Construction value of the apartment
- – Cost of garage
- – Service Tax, VAT
- – Cost of requested additional works
- – Power of Attorney cost
- – Registration cost including stamp duties as per the prevailing statutes
- – Statutory deposits, meter deposits, cable charges and other expenses incidental to power, lighting and water.
- – Building taxes, Corporation taxes and other taxes as applicable from time to time
- – All taxes, levies or charges relating to your apartment, demanded by the government or any statutory body retrospectively or otherwise also remain payable.
- – Your payment schedule indicated in the land and construction agreements is essential for timely completion of your apartment and garage. A reasonable grace period may be permitted from the date on which the instalment falls due. Compensation for delayed payments beyond grace period would be applicable at the sole discretion of Si.
- – Taxes, duties and levies applicable will be intimated as per the prevailing statues and are payable on demand.All payments may be made by demand drafts or local cheques or through normal banking channels for which proper receipts will be issued.
- – All payments by NRI’s shall be made only through their FC/NRE/NRO accounts or through normal banking channels. Bank charges for outstation cheques will be debited to your account for reimbursement.
- – You are advised to record all your payments supported by receipts for the purpose of computation of capital gains at a later stage.
Investment in an apartment is a major commitment. It is important for you to know your rights and obligations when you take this step. The following is a brief summary:
The Income Tax Act 1961 and the wealth tax have undergone substantial amendments and impetus to boost investment in immovable properties in India especially by NRI/PIO
- 1. Under section 23 of the IT Act. 1961, there is complete exemption from IT Act in respect of the deemed or likely income from one self-occupied property.
- 2. If the loan taken by NRI on or after April 1999 to acquire a self-occupied property within three years from the end of the financial year of the loan, deduction under the provisions of section 24 of the Income Tax Act up to ₹ 1,50,000 per annum in respect of interest can be set off against any other taxable income.
- 3. In respect of the property let out, the permitted deductions will not be subject to the limit of ₹ 1,50,000/-
- 4. Repayment of housing loan is eligible for deduction under Section 80C while computing tax
- 5. Exemption to long term capital gains tax have been provided where the investment is made in residential house property or in specified bonds subject to conditions.
Wealth would be liable to wealth-tax @ 1% in India only when the net taxable wealth exceeds ₹ 30 Lakh. Wealth outside India is generally exempt from wealth tax.
In terms of Section 195 of the income tax payment to landlords for sale/transfer of immovable properties is subject to deduction of tax at source. However if the landlord can obtain a certificate from the assessing officer for nil/lower deduction of tax under Section 197 of the Income Tax Act and the deduction will be subject to such nil/lower deduction.
Every effort has been made to avoid errors or omissions. Please inform us of any mistake, error or discrepancy. Being matters of vital importance, the reader is requested to cross-check all material at this website with original Government publications or notifications. Please seek professional advice before acting on any information contained herein. The responsibility for obtaining clearances and permissions from the Reserve Bank of India and / or other statutory authority with respect to the provisions of the above mentioned Act or any other applicable laws rests with you. Southern Investments Pvt. Ltd., expressly disclaim liability to any person, in respect of anything or the consequences of anything done or omitted to be done by any person on the basis of the contents of this website.