Five trends are influencing the residential real estate market in India.

Posted on February 22, 2024 by supriya

The rapid expansion of the middle class in India is mainly to blame for the significant changes occurring in the Indian real estate market. Development professionals, investors, and potential end users are all very interested in this revolutionary shift, characterized by a sharp increase in population and economic growth. Urbanization, rising incomes, and easier access to education all contribute to this phenomenal growth.

The Indian residential market is a leading indicator of changing regulations, economic vitality, and societal aspirations due to its novel opportunities and trends. The value of India’s residential real estate market reached an all-time high of Rs.3.47 lakh crores in FY23, representing a strong 48% annual growth. The sales number also showed an upward growth trajectory, increasing by 36% to 379,095 units sold.

The nation is changing swiftly, and every part of the industry beats in time. The following are the main developments influencing India’s residential real estate market:

Rise of Low-Density Housing: Plotted developments, townhouses, and villas are among the low-density housing options currently in high demand. Low-density housing uses less energy, such as electricity, air, and water, and is similar to small neighborhoods or single-family homes. Long-term residents of this kind of housing are encouraged to lead sustainable lives. Reducing the need for additional infrastructure in neighborhoods by forming them with fewer houses and preserving the land largely intact can help save resources. Buyers are becoming more aware of the benefits of low-density housing. Low-density housing is becoming more popular for people to escape congested urban areas and prioritize privacy, space, and harmony with nature. Developers are introducing carefully planned, low-density projects in response to this trend, emphasizing the value of open spaces, lush greenery, and a feeling of exclusivity. This change reflects a rising desire for well-balanced homes that combine contemporary conveniences with the peace of suburban settings. According to India Sothby’s International Realty’s annual Luxury Outlook Survey 2023, roughly one-third of HNIs and UHNIs are willing to spend over Rs 10 crores on real estate. For instance, Landmark Group sold out of its plots in record time at Landmark Avana, a new low-density housing project in Gurugram, particularly to a younger demographic looking for more space and a better standard of living.

Technological Integration: By improving comfort, security, and convenience, technology integration is completely changing the residential landscape. Ad IoT devices, home automation systems, and AI-powered assistants biome standard features in smart homes set new standards for futuristic living while providing residents with a seamless living experience. India’s smart home market is expected to generate US$6.5 billion in revenue by 2024. Based on research and markets for smart homes, India ranked third globally in 2020. Furthermore, by 2025, there will be 442 million smart homes in India, an increase over the current number of homes, according to Statista’s Digital Market Outlook for 2021.
Growing Preference for Owning a Home: The start of the COVID-19 pandemic has caused a significant shift in the way that society views home ownership. Purchasing a home is becoming more and more important to people than renting one. People now recognize the benefits of living in their own space with areas set aside for work, study, and leisure. As a result, people are more conscious of the inherent worth of owning a home since it provides a greater sense of stability and security during uncertain times. Like the pre-COVID housing loan levels, Indian banks advanced housing loans totaling approximately 2 trillion Indian rupees in FY22. As more Indians were investing in residential real estate, this suggested that homebuyer confidence was returning.

Elegant living: The market focuses on pricey, showy real estate. These upscale residential developments draw discriminating buyers looking for an unmatched quality of life with their first-rate amenities. According to a recent India Sotheby’s International Realty study, the number of affluent people planning to buy luxury real estate in the upcoming years has considerably increased. The luxury real estate market has seen substantial disruption due to growing income levels, deeper technological integration, and evolving consumer preferences brought about by shifting demographics. Millennials are becoming interested in luxury real estate as their incomes rise and their urban lifestyles change. Luxurious properties are in high demand due to the possibility of substantial rental income and a high return on investment. The sales of luxury homes in India increased by 130% in the first half of 2023 compared to the last year. Set to open in Dwarka Expressway, Landmark Group’s new residential project promises to be the ideal residential complex with its endless luxury services and state-of-the-art amenities that are best suited for the changing way of life.

Tier 2 becomes a powerful force: After the pandemic, many people assessed their living situations and looked for sale houses in their hometowns to feel more stable. The consequence has been an increase in the visibility of Tier 2 cities, which are growing hubs for real estate. The discernible increase in investment activity is causing significant changes in these cities’ real estate markets. With a robust housing market supporting them, Tier 2 cities are rapidly expanding their infrastructure and offering various opportunities for residential and commercial use. Furthermore, the government’s support of cities helps the real estate industry expand. Projects to develop townships and settlements may receive up to 100% FDI approval from the government. Tier 2 cities real estate growth has surpassed Tier 1 cities. For example, at the end of the fiscal year 2021-22, Ahmedabad’s residential real estate market size of INR 83,390 crores exceeded the market sizes of some Tier 1 cities, like Chennai and Kolkata, with INR 52,554 crore and INR 38,440 crore, respectively. This expansion was also apparent in Tier 2 cities like Nashik, Jaipur, Vadodara, and Gandhinagar.

