Plan Of A Building Can Be Protected By

It is disappointing that after you showed your model homes or custom floor plans to potential clients. Unfortunately, this occurs far too frequently in the residential construction sector. However, by being aware of the copyright protections in place and taking extra care and precautions during the initial design stage, builders can better position themselves to deter or even stop customers from copying their plans. You can safeguard yourself from unwanted, time-consuming, and potentially expensive copyright infringement claims by having some knowledge of copyright laws. 

What is Protected? 

Any original expression fixed in a tangible medium stands by copyright law. It means that, in general, copyright law protects anything ORIGINAL that you create by drawing, writing, typing, painting, recording, or creating something digitally as soon as you put it on paper, save it to the “cloud,” or even just draw it on a napkin. It includes any unique floor plans, illustrations, and sketches you create. Creating a floor plan will grant access to a unique one. 

To obtain copyright protection, remember that your plans must be original or distinctive in some way. Instead of using custom plans created by a different party or replica of a unique house you visited, the designs should be your creation. The distinctive, non-functional components of your designs offer copyright protection. The plans you want to protect should include more than just the practical, typical layouts in all “cookie-cutter” home plans. Unless there is significant customization, it is unlikely that the typical split-level starter home will include many items covered with copyright. 

Why is this Crucial?

Possessing copyright gives you the sole authority to build the plans, as well as 

  • (i) copy them, 
  • (ii) create other custom plans based on them
  • (iii) Most importantly, produce copies of them.

You and you alone have control over a copyright if you own it. Without your consent, the customer who toured your custom-built spec home or looked at your floor plan at the home show can’t recreate your plans or build the same house without violating your copyright and causing you harm.

How Can I better Safeguard myself? 

Even with these safeguards at your disposal, you should still think about taking extra measures to alert others to your rights in the plans after their development. 

Write it down. 

The copyright for the plan belongs to whoever produced or sketched it out. If you frequently hire outside architects or engineers to create your drawings and plans, problems may occur. You must confirm in writing before the development of the scheme begins with the third party that all ownership in the designs, including the copyright, is a work for hire and is assigned to you if you have an original idea or plan that an artist, architect, or engineer helps you finalize. 

Like this, you should consider establishing ownership of the plans with your prospective client by signing a Design Agreement. The client may claim ownership of or joint ownership alongside you of the ideas if they are working with you to develop a unique, customized plan. Although you might want to license the design or build homes with features similar to other people, the customer might be allowed to use the blueprint to construct their own home. The rights to the designs have to be made clear in a signed, written agreement with the client to guarantee that you have the copyright. 

Plan Registration

Make it a habit to submit your plans for approval to the US Copyright Office. Online registration is available. Although copyright registration is not required to win a copyright strategy, it does act to inform others of your rights and provide documentation of the time of the creation of the design. Registration is also necessary to file an infringement lawsuit in Federal Court. You also have the chance to obtain additional remedies like statutory damages, court costs, and attorneys’ fees if you register before someone copies your plans. 

Implement Copyright Notices

Customers frequently ask another architect or builder to use the plans you gave them. You can persuade third parties to think twice before copying or using your designs without first being in touch with you by including a copyright notice on all copies of your plans. The copyright notice need only include your name, the date you created the procedures, and the phrase “All Rights Reserved” in the footer of each page. The plans should include a disclaimer that says they can only be copied, duplicated, or used with your prior written consent. 

How Can I Stay Out of Trouble? 

You should take precautions to ensure that you do not infringe on the rights of the other party’s protected works, just as you should protect your plans. 

Ask about the origin of the country’s plans. 

If a client, architect, or other third party gives you any plans, sketches, or drawings and asks you to build something for them or finish the designs for their property, be sure to ask where they got the plans from and if you can, them to confirm in writing that they have the right to use them and that they will hold you harmless if they don’t. If you copy someone’s original third-party plans, even if you are unaware of the source, you might find yourself accountable for copyright infringement. If the designs contain the logo or name of any other architect, or if it appears that such information has disappeared, proceed with caution and conduct further research before using the plans. 

Legal Variations cannot stop infringement. 

Remember that infringement requires that the plans be substantially similar to occur. Therefore, simply altering the size of a room or moving a window or door or two in an original custom plan without the copyright holder’s consent usually will not prevent a court from finding that you infringed on the original work when building or developing designs from an existing set. It is a general misconception within the industry. 

Even though copyright law and your rights are frequently ambiguous subjects, the information above will better prepare you to protect your intellectual property assets and the money you’ve invested in distinctive custom home plans. 

Commercial vs. Residential Property

Real estate has long been regarded as a trustworthy investment because it enables people to amass wealth and generate passive income. Commercial and residential real estate investing are the two primary market segments. 

What is Commercial Property? 

In India, properties utilized for commercial purposes are commercial property. It includes workplaces, shops, hotels, warehouses, and other commercial and industrial structures. In India, businesses frequently lease or rent commercial properties, generating income from rental payments. Location, rental yield, infrastructure development, and general market conditions are just a few examples of the variables that affect the value of commercial real estate. 

What is Residential Property?

In India, residential property refers to properties used mainly as residences. It covers single-family homes, condominiums, townhomes, and gated communities. Individuals or families purchase residential properties in India for their use to rent. Location, amenities, connectivity, demand-supply dynamics, and property condition are just a few of the elements that affect residential real estate value.

Rental Income for Commercial vs. Residential Property

When contemplating investing in real estate, rental income is a crucial factor. Property buyers are frequently perplexed over whether investing in a residential or commercial property would yield a higher return on their money. Senior real estate expert Arvind Nandan notes that the general asset selection principles, such as the property’s location, quality of construction, age, and usage, are the same whether the property is residential or commercial. “Remember a few things when you consider investing in terms of the expected rental income for residential versus commercial property. Commercial properties have longer lease terms than residential properties, which typically require annual leases. Due to the frequent tenant turnover, vacancy risks are higher in residential properties. Property buyers should, therefore, consider the qualitative aspects of these two segments before deciding between leasing commercial or residential property, the expert advises. 

Commercial vs. Residential Properties: Rewards vs. Risk 

Tax Advantages: Rental income from commercial and residential properties is subject to taxation. However, under Sections 24 and 80C of the Income-Tax Act, real estate acquired with a home loan is eligible for tax breaks. 

Because residential properties experience frequent tenant turnover, higher maintenance and upkeep expenses, and lower returns, risk and volatility may be higher in residential properties. Commercial real estate provides reliable, long-term renters with steady income streams. 

Both entering and leaving an investment aren’t with illiquid assets. A portfolio of commercial properties would be easier to create with Real Estate Investment Trust (REIT) regulations. Building a portfolio of commercial properties would be easier under Real Estate Investment Trust (REIT) regulations than acquiring residential ones. Additionally, because there is a much higher demand than supply for Grade A pre-leased assets, they are more liquid than residential properties. 

Before deciding whether to invest in residential or commercial property, it is crucial to factor in the location, investment amount, and tenure in addition to the above factors. 

Investment in Residential Property: Pros and Cons 

Benefits Drawbacks 
Cheaper Entry Fee. Low rental income and yields. 
There’s no minimum size available. Investment in furnishings to make it affordable to rent
Loan applications are widely available The lease will be of 36 months. 
Leasing procedures are typically much quicker. 
As compared to commercial properties, returns last for a short period. 

Investment in Commercial Properties: Pros and Cons 

Pros Cons 
Higher rental yield returns Commercial property capital values typically exhibit longer-term stability. 
Possible longer-term leases of up to nine yearsFor economic viability, the property might need to meet a minimum size. 
Leasing is available in either a bare or warm shell. Selling is challenging due to the absence of buyers as there could be. 
Commercial values are not very volatile. 

What Is Residential Property?

Residential property is any building or unit zoned and intended for use as living space. It is one of two types of general estate, the other being commercial property. Residential property is typically owner-occupied, but it’s not always the same. According to industry standards, any property with less than five units not for commercial use is residential. Commercial properties are more expensive and have a mix of residential and commercial use. 

India has residential properties to suit a variety of lifestyles, preferences, and budgets. Understanding the various types of residential properties available is essential for making an informed decision, whether you are a first-time homebuyer and investor or looking for a second home. This blog will look at the various types of residential properties available in India and assist you in deciding which one is best for you. 

Types of Residential Properties 

Floors for Builders 

In low-rise buildings, builder floors are self-contained residential units. A different person or family owns each floor. Builder floors combine the convenience of shared infrastructure, such as water supply and security, with the benefit of independent living. 

Gated Communities 

Residential complexes with controlled access and shared amenities are known as gated communities. They provide a mix of apartments, villas, and row houses in a secure setting. Landscaped gardens, clubhouses, sports facilities, and 24-hour security are popular features of gated communities, which provide a holistic living experience. 

Plots 

Plots are parcels of land that are available for sale for residential use. Buying a plot allows you to design your own home. It also lets you choose the type of construction, layout, and materials you want. 

Apartments 

Apartments, also known as flats in India, are the most common type of residential property. They are usually part of multi-story buildings with individual units. Apartments come in different sizes, from small studio apartments to large penthouses. Furthermore, they frequently include shared amenities such as parking, security, and recreational facilities. 

Independent Houses 

Independent houses, bungalows, and standalone houses are single-family homes with no common walls. As a result, they provide increased privacy, freedom, and space. Independent houses are ideal for those seeking exclusivity and the ability to personalize their home. Individual homes are for those seeking exclusivity and the ability to personalize their home. 

Villas 

Villas are luxurious standalone properties that provide plenty of space, modern amenities, and a high level of customization. They frequently include private gardens, swimming pools, and exclusive amenities. Villas offer a luxurious living experience and are popular among wealthy homebuyers. 

Reasons to Invest in Residential Properties 

Real estate is an excellent investment option because it can generate passive income without triggering income tax provisions. Investing in residential properties ensures that your long-term returns are higher. A residential property’s value rises over time, making it an effective strategy for beginning to accumulate wealth. 

Here are some reasons to invest in residential properties 

Increased and consistent rental income

The vast majority of home investors’ per capita standard of living has risen due to the rise in rental income. Home buyers can earn substantial rental income, leading to a peaceful life. The housing rental market is increasing the country’s economic engine, and any economic development will result in higher rents. As a result, even if you raise the rent, there will always be a supply of tenants. 

Affordability 

Residential properties are known for their competitive pricing, which boosts interaction between potential buyers of flats and apartments. The absence of a business incentive is one of the major distinguishing features of residential housing. The lack of profit-driven behavior stabilizes the housing market because developers know that raising apartment prices will result in less demand. 

Additionally, it is essential to understand how to invest in residential properties, monitor upcoming real estate market trends, and watch for the growth of contemporary infrastructure and transportation options.  

