Frequently Asked Questions

Market Value of the property refers to the approximate value of the property in the prevailing market. 

You can apply once decided to purchase or construct a property, regardless of whether the property has been chosen or not, or whether the construction work has started or not.

The lenders offer multiple ways for borrowers to repay housing loan – issuing standing instructions (SI) to your bank to pay the EMI through Electronic Clearing System, or issue post-dated cheques from your salary account

Repayment of the principal amount starts from the month subsequent to the one when you disbursement of your loan amount was completed.

Till the complete amount is disbursed, you will only pay pre – EMI, i.e. interest component on the disbursed amount. 

Tax deduction is allowed for the amount of interest paid towards the home loan under affordable housing scheme. Deduction allowed is Rs. 150,000 during a financial year, over and above the deduction of section 24 .

You can avail of tax benefits on both – the principal amount and the interest amount of the Housing Loan under Govt. of India’s Income Tax Act, 1961. The benefits  are updated during the budget – hence, you could reach out to our Chartered Accountant to learn more about most updated Tax rebates and benefits

Agreement to Sell (ATS) is a document on stamp paper to formalise the understanding that was arrived at between the seller and the buyer of a specific property. The information it captures includes (but not limited to) total covered area of the property, the date of handover of possession, the agree sale price priced, and any other term that was mutually agreed between the buyer and seller in relation to the sale and purchase of property in question. 

Well, not all, but guidelines in certain states in India require Agreement to Sell to be registered for it to be a legally valid document. Even in the states it is not compulsory, it is recommended to get the same register at the office of the Sub-Registrar appointed by the State Government. This will make the details of the transaction final and formal, and in case of any subsequent dispute between the buyer and the seller, this document will act as the guiding light. 

Encumbrance on a property is in reference to past monetary claims on the property by authorities on account of issues like unpaid loans or unpaid bills. While buying a new property, you should be aware of existing encumbrances on the property, so that you could factor them in your price negotiation, and so that after the purchase you do not receive a sudden surprise. 

After the following steps have been completed and the report is positive: 1. Your financial verification has been approved, 2. Property’s technical appraisal has been done, and 3. Properties papers have been verified, and the documentation has been completed and approved in all aspects.  

Yes, you can start making additional payments to part pay or fully pay the loan ahead of the term for which you had originally taken the loan. This could usually invite additional prepayment charges, which could vary from bank to bank. 

This is the process of getting your loan / outstanding principal amount transferred from one lender to another. This is generally observed to be done in case some other lender is offering a lower rate of interest, hence you you like to switch to that lender. 

The maximum tenure would generally be 30 years or till the age of retirement. 

Yes, you can avail additional top up loan, as per the terms set by each lender. 

There is no restriction on you claiming HRA while claiming tax benefits in respect of home loan as long as you are satisfying the conditions laid down under Section 10 (13A) and 80C and 24(b). 

Since the property is jointly owned, both are entitled to claim the benefit of interest under Section 24 as well as in respect of repayment of principal amount of home loan under Section 80C provided both are servicing the home loan. 

Yes, and HRA will be tax-free if you pay rent to parents while living in your parents’ home. You can claim exemption for the HRA, provided your parent or parents owns the property.

If you buy a property or construct a new house from the payout against selling your earlier property, you will be exempted from tax on Capital Gains. 

This is a Govt scheme – Capital Gain Account Scheme allows you to save the received money from sale of earlier property in designated banks and account. Further usage of this money as per the terms laid down by the Govt. will help prevent payment of Capital Gains Tax on this amount.   

As per the rules, an immovable property in India is considered to be a capital asset.  Capital Gains are the gains arising from the sale of this asset, and the tax payable on such a gain is called Capita Gain Tax. 

Stamp Duty is the tax that is paid by the property owner to establish the legal ownership and recognition of the property. Once can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges in case you are going to use the property for self-occupation and self-use. 

TDS- 1% on immovable non agricultural properties exceeding Rs 50 lakhs. Stamp Duty is decided by each state and it is as per municipal laws. Service Tax – if the property is below Rs 1 crore in value below 2000 sq ft of floor ares, the service charge levied is 14% on car parking and preferential location charges (PLC) and 3.50% on the basic sale price. 

TDS, Stamp duty, Service Tax and Value Added Tax (VAT) if applicable 

The difference is in ownership. In a leasehold property, the ownership remains with the authority or the government, with the lease period varying between 30 to 99 years. The owner can sell the property, provided the lease deed is registered. In freehold property, the owner of the is the legal owner and is free to sell, lease or rent the property, as he may wish. 

Through Power of Attorney you can allow someone else to take decisions regarding your assets, finances and real estate properties. 

What are the different types of power of attorney. 

General Power of Attorney allows a property owner to confers ‘general’ rights onto another person of his choice, such as to sell, lease or sub-lease the property. ‘Special Power of Attorney’ only entitles only specific rights by the owner to the other person.

Yes, you can execute Special Power Of Attorney to get your property registered by someone else. 

Original copies of the chain of title agreements, letter of possession, Original registration and stamp duty receipts, Building Plan approvals, payment proofs for maintenance charges, water, electricity, phone and property taxes, NOC from the Society