The government has increased its efforts to provide affordable housing in response to the recent spike in housing demand, and developers have modified their business plans. The term “affordable housing” describes real estate with prices within the reach of low- and middle-class families. The affordable housing project Landmark the Homes in Sector 81 is anticipated to be completed by December 2024, according to the Landmark Group. One can look into government-funded programs created especially for low-income groups or home loan options from private lenders/NBFCs to purchase affordable housing in India. A commitment of Rs 79,000 crore (US$9.64 billion) for the PM Awas Yojna has been announced in the Union Budget 2023-24, a 66% increase over the previous years.

Government initiatives such as the Rajiv Awas Yojna and Pradhan Mantri Awas Yojana have encouraged developers to take on projects to offer affordable housing, thereby promoting accessibility and inclusivity in the real estate market. Meeting the demand for 40 million urban housing units is necessary, given that the population is growing at an average annual rate of 2.1% and that a large portion of our population has low purchasing power.

India’s growing urban population is driving up demand for homes, changing the country’s skylines and city spaces.

TDS on Rent of Residential Property

Posted on August 22, 2023 by supriya

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.

Top 8 Posh Residential Societies in Noida

Posted on February 9, 2023 by deepshikha

A super-classy and organized city in Uttar Pradesh, Noida is also a part of the Delhi NCR. Also, making it all the more attractive for real estate investors and home buyers. Noida is a rapidly growing city with a population of over 2 million. It has led to the growth of many posh residential societies in Noida. You can find many resources and facilities in Noida for everyone, be it homeowners, students, businesspersons, or even retired professionals. In Noida, 8 posh residential societies are in high demand for homebuyers.

If compared to Delhi and other NCR regions like Gurgaon, the living cost in Noida is much lower, making it a highly popular- city in the NCR region. The real estate business is successful in Noida due to its proximity to Delhi and the arrival of numerous MNCs. The posh areas in Noida feature high-tech infrastructure, metro convenience, top amenities, and outstanding services. So, propertywala brings every detail and infrastructure of the top 8 posh residential societies in Noida with just one click.

List of Social Infrastructure and developments of Noida:

Noida was settled on 17 April 1976 under the UP Industrial Area Development Act, 1976.
In Swachh Survekshan 2021, Noida became the Cleanest Medium City (population of 3-10 Lakh).
After the completion of the under-construction Jewar International Airport will be the largest in Asia.
There are the most important educational academics namely, UPTU (Uttar Pradesh Technical University), Amity University, Galgotias University, etc.
Noida is well connected to the Noida-Greater Noida Expressway, Yamuna Expressway, NH-24, FNG Expressway, KGP Expressway, and the Delhi-Mumbai Industrial Corridor.
There are some popular malls such as DLF Mall of India, Wave City Center, and GIP.

Top 8 Posh Residentials Societies in Noida

Nowadays, Noida has become a top location for people from all parts of the country to come and live in numerous posh societies in Noida. Also, with top-notch amenities, infrastructural abilities, opportunities for jobs, and proximity to the NCR. Hence, no other city can boast as much as Noida can.

1. ATS Knightsbridge (Luxurious and the poshest society in Noida)

ATS Knightsbridge address : Plot No. A 01/A, Sector 124, Noida, Uttar Pradesh 201305

It is the right mixture of luxury and convenience. The complex is for your taking at a rate of Rs. 7.49 – 8.0 Crore. It offers unbound luxury through its 4, 5, and 5 BHK flats with areas ranging from 4005 sq. ft, 4250 sq. ft, and 7000 sq. ft.

AMENITIES AT ATS KNIGHTSBRIDGE:

With all the first-class amenities and services for its occupants, ATS Knightsbridge makes the lives of its residents full of conveniences. So, some of the major amenities that ATS Knightsbridge offers its residents are:

Gyms, rooms for indoor games, and a park area.
Multipurpose courts with multipurpose halls.
There is a waste disposal system and Rainwater harvesting.
24×7 power backup and firefighting equipment.
Vaastu -friendly homes for a peaceful life.
Well-maintained clubhouse and swimming pool.
CCTV camera for surveillance and security purposes.
Reserved parking for residents as well as visitor parking.
Lift and intercom service with maintenance staff.