Tax benefits 

Residential properties are exempt from taxes and GST. Furthermore, income from investments in residential property is not subject to self-employment tax. But to be cautious, ensure the appropriate consultations occur with tax professionals before investing your money in any property. 

Investors can reliably grow their savings without risking any risks by investing in residential real estate, which gives them a sense of security. More security during trying times and protection for your investments are home. 

Conclusion 

Your lifestyle, preferences, spending power, and long-term objectives will all play a role in helping you choose the ideal residential property in India. Independent homes and villas offer more privacy and customization options than apartments while providing convenience and shared amenities. Gated communities offer a safe and well-equipped living environment, whereas plots let you create a home that is uniquely yours. Builder floors strike a balance between individual freedom and communal facilities. 

GST on Sale of Residential Property by Individual

On July 1st, 2017, the GST was implemented and became law. Numerous Indian businesses, particularly those involved in real estate, have been significantly impacted by this tax plan. This blog discusses the applicable GST for purchasing homes, apartments, and other real estate, all of which have been adversely affected by this tax plan. This blog post addresses the applicable GST for residential property sales. 

What is the GST on Residential Property in India? 

Before the GST took effect, property buyers had to deal with the hassle and stress of several taxes, including the central excise tax, the VAT, and others. There is no doubt that the taxation of properties at that time was complex and opaque. The GST has changed the way things are. 

When purchasing residential property, the GST was initially 8% for affordable housing and 12% for a home that was not. The taxation system allowed property buyers to benefit from the ITC (Input Tax Credit ) on the initial applicable GST rates. 

However, the 33rd GST Council meeting’s decision to implement new and revised GST rates took effect on April 1, 2019. As long as it is an affordable housing unit, the new GST rate is 1%. In contrast, the GST rate for expensive or luxury properties is 5% without ITC. 

GST on Residential Property 

If a property exists in one of India’s megacities, everyone must pay GST on it. Buying residential real estate in finished complexes, including condos or apartments in finished complexes, is exempt from the GST if it comes with a visible occupancy certificate. 

GST on Residential Property 

Residential Property Type GST until March 31, 2019 GST As Of April 1st 
Luxury or Unaffordable Housing, Unless Under Construction 12%+ ITC 5% Excluding ITC 
Building Affordable Housing8% +ITC 1% Excluding ITC 
For finished residential projects (properties available for immediate occupancy),GST is not ApplicableGST not Applicable 

GST on Residential Property: Prerequisites & Conditions 

A residential property purchase with a 1% GST exemption is subject to some requirements or prerequisites. You must meet several criteria to purchase a residential property with a 1% GST exemption. The housing development must satisfy the following needs to be considered affordable housing: 

  • Residential real estate in non-metropolitan areas falls under the affordable housing category if it is 90 square meters in size and costs up to 45 lacs. 
  • Affordable housing in metro cities means The 60 sq.m. under-construction flat/house/apartment has a price range of up to 45 lacs. 

For flat purchases, you need 1% GST. Meet these requirements

One must purchase at least 80% of the raw materials from any registered dealer to be eligible for a flat GST rate of 1%. If not, the owner of the housing or apartment project must by RCM to pay 18% GST. 

Affordable housing currently under construction does not qualify for an ITC. It would give access to a 1%  GST rate. As a result, the buyer cannot deduct the GST they pay when buying property from their income. 

The Impact of GST on Real Estate, Conclusion

Following the implementation of GST, the real estate sector in India underwent a significant reform. Previously, the housing developer had to pay fees for permits, service taxes, legal costs, excise duty, VAT, customs duty, etc., which had an impact on their taxation procedures and increased the amount of money that buyers of real estate had to pay.

However, the GST law has simplified and organized things. By increasing the real estate tax rate to 12%, the most recent GST tax regime significantly reduced the burden on property buyers. The GST rates on residential property have fallen because of the GST Council meeting in 2019. Since then, it has become easier for Indians to buy real estate.  

Land Sale Capital Gains Tax

Any profit or gain from selling a capital asset is known as capital gain. Houses, land, stocks, mutual funds, jewelry, and trademarks are all capital assets. Because the gain/profit is considered income, you must pay tax on that amount in the same year you transferred the capital asset. 

As a taxpayer, you must pay taxes on your earnings during the fiscal year. Similarly, you also have to pay taxes on your capital gains. 

Because land is a capital asset, capital gains from its sale are taxed. Here’s a detailed explanation of capital gains tax and how to calculate it. 

Capital Gains Tax on Land Sales 

You must pay capital gains tax on a home or land sale. Capital gains tax falls into two types: short-term capital gains (STCG) for properties held for less than 36 months and long-term capital gains (LTCG) for properties kept for more than 36 months.  

In the case of STCG, the profits generated from the sale of land belong in the owner’s taxable income, and the individual must pay taxes based on the income tax slab they fall into that particular fiscal year. The current LTCG tax rate is 20%. 

How to Count Capital Gain on Land Sale? 

Here’s how to figure out the capital gains from selling a house: 

Capital Gain Tax (STCG) 

Deduct the acquisition cost, improvement cost(if any), and sale-related expenses from the sale price if you sell the land within 36 months of purchasing it. It will be your STCG. 

Let’s take a look at an example- 

Mr. Ansari purchased land in 2015. He paid Rs. ten lakh for it. Mr. Ansari bought land in 2015. He paid Rs. 10 lakh for it. In 2016, he sold the land for Rs. 15 lakh. In this instance, Mr. Ansari’s total income will rise by Rs.5 lakh. Tax will be lived based on his tax bracket. Calculating the STCG tax is easier. The profit from the sale of land is part of the total income.  

LTCG – Capital Gains Tax 

In LTCG, you can deduct the indexed acquisition and improvement costs from the sale price. It helps to reduce your capital gains as the cost of acquisition or improvement rises.  

When calculating LTCG, the cost inflation index (CII) is critical. Every year, the government releases this index. CII is an integral factor in determining the indexed cost of acquisition and improvement. 

Cost Inflation Index = Index for the fiscal year of transfer/ Index for the fiscal year of acquisition. 

Are Deductions for Reducing Capital Gains Tax Available? 

Yes, the IT Act provides a few options to help landowners reduce their capital gains tax liability. Some of the most popular ones are as follows- 

Section 54F of Income Tax 

Under Section 54F, there is a 100% deduction on the capital gains tax if the entire amount is gained from selling land for purchasing or constructing a house. However, this provision is subject to certain conditions and limitations. But note that there are some conditions and limitations to this provision. 

Income Tax Section 54EC 

The LTCG from the land sale is deductible under Section 54EC when invested in capital gains bonds such as REC (Rural Electrification Corporation) or NHAI (National Highway Authority of India). Furthermore, if you don’t use these sections of the IT Act, you can deposit your capital gains in a bank. Such capital gains deposits are tax deductible under the Capital Gains Account Scheme. 

Tax Advice for House Sellers 

  • Generally, the exemption for a new residential property is proportional to its total sale price. Investing the remaining amount within six months is allowed under Section 54EC. 
  • The exemption will also be available if the builder of the new residential property does not hand over the house to the taxpayer within three years of purchase. 
  • You can calculate the capital gains by using the stamp duty and valuation by the registration authority. 
  • If the seller cannot reinvest the gains in bonds or houses before filing their tax return for the year in which the sale occurred, they can deposit the gains in the Capital Gains Account Scheme to be eligible for the deduction. 

Registration Fees for Land

If you plan to buy land in India, you must consider the cost of registering your property besides the price of the property itself. Depending on the state and type of purchase, property registration fees and stamp duty charges can amount to 7% to 10% of the total property cost. 

Registration fees in most Indian cities and towns are 1% of the property value. Aside from these fees, you will pay a cess and a small surcharge. 

Different Cities’ Land Registration Fees/Charges 

Name of the City Registration Fees
Bangalore 5%
Delhi 4% if the owner is a woman
6% if the owner is a man. 
Mumbai 1% or Rs. 30,000 
Chennai1%
Kolkata1% if the value of the property exceeds Rs. 40 lakhs. 

What is Land Registration? 

When you register a property in your name, the state government will charge you a registration fee, which is a percentage of the total or filed value of the property. The Registration Act of 1908 imposes a fee for registering your property documents in your name. This fee applies to both new and existing property registrations. 

Property registration fees vary by state. It also depends on who will register the property. Women and senior citizens receive a registration fee reduction from the state government. 

Factors Influencing Property Registration and Land Charges 

  • Property, new or used:  The property registration fees vary by the type of property you want to register. A high registration fee is usually required to enter a new property. It makes sense because the registration fee is a percentage of the total cost of the property. A new piece of land typically has a higher total property cost than an old piece of land. It usually has a higher total property cost than a piece of older land. When you register a not-so-new or old property, the registration fees will be low because the home’s value has decreased since it occurred. 
  • Commercial and Residential Property: The fees for registering a commercial property are higher than those for registering a residential property. It is primarily because commercial real estate, unlike residential properties, requires additional amenities such as swimming pools, escalators, and exclusive parking. 
  • Geographical Factors: The property’s location has an essential impact on the registration fees. If your property is in a city or a developed town, you must pay a high registration fee. You should also consider the state where you’re buying the property because state governments charge property registration fees. 
  • Transfer Type: If you are buying a property from someone other than a family member, you must pay the standard registration fee. However, if you transfer the property’s title to a family member as a “Gift Deed,” the registration fees are low. 
  • Amenities: As previously stated, if you have amenities such as a clubhouse, community hall, library, outdoor play area, swimming pool, cargo lift, or gym, you must pay a high registration fee. The amenities-valuation method requires you to pay more for each additional amenity in your building. 
  • Airport, bus, or train station proximity: Did you know that if you live near an airport, bus station, or railway station, you will face a high registration fee? Yes, that’s correct!
  • Property ownership gender: The government waives registration fees for women’s properties. So, if you have a female member, you can register the property in her name to save money on registration fees. 

Documents Required 

Property registration requires the submission of the following documents: 

  • Certificate of encumbrance valid until today. 
  • The electricity bill 
  • Registered Development Agreement (if it relates to Joint Development property) 
  • Power of attorney, if any 
  • A copy of all previously recorded contracts (if real estate is under offer)
  • ‘RTC’ stands for Records of Rights and Tenancy Corps. 
  • The landowner’s title records and a sale deed in the seller’s name 
  • Tax returns from the previous three months, as well as the most recent bank statements, if money remains due from a loan. 

How are land registration fees calculated? 

Property registration fees depend on the current market value of your home. If you have both the market value and the agreed-upon value of the property, the greater one will be the charge. 

  • Aside from the cost or value of the property, the type of property, location of the property, gender and age of the owner, usage of the property, and a number of floors all influence the property registration fee. 
  • Stamp duty officials usually use the Stamp Duty Ready Reckoner to determine the property’s worth. The Stamp Duty Reckoner is published annually on January 1st by the relevant state government.

