• Introduction
  • Taxes
  • NRI

Introduction

What is Carpet Area?

According to the Real Estate (Regulation and Development) Act, 2016 (RERA), carpet area is defined as 'the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment'.

What is Super Built-up area?

Super Built-up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc.

What is Agreement for Sale?

Agreement for sale contains the terms and conditions of sale of a property agreed upon by the parties, and bind them. An agreement to sell is the document basis which a conveyance deed is drafted.

What is Total Consideration?

Total Consideration means the amount amongst others payable for the said unit and the properties appurtenant thereto but does not include other amounts, charges, security deposits, stamp duty, registration fees, municipality tax and any other charges/tax/cess/levies etc levied by any authority that may be payable by purchasers.

Taxes

What is GST and its impact on real estate?

Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and is applicable throughout India which replaced multiple cascading taxes levied by the central and state governments earlier. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. The effective GST rate on under- construction real estate projects will be 12% after one third abatement for land cost on 18%. However, GST would not be applicable on the units sold after availing completion certificate.

Is GST included in this price; am I eligible for input credit as per law?

GST would be payable additionally at the applicable rate on the total unit consideration as notified from time to time by the government. Input credit has already been applied for all buyers in the base price. The variable charges would attract GST at the notified rates which is 18% at present and is subject to change as per government directives.

Most developers including some projects of PS have advertisements that they are passing on the GST benefit?

We don't offer discounts on our projects. All our pricing are GST adjusted & realistic based on our product offering. PS is a partner in many projects with various developers and investors. However, not every project is managed, developed and sold by us. We are passive partners in such projects. The decision of discounting or offering special schemes in those projects is the prerogative of the lead developer in such projects.

What is TDS on property?

The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth ₹ 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.

I am a Buyer. Do I need to procure TAN to report the TDS on Property?

Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required to quote his or her PAN and sellers PAN.

Who is responsible to deduct the TDS on sale of Property?

According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.

What if I don't have the PAN of the seller, is it Mandatory?

PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.

What is Form 26QB?

The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB

What is Form 16B?

Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.

NRI

How do I repatriate profits or capital gains on sale of a property?

There is a restriction on the remittance of proceeds beyond the principal amount of investment. However, the profits and/or gains can be deposited in the NRO account of the remitter and, consequently, the same can be remitted outside India, provided it does not exceed the threshold of $1 million per financial year.

Is rental income freely repatriable?

Rental income can be repatriated freely from India without taking any specific permission.

Is there any limit on the number of properties that NRI or PIO can buy or sell?

There is no restriction on the number of properties that a person can buy or sell. However, there is a restriction on the number of residential properties whose sales proceeds can be freely repatriated. While the proceeds of two residential properties can be freely repatriated, the proceeds from third property and thereafter can be deposited in an NRO account out of which a total of $1 million per financial year can be freely remitted.

Who bears the exchange rate gains or losses on transfer of funds?

Any gains or losses on transfer of funds would be borne by customers. We will only credit the value that is actually received. Any variation will be carried over onto the next installment due

Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?

Reserve Bank has granted general permission to certain financial institutions and authorized dealers approved by the National Housing Bank to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investors' NRE/FCNR/NRO accounts.

Who is a person of Indian Origin (PIO)?

A Person of Indian Origin (PIO) is a person of Indian origin or ancestry who is not a citizen of India, but is a citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.

Who is a non-resident Indian (NRI)?

A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose.

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Loan Amount

Interest Rate (p.a)

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Year

Equated Monthly Installments (EMI)

₹53077

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1000

Interest Amt

68

Total Payable

1068

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