NEARBY FACILITIES AND CONNECTIVITY OF ATS KNIGHTSBRIDGE:

An essential part that makes ATS Knightsbridge a popular and favorable place to live in Noida is its well-connected location. It has the following advantages and every home-buyer would love such a connected place:

Nearby Metro Stations namely Noida Sector 1, Noida Sector 16, Noida City Center, and Botanical Garden Stop.
Easy access to roads to Greater Noida via Noida-Greater Noida Expressway, Delhi via DND Flyway, and Faridabad via FNG Expressway.
Well-maintained hospitals, Government offices, shopping hubs, and malls.
Colleges, schools, and Gautam Buddha University.

2. SKA Orion

SKA Orion (Standing Tall Among the Best Societies in Noida) Address: GH-01A/2, near Noida Expressway, Sector 143B, Noida, Uttar Pradesh 201301

It is located in Sector 143B. Orion is one of the well-organized projects from the House of SKA. With an extensive area of 3 acres, it brings you everything you need. Renowned for its ultra-modern living conditions, fanning environment, and premium living styles. It is a high-end premium society that is easily classified as one of the best posh societies in Noida. Furthermore, it offers everything that a buyer needs no matter if it is for commercial or residential purposes. It consists of 508 units that range from Rs. 61.1 lac to 1.13 crores.

AMENITIES AT SKA ORION:

This society is full of amenities to ensure that the lifestyle of its residents is comfortable and content. It offers a well-maintained clubhouse, a safe track for jogging and strolling, and outdoor tennis courts for its residents. In addition to this, the apartment complex is packed with the given amenities:

Fully-furnished club and play area for kids.
Facilities for indoor games.
Intercom facility and services.
Health and a fitness club.
Swimming pool.
Multiple elevators and goods lift services.
24×7, professional security service.
Private parking for residents.

NEARBY FACILITIES AND CONNECTIVITY OF SKA ORION:

Besides these facilities and conveniences, SKA Orion brings to its residents. What makes it truly one of the posh societies in Noida extension? It is only its connectivity and nearby local conveniences:

Located nearby to sector 143 Metro Station.
Excellent academic institutes, colleges, and schools such as Amity University and Shiv Nadar Public School.
It connects the two major expressways namely FNG and Noida-Greater Noida Expressway.
The presence of business centers and commercial hubs like Oxygen Business Park and DLF Tech Park.

3. Tata Eureka Park

Tata Eureka Park (A Singular Place to Settle Down in Noida) Address: Tata Value Homes Eureka Park, SC-01 A1, Sector 150, Noida, Uttar Pradesh 201310

This society is developed by Tata Value Homes Ltd. It is one of the top posh societies in Noida extension. One of the main features of this society is that it is in a prime location—Sector 150, which is recommended to be one of the most sought-after and important housing hubs in Noida. It offers 2BHK and 3BHK flats with different areas at costs ranging from 63.9 Lacs to 73.6 Lacs. 2BHK flats are available in the 1,100 sq. ft. super area whereas 3BHKs can be bought in the 1,285 and 1,575 sq. ft. super area.

AMENITIES AT TATA EUREKA PARK:

It brings world-class facilities to its residents. Everyone who loves nature and wants to own a home nearby trees and flowering plants then they will enjoy their time at Tata Eureka Park. In addition to this, the residential society has been developed by merging all types of modern amenities that you would crave for it such as:

A spacious park for the occupants to spend their time and for relaxation.
Multiple lifts for residents to move across the complex.
World-class gym, fitness center, and clubhouse.
24×7 power backup system for unbroken electricity.
A specified space for meditation and yoga for residents.
Well-maintained swimming pool.

NEARBY FACILITIES AND CONNECTIVITY OF TATA EUREKA PARK:

This society is also well-connected to other parts of the city and major expressways. Therefore, the residents of the complex can commute to their destinations effortlessly. In addition to this, the park is provided with the following amenities nearby:

shopping complexes, malls, and theaters.
Government offices and service centers in a range.
Many multi-specialty hospitals and healthcare centers.
Various schools, colleges, and academic institutes.

4. Godrej Woods

Godrej Woods (Live luxurious lifeStyle in this posh society in Noida) Address: Block A, Sector 43, Noida, Uttar Pradesh 201303

Noida Godrej Woods is one of the luxurious apartments in Noida which is located in sector 43. Proudly owned by Godrej Properties, with 250 units up for sale in the complex. You can find the most suitable for you from the ten towers it is divided into. Whether you need a 2, 3, 4, or 5 BHK flat, you have it all here in Godrej Woods.