Calculator for Property/ Flat Registration Fees 

Use an online property registration fee calculator to determine how much you must pay out of pocket before registering your property. Many online calculators can calculate the registration fee in a matter of seconds. All you have to do is: 

  • Enter basic information about the property, such as its location and cost, and then click the “Calculate” button. The charges will appear on the monitor in no time. You do not have to go to the local register office to find out. Thanks to technology!

GST on Residential Flat

Property buyers must pay GST on residential property purchases in addition to property tax to meet their tax obligations. His GST regime in the real estate sector has changed in recent years. Potential investors and homebuyers need to consider the impact of GST when making real estate investments. 

What is the GST rate for residential construction?

In 2022, individuals who invest in under-construction projects in India will have to pay GST on their purchases. When buying a home in a finished project, the GST on property purchases does not apply. A completed project has received a certificate of completion from the appropriate authority.  

Type of Property GST Rate through March 2019GST Rate in April 2019
Affordability of housing 8% with ITC1% without ITC
Unaffordable housing 12% with ITC5% without ITC
Commercial Space> 15% of Total Carpet Area in Residential Property 12%, with ITC5% without ITC

Residential Property GST Rate

  • It makes no difference whether or not the landlord is GST registered; GST does not apply. 
  • When a business entity rents a residential property, the GST rate is 18%.
  • When the property is rented to a private person or used for personal reasons, there is no GST if the tenant applies for GST. 

How do I pay GST on a flat?

If a flat owner pays a minimum maintenance charge of Rs 7,500 to their housing society, they must pay 18% GST on a residential property.  

Residents Welfare Association (RWA) imposes a monthly charge of Rs 7,500 per apartment, which is taxable at 18% of the total amount. 

GST is not payable by housing societies with an annual turnover of less than Rs 20 lakh. Meet both conditions for GST to apply, i.e., 

  • Each member must pay a monthly maintenance fee of Rs 7,500 or more. 
  • RWA’s annual turnover must be at least Rs 20 lakhs. 

The government also stated that if the monthly charges exceed Rs 7,500, all of them will be taxable. 

Example: 

If the monthly maintenance fee is Rs 12,000, 18% GST for a flat is payable Rs 12,000 but not Rs 4,500 (Rs 12,000 to Rs 7,500). 

Owners of multiple properties in the same housing society must also pay taxes on each unit separately. 

Why is there no GST on completed flats?

A completed home purchased in a secondary transaction will not be subject to Goods and Services Tax. It is thus essential to understand that Gst is only payable on payments made to contractors who offer construction services. As a result, when purchasing a completed (ready for occupancy) or used apartment, the issue of providing construction work does not arise. As a result, when purchasing completed apartments, GST is not applicable. 

The application of GST to the property is conditional on the competent authority issuing a certificate of completion. When a property’s certificate of completion arrives before payment is due to the seller, it is considered a sale of the property ready for occupancy rather than an offer of goods or services. As a result, no GST applies to the sale of the completed apartment. 

What if the buyer fails to pay GST?

If the buyer fails to register under GST laws, the seller is entitled to a refund of pre-GST taxes and duties. Refunds are only available if the goods were bought and returned within six months of July 1, 2017. 

Is GST applicable on Resale flats?

Buyers of resale apartments are exempt from the Goods and Services Tax (GST). Unlike other under-construction apartments, the buyer won’t have to pay GST at the point of purchase because the apartment is ready to move into and doesn’t abide by the works contract. However, if the buyer purchased the property from a developer who paid GST during construction, she must pay her GST total before buying the home. According to the GST Council’s recommendations, the buyer of the building will be subject to an 18% tax. However, it is 12% for the properties under construction. 

How to avoid paying GST? 

If you buy a flat, you can avoid paying GST if you: 

  • Purchase a completed or already built flat (flat with completion certificate). 
  • Purchase of a used apartment. 

Capital Gain Tax on Land Sale

What is Capital Gain?

A capital gain is simply the profit or loss from the sale of a capital asset. You will have long-term capital and short-term capital gain if you sell a Short term capital asset. If the sale results in a loss, you will incur a capital loss. The Capital Gain will be taxable in the year when the capital assets become available. 

Capital Gains Tax on the Sale of Real Estate 

Capital gains can be of two types, depending on how long the capital asset remains in use. 

  • Long-Term Capital Gain (LTGG) or Long-Term Capital Loss (LTCL): If a taxpayer sells an immovable property or land held for more than 24 months, the gain or loss on such sales is a Long Term Capital Gain (LTCG) or Long Term Capital Loss (LTCL). 
  • Short-Term Capital Gain (STCG): A Short-Term Capital GAIN (STCG) or Short-Term Capital Loss (STCL) is a gain or loss on the sale of immovable property or land held for up to 24 months by the taxpayer. 

According to the Income Tax Act, movable property or land is a capital asset. When a taxpayer sells an immovable property or land, the income or loss is reported as Capital Gains in the Income Tax Return and taxed at the applicable rate. The nature of the capital gain determines the capital gain tax on the sale of property or land, whether long-term or short-term. While the STCG on the sale of immovable property is taxable at slab rates, the LTCG is taxable at 20% with indexation benefit under Section 112 of the Income Tax Act. 

Income Tax on the Sale of Land Sale 

The tax treatment of immovable property, such as land, buildings, or houses, is similar to that of other capital assets. 

Calculation of Long-Term Gain Tax on Property Sales in India 

LTCG on the sale of immovable property in India is taxable at 20% with an indexation benefit, according to Section 112 of the Income Tax Act. To take advantage of the indexation benefit, the taxpayer can compute the long-term capital gain by calculating the indexed cost of the acquisition using the Cost Inflation Index (CII). The taxpayer’s cost of improvement is the expense incurred for adding or improving the capital asset. Using CII, the taxpayer can also calculate the Indexed Cost of Improvement. 

Particulars Amount 
Sales Consideration 
LessTransfer Expenses 
LessIndexed Cost of Acquisition 
LessIndexed Cost of Improvement 
LessExemption u/s 54 to 54 GB
Long-Term Capital Gain
  • Sale Consideration = In the case of immovable property, the sale consideration should be the offer value of the capital asset or the value adopted by the stamp duty valuation authority to Section 50C of the Income Tax Act.  
  • Transfer expenses are expenses incurred solely to sell a capital asset. 
  • Cost of Acquisition = (CII of the year of Sale/ CII of the year of Purchase) = Indexed Cost of Acquisition  
  • Cost of Improvement = (CII of the year of Sale/ CII of the year of Improvement) = Indexed Cost of Improvement
  • Capital Gain Exemption = Taxpayers who meet the specified conditions can claim a capital exemption under Sections 54 to 54GB. 

Calculation of Short-Term Capital Gain tax on the sale of Property in India

The short-term capital gain on the sale of real estate is taxable at the slab rates. There is no indexation benefit in the case of a Short capital gain. 

Capital gain exemptions, also through Sections 54 to 54 GB, aren’t enough. As a result, the Capital Gain calculation of the acquisition, improvement, and transfer costs 

TDS on Rent of Residential Property

Renting out a property in India has several tax implications that the tenant and landlord should be aware of. TDS or Tax Deducted at Source, is one such provision. The government implemented it as a tax collection mechanism to streamline the process and prevent rental income tax evasion. 

Understanding the nature of TDS on house rent in India from various perspectives is thus necessary if you are involved in rental properties. In this blog, we will look at TDS and its requirements from the standpoint of residential property. 

What exactly is TDS?

TDS is the tax deducted from the source of income. For example, if A has to pay B a specified amount, A must deduct tax at the origin, i.e., TDS, and transfer it to the Central Government’s account. The amount deducted will then be credited to B by the provisions of the Income Tax Act. 

Rent Taxes in India 

Property in India pays taxes under various sections of the Income Tax (IT) Act 1961. As a result, whether you sell or lease your property, you will benefit from a tax break. Deductions occur at the source in taxes like the tax on property sales in India or income tax on house rent. 

Section 194-I of the IT Act addresses the provisions for rental income. Tenants should deduct TDS and remit it to the central government account, which the lessor/landlord is entitled to receive as a credit if the TDS certificate or Form 26QC is in order. 

However, the tax treatment depends on several factors, including the nature of the property, its use, rental income, and an individual’s tax status. 

The nature of the properties has fallen into the following categories under the same provisions: 

Residential Properties

House Properties used for rental purposes are, naturally, subject to income tax on house rent in India. You can deduct expenses like municipal taxes and mortgage interest to calculate taxable rental income. 

Tax Deducted at Source on the Rent 

Though TDS is an essential term in the IT Act, a few people understand how taxes accumulate at the source. The Indian government enacted this provision to ensure that rental income is accurately collected. Here are a few things that both residents and NRIs should be aware of.  

Kerala Land Tax Online Quick Pay

Those who own plots or houses in Kerala must pay a land or property tax to the local authority or village office. In an assessment year, the land tax gets paid once or twice. The Kerala Revenue Department provides a web application, the Revenue Land Information System (ReLIS), to manage land records and enable registration and online payment of land tax. 

During the March 2022 budget, the government announced plans to revise the vital land tax rates across all slabs and introduce a new slab for land larger than 40.47 acres in panchayats, municipalities, and corporations. 

How do I pay Kerala land tax online?

Step 1: Navigate to https://revenue.kerala.gov.in/. By clicking on ‘Register,’ first-time users can register to use the e-services. 

Step 2: Click ‘Login’ to access the portal with your registered mobile number and password. 

Step 3: After logging into e-Services, choose “New Request.” Choose the ‘Land Tax Payment’ option. Then, by clicking on ‘Confirm,’ accept the message for the taxpayer that appears on the screen. 

Step 4: On the payment request page, enter information like district, taluk, village, block number, Thandaper number, survey number, and so on. Click ‘View and Add’ to double-check the information. 

Step 5: Submit information such as the applicant’s name, last tax payment date, receipt number, etc. To pay Kerala land tax online, click ‘Pay Tax.’

Step 6: The payment details will appear on the following page. Select ‘Pay Now’.

Step 7: The payment screen will appear. Select your preferred payment method (for example, net banking, card payment, or UPI payment). Click the ‘Payment’ button. 

Following the successful payment of Kerala land tax online, the user will receive a receipt, which can be downloaded and saved for future reference. 

Documents Required for Kerala Land Tax 

The property tax bill is a necessary document when paying property taxes. The municipal authority sends the property tax bill to the property address. When paying property tax online, one must enter the details listed on the bill, such as name and property ID.  

Kerala Land Tax Rebates 

Property owners may be eligible for the civic authority’s rebates. These factors include the owner’s age, the property’s occupancy, the nature of the area, the property’s usage, income, the asset’s age, and so on. Furthermore, a 15% property tax rebate is available if the entire tax was paid in one lump sum at the beginning of the year. 

