Tax benefits on home loan

Posted on February 22, 2016 by Anukampa

Few years back, people with moderate income, either inherited a home which was built by their predecessors or if they planned to build a house it was only when they got their annuity amount or got substantial money as an inheritance. The tax incidence on construction of a house was too high and there were not enough tax benefits attached to the same. Middle class people only day-dreamt about owning a proper house, it was the prerogative of rich or well off people to get a house constructed for themselves and their family.

The scenario changed with the liberalisation of Indian economy and housing was shortlisted as one of the thrust sector for revival of economy and accordingly required measures were taken to push up the things for housing sector. Apart from easing of home-loan process and interest rates, one of the push-ups to the housing sector given by Government was benefits in regard to Income-Tax. Here we shall give a short synopsis of few deductions to be claimed in regard to home loan:

Paid Interest will be treated as loss: The interest component of the EMI’s paid for the home loan will be treated as loss to the assessed and accordingly will be deducted from his income. This deduction will be effected from the year in which the construction of the home is complete. A maximum deduction of Rs. 2 Lakh can be claimed in regard to home loan for the home used as own residence and if the property is rented then entire interest amount for the year shall be deducted.

Is deduction available on principal repayment? : The repayment of principal amount of home loan also falls under the purview of deduction factor. The part of EMI which is repaid as Principal amount is eligible for deduction u/s. 80C of Income tax. However, a maximum amount of Rs. 1.5 Lakh will be eligible for deduction.

Even Stamp duty paid and registration charges will be eligible for deduction: Section 80C also allows the amount paid towards Stamp duty and registration charges as deduction for the year the payments were made.

Pre-construction interest is also eligible for deduction: Along with, the deduction of Interest paid with EMI’s starts with the financial year the construction is over, the deduction for pre-construction interest can be claimed from the same year. However, it shall not be more than Rs. 2 lakhs for the house used as residence, divided in five equal instalments.

Real Estate Terminology 5

Posted on January 3, 2016 by Anukampa

We have been talking about Property Terms, giving you insight on the terminology that sometimes get difficult to comprehend. Read on further to know more such terms.

Facilities management

The co-ordination of many specialist disciplines to create the optimum working environment for staff.

Fail rent

The rent determined by a rent officer (or, on appeal, by a rent assessment committee) under a regulated tenancy and registered.

FERA

An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act (FERA) of 1973, it is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.

Fire certificate

A certificate covering matters of safety required under the legislation for hotels, boarding houses, factories, offices shops and railway premises, excluding those buildings containing less than a minimum number of employees.

Fitouts

Relate to the interior permanent furnishings required in a property including HVAC ducting, fire protection system implementation, establishment of workstations and telephone/computer cabling among others, in order to make the property fit for usage.

Flatted factory

An industrial building of more than one storey, usually with two or more goods lifts, and constructed or converted for multiple occupation. The building is subdivided into small, separately occupied units which are used for manufacturing, assembly and associated storage.

Freehold

Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner.

Frontage(line)

The full length of a plot of land or a building measured alongside the road on to which the plot or building fronts. In the case of contiguous buildings, individual frontages are usually measured to the middle of any parting wall.

Come back to continue reading about more Real Estate terms

Decorate your Bedroom!

Posted on December 26, 2015 by Anukampa

Whether you’ve just moved or are looking for a quick, little home pick-me-up, or perhaps something more significant, there are some well-known decor tricks that designers employ that you too can easily do with minimal effort and cost. Sometimes the smallest things make the greatest impact. Maybe you want to soften the walls, brighten your room, or add some warmth to your room. Take a look at these clever decor tips and see how they can inspire you!

1. Focus on the view-

A bedroom always feels nicer when the first thing you experience is a pleasant view out the window — as opposed to a view looking straight at the bed. If you’re designing a new bedroom or reworking an old one, try to come up with a layout that focuses on the vista — whether it’s something as stunning as a lake or as simple as your backyard.

2. Connect with the outdoors-

While this might not be feasible in all climates, connecting a room with the outdoors is a great way to make the space feel larger and admit more natural light. If your bedroom is on the ground floor, adding a set of French doors can instantly increase visual space.

3. Storage-savvy space-

In a small room, getting creative with storage solutions is key. This bed’s backrest slides up to reveal storage. On the headboard, you push in on a hinged panel to access a similar space.

4. Choose a Focal Point-

A beautiful piece of furniture becomes the focal point when angled into the room. This approach may be more efficient in your space, too.

5. Make Rest a Priority-

Your bedroom should be your retreat, a sanctuary for peaceful reading, writing, studying, as much as a resting place.