AMENITIES AT GODREJ WOODS:

As any homeowner would expect, Godrej Woods offers many ultra-modern resources and conveniences to make the lives of its residents a breeze, such as:

24×7 power with advanced power backup.
The spacious track for jogging and strolling.
All-day security surveillance.
Private parking areas for the residents as well as visitors.
Perfect Clubhouse to match your requirements
Gym and health center for their occupants.
A rainwater harvesting system is available.
Your home will be according to the Vastu.

NEARBY FACILITIES AND CONNECTIVITY OF GODREJ WOODS:

It is not just the facilities that make Godrej Woods special for buyers. Indeed, it is because of the locality and civil conveniences that make Godrej Woods a prime location for people to live a luxurious life.

Easy access to Noida-Greater Noida Expressway and Golf Course Metro Station.
Indira Gandhi International Airport at a distance of 28 KM only.
Roads Connected to Dadri Main Road and Amrapali Road.
Presence of great schools and colleges in that area.
Malls, business centers, hospitals, and entertainment areas are available.

5. Ace Starlit

Ace Starlit (In one of the posh localities in Noida) address: SC-01/09, Sector 152, Noida, Uttar Pradesh 201303

This place is where urban life meets and modernizes the calm demeanor of nature to surprise homeowners. A premium residential apartment complex, Ace Starlit is currently under construction and is packed with high amenities, conveniences, and services to make it a unique and best living experience for its occupants. With a total of 490 units in 5 towers, home-buyers and investors can buy from 2BHK or 3BHK flats at Ace Starlit. Some of the unique characteristics that make the complex much-coveted posh societies in Noida are the Ultra-Modern Double-Height Lobbies, Unique Glass Façade Towers, and the sprawling 3-Side Open Homes.

AMENITIES AT ACE STARLIT:

This place is for everyone who loves to live with their loved ones in high-tech facilities and conveniences. This is for all age groups. Once you step into this facility, you have access to the following:

Private parking for residents with also visitor parking.
Multipurpose hall, meditation area as well as fitness center.
24×7 maintenance staff and security.
There is also a well-maintained clubhouse, park, and indoor gaming areas.
Retail shops, libraries, and flower gardens.
Singular swimming pool and kids’ splash pool also.
Ground for half basketball course and cricket net practice.

NEARBY FACILITIES AND CONNECTIVITY OF ACE STARLIT:

In addition to making the apartments an architectural marvel with beautiful interiors, Ace Starlit has the following facilities waiting for you:

It is located on Noida Expressway and near the Aqua Metro Station.
There are several schools, colleges, hospitals, and shopping centers.
Impeccable access to the city center and suburbs such as Greater Noida.
Well Connected to the under-construction of Jewar International Airport.

6. ATS Pristine

Address of ATS Pristine: Pushta Rd, Sector 150, Noida

ATS builders are known for their construction quality. With quality, they also provide a perfect mixture of luxury and convenience. It is a masterpiece complex that offers 3 BHK and 4 BHK luxurious apartments. The range of apartments is between Rs 84 lakh to Rs 4 crore.

AMENITIES AT ATS PRISTINE:

It offers first-class amenities to the occupants of the group housing society. It is spread over 18-acre land with 80% lush green area. Following are the major amenities offered by this complex:

A well-maintained clubhouse for kids as well as elders to spend their time.
A swimming pool
Cafeteria/ food courts are also available in this complex.
24×7 CCTV camera surveillance.
Private parking facility for residents.
Gymnasium, library, and business center.

NEARBY FACILITIES AND CONNECTIVITY OF ATS PRISTINE:

For this complex, there are many reasons to invest in ATS Pristine. It is in Sector 150 Noida, which is an upcoming hub of Noida and following are the reasons:

Greater Noida and JP hospital are only 10 minutes away from this posh society as well as sector 148 metro station is 5 km.
YMCA Gol Chakar, Wipro Chowk and Pari Chowk.
Advant Navis Business Park, Bhutani Alphathum, Bhutani Cyberthum, MetLife office, and Birla Soft are near this posh complex.
Top- Notch schools are available near ATS PRISTINE such as DPS (Delhi Public School), Genesis Global School, Day Care Creche, Shiv Nadar School, and Footprints Play School.

7. ABA Cleo County (An Egyptian Themed Posh Society in Noida)

Address of ABA Cleo County: GH 05, Rani Avantibai Marg, Sector 121, Noida, Uttar Pradesh 201301

It is one of the best societies to live in Noida. Its impressive and pathetic entry will convince you to invest in ABA Cleo County. This society is a secure residential space and has a common configuration of 3BHK and 4BHK.