Property tax payments made on or after the due deadline are subject to a 20% late fee. 

National Highway Land Acquisition Notification 2022

This appeal is filed on behalf of the unsuccessful original petitioners to review the order issued by a Division Bench of the High Court of Judicature at Allahabad on February 28, 2020, in WritC No. 7310 of 2020, by which the High Court rejected the appellants’ writ application, holding that the District Magistrate is competent to investigate the legality and validity of the order issued by the Special Land Acquisition Officer. 

ACTUAL MATRIX 

  • In using its authority under Section 3A(1) of Act 1956, the Central Government sent a notification on January 23, 2015, proposing to acquire a few parcels of land in the District of Mau to widen National Highway No. 29 to four lanes. The land with Gat Nos. 158, 160, and 161 of the village Ahirani Bujurg, District Mau (UP), was included in the notification. 
  • In the previous setting, a further notification was issued under Section 3D of Act 1956, declaring that specific property was for public use. Upon issuance of such a notification, the land becomes the property of the Central Government. 
  • The competent authority, the Special Land Acquisition Officer, determined the compensation to be paid to the landowners (parties before us) for the acquired land in an award dated November 28, 2016, passed under Section 3G of the Act 1956. The relevant portion of the competent authority’s award is as follows: 

Using the stamp rate of Rs. 4,50,00,000.00 as a basis, compensation for the land measuring 3.269 hectares in the village Ahirani Buzurg that was bought comes out to Rs. 14,71,05,000.00, double the amount of which happens to be Rs. 29,42,10,000.00, and compensation for the structure and tree comes out to Rs. 8,01,582.00, totaling Rs. 15,29,06,582.00. 

The value of 100% Solatium on this sum is Rs. 30,00,11,582.00.  Additional compensation of Rs. 3,16,66,953.00 is payable at a rate of 12% from the day of the last publication of Section 3A on March 6, 2015. 

As a result, the total compensation amount is Rs. 63,16,90,117.00, for which I declare the award. By recovering land acquisition expenses of Rs. 6,31,69,021.00 from the Acquiring Authority at a rate of 10% of the total amount of compensation and 100 times the registered values of less land revenue, the amount will be put in the prescribed Account head. 

As a result, a notice will arrive at the relevant Tehsil for entry proceedings. While sending one copy of the Award Order to the Indian National Highway Authority in Gorakhpur, it is necessary to write requesting that the entire amount covered by the Award in question be made available.”

The competent authority is required to determine the shares of the landowners in the compensation by the legislative scheme, Section 3H(3) of the Act 1956. In these cases, the competent authority requested a report from the revenue authorities. The revenue authorities reported the appellants’ and respondents’ shares in their report dated 11.04.2019. This report favored appellants. The relevant portion of the provided reads thus: 

Khasra No. 1353  mentions Gata No. 213, which has the present number of 232/51 minutes, Gata No. 213 B has the offer number 232/183, and Gata No. 213 is the current code of 232/519. Similarly, Gata No. 233 currently has 214/644 acres and is described as “Bagh Digar”. Furthermore, the present number of Gata No. 208 is 227/1.440 acres, in which “Bagh Digar” is mentioned.

The names of Mahadev Shahi, son of Sitaram Shahi and Bholanath, son of Ganga and Saryu, son of Brijrnohan, Caste Kandu, are found in Khata No. 46 of Copy of Khatauni for the crop year 1348, Ahirani  Buzurg, in which Gata No. 232 acres appear, and the name of Mahadev, son of Sitaram Shahi and Bholanath, son of Ganga and Saryu, son of Brijmohan, Caste Kanu, appears in respect of Gata No. 128 for the crop year 1348. Khata No. 92 mentions Gata No. 232/ 0.284 acres and the names of Mahadev, son of Sitaram Shahi, and Bholanath, son of Brij Mohan, Caste Kandu. It refers to Gatas 232/0.539 and 233/0.644, two Gatas totaling 1.163 acres, which is correct. 1348 is the crop year, also known as Jamman 12. 

The allocation was based on 12 equal shares in Gata No. 227/1.440 and an equal share of Salum in Gata Nos. 232 min./0.551, 232/0.183, 232/0.539, and 233/1.624. Because the road connects Hashiya Doharighat and Gazipur, the applicant owns a third of Gata Nos. 232 and 233. 

Challenges of Nation-Building Notes

New Nation’s Challenges

Following India’s independence in August 1947, three challenges arose in nation-building. 

  • The first and most pressing challenge was to create a cohesive country to accommodate society’s diversity and eradicate poverty and unemployment. 
  • The second obstacle was establishing democracy. 
  • Third, ensuring the development and well-being of the entire society was a challenge. 

Displacement and Rehabilitation

  • India and Pakistan became nations on the 14th and 15th of August, 1947. 

Thousands of people on both sides lost their homes, lives, and property due to enmity. 

  • West and East Pakistan sprang up along the Muslim-majority belt, separated by a large swath of Indian territory. 
  • “Frontier Gandhi,” Khan Abdul Gaffar Khan, was the undisputed ruler of the North-West Frontier Province (NWFP). Despite his protests, Pakistan merged with the NWFP. 
  • During partition, Punjab and Bengal were part of the trauma. 

Partition Effects 

  • One of the most abrupt, unplanned, and tragic population transfers occurred in 1947. 
  •  Minorities on both sides of the border fled their homes and sought temporary refuge in “refugee camps.”
  • Women were frequently abducted, raped, attacked, and killed. They had to change their religions. 
  • The political and administrative machinery of both sides failed. 
  • There was a significant loss of life and property. The culmination of communal violence had arrived.

Princely State Integration

  • During British rule in India, there were two types of provinces: British Indian Provinces (Governed directly by the British Government) and Princely States (governed by Indian princes).
  • There were nearly 565 princely states immediately following independence. Many of them joined the Indian Union. 
  • Initially, Travancore, Hyderabad, Kashmir, and Manipur refused to join the Indian Union. 

The Government’s Strategy

  • The interim government at the time took firm measures to prevent India from being divided into small principalities of varying sizes. 
  • Three considerations guided the government’s approach. 
  • The people of the majority of the princely states desired to join the Indian Union. 
  • The government was willing to be flexible in granting autonomy to regions. 
  • The nation’s territorial boundaries had become critical.

Adherence Instrument 

  • The rulers of the majority of the states signed a document known as the “Instrument of Accession.” The accession of Junagarh, Hyderabad, Kashmir, and Manipur proved more than any others. 
  • Following initial opposition, Hyderabad was merged with the Indian Union through a military operation in September 1948.
  • In September 1949, the Government of India succeeded in pressuring the Maharaja of Manipur into signing a Merger Agreement. The government did so without consulting Manipur’s popularly elected Legislative Assembly. 

Reorganization of the State

  • During the national movement, the Indian National Congress recognized the need for linguistic reorganization of states. 
  • This idea was put on hold after independence because the memory of partition was still fresh and the fate of the Princely states had not been decided. 
  • Andhra Pradesh became a linguistic nation in December 1952 following a lengthy battle. 
  • The establishment of this state provided the impetus for the linguistic reorganization of states. As a result, in 1953, the Indian government formed the States Reorganization Commission. 
  • This commission agreed that the state’s borders reflect the limits of various languages. 
  • Based on its recommendations, the State Reorganization Act took effect in 1956. As a result, 14 states and six union territories came into existence. 

Two Men on Either Side of a 75m High Building

In today’s video, we will review some bare heights and distance information before moving on to the main topic. 

Height refers to the vertical measurement of an object. 

Distance is the horizontal between two points. 

Elevation Angle

Consider a situation where a person is on the ground and looking at an object at some height, such as the top of a building. In this case, the line of sight is the line that connects the man’s eye to the top of the building. The elevation angle comes from the line of sight and the horizontal line. 

The Depression Angle

In another case, a person appears standing at a certain height about an object.  The line o sight refers to the path that connects the man’s eye to the bottom of the building. A line of sight and a horizontal line from the angle of depression.

Now let the height of the building is 75m and two men are standing on point A and point B.

Suppose distance AD = xm and DB =ym.

In the right angle Δ ADC, CD/AD = tan 30°

= 75/x = 1/ √3 = x = 75√3m 

Now in right angle Δ CDB, CD/BD =  tan 60°

75/y = √3 = √3y = 75 = y = 75/ √3 = 75/√3 ×√3/√3 = 75√3/3= 25√3

Total distance x+y = 75√3 + 25√3 = 100√3m. 

Building Has Been Built The New Plan

A wide range of modern methods of construction (MMC) techniques and products have been developed, completely altering the construction industry’s behavior from what it was previously. 

This incredible transformation brings about more and more developments in this sector. 

What are Modern Construction Methods?

Modern construction methods (MMC) are developed in the construction industry with proper planning and design to reduce construction time and cost while maintaining overall sustainability.  

Many methods are used and built in the current scenario. The most well-known and widely used modern construction methods are listed and explained below.

Modern Construction Methods Types 

Among the various MMCs used in the construction industry are: 

  1. Flat Panel Precast System 
  2. Volumetric 3D Modules 
  3. Flat Slab Building
  4. Panels of Precast Cladding 
  5. Concrete Floors and Walls 
  6. Concrete Precast Foundation 
  7. Insulation for Concrete Formwork

Flat Panel Precast System 

This construction method entails the process of fabricating floor and wall units off-site. Separate factory outlets and facilities are necessary for this. The panel units are manufactured according to the design specifications and requirements and brought to the site for installation. This method is best suited for construction project activities that continue. 

Windows, doors, and finishes are available on the manufactured panels. This method includes factory-fitted building envelope panels with insulation and decorative cladding that can load-bearing elements. 

3D Volumetric Construction

As the name implies, 3D volumetric construction entails the off-site production of 3D units consisting of modules. They are brought to the installation site and assembled module by module. Because each modular unit produced is a 3D unit, this construction is known as a 3D volumetric building or modular construction. 

The modules can be transported in multiple ways or by various means. It can include transporting the basic structure or a completed unit with all internal and external finishes and services installed, with only the assembly remaining. The factory construction combines various items of the same product while maintaining quality throughout. As a result, this method works best for repetitive projects that require the goods to assemble quickly. 

Flat Slab Building 

Flat slabs are extremely versatile structural elements. Because of its versatility, it frequently appears in construction. The flat slab provides minimum depth and faster building. The system also includes adaptable column grids. 

Flat slabs are a good choice where it is necessary to steal the partitions to the slab soffit due to acoustic and fire concerns. Flat slabs are faster and less expensive than other types of construction. When building on flat slabs, it’s possible to cover the soffit with a good surface finish. Flat slab construction also increases energy efficiency because it allows for utilizing building thermal mass when planning ventilation, heating, and cooling requirements. 