Easy ways to keep your home cool in summers.

Posted on March 25, 2015 by Anukampa

While you are lucky enough to own the top most home with a terrace or a balcony, don’t forget its tendency to trap heat. With summers catching up, it is important to know all the good things you can do to keep your place cool, and prevent heat from entering your home. This can also help you make significant cost savings on air-conditioners’ electricity bills.

Gardening without owning a garden

One of the most satisfying thing is cultivating own food. One of the most annoying thing is being a garden lover trapped into a teeny-tiny home. The simplest way to stay cool is to stay green. You can plan a garden in open space of your home. There are plenty of easy to handle plants, which one can have. This will add beauty to your home and will dramatically make it cool.

Aluminized Blinds or Insulated Curtains

For the windows you can have properly insulated curtains. These curtains will keep the sun’s heat away from your windows but will let the breeze blow if you wish to keep the windows open.

Let a few windows be open after sunset

This will make the cooler air blow throughout the evening. Also, leave all the internal doors open. You can open the closets and the kitchen cabinets as well, as they keep the daytime heat and your home will cool off the most in night. Don’t forget to close the windows and the blinds early in the morning as soon as the sun appears.

Manage your appliances

Incandescent light bulbs also create heat, so switch to compact fluorescents or LEDs. Turn off your appliances like computers and lamps when they are not in use. You should also turn off TV because it produces a lot of heat. And the same should be done with some plug-in power adapters.

Go with smooth and light coloured linen

You can use linen bed sheets and linen cover for the other furniture. Place white cotton fabrics over sofas since the upholstery fabrics are thick and cause sweat. Light-coloured fabric will reflect the heat instead of absorbing it and this relaxing ambience will give you a feeling of coolness.

Cross-ventilation

If you find it windy outside, you can create a breeze inside your flat by simply opening windows. We know the wind naturally flows from the high pressure area to the low pressure one, opening the windows on both sides of your flat will allow the air to move across the flat thus will create a breeze.

Apply these ideas and mark the significant changes in the environment of your home. Stay cool and enjoy the summer season too because it is one of a kind.

Importance of location while buying a house!

Posted on February 4, 2015 by Anukampa

Whether you are purchasing your home as an investment, a lifestyle upgrade or both, one of the most important decisions you will make is where you want to live. Your home’s location will help determine not only the future value of your investment, but also many aspects of your everyday life.

Here are some factors you should consider carefully when selecting a location.

Geographic Location

The part of the city you choose to live in will have a major impact on your lifestyle. Particularly if you want to stay in your home for a long time, make this decision very carefully, taking into consideration the factors that are most important to you, like proximity the city centre, connectivity, distance from airport / railway station, etc.

Neighbourhood

Within a particular area, different neighbourhoods will have different characteristics. You’ll want to pick the one that is the closest fit to your lifestyle and personality – a place where you’ll feel comfortable and where you are likely to get along with your neighbours. You’ll also want to try to live close to the places you visit frequently, like grocery stores, your job (if you plan to keep that job long-term), and, if you have kids, the schools you want them to attend.

Safety

For most people, safety is a top consideration. You’ll often pay less to live in an area with higher crime, but if you’ll have to live in fear or if you one day become a victim no price discount will be worthwhile. It may also be harder to resell your home or get a good price for it if you decide to sell.

Proximity to Work

The length of your daily commute can have a significant impact on your disposable income, quality of life and how much time you get to spend at home with your family. How long of a commute can you endure? Are you planning to stay at your current job long-term or do you expect to switch jobs in the near future? If you plan to stay at your current job, how close to work do you want to live? If you plan to switch jobs, what are the job prospects in or near the area where you’d like to live?

Proximity to Friends and Family

The best home may not feel very homey if you live too far away from your friends and family to see them on a regular basis. On the other hand, your friends and family might end up moving at some point, so make sure this isn’t your only reason for choosing a location.

Proximity to Leisure Activities

What do you enjoy doing in your free time? If you love to go out to eat, you might not be happy living somewhere with few restaurants. On the other hand, if your favourite thing to do is stay home, you might have more choices available to you when it comes to this aspect of choosing your location.

Visit During the Day and at Night

What a neighbourhood looks like on paper and how you feel when you’re in it is not necessarily the same thing. Sometimes little details can make a big difference. For example, some neighbourhoods have narrow roads, lots of cars parked on the street or distinctive architectural features that may not suit your taste. If these things aren’t what you envisioned in your ideal neighbourhood, you may not want to live there no matter how great the statistics may be.