AMENITIES AT ABA CLEO COUNTY:

Apartments in this society are provided with air conditioners and electrical fittings. Also, complete wooden work is done by the builder. On the other hand, some amenities offered in the society are:

Reserved parking area for residents.
The gym, outdoor tennis court, spacious clubhouse for any event, and cafeteria/ food court are one of the main qualities of this society.
24*7 power backup and fire fighting appliances.
Jogging and strolling track as well as a 5-level cascading swimming pool.

NEARBY FACILITIES AND CONNECTIVITY OF ABA CLEO COUNTY:

Job centers include Nuclear Software, IBM, Airtel, Birla Soft, HCL, Rajni Gandha, HeadStrong, and Amar Ujala.
Fortis Speciality Hospital is near.
Advant Navis Business Park, Bhutani Cyberthum, Birla Soft, Met-Life office, and Bhutani Alphathum are near.

8. Mahagun Moderne

Address of Mahagun Moderne: 004, Mahagun Moderne, Mantova St, Sector 78, Noida, Uttar Pradesh 201307

At Mahagun Moderne society, enjoy a combination of extant living with a high-end luxurious lifestyle, where world-class amenities are available.

This planned society is near Sector 76 metro station, making commuting impeccable for you. It is a residential society with high and low-rise apartments. Talking about the other USPs, each tower has its lounge area, which exactly looks like the reception of a 3-star hotel.

AMENITIES AT MAHAGUN MODERNE:

Mahagun Moderne is one of the posh societies in Noida and is known for its top-notch amenities. Some of the amenities are as follows:

Badminton Court, Swimming pool, Creche/Daycare, Senior Citizen Sit out, top-level security, Business Lounge, Rain Water Harvesting, lavish clubhouse, and fitness center/ gym are some of the top-notch amenities of this society.
24 hours power backup, Pipe gas line, and parks.

NEARBY FACILITIES AND CONNECTIVITY OF MAHAGUN MODERNE:

Besides the top-notch facilities offered by one of the posh societies in Noida. The society is located strategically near civic benefits and enjoys first-class connectivity.

This residential project is close to Noida Extension, Greater Noida, Delhi- NCR, and Ghaziabad.
Several famous MNCs nearby include IBM, HCL, Amar Ujala, Birlasoft, Head Strong, Birla Soft, Airtel and Rajanigandha, etc.
Reputed schools like Manthan School, Ramagaya School, Manav Rachna International School, Eurokids, and Broadway International School. are close to this society.
Several multispecialty hospitals, like Neo Hospital, Max Multi-Specialty Center, Prayag Hospital, Prakash Hospital, and Fortis hospital are close.
Shopping malls such as Shipra Mall, DLF Mall of India, Gaur City Mall, Spectrum mall, and GIP are all just 10-15 mins away.

How to save tax on property – For sellers

Posted on January 17, 2023 by deepshikha

When selling a property, sellers want to know how much tax they’ll pay and whether there is any way to reduce or avoid the tax. The article below focuses on capital gains tax for sellers who are selling a property.

A self-occupied house gives you two avenues of saving taxes which are the payment of interest and repayment of principal. You can get Rs 2 lakh deduction under section 24b of the Income-tax Act, 1961 on interest payment and Rs 1.5 lakh on principal repayment under section 80C.

What is a Capital asset?

Capital assets include land, buildings, jewelry, vehicles, trademarks, machinery, patents, and licenses. When a capital asset is sold and any profit is received, it is known as capital gains. Agricultural land is not a capital asset.

Capital gains tax on residential property for sellers:

To understand capital gains, let’s consider an example. Regarding residential property, there are two types of capital gains tax: long-term capital gain and short-term capital gain. We will now discuss these two taxes.

LTCG (LONG-TERM CAPITAL GAINS)- If you hold a property for more than 24 months, you pay a flat rate of 20% tax on any capital gains. Exemptions are available in this.
STCG (SHORT-TERM CAPITAL GAINS)- If you hold the property for less than 24 months, you will be charged short-term capital gains tax. The government taxes the individual at their slab rate of income tax. If you are in the 30% bracket, then STCG will be 30%. You do not receive any benefits for indexation (i.e., inflation). The amount for which you purchased the property and sold it, the difference will be taxed.

The following chart illustrates and differentiates between long-term capital gains and short-term capital gains.