Concrete Foundations Precast

Precast concrete is an option for quick foundation construction. This method is better suited for custom design. The elements required for the foundation’s construction are built separately in the factory (off-site), then transported to the site and assembled. The manufactured product must meet the quality standards specified by the designer.  

Concrete piles serve as the primary support for the assembled foundation. Both systems connect during the assembly process. These foundation systems aid in increasing productivity, improving quality, and reducing the amount of soil excavated. It is best suited for extreme and adverse weather conditions. This construction system is the best choice when dealing with highly contaminated ground. 

The technology of Twin Walls 

The twin wall technology is a hybrid wall system that combines the erection speed and precast concrete qualities with the structural integrity of in-situ concrete. This particular wall system ensures the structure’s structural integrity and waterproof reliability. The twin wall system has two wall slabs. Lattice grinders cast in place separate the two slabs. The procedure involves: 

  1. The job has a wall unit. 
  2. The twin units are temporarily higher. 
  3. Later, reinforcing serves to join the wall units. 
  4. Concrete fills the space between the wall units. 

This construction method is both faster and more cost-effective than traditional methods. The twin wall system has its main application in erecting precast floors. 

Concrete Formwork Insulation  

The insulating concrete formwork (ICF) system employs twin-walled panels that are either polystyrene panels or blocks. These swiftly come together to serve as the building’s formwork. 

Concrete is the formwork that has emerged. This concrete is manufactured in a factory with quality assurance and is ready-mixed. The majority of the mix is ready-mix concrete. 

Expanded polystyrene blocks provide a higher level of thermal insulation. The concrete core will provide strength and sound insulation. 

Panels of Precast Cladding 

The cladding system is the process of layering one material on top of another to form a skin or layer. This layering system is not only for aesthetic purposes, but it can also aid in controlling the infiltration of weather elements. 

The cladding does not provide any kind of waterproofing. Instead, the cladding acts as a water barrier. It safely aids in the direction of water or wind, allowing runoff control. It helps to prevent infiltration into building structures. 

Concrete Floors and Walls 

Concrete walls are commonly used for seat walls, retaining walls, decorative exterior and interior finishes, and other structures. Concrete can also serve as a flooring material. Concrete floors can finish well using modern technology, creating smooth and appealing flooring. Concrete floors, perhaps more than any other material, offer an array of materials for applications such as acid-stained painted, radiant floors, overlays, and micro toppings. 

Concrete flooring is also known as cement flooring. Concrete flooring is less expensive than other types of flooring and requires little maintenance. A dust mop is an option to clean properly sealed concrete flooring. 

Dharitri Assam Land Records Online

On May 10, 2023, the Union Rural Development Ministry (URDM) announced the formation of a task force for land governance in North-Eastern states. On May 3rd, at the Conference “ Land Governance in the Northeastern States” in Guwahati, Assam, Mizoram, Meghalaya, and Tripura all agreed that modernization and digitization of land records are critical to district development. While these initiatives have gained traction in some parts of Assam, others, such as the Karbi Anglong Autonomous District Council, the Bodoland Territorial Council, and the Bodoland Territorial Council, remain behind. 

Dharitri Assam Land Records (ধাৰী অসম ভূমি অভিলেখ )

Dharitri Assam Land Records is an online portal that ensures the smooth transfer and registration of all Assam land records processes. The Assam government provides land information, such as mutation, partition, conversion, reclassification of land records, and land revenue collection. 

It also ensures that communication with the Revenue Circle, Sub-register, Deputy Commissioners’ offices, and the Directorate of Land Records is as smooth as possible. It will appear in Jamabandi Assam. 

Assam Integrated Land Records Management System (ILRMS) Goal 

The Assam state government’s Integrated Land Records Management System, or Dharitree (or Dharritri) portal, integrates land-related information. The information it provides is as follows: 

  • Registration and Transference of Land 
  • Periodic updating of Land records, land conversion, and reclassification. 
  • Land tax collection. 

What Citizen Services are Available in Dharitree Assam?

Dharitree Assam offers an array of customer-centric services through its online portal, as stated below:

  • Online property registration eliminates the need to visit a land registration office. 
  • Obtaining a NOC and tracking its status before purchasing a property to make sure there are no legal disputes. 
  • Updating land records online, such as mutation and reclassification, through Dharitri Assam online portal. 
  • This online portal manages the entire land revenue collection process, ensuring maximum security.

How to Look Up Dharitri Assam Land Records Online 

The digitization of Dharitree land records has made many things easier. It is now possible to check land records in five simple steps.

Step 1: Go to the official ILRMS website. If the page is in Assamese, you will have the option to translate the page to English if you would like. There was a lot of Assamese on the page.  

Step 2: When you arrive at this page, click the “Deposit” or “Jamabandi” button. 

Step 3: Once you complete this second step, you will redirect to another page. Now, the next step is to select the district for which you want to pull out the land records. 

Step 5: Click a district to go to another page. On this new page, you will identify and select your circle name. It is best to gather this information when your circle is new to you. 

Step 5: After you have chosen your circle, you must select a name for your village. After you have chosen your town, you need to select the year for which you want the land record. 

The LRMS Land Registration Procedure

The quickest way to register for ILRMS is to download the Dharitree Assam app on your mobile device. To finish the registration process, log in to the app with your ID and password and enter all required information. 

How do I Land Records in Assam Offline?

If the name of the Assamese village does not appear in the list on the Dharitree Assam online portal, you must contact the relevant circle office. It is because some land records have yet to be digitized, even though over 26,000 village maps in Assam have made it to the Dharitree Assam portal. To get a paper copy, go to the nearest Circle office and fill out an application. 

Assam Dharitree Mobile Application

The Assam Government has launched the Dharitree Assam mobile application to help people easily check their land records. This application aims to provide a wide range of services, such as checking land records, mutation, Panheeyan Property Registration, and generating NOCs. 

You can download the application in PDF format as a citizen if you find it on Assam’s digitalized land record. To verify land records on your mobile app, follow the steps below. 

Step 1: Download the Dharitree Assam app on your mobile. 

Step 2: Launch the app and navigate to Dharitree land records.

Step 3: Select a village, circle, or district. Using the patta number or pattidar name and dag number, find the land records. 

Step 4: Fill out the CAPTCHA. 

Step 5: After completing these steps, you can view Assam land records through this app. You can also download the information in PDF format for future reference. 

GST on Rental Income from Residential Property in India

GST applicability on renting properties in India has been a source of concern due to continuous changes in the law since the implementation of GST. The rules for renting residential property under GST changed on July 18, 2022, a decision made by the GST Council at its 47th meeting. The CBIC has issued a new notification to clarify the scope of GST on rental income from residential property rentals. Let us look at the GST provisions on this topic. 

We will immediately clarify that renting an immovable property is considered a supply of service and is subject to GST at 18 percent. The CBIC recently issued Notification No. 15/2022- Central Tax (Rate), which goes into effect on January 1, 2023. To learn more about the notification in question, we must first examine the provisions on this subject in India since the implementation of GST.  

GST applies to residential properties until July 17, 2022. 

The entry at Sr.No. twelve of Notification No. 12/2017 – Central Tax (Rate) stated that the GST rate for “Services by way of renting of residential dwellings for use as a residence” shall be “Nil.” Accordingly, from July 1, 2022, GST was not in effect (whether registered or unregistered under GST). However, the legal position under GST changed on July 18, 2022. Please note that renting commercial property is always under the ambit of GST. 

GST applies to residential properties after July 18, 2022.

  • In its 47th meeting, the GST Council recommended that the government impose GST on a person who has given property to a registered person to rent residential property. 
  • As a result, the CBIC issued Notification No. 4/2022- Central Tax (Rate) on July 13, 2022, withdrawing the earlier allowed exemption from GST for those renting residential dwellings. This notification was made effective from 18th July 2022. 
  • The net effect of the above amendment is that beginning July 18, 2022, any person who provides services by renting residential property for use as residence to a registered person will be subject to the GST at the rate of 18%.
  • It is important to note that GST will continue to be exempt in cases where a residential property is left to an unregistered person after July 17, 2022. 

The obvious next question is, “Who will pay tax to the government for renting residential property to a registered person?” The reply can be found in Notification No. 5/2022 – Central Tax, dated July 13, 2022. 

The previous Notification, dated June 28, 2017, added a new entry 5AA to Notification No. 13/2017-Central Tax (Rate), which specifies services subject to GST under reverse charge. 

According to Entry No. 5AA, anyone who provides services to a registered person by renting residential property is subject to GST 18% under the reverse charge mechanism. 

In a nutshell, beginning July 18, 2022, if a landlord rents residential dwellings to a registered person (tenant), such tenant will be required to pay an 18% tax to the government. It should be noted that even if the landlord is registered for GST, the registered tenant is responsible for paying GST under RCM. This table will assist you in summarizing:

Residential Dwelling Rental Services

Landlord TenantGST applicabilityITC availability 
Unregistered Unregistered No GSTNA 
RegisteredUnregisteredNo GSTNA
Unregistered RegisteredGST payable by a tenant under RCMIf the property is rented for business purposes, ITC can be claimed.
RegisteredRegisteredGST payable by a tenant under RCM ITC can be claimed if the property is rented for business purposes.

What Makes Kolkata’s Highest Building So Special?

Kolkata is the state capital of West Bengal in India. It was previously known as Calcutta until 2001 when it was renamed Kolkata. The city is home to some of the tallest structures in India and Asia. With over 800 facilities, it has the country’s second-largest high-rise buildings. Several other skyscrapers are still under construction. The city’s structures are inspired by various cultures around the world and depict different historical periods. The vast majority of Kolkata’s skyscrapers are residential. This blog is about the tallest building in Kolkata, “The 42.” 

The 42 Chowringhee Kolkata building is now the tallest residential building in Kolkata and India. There are 56 ultra-luxurious flats with multi-faced amenities and facilities promising unrivaled luxury to the owners at a snobbish price tag of Rs 17 crore and above. 

The 42 is Kolkata’s tallest structure. It is 240 meters tall and has 60 floors, nearly twice the height of the South City Towers (36 stories). The 42 projects have the same height as Mumbai’s tallest building, the Imperial Towers 1 and 2, which have 61 floors each.

The 42 is an ultra-luxurious project in Kolkata’s Elgin neighborhood. The properties start at Rs 17 crore and go up from there, equating to Rs 20,000-22,000 per square foot. 

At this price, there are only a few remaining properties, and most are for sale. At this price, there are only a few remaining properties, and most are for sale. 

A four-member consortium is building the 42 projects in Chowringhee, Kolkata: Mani Group, Salarouria Sattva, Alcove Realty, and Diamond Group. Hafeez Contractor is a consultant on this project, and it’s due to be completed in December 2018. 

