Frequently Asked Questions

What is the difference between Super builtup, Builtup 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 you can lay carpet on.

Built-Up Area: This is the area of the apartment that includes carpet area and the area covered by the walls.

Super Built-Up Area: This includes the built-up areas such as the common amenities, lobby, lifts, stairs, parking etc. This term is therefore only applicable for multi-dwelling units, such as flat complexes.

What are the documents that buyer should check before buying the property?

The most important documents buyer should look at are the approved plans of the project, Rajachithhi, Non Agriculture Land Record, title clear certificate and multiple banks that have approved the project. Banks have detailed process of approving the project with lawyers on board so once the project is approved, it takes a lot of hassle and worry off the buyer.

One question that every buyer must ask if the developer has obtained any project loan for this particular project. If so, its advisable (if not highly unfavourable) to obtain home loan from the same financial institution who has given project loan.

What are the taxes applicable for purchasing the property?

Purchasing the property attracts 9.09% taxation on the value of property in state of Gujarat as on 1st April 2014. Out of that 5% is stamp duty, 1% is registration charges and 3.09% is service tax. Incase of registration is done on name of female, 1% registration charges is discounted.

What is the procedure to obtain home loan?

Banks take up two separate procedures while approving the home loans. One is subject to the property and second is subject to repayment capacity of the buyer. When you are buying a property from developer, the developer usually gets the first procedure cleared out with multiple banks and obtains clearance for the entire project. Now the buyer has to submit the income and identity documents to the preferred bank and get the approval.

For easy understanding, most banks consider repayment capacity or EMI per month to be 50% of the take home income provided there is no other commitment/loan. For example if you are earning 100 rupees per month, you are eligible to pay 50 rupees towards your home loan EMI per month.

TIP: Other than comparing the interest rates of different banks, one must also look at the total expense for processing the loan as it varies a great deal from bank to bank.

What are income tax benefits for taking a home loan?

You can clain both interest and principal components of your repayment against home loan.

The interest can be claimed as deduction under section 24 for maximum of Rs 2,00,000/- per year.

The principal can be claimed for maximum of Rs. 1,50,000/- under section 80C. However it is included in the maximum deduction of 1,50,000/- under section 80C.

How can I claim tax benefits if I buy the house on joint name with my wife and take joint home loan?

If your wife has separate source of income, both of you can claim deduction of interest and principal components individually. The proportion of deduction will depend on share of property or share of repayment.

In other words you can claim as deduction the amount paid from your account and your wife can claim the amount paid from her account.

Can NRI (non resident Indian) or PIO (person of Indian origin) buy property in India?

Under the general permission available, the following categories can freely purchase immovable property in India without any prior permission: -

-- Non-Resident Indian (NRI)

-- Person of Indian Origin (PIO)

Does Capital Gain applies to NRI and PIO?

Yes. Long term and short term capital gain applies to both NRO and PIO. However the person can take benefit of double taxation treaty (depending on the residing country) and get rebate of the taxation paid in India.

OUR POLICY

Transparency regarding Size of the Unit.

We do not sell our property on super builtup area. We give all our customers, clarity of carpet area and carpet + wall = builtup area before buying with documents from relevant government authority who approves the plans. We can let you know super builtup area on request, as per market, for comparing the price with other projects in the vicinity.

100% Loan Papers

We accept entire payment by cheque (equivalent banking instrument) only. Thus we provide 100% loan papers including utility and maintenance contribution. Buyers can get loan for 80% of the papers provided by us and in some cases upto 90% if they are eligible according to repayment capacity.

Clarity of Final Sale Price.

We have absolute clear sale price mentioned on every document from day one. There are no hidden charges whatsoever. The total price of property will include Basic Price + Utility Charges + Initial Maintenance Contribution + Applicable Government Taxes

What happens to your Initial Maintenance Contribution?

The Initial Maintenance Contribution from every member is deposited in full in the account of co-op service society formed with members as chairman and secretary. Incase there are only a few members started living initially, we collect a small monthly maintenance contribution (eg Rs. 1500/-) from them and maintain the society till the members are ready to take charge.