CAPITAL GAINS ON RESIDENTIAL PROPERTY	STCG	LTCG
TIME	Less than 24 months(2 years)	More than 24 months (2 years)
TAX	@Slab	Flat rate 20%
EXEMPTION	No	Yes
INDEXATION	No	Yes

Capital gain tax exemption:

Furthermore, we will discuss three ways in which you can save on long-term capital gains tax when selling residential property and other assets.

SECTION 54- Under section 54, individuals and Hindu undivided families (HUF) can claim tax benefits on residential property they own. The minimum holding period is two years. It is important to note that only residential properties qualify for this section; commercial properties do not qualify. Next, the residential property must be a constructed property that you are selling. If you are selling the residential plot, then you will not get any benefit from it. If you invest the profits received from the proceeds in the purchase of 1 or 2 residential properties or the construction of another property, you will get a complete exemption from long-term capital gains tax.
1. The capital gains from selling the property must be put in a new property which can be purchased within 1 year of the sale or within 2 years of the sale, in order to claim tax exemption. Similarly, if you are constructing a property, then for the forthcoming 3 years, if construction is completed, tax exemption will be available for you. Here, you only need to invest the number of capital gains i.e. profits; you do not have to invest the entire amount.
2. FOR EXAMPLE: Twenty years ago you purchased a residential property for Rs 60 lakhs. And now sold it for Rs 90 lakhs. So 30 lakhs is a long-term capital gain (LTCG). Invest this 30 lakhs in 1 or 2 properties or some construction work; you don’t need to invest the entire 90 lakhs. The maximum capital gain which you can claim is up to Rs 2 crores. This exemption can be claimed once in a lifetime and will be reversed if you sell this new property within 3 years from its purchase date. If you invest this amount into bank fixed deposits or a savings account, this cannot be claimed as an income tax exemption. Banks offer a capital gains account scheme if you wish to claim the tax exemption.
SECTION 54EC- Any individual can open a capital gains account. Any asset like; stocks, mutual funds, bonds, and house property may be used as collateral for this type of account. A 3-year holding period is required, with the ability to invest within 6 months. The maximum amount that can be supported is 50 lakhs, but all must be invested in specified bonds with a 5-year lock-in period. These bonds offer good returns on investment and are available only through this type of account.
SECTION 54F- Now, finally, we come to Section 54F. In this section, any individual or Hindu Undivided Family (HUF) can claim tax exemption on capital assets other than a house property. Such assets include bonds, stocks, commercial property, and plots. The person taking the exemption shall not hold more than one house property. To acquire the asset’s value, you must buy residential property or construct it. This section does not cover any plots. The time limit for claiming tax exemption is 1 year back or 2 years forward if you purchase a property; construction is forward 3 years.

There are some other conditions under SECTION 54F and i.e.;

The entire sale proceeds must be invested. Invest the entire 90 lakhs and not a partial amount or capital gains on which you can claim full exemption. You can only claim a partial exemption if part of the money is invested.
If you sell this new property within three years of its purchase, the exemption will be reversed.
If you want to claim the capital gains tax exemption, invest in a capital gains account. You cannot claim this exemption on a savings account.

Gudi Padwa and its Impact on Indian Realty Sector.

Posted on March 28, 2012 by skgupta

Gudi Padwa, a festival which earmarks new beginnings and new hopes to everybody’s life. Hence many builders announce their new projects at this point of time taking into consideration the sentiments of the local market. The festival is widely celebrated in the state of Maharashtra. As for common people in India, a home is a priced possession and they do not sell and buy residential properties often. They wait for an auspicious date to such transactions.

Keeping this in mind, realtors at Pune has organized Sakal Pune Property Show named as Sakal Gudi Padwa Grihotsav 2012. Across the just concluded quarter, residential prices in the outskirts of Mumbai have seen a positive slide. With the Union Budget 2012 giving due consideration to the loans of affordable housing projects coupled with the positive feeling related to the festival, buyers and sellers expect to strike a great deal during this year’s Gudi Padwa.

The buyers mainly constitute the New Urban Family Sector. Moreover, during this festive season, realtors juxtapose the properties with attractive discounts and freebies. But with these factors only, nobody can lure customers today. They are more oriented towards the location of the property, the pricing and the quality of construction.

The recent years were not so good for real estate sector. The ever rising inflation rates and interest rates kept the buyers at the bay. But the recent decision of the RBI to cut CRR rates gives little bit of hope to the sector.