The 42 Kolkata Tower has 65 floors for sale. While the flats will all be standard size, the top floors will have a triplex. The ground floor lobby is 13 meters tall, the same as a typical three-story building. The car park has 56 slots, so each flat owner has seven parking spaces. 

The 42 Project in Kolkata has 4/5/6 BHK apartments and is the city’s tallest building. The 42 will have four bedrooms, a hall, a kitchen, and four toilets in 7780 square feet. A 5 BHK apartment in 7815 sq ft will have 5 bedrooms, a hall, a kitchen, and five toilets, while a 6 BHK apartment has 6 bedrooms, a hall, a kitchen, and five toilets. 

Apartments in Coimbatore for Rent

Coimbatore, also known as Kovai, is a major city in Tamil Nadu known for its key industries, engineering goods, textile mills, educational institutions, health care facilities, traditional culture, and boundless hospitality. It is home to a large textile industry and, more recently, an electronics manufacturing hub. 

Coimbatore’s real estate trends have changed over the years, and apartments are gaining popularity with buyers and lenders to the point where modern apartment designs have evolved. Because of its welcoming green pastures and plentiful hospitality, Coimbatore’s growing real estate market is seeing a significant increase in demand. 

Here are some advantages of renting an apartment in Coimbatore!

The climate is pleasant:

Because of its year-round pleasant climate, Coimbatore would be the best place to live. The city is home to incredibly welcoming individuals who embrace the culture and extend a warm welcome. 

The divine nature:

Coimbatore has a cosmopolitan outlook and breathtaking natural surroundings because it is home to the world’s most delicious “Siruvani Water,” after the Nile. 

Development:

Coimbatore’s expanding IT infrastructure and readily available connectivity can support all businesses. Because of its essential amenities, the city attracts significant investment. 

Connectivity:

The city is home to numerous universities, engineering colleges, medical colleges, and other educational institutions, as well as healthcare industries, and it has easy access to major South Indian cities. It is one of the main reasons why people move to Coimbatore. 

Ideal place for everyone: 

Many apartments in Coimbatore are ideal for families, kids, working parents, and college students. With world-class institutes for technology, engineering, and arts, and some of the best schools in the area, Coimbatore is a great place to buy your dream home. Because the city is not overly urbanized or overcrowded, it is an ideal place for families to relocate. 

A bright future is assured:

Job opportunities abound in multiple fields of interest due to the growing BPO, engineering, computer hardware, and IT sectors. Coimbatore, the gleaming city, is a beacon of hope for most rural people who travel to fulfill their dreams. 

Thriving metropolis: 

Coimbatore is a thriving metropolis in Tamil Nadu, with new buildings, stores, cinemas, restaurants, parks, and shopping malls sprouting up across the city. It is one of the state’s fastest-growing cities due to its vibrant social and cultural life. 

If you ever want to settle in a quiet and wonderful place in the entire state, buying your dream apartment in Coimbatore would be the best decision you’ll ever make. 

Things to consider before renting an apartment in Coimbatore 

  • Budget for upfront costs, long-term costs, and everything else you need to buy before you begin looking for your first apartment. 
  • Secure a move-in date before signing the lease so we can book a moving van and movers and plan our packing. 
  • Begin transforming your apartment into a home by making a furniture wish list, planning the decor, and deciding where everything will go. 

It’s a right of passage to move into your first apartment. 

Another step toward adulthood, but this one requires a lot of planning, money, and effort. 

Being prepared to begin the search entails knowing in detail what to know before renting an apartment, from how much savings you should have to what documents you need to convince the property manager you are a good candidate. 

Use the detailed list below to clarify what you should know before renting an apartment. Then, go out and find your first place. 

  • Rent is an additional expense when moving into a new apartment. You must save for the upfront costs before looking at the monthly cost. Before the keys to your first apartment, you must pay application fees, a security deposit, a pet deposit if applicable, and the first and last month’s rent. You can budget for this by saving a few months’ rent.
  • Where you live is nearly as important as the layout of your apartment. Ideally, you want to be close to the shops and services you use frequently. You do not want to drive a long distance to get groceries, a haircut, or a good meal. 

A few walkable options, as well as proximity to public transportation, if available, are advantageous. You should also consider the distance between your prospective home and your place of employment. A long commute can ruin a day, so plan out the distance you will travel to and from work to get an idea of how long the ride will be. 

  • What would you put on a list of things you could not live without in your first apartment? Do you need in-unit laundry so that you can clothes daily? Do you require an on-site workout facility to help you stay in shape? Do you require an elevator instead of stairs to get home from work?

These are vital factors to consider when renting an apartment in Coimbatore to ensure one will enjoy your surroundings. “Many apartment communities are raising the bar with luxurious amenities that make living easier, more convenient, and more enjoyable.” 

There is a lot to learn before renting an apartment in Coimbatore. The best advice is to figure out what you can afford and then carefully navigate the rental process. 

To turn your first apartment into a home, pay attention to every detail, keep track of your expenses, and prioritize your needs. 

Telangana Land Registration Documents Online

People who buy property in Telangana must register the transaction with the state’s registration and stamp office. Learn about Telangana land registration, the paperwork required to enter a sale deed, and how to access Telangana land registration documents online. Let us dig deeper into this article to find the answer to your questions!

Telangana Registration Department Offers Services 

  • Registration of Real Estate 
  • Marriage Registration Form 
  • Registration of Chit Funds 
  • Registration of Partnership Deeds 
  • Registration of Societies 
  • Stamp Sales 

The Telangana Registration Department provides property registration services. 

  • Marriage license 
  • Chit Funds Registration 
  • Deed of Registration of a Partnership Telangana home registration procedure: documents required for registering a land grant. 
  • The purchaser must upload all necessary documents online before going to the sub-office registrar to register the sale deed. 

As per Tangana 2020’s new registration regulations, the following documents are necessary to register:

  • Original paperwork bearing each party’s signature.  
  • Certificate of Encumbrance. 
  • Demand draught or bank challan of all stamp duty payment 
  • Card for the property. 
  • Photo from witnesses and executors under Section 32A. 
  • Documents of identification for the witnesses, purchaser, and seller
  • PAN Card
  • Authority of attorney. 
  • The Aadhaar Card Original Copy. 
  • Proof of the purchaser’s and seller’s addresses. 
  • An image of the building’s exterior  
  • Pattadar passbook for agricultural land 
  • Registration of Societies
  • Stamp Vending. 

Documents Needed for Registration:

  • Encumbrance Certificate 
  • The Original Document 
  • Challan/DD 
  • Property ID 
  • Identity verification for the buyer, seller, and witness
  • PAN Card 
  • If applicable, a power of attorney
  • The Aadhaar card 
  • Section 32A Photo Form 
  • There were two witnesses. 
  • Aadhaar/Passport/Driver’s License/PAN Card/Ration Card/ Voter ID is acceptable as proof of address. 
  • Photograph of the property’s front elevation 
  • If applicable, GPA/SPA
  • Webland copies, Pattadar passbooks, and title deeds for agricultural properties are all available. 

The Registration Procedure 

  • By launching an online portal to facilitate property registration, the Telangana government has made the entire process of uploading documents online. 
  • The applicant must navigate the list and upload all transaction details using the Public Data Entry system. 
  • The required paperwork has to go into the system before visiting the Registrar’s Office. 
  • The applicant can also pay online through the portal.
  • There is also the option of scheduling an appointment with the Registrar’s Office to expedite the registration process. 
  • Once everything is in order, the applicant must come to the office on the specified date and time to finish the process. 
  • A check slip is generated based on the details uploaded, and it is possible to alter them by an officer at the office. 
  • The E-KYC compliances happen at the office, and the applicant’s fingerprint sample is registered and verified using Aadhar. 
  • However, the remaining payments need to occur following Aadhaar verification. 
  • Finally, the Registrar prints and registers the Document number on endorsements.  
  • This document is scanned and uploaded to the portal, where the applicant can access it anytime. 
  • If the verification fails, the applicant must resubmit the documents and make the necessary changes. 
  • The registration remains valid until the land sells to another person. 
  • The entire procedure takes approximately two days. In one day, we will upload the paperwork online, and the next day will consist of visiting the registrar’s office and completing the remaining formalities. 

Telangana Stamp Duty 2022 

In Telangana, the purchaser is responsible for paying the stamp duty and registration fees at the time of registration. The charges are as follows: 

Instrument Registration Fees Stamp Duty Transfer Fees 
Sale agreement with possession 0.5% of the total property value (Minimum Rs. 1,000 – Maximum- Rs 20,000)4%0
Sale agreement without possession 0.5% of the total property value (Minimum Rs. 1,000 – Maximum- Rs 20,000)0.5%0
Sale agreement with GPA Rs 2,000 5% (4% adjustable and 1 % Non-adjustable)0
Will Rs 1,000NIL0
Sale of Semi-furnished flat 0.5%4%1.5%
Sale of immovable properties incorporation and municipalities 0.5%4%1.5%

Bottomline 

The Telangana Registration Department is responsible for offering a range of services to the general public, including registering partnership deeds, marriages, and property. The Telangana Registration Department assists the public in verifying property documents with immovable property rights, titles, and obligations (if any).

Loan for Agricultural Land Purchase

Agriculture has been the backbone of India’s economy for centuries, and farmers play an essential role in feeding the country. If you enjoy farming and want to own agricultural land in India but lack the necessary funds, there is some good news for you. You can now empower your farming dreams and acquire the arrive you need to realize your vision with the help of agricultural loans. This blog will look at crop loans in India and how they can help you with your farming endeavors. A loan to purchase agricultural land is one of the best value propositions available in India for prospective farmers. 

Agricultural Loans Explained 

Agricultural loans are specialized financial products designed to meet the specific needs of farmers and agricultural workers. Banks, financial institutions, and rural credit cooperatives make these loans to farmers to help them buy agrarian land, invest in farming equipment, and meet their working capital needs. 

Crop loans, farm mechanization loans, agricultural land purchase loans, and other options are available in India’s agricultural loan market. This blog will concentrate on agricultural land purchase loans, which can help farmers acquire land for agricultural purposes.  

Advantages of an Agricultural Land Purchase Loan 

  • Land Acquisition: Agricultural land purchase loans allow farmers to realize their dream of owning farmland. Whether you want to expand your current farm or start a new one, these loans can help you get the necessary land. 
  • Flexible Repayment Options: Agricultural loans typically have flexible repayment options, allowing you to choose the most appropriate repayment period for your financial situation. Extending repayment periods helps you to generate income from your farm for longer.
  • Competitive Interest Rates: Many financial institutions provide agricultural loans at competitive interest rates, which are typically lower than those provided for other types of loans. Farmers can now obtain agricultural land purchase loans at a reasonable cost. 
  • Collateral Options: Lenders may issue secured or unsecured agricultural loans. While some loans may require collateral such as land or other assets, others may provide unsecured loans based on the borrower’s creditworthiness. It’s essential to look into different lenders and their collateral requirements to find the best loan option for your needs.  
  • Government Assistance: The Government of India has implemented several schemes and subsidies to assist farmers in their agricultural endeavors. These initiatives frequently include provisions for subsidized agricultural loans, making it easier for farmers to obtain credit for land purchases. These initiatives often include subsidized loans for agriculture, making it easier for farmers to access credit for land purchases. 