What is Pre-EMI interest? What mode should I choose to pay my home loan?

Posted on January 21, 2015 by Anukampa

Pre-EMI is the interest portion on the disbursed loan amount that you pay until the full disbursal is done. i.e., your home loan behaves like an interest-only loan on the disbursed amount until the completion of construction. Your EMI payments start after the pre-EMI phase. Until then, your money does not reduce even a paisa of the outstanding loan amount.

Now you may wonder which is a better course to take while making loan repayments – EMI or Pre-EMIs?

The selection of full EMI repayment mode is deemed as beneficial in the longer run as borrower of the loan starts paying the principal amount from day one itself. So, in this case the total outstanding principal amount by the time the property is taken possession of, is reduced manifolds. However, in case project completion gets delayed, loan borrower may end up paying more than the principal loan amount even before getting possession of the property.

So, in all EMI mode can result in hefty payouts on the part of the borrower as he pays the interest amount during the loan tenure in addition to the term before the final disbursement of the loan. However, Pre-EMI may turn out to be a better loan repayment mode in case the homebuyer wishes to sell the property soon after getting the possession.

Things you should know about Pre-EMI home loan repayment mode:

Though pre-EMIs seem to be less burdensome at first as only the interest component on the loan amount disbursed is required to be paid until the final loan amount disbursement, it results in more number of payouts. In contrast, opting of full EMI mode results in lower tenure with the decrease in principal amount.

Pre-EMI interest amount paid when the property was under-construction does not qualifies for tax deduction with respect to the principal amount repaid. However, loan repayment either in pre-EMI mode or EMI in taxation terms is treated without much difference and in fact tax deductions are only allowed on the interest paid post the completion of the project. The interest amount paid is divided into five equal proportions and allowed for tax deduction once the project is completed.

Thus, before choosing the mode of home loan repayment, you must consider your purpose of buying the property, expected time for project completion and taxation factors.

What is a Home Loan? Can I apply for it?

Posted on January 7, 2015 by Anukampa

Home Loan is a secured loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower fails to pay back the loan, the banker can retrieve the lent money by selling the property.

If you are planning to buy your own house, it may be a good idea to apply for a home loan, rather than trying to arrange the entire purchase amount at once. It is also a good way of tax planning. And if you’re wondering whether or not you’re eligible for a home loan, please go through the following guides. Please note that the guide is only for assistance and may not be absolutely exhaustive, as criteria may differ slightly from one financial organisation to another.

Any adult individual with a source of income can apply for a Home Loan, if he/she meets the criteria of the Banking Financial Corporation / Non Banking Financial Corporation norms and eligibility criteria of the same.

You may NOT meet the criteria for getting a Home Loan if any of the following is true:

Suite filed or written off cases reported in the Credit Information Report [CIR]. This is indicated in the ‘Account Status’ section of your CIR.
Payment history trend – if there has been any default or amount overdue. This is indicated in the ‘Days Past Due’ [DPD] field of your CIR.
Company profile where you work – the banks generally have an approved list to whom they extend loan / credit card.
EMI to Income ratio: if your current total EMI exceeds your monthly salary by more than 50% then chances of getting a loan are reduced.

Invest in Jaipur, invest in the future.

Posted on November 18, 2014 by Anukampa

The Pink City of Jaipur is being viewed by experts as the closest alternative to Gurgaon! The city, while imbibing all the benefits of a big city, also shuns the drawbacks of big cities like pollution, traffic jams and land saturation.

The city is expected to emerge as one of the ten mega-cities of India’s Future.

It has already become a favourite of national and international IT firms and even the major Indian and international MNCs are setting up their feet here.

Prestigious projects including, Mahindra’s 3,000 Acre SEZ, Anil Ambani’s Mega City Development Plans and Hero Honda’s INR 700 Crore plant are in the city’s developmental pipeline!

Several international hospitality chains including Marriott, Radisson, and Hilton have already established themselves here.

What more, by also becoming a major centre of educational excellence and the setting up of schools, colleges and universities of national repute, it has become a perfect platform to grow and nurture talent for the collective growth of the city.

The Advantage

Jaipur is very strategically located at a 4-hour drive from Delhi on the Delhi-Mumbai Highway. With an efficient transport network that offers connectivity via all means of transportation, and the development of the metro link, it serves as the perfect destination to set up shop with both national and international operations.

With the positive development and rich future potential, Jaipur is seeing a massive boom in the real estate sector, which is collectively benefitting the builders and investors of the region. This presents you with the perfect opportunity to invest in property, and watch your investment grow manifold.

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