However real estate experts suggest that the sentiments related to a festival only cannot trigger the sector. But it is decisive in getting the real estate market on the right track after a gloom. Moreover, traditionally Gudi Padwa means birth of bhoomi and bhoomi is everybody’s shelter. We can hope and look forward for bright days for real estate sector ahead with this auspicious festival.

Stamp duty hike report in Maharashtra for the Real Estate Sector.

Posted on March 27, 2012 by skgupta

Shares of real estate companies with significant exposure in Mumbai slumped in a weak market today after media reports surfaced that the Maharashtra government proposes to hike stamp duty for properties.

Shares of realty players like India Bulls, Oberoi and HDIL today slumped as much as 6 per cent after reports that the state government is planning to hike stamp duty by as much as 160 times.

India bulls Real Estate slumped 4.53 per cent to a low of Rs 65.25, Oberoi Realty tanked 2.32 per cent over its previous close to Rs 250 and Housing Development and Infrastructure Ltd was down by 6.64 per cent to Rs 89.15 on the BSE.

If the hike comes into effect, it will increase prices of both residential and commercial leave-and-licence properties, by a huge margin, market analysts said, adding that it will affect the already-sluggish Mumbai real estate demand.

“This news is going to be negative and stock prices of realty companies who have exposure in Mumbai took a hit. The cost of property in Mumbai will move up it will worsen the situation as there are already very few takers at the present interest rate regime,” Ashika Stock Brokers Research Head Paras Bothra said.

Moreover, weakness in the broader market also battered these stocks to some extent, market analysts said. The 30- share benchmark index Sensex was trading at 17,113.62, down 248.12 points at 1321 hours.

According to media reports, Maharashtra government proposed to hike stamp duty on leave-licence to 0.1 per cent on market value or 1 per cent of the average annual rent or deposit paid, whichever is higher, for residential properties.

For commercial properties, the duty for lease agreements over 60 months is 0.4 per cent.

This is a whopping hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.

New DTC will be implemented from 2011

Posted on September 5, 2010 by vishal

On June 15, the revised Direct Tax Code (DTC) was released which has got approval now. This new DTC will be implemented from 2011. The aim of this revision is to simplify the existing income tax laws. There are some changes proposed in the code for the real estate sector too which go as follows:
Taxation policy for Rental Income Originally, according to DTC, the gross rent was to be calculated at a presumptive rate of 6% of either the market value, or acquisition or the cost of construction, whichever is higher. But the revised DTC has proposed that actual rent received or receivable for the financial year should be the basis of calculation.
Home Loan Interest Policy:Originally, it had been proposed to do away with the tax deduction on the interest paid on home loans. But, as per the revised DTC, tax deduction on the interest paid on home loans up to Rs 1.5 lakhs for purchase or construction will continue. This revision is quite encouraging for the buyers to buy residential properties.
Also, the property which has not yet been let out will be kept out of tax calculations. Thus, there will be no deduction against tax or interest.

Andhra’s Realty Sector Grows

Posted on June 15, 2010 by vishal

Delhi Properties - Real Estate India - Unitech Location
PThe state of Southern India has shown a demand in Real Estate properties over the last few months which is a good news for the people of the trade.

The Realty Sector in Hyderabad, Andhra Pradesh has shown sudden upsurge after the recent political turmoil it went through. The demand for both, commercial and residential properties have registered an increase.

The trend is more evident in Tier I and tier II areas specifically; making them high demand markets.

Prabhakar, a Real Estate Sales Officer had this to say on the topic, “Market is improving as of now because of these developments happening in the Hyderabad areas like outer ring road area, Infosys campus and many other areas, so this is the right time to invest and to buy a customer.”

Even the prices of the realty sector have improved as the customers feel Hyderabad is the right place for investment thus increasing the sales.

Raj Kumar, Marketing Manager in a Real Estate firm puts forth, “NRIs, Doctors and Information Technology (IT) people are coming forward for the investment and even some of the central government employees are also coming forward. As you know, now a days comparing with the facilities what we are giving on what rates we are giving, people are seeing benefits and on these bases they are coming forward for investments and showing interest.”

The sector is one of the biggest in terms of number of employees working in the country. It is anticipated that in the next decade the realty sector will grow at a rate of 30% every year. This is bound to attract foreign investors with as many as 30 billion US dollars along with a number of IT parks as well as residential townships being constructed across our country.

The RBI’s Realty Indices For Ahmedabad

Posted on June 8, 2010 by vishal

Ahmedabad happens to be one of the 11 countries for which the reserve bank of India would prepare one index for commercial and one for residential properties. This is done to curtail speculations and expected realty bubble burst in the coming years. The RBI report on asset price monitoring system (ASMS) advised to formulate these indices two months back.

Reserve Bank of India, Kolkata
Photo by seaview99

Many different countries such as Canada, France, us refer to these indices for realty prices.

The report says, RBI should start compiling a realty index and update it every quarter. To begin with, the report has proposed Mumbai and Delhi where property prices have skyrocketed to record levels. After these cities RBI would add 10 other cities which include Greater Chandigarh, Hyderabad, Chennai, Bhubaneswar, Pune, Jaipur, Kolkata, Lucknow, Bangalore and Bhopal.

The real estate price index once devised would become the primary index that could be perused by investors to gauge the performance of companies that are listed in the realty sector. The index can also help the investor analyze how real estate is performed in comparison to stocks and bonds. It can also provide information on the risk involved in a particular investment and returns that can be achieved from it.

The ASMS report has defined the deficiencies this indices would help overcome.

HNIs Going For Commercial Properties

Posted on March 20, 2010 by vishal

Cornhill, Shanghai Commercial Bank
March 20, 2010

You need to give a second thought if you believe that commercial properties are purchased only by companies to aggrandize their business plans. Forthwith, money is put into commercial properties by High Net worth Individuals (HNIs) too.

In the past, the New Age Indians were just confined to investing in residential properties, but it does not goes for now-a-days. The trend is growing fast. According to the CMD of PropEquity, Samir Jasuja ,a large no. of HNIs will look ahead to buy commercial properties if banks do not show aversion to giving loans to individuals in order to invest in commercial properties. He added “the fact that banks do not show any positive response to sanction loans to individuals in order to purchase commercial properties is not a secret anymore. The status is same all over the world. That is why you cannot compel only our banks.”

The reason behind banks avoiding loans disbursal to individuals in investing in commercial properties is that the rate of default is very high in this segment as compared to residential properties. Thus, banks joyfully give loans for residential properties while they are not that interested when it comes to loans for the investment in commercial properties.

The director of Century 21 India, Anu Gupta suggested that HNIs should make investments in commercial properties as investing in them could prove to be highly beneficial as far as their return is concerned. The underlying reason would be that while they could go for bank loans up to 75-80 % for such purchases, the compensation of such loans could be set off against the rental incomes from such commercial properties. Therefore, as the retail/commercial industry grows, by investing a portion of the full price, an investor can gain a high-value asset, which will not only give maximum return (thanks to the set off provision in IT against rentals), but could see a significant appreciation over a period too.

Realty prices unlikely to rise in recent future

Posted on September 11, 2009 by admin

Real estate prices are unlikely to go up in the next six-months and the industry may witness huge volumes of sales of residential properties.
According to Mr. Niranjan Hiranandani , MD of Hiranandani Group of Companies, “There is a huge improvement in real estate and prices will not increase, at least for the next six months.
Further he said that in the last two months, they have seen sales of almost eight thousand apartments in the Mumbai region alone, spread in all sectors of the real estate market, but especially focused on the lower segment. But they see across-the-board increase in demand.

Update yourself with recent realty trends

Posted on August 26, 2009 by admin

Real estate is known as growing industry. That is why, change is the only constant thing or I must say that the change is the only predictable thing for this industry. We got the know the prediction that real estate will be on peak for residential properties and in the very next week we hear that investing in commercial properties are good for future. Such trend may create dilemma for the prospective buyers and investors.
The best way to update yourself with recent and upcoming trend is to keep your eyes on reliable websites. Information technology is playing very important role in providing information on time, which is needed before taking investment decision.

Mumbai is most preferred property investment destination

Posted on July 22, 2009 by admin

The financial capital Mumbai now ranks as the most preferred destination for investing in properties, while Chennai has replaced Bangalore.

The survey, “Trend in residential space across top cities in the current scenario” ranked Mumbai as the most preferred destination to invest in property while in south, Chennai is in the first place for property investments, overtaking Bangalore.

Cities like Patna, Nasik, Tiruchirapalli and Madurai have also become choive destinations for property investments, the survey said.

It said 60 percent of respondents felt interest rates for home loan would come down further in the coming months, while 40 percent evinced interests on properties with an area between 500 to 1,000 square feet.

More than three thousand people from the metros and other cities, including Pune, Ahmedabad, Thane, Coimbatore, and Vadodara participated in the survey.

“Market sentiments are reviving and people are ready to invest. Based on our survey, more than 60 percent of customers are looking at buying residential properties in the next six months. They also have a hope that interest rates on home loans will soon come down”, Consim Info Founder and CEO Murugavel Janakiraman said.