Loan Eligibility Criteria for Purchasing Agricultural Land 

To obtain an agricultural loan purchase in India, you must typically meet the following eligibility criteria: 

  • Age: You must be under 18 years old to apply for an agricultural loan. Depending on the lender’s policies, the maximum age limit may differ. 
  • Farming Experience: For an agricultural loan to be approved, some lenders may require years of farming experience. Prospective farmers who are salaried in India can also qualify for agricultural land purchase loans. 
  • Land Ownership: Depending on the lender, you may be required to provide proof of land ownership or a lease agreement for the land you want to buy. 

Required Documentation for an Agricultural Land Purchase Loan 

  • Identity documentation (Aadhar Card, PAN Card, etc.)
  • Address proof (Voter ID, Passport, utility bills, etc.)
  • Proof of land ownership or a lease agreement.
  • Income documentation (bank statements, tax returns, etc.)
  • Agricultural land records (if any) 
  • Any additional documents required by the lender. 

Conclusion 

Purchasing agricultural land in India is essential in realizing your farming ambitions. Farmers can now overcome financial constraints and buy the land they require thanks to the availability of agricultural land purchase loans. These loans have several advantages, including flexible repayment options, competitive interest rates, and government assistance, including flexible repayment options, competitive interest rates, and government assistance. You can set yourself on the path to becoming a proud landowner and nurturing your agricultural aspirations by meeting the vital eligibility criteria and providing the necessary documentation. 

Before applying for any loan, it’s essential to do thorough homework, evaluate various lenders, and fully understand the loan agreement’s terms and conditions. If necessary, seek professional advice to help you make an informed decision consistent with your farming goals and financial capabilities. Make your farming dreams a reality today by taking the first step toward owning agricultural land in India. 

Understanding GST on Renting Commercial Properties

Real estate is one of the country’s most important economic sectors. Many people in the country rely on property rentals as a source of income. The impact of GST on the property rental industry has been significant. Learn more about GST on commercial properties by reading this blog. 

In India, how is commercial rent taxed?

If you rent out your property for commercial purposes and earn more than Rs 200,000 per year, you are subject to GST. GST applies at 18% of the taxable value. 

Who is responsible for GST on commercial property rent?

Owners of rental properties are required to collect GST from renters. This GST is part of the rent. If the rent from AY 20-21 onwards is Rs 2.4 lakh a year, the rent payer must deduct 10% income tax. 

Both residential and commercial properties are subject to TDS. TDS is not taxed. 

Commercial property tax breaks are available. 

Commercial property can be bought and sold. 

The standard deduction

Commercial properties rented at a set price are eligible for a 30% repair deduction. It allows you to save a reasonable amount of tax regardless of how much you spend on your property purchase. 

Interest deduction on loans 

You can deduct the total interest paid on loans involved in buying or building commercial real estate to modify or build real estate. In this category, upfront penalties or processing fees are also tax deductible. It is only valid for the year of ownership following completion. You can also claim the total interest paid in five equal installments before the year of purchase. 

Use of commercial property for work/ business.

You cannot deduct fictitious rental income. You can deduct depreciation and the interest paid on the loan used to purchase the property. The actual cost of maintenance and repairs is tax deductible. 

The new tax regime limits tax deductions for commercial real estate loan interest. Section 24 deductions for rented property do not apply. You can charge up to the annual net sum of gross rent minus municipal tax if you claim interest and standard deductions. 

How much of your rent is tax-free?

You are not required to pay tax on amounts previously paid as property tax. Deduct current-year property taxes from gross rental income or gross annual value (GAV) for the year. 

Section 24A of the Income Tax Act allows for a 30% deduction from net annual value. People pay no tax on this amount and deduct it from their taxable income. Other expenses, such as painting and repairs, are not tax deductible once the 30% limit under this section applies. 

Assume an owner takes out a loan on a rental property. In this case, the loan interest paid during the fiscal year reverts to rental income after standard deductions. This rebate is allowed under Section 24B of the Income Tax Act. 

Interest on borrowed capital for acquisition, construction, repair, or diversion is deductible in the case of rental property. The Income Tax Appeals Court has ruled that owners are not required to pay taxes on unrealized rental income for unpaid rent. 

Because rental income is taxable under sections 22 and 24 of the Income Tax Act, this section only applies to income from habitable land. Renting vacant land is taxable as other sources of income. 

How is rental property tax calculated?

After deducting municipal taxes, standard deductions, and home interest, compute rental income taxes based on the Gross Annual Value (GAV). 

Consider the following example to demonstrate how to calculate taxable income on a rental property:

Assume the owner receives Rs 30,000 in monthly rental income and pays Rs 30,000 in local tax (calculated using the property unit area system). He has also taken out a home loan and is paying Rs 90,000 in interest to secure it. 

Calculate your taxable income as follows: 

Rental Property Income Amount in Rs. 
Gross Annual Value 4,80,000 (40,000 per month) 
Deduct Municipal Taxes 30,000
Net Annual Value 4,50,000
Deduct: 30% standard deduction 1,35,000 (30% of 3,30,000)
Home loan interest90,000
Income from house property2,25,000

Tax Calculation on Rental Property

In this case, the GAV of the property is Rs 4,80,000, which is greater than Rs 2,50,000, so tax is due on the rental property. If you pay Rs 20,000 monthly rent, your GAV is Rs 2,40,000 (20,000 *12). 

How can I avoid paying rental income taxes?

The following suggestions will help you save money on your rental income taxes: 

Upkeep fees: 

Deducting maintenance charges from rent is one of the simplest ways to save tax. The cost of maintenance can include in the rent. In some ways, the tax on rental income is rising. For example, if you calculate a rent of Rs 50,000 and add Rs 10,000 for maintenance, you must pay taxes on the entire amount. However, you can save Rs 10,000 in tax by excluding such costs from maintenance charges. The lease contains only one line saying that tenants can pay maintenance fees directly to the society association.”

Municipal taxes: 

A few individuals realize that municipal taxes, such as property and sewerage fees, can be deducted from rental income. The only requirement is that the property owner pays all municipal taxes. Tenants are frequently liable to municipal taxes. As a result, the tenants’ payments are not deductible. Municipal tax credits reduce your tax liability by lowering your income from real estate. 

Joint Possession 

You can pay taxes on your rental income if you buy a property with a trusted family member (husband/wife/parents). Rental income is shared and taxed with other family members in such cases. 

Fully or partially furnished properties: 

The property owner will provide amenities such as WiFi, a gas connection, DTH/cable TV, and a newspaper. Such charges are typically billed as rent and paid by the owner’s relevant authorities. In such cases, you can request that the lessee pay the bill and deduct the rent amount. Alternatively, you can collect them separately from the tenant. It’s not part of the rent. Therefore, rental income will decrease. 

Standard Deduction: 

When a property is purchased and rented for investment purposes, it follows that there will be some costs for repairs and maintenance. 30% of the annual net value can be claimed as a standard deduction regardless of the repair costs. 

What is the GST rate on commercial property maintenance fees? 

Buyers must pay GST on maintenance costs plus GST on property purchases. The builder levies 18% GST on monthly maintenance fees of around 4000 rupees. Maintenance charges are exempt from GST up to Rs 7700/- per month. 

What are the tax advantages of a commercial property loan? 

Tax break under section 24(B)

This section allows salaried individuals to claim income tax breaks on property loans. If the loan is used to [purchase a new home, you are eligible for a tax credit of up to Rs. 2,00,000. Interest payments are tax-deductible. 

Section 37 (1) Tax Benefit: 

Property loans are not tax deductible, whether they are for business or personal reasons. Because you are investing in real estate, a loan for investment reasons may be tax-free. 

What is the penalty for failing to declare rental income? 

When landlords intentionally omit income from their returns, the IRS imposes fraudulent filing penalties. It could include a fine of 20% of the owed amount plus 75% of the total tax due. These penalties are in addition to any unpaid taxes. 

Explain the Land Use Pattern in India and why the land under forest has not increased much since 1962-61

The land under forest has declined since around 1960-61 due to the post-freedom period, the desire for more land to expand agribusiness, particularly after the Green Revolution, prompted leeway of forest regions. Industrialization and urbanization have also reduced the forest area. As in the post-autonomy period, the desire for more land to expand agribusiness, primarily following the Green Revolution, formative works, and infrastructural offices, prompted the liberation of backwoods regions. Backwood areas also suffered from industrialization and urbanization. 

Land Utilization Factors 

Two factors influence land use. 

  • Human aspects 
  • Natural elements 

Human factors such as population density, culture, traditions, and technological capacity all impact human activities and usage. 

The nature of the lands, such as topography, climate, and soil types, determine the physical factor. 

Because of the post-independence demand for more land to expand agriculture, the arrival under forest has not increased since 1960-61. Following the green revolution, development projects and infrastructure facilities primarily resulted in the clearing of forest areas. 

Industrialization and urbanization have also reduced forest area; land under forest cover has increased by only about 4% between 1960 and 1961. 

The nation’s wood front is barely the endorsed 33% of all nation’s territory. Backwoods cover approximately 23.81% of India’s total land area. India’s all net planted area is 46.24% of the country’s total land area. India’s all-net planted area is 46.24% of the country’s total land area. The net put region varies from state to state. While net set land accounts for more than 80% of all land in Punjab and Haryana, it accounts for less than 10% in Arunachal Pradesh, Mizoram, Manipur, and the Andaman and Nicobar Islands. Brushing takes up 3.38% of all available land, leaving the remainder neglected and squandered.  

In India, land assets have basic categories such as rural land, timberland land, field and nibbling land, and squandered land. Squander land includes rough, thirsty, and desert areas, besides land used for non-rural purposes such as lodging, streets, and industry. According to new data, 54% of the total land area is cultivable or decrepit, 22.5% is covered by timberlands, and 3.45% is used for touching. The remainder is unused land with hints of various development. The improper use of woodland land has contaminated the accessible land region and made timberland protection difficult. Human activities such as deforestation, mining, and quarrying have slowed the development of timberlands. As a result, land under woodland has increased by approximately 4% since 1960-61. 

