A capital gain refers to profit that results from a sale of a capital asset, where the sale price exceeds the purchase price. The gain is the difference between the selling price and purchase price.
Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”.
Capital asset is defined to include: a) Any kind of property held by an assesse, whether or not connected with business or profession of the assesse.
b) Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992.
However, the following items are excluded from the definition of "capital asset":
Any stock-in-trade, consumable stores, or raw materials held by a person for the purpose of his business or profession.
Any capital asset held by a person for a period of more than 24 months immediately preceding the date of its transfer will be treated as long-term capital asset
Any capital asset held by a person for a period of not more than 24 months immediately preceding the date of its transfer will be a short-term capital asset.
Gain arising on transfer of long-term capital asset is termed as long-term capital gain and gain arising on transfer of short-term capital asset is termed as short-term capital gain. However, there are a few exceptions to this rule, like gain on depreciable asset is always taxed as short-term capital gain.
Indexation is a system or technique used by governments to connect prices and asset values. This is done by linking adjustments made to the value of a assest to a predetermined price or composite index. For example, what is worth Rs.100 today may be worth Rs.110 or more in the following year; and even more than that the year after. In this way, inflation reduces your purchasing power.
The benefit of indexation is available only in case of long-term capital assets and is not available in case of short-term capital assets.
Central Government specifies the cost inflation index by notifying in the official gazette.
Long Term capital gains are taxed at 20% with indexation and Short Term Capital Gains are taxed as per your Income Tax slab rate. .
According to section 54, when an assesse sells only a residential property which is a long term capital asset and buys another house property. "The exemption under section 54 is available when the capital gains from the sale of house property are reinvested into buying or constructing two another house properties (prior to Budget 2019, the exemption of the capital gains was limited to only 1 house property).The exemption on two house properties will be allowed once in the lifetime of a taxpayer, provided the capital gains do not exceed Rs. 2 crores. The taxpayer has to invest the amount of capital gains and not the entire sale proceeds. If the purchase price of the new property is higher than the amount of capital gains, the exemption shall be limited to the total capital gain on sale.
Conditions for availing this benefit
1. The new property can be purchased either 1 year before the sale or 2 years after the sale of the property.
2. The gains can also be invested in the construction of a property, but construction must be completed within three years from the date of sale.
3. This exemption can be taken back if this new property is sold within 3 years of its purchase / completion of construction.
4. Only individuals or HUF are eligible to claim this benefit. The companies cannot reap the benefits of this section.
5. The house property; taxpayer is selling should be a long term capital asset.
6. The property that is to be sold should be a residential house. Income from this property should be charged under the head income from house property.
7. If the individual fails to construct or purchase a new house property within the stipulated time period, he or she can deposit the capital gains proceeds in Capital gains Account Scheme in any public sector bank and avail the exemption from this section. The deposition has to be done before the due date for filing income tax returns. The amount deposited in the Capital Gains Deposit Scheme needs to be withdrawn for construction or purchasing of new house property within two to three years of deposition. If the assessee do not withdraw this amount within the stipulated time period then the amount of capital gains will be taxable in the hands of the taxpayer.
8. Any person (Buyer or Transferee) who enters into an agreement with a resident seller for transfer of an immovable property (land or building or both but not an agricultural land) is required to deduct TDS if sale consideration exceeds Rs. 50 lakh.
NRIs can buy as many residential and commercial properties as they wish. However, the Indian constitution does not allow NRIs to invest in an agricultural land or farm house in their name. These properties can only be inherited
Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.
The payment can be done through funds remitted to India from abroad through regular banking channels. An NRI can also use funds from the Non-Resident External (NRE), Non-Resident Ordinary (NRO) or Foreign Currency Non Resident (FCNR) accounts to buy a property in India
It is available when there is a long term capital gain on the sale of any capital asset other than a residential house property. To claim this exemption, the NRI has to purchase one house property, within one year before the date of transfer or 2 years after the date of transfer or construct one house property within 3 years after the date of transfer of the capital asset. This new house property must be situated in India and should not be sold within 3 years of its purchase or construction. Also, the NRI should not own more than one house property (besides the new house) and nor should the NRI purchase within a period of 2 years or construct within a period of 3 years any other residential house. Here the entire sale receipt is required to be invested. If the entire sale receipt is invested then the capital gains are fully exempt otherwise the exemption is allowed proportionately.
The NRI community is allowed to repatriate its original investment in equivalent foreign exchange value for either residential or commercial property. However, the gains generated through these transactions have to be re-invested in the Indian real estate market itself. Further, in case of residential properties, NRIs are allowed to remit sale proceeds outside India for up to two properties without any approval from the Reserve Bank of India (RBI). The apex bank's approval is required for the third and subsequent property purchases
Indian passport ,PIO card/OCI card (if applicable),PAN card,Power of attorney documents,Latest, salary pay slips for the past 6 months,Income tax returns for the last 2 years,Copy of employment contract , Appointment letter (if applicable), Work permit (if applicable), Bank statement for the past 1 year from external bank account, Bank statement for the last 1 year from Non-Resident External (NRE)/Non-Resident Ordinary (NRO) account, Address proof,Credit report, Property related documents.
The payment can't be made in foreign currency. NRIs can make the purchase using Indian currency,
It applies when an NRI sells capital gain assets (such as gold , stocks , bonds , Mutual funds , etc) and buys a property instead. the person does not have to invest all the amount from the sales transaction but only the capital gains made from capital assets . you can also purchase this property either one year before the sale or 2 years after the sale of your property.
When an NRI sells property, the buyer is liable to deduct TDS @ 20%. In case the property has been sold before 2 years(reduced from the date of purchase) a TDS of 30% shall be applicable.
All our projects are always RERA approved before even the construction gets started. Our main aim is to provide transparent dealing and according to the government compliance laid down by various department.
Usually the developer has a fixed lawyer for every project who does all the agreements and sale deeds for the buyers. Usually there is no need for an additional lawyer from the buyer’s side but if he wants to have another lawyer to supervise the buyer can do so at his own cost.
Our company does tie ups with major banks for easy processing of loans. Loan formalities can be started as soon as the buyer pays 20% down payment. Usually when a loan is take the agreement has to be registered for the loan to be processed followed by Sale deed before handing over.
GST is applicable only during under construction stage. Once the developers as received the completion certificate the project is GST free.
We only work in properties which are freehold in nature so that the individual unit is transferrable from builder’s company to the buyer with an undivided share of land incase of any natural calamity.
General Power of Attorney (GPA) is an authorization given by the customer to a person if he is, owing to his professional commitments, unable to personally attend to the purchase, negotiations, registration and completion of other formalities pertaining to the apartment that he has bought. He will appoint and constitute one person known to him as agent and attorney in his name. And on his behalf, this one person will do any of the following acts deeds and things; this is given in general to do all the activities on his behalf. Power of attorney given to a person only for a specific purpose, for example, possession or registration purposes is called Specific Power of Attorney.
Agreement to sell is a legal document which is executed between the builder and the customer, after the customer has paid 20% of the agreement value of the apartment. This document will have the terms and conditions of the seller and the buyer after the purchase of the property. This is a basic document on which bank or any financial institution will lend money to the customer. But this is not considered as the final document when it comes to the title of the property. Sale deed is the final and very important document which authenticates that the title of the property is conveyed to the buyer.
Entrance of house is best in North and East sides, Entrance should never be dark and ensure that this place is well lit throughout.There should not be any obstruction in the entrance gate with things like poles, tree, wires and vehicles ,Main door should always open inwards.Entrance of house should not face temple
Couples bedroom should ideally be located in North-west or South west portion of house, Couples must sleep with their head towards South and feet in North, Any kind or size of mirror should be shunned in couple's bedroom especially in the front of bed and even at the side of bed, Avoid South-east corner for couple's bedroom ,Couples must sleep with their head towards South and feet in North.
Entrance door should be in North, East or North East of the house. The entrance door size should always be larger than the other doors of the house,Many houses may have more than one entrance on the frontage, Doors in the west and south are not good/allowed, If a house has two doors than they can be in the following combinations : East in combination with north and, west.West with north and East is allowed.,South and West Doors are not allowed,South and East Doors are not allowed.
The north-west quadrant, belonging to the element of air, is an ideal location for the drawing room,North-east location: This makes the drawing room a storehouse of positive energy and bestows the users with serenity and mental peace, South-west location: Considered inauspicious. Its negative influence can be countered by shifting the entrance towards the west.
Fridge:Southeast , Wash Basin:Northeast, Console:Southwest wall of the dining area, Microwave, Radio and Television:Southeast, Windows :North or East side, Doors:East, North, or West.The dining room should be in continuation with the kitchen in the South, West or the East-side.
Element Fire governs in the direction South-east, so this portion of house ideal for locating kitchen. However, if choosing alternative then North-west , Place water sink in the North-east with the maximum distance from cooking gas, Larger windows in the kitchen should be in Eastern side while small ventilators should be placed in South, The sink should be in the Northeast corner of the kitchen, Electric equipment like microwave, oven or refrigerator should be placed in South-west, The cylinder should be placed in the Southeast corner,The Geyser should be installed on the, Southeast side.A dishwasher can be placed in the north west of the kitchen., The exhaust fan should be installed either in the Northwest corner or the South wall., There should be no toilets and, bathrooms adjoining, and above or below the kitchen,The door of the kitchen should never face the door of the toilet.Entry door, North, East, or West:The kitchen door must not be in any of the corners.
The pooja room should always be situated in the North, East or the Northeast side of the house,One should face towards East/North while worshipping,A Pooja room should never be made in a bedroom or on a wall adjacent to the bathroom wall.
A staircase must always be built in the western or southern part of the house. Make sure it's not constructed in the northeast corner.An external staircase can be built in the southeast direction facing east, southwest direction facing west, northwest direction facing north, and southwest direction facing south,Stairs must always have an odd number and the number must never end with a zero.Staircases must always be painted in light colors and shades such as red and black should be avoided completely.
The study room should be placed either in the Northeast/East or West side of the house, Students must face East/North while studying,A beam should never run above your head while studying,The study room should be well lit and one should not face a blank wall or a window while studying.,One should prefer not to have the toilets in the study room, however bathrooms are fine,The study room should have images of Lord Ganesha and Goddess Saraswati.
Balcony should be constructed in the eastern or northern part of the house,Avoid constructing a balcony in the southern or western side of the main building.
Servant quarter is considered ideal in South-eastern Quadrent,Another alternative for servant room is North-west quadrant of North. This corner is good for the placement of servant room.
North-east and South-west is considered bad for servant room as according to Vastu servant.
A bathroom can be placed in Eastern portion of the house,The toilets should be constructed to the west of the building or the north-west side,Shower and taps in bathroom can be attached on Northern wall which is also suitable for mirror, If there is attached toilet in the bathroom itself then WC should be on the West or North-west side and few inches above the ground, Geyser, should ideally be placed in South-east corner, Bathtub must be located in West portion and provision for washbasin