Technical and monastery advancement has resulted in greater utilization of assets across various elements. During pilgrim times, royal powers would use their mechanical and financial dominance to establish control over different nations and then seize the latter’s assets. Currently, one country’s assets are also available to the pilgrim ruler’s residents, prompting increased utilization. Furthermore, because of technological and financial advancement, populations are growing due to low mortality at all ages. As medicine and medical care advance, fewer people die as a result of mishaps, illnesses, labor, and so on. This has also contributed to increased asset utilization. 

How to Save Capital Gain Tax on the Sale of Residential Property

Capital gain is the increase in the value of an asset over time. The owner realizes this capital gain when the property sells. The difference between a property’s selling and purchasing prices is capital gain. 

Any profit derived from a capital asset will qualify as Capital Gains for income tax purposes and be subject to capital gains tax. The land is known as a Capital Asset, and as its value rises, the owner may realize significant capital gains upon sale. Nonetheless, it is worth noting that agricultural land in rural India does not meet the definition of a Capital Asset. As a result, no capital gains tax applies upon its sale. Let us look at how profits from the sale of land will be taxed and how we can save money on taxes. 

Short-term or long-term capital gains

The tax implications vary depending on whether the gains are short-term or long-term. Capital gains are regarded as short-term if you owned the land for up to 2 years (24 months) before selling. It will, however, be considered a long-term capital gain if held for more than 24 months. 

How to Calculate Capital Gains 

Short-term capital gains (STCG)

The Particulars Amount 
Total Selling Price (xxx)
Less:(xxx)
Acquisition Cost (xxx)
Direct Sale Expense (xxx)
Exception Sections- 54B, 54D, 54G, 54GA(xxx)
STCG (Short-term capital gains)(xxx)

The only difference for Long capital assets is that you can deduct the Indexed Cost of Acquisition/ or indexed cost of Improvements from the sale price. Indexation is a way of adjusting the purchase price to account for the impact of inflation using the Cost Inflation Index (CII). This adjustment increases your cost base (and reduces your gains).

Particulars Amount 
Total Sales Price (xxx)
Less:(xxx)
Acquisition Cost Index (xxx)
Direct Sales Expense (xxx)
Exemption Section: 54B, 54D, 54EC, 54F, 54G, 54GA(xxx)
Long-term Capital Gain (xxx)

What are the Tax Rates?

  • STCG is taxable income and taxable at the applicable slab rates. See the latest income tax slab rates. 
  • LTCG gets taxed at a rate of 20%, with an indexation benefit. 

How to save Capital Gain Tax on the sale of residential property

Section 54F (applying if the asset is a long-term capital asset)

If you use the proceeds from the sale of land to buy a house, you may be able to claim an 

exemption from capital gains tax if you meet all of the following conditions:

  • The exemption only applies to individuals or HUFs; it’s not open to corporations, LLPs, or firms. 
  • The new house you buy or build must be in India. 
  • Purchase the house within one year of the land sale date or two years after the sale date. 
  • Build one house within three years of the date of the land sale. 
  • Do not sell the house within three years of purchasing or building it. 
  • You should only own one residential house on the transfer date, excluding the new one. 

If you meet these requirements and invest the sale proceeds in the new home, you will not be subject to capital gain taxes. An exemption is proportional to the amount invested, which is the cost of the new house multiplied by the capital gains/ net consideration. 

By Investing in Capital Gains Account Scheme 

Finding a suitable seller, arranging the necessary funds, and completing the vital paperwork for a new property can be a stressful and time-consuming jobs. Fortunately, the Income Tax Department is aware of these constraints. 

If you need to invest your capital gains till you file your income return (usually on the 31st of July), you may deposit them in the Capital Gains Account Scheme (CGAS). And claim this as an exemption from capital gains in your return; you will not have to pay tax on it. 

54EC (applicable if it is a long-term capital asset)-Purchasing Capital Gains Bonds 

What if you never intend to purchase another property? It is pointless to invest the money in a Capital Gains Account Scheme. In this case, you can still save taxes on your capital gains by putting them in the following bonds:  

  • Rural Electrification Corporation Limited bonds, also known as REC bonds, 
  • Bonds issued by the National Highway Authority of India, or NHAI. 
  • Power Finance Corporation Limited bonds, also known as PFC bonds, 
  • Indian Railway Finance Corporation Limited, or IRFC, issued bonds. 

These are redeemable after five years and cannot be sold within three years of the house’s sale date. 

You have six months to invest in these bonds; however, to claim this exemption, you must invest before the return filing date. The Budget for 2014 has specified that you are allowed to invest a maximum of Rs 50 lakhs in these bonds in a financial year. 

Studio Apartment in Bangalore for Rent without Deposit

Millennials relocate to metropolitan cities in search of a better way of life, and most individuals have one thing in common: they are all looking for rental housing. Living in a studio apartment is a new trend on the market. Studio apartments are becoming increasingly popular. 

It is difficult to find a rental property that is both affordable and spacious in cities such as Bangalore. Given all this, living in a studio apartment might be a wise choice. 

Studio apartments in Banglore have a room, kitchen, and bathroom, so they’re ideal for bachelors or live-in couples.  

But if you have not decided yet, here are some studio apartment pros and cons to help you make a better decision:

Pros of renting a studio apartment in Bangalore 

  • Studio apartments are slightly less expensive and are ideal for those on a tight budget. 
  • Studio apartments are a low-maintenance investment that is simple to furnish and maintain. 
  • Because studio apartments are small, they help you save money on other expenses like lighting, cooling, and heating. 
  • Studio apartments usually sit in urban areas near commercial hubs and transportation options. As a result, residents of such flats benefit from the advantages of location and connectivity. 

Cons of renting a studio apartment in Bangalore 

  • They are not for everybody, particularly couples planning to start a family. 
  • They have room for decoration because too much furniture can make the space appear crowded. 
  • Because of limited space, socializing in studio apartments can be difficult. 
  • Studio apartments in Banglore can be claustrophobic for people unaccustomed to living in small spaces. 

You are in luck if you are looking for a studio apartment that needs little space, money, services, or amenities. The amenities in Bangalore’s studio apartments for rent will leave you wanting more. Continue reading to learn more about the facilities. 

You can have a fulfilling experience while getting a fully furnished room. Regardless of changing preferences, everything comes down to affordability. Given their tight budgets, millennials prefer living in affordable and convenient housing. You can enjoy all of the luxury and amenities of a studio apartment for rent in Bangalore at an affordable, all-inclusive rate. A studio apartment in Banglore uses technology to improve security in rental homes, such as biometric cards, facial recognition, CCTV, sensors, and so on, making it easier for the residents. 

If you are looking for a studio apartment for rent in Bangalore, this is the place to be. Whether you’re a bachelor, a working individual, or a live-in couple, these studio apartments are for anyone seeking a suitable lifestyle on an affordable budget. 

Apartment for Rent in Coimbatore Awaits You

Coimbatore, also known as Kovai, is a major city in Tamil Nadu, routinely known for its essential industries, engineering goods, textile mills, educational institutions, health care facilities, traditional culture, and boundless hospitality. It is home to a large textile industry and, more recently, an electronics manufacturing hub. 

The real estate trends in Coimbatore have changed over the years, and apartments are now gaining popularity with buyers and investors to the point where modern apartment designs have evolved. Because of its welcoming green pastures and hospitality, Coimbatore’s growing real estate market is seeing a significant increase in demand. 

Benefits of renting an apartment in Coimbatore

Pleasant weather: Coimbatore would be the best place to live due to its year-round pleasant climate. The city is full of friendly people who adhere to great culture and offer a warm welcome. 

Nature divine: A cosmopolitan city with breathtaking natural surroundings, it’s famous for its tastiest “Siruani Water,” after the Nile. 

Development: Coimbatore’s expanding IT infrastructure and easy connectivity can support businesses. Because of its essential amenities, the city attracts significant investment. 

Connectivity: The city is home to numerous universities, engineering colleges,   medical colleges, and other educational institutions, as well as healthcare industries, and it has easy access to major South Indian cities. It is one of the main reasons to rent an apartment in Coimbatore.  

The ideal location:  Apartments in Coimbatore are great for families, children, working parents, and college students. Coimbatore is a great place to buy your dream home because it has world-class institutes for technology, engineering, and arts, as well as some of the best schools in the area. The city is ideal for families to relocate to because it is not only urbanized and overcrowded. 

We are guaranteed a great future: Many jobs are available in various fields of interest due to the growing BPO, engineering, Computer hardware, and IT sectors. The gleaming city of Coimbatore is a beacon of hope for most rural people who come to fulfill their dreams. 

A flourishing metropolis: Coimbatore is a thriving metropolis in Tamil Nadu, with new buildings, stores, cinemas, restaurants, parks, and shopping malls sprouting up in every direction. A city where social and cultural life is thriving, it is one of the state’s fastest-growing cities. 

Coimbatore is Tamil Nadu’s third-largest city and one of its most industrialized. It is popularly known as the textile capital of India, like Manchester in England. 

Coimbatore has become the best city to live in due to its growing industries and proximity to world-class educational institutions. Students and working professionals, in particular, prefer to live in locales with excellent amenities and reasonable prices. So, if you’re looking for the best places to live in Coimbatore, we will tell you where you can live comfortably. 

Kovaiputhur

The western Ghats surround Kovaiputur, a residential township. Because of its cool climate and peaceful beauty, it is Little Ooty. This township has numerous schools and colleges, with a residential hub for many families. This area also has many playgrounds for children and parks for recreation. It has good transportation to other parts of the city. 

It also has religious sites and easy access to banks, supermarkets, and hospitals. In a nutshell, this is one of the best places for families to live. 

Gandhipuram

Gandhipuram is the city’s commercial district and its beating heart. This area, located in the city’s center, is a popular spot for shopping and entertainment. It is also a bus transportation hub. Many IT companies and commercial shops call it home. Gandhipuram is the best place to live in Coimbatore because it is close to important landmarks. It has a garden and a play area for children for its residents. Gandhipuram is the best place to live because it is close to important landmarks. 

Saibaba Colony

Saibaba Colony is a posh residential neighborhood in Coimbatore. It has good access to nearby areas such as Gandhipuram and RS Puram. The name stems from the Saibaba Temple, located in this area. This area consists of individual and residential properties. This location has the most public and private sector banks. Furthermore, this location is well-known for its restaurants and shopping malls. This neighborhood has well-kept parks where residents and visitors can enjoy a pleasant morning or evening stroll. 

Thondamuthur

Thondamuthur is a suburb within the Coimbatore Corporation. It is one of Coimbatore’s rapidly developing urban suburbs. This area has a good number of housing complexes and properties. Thondamuthur, surrounded by natural greenery, is one of the best places for families to live. 

Renting your dream apartment in Coimbatore would be the best decision you will ever make if you want to settle in a quiet and wonderful place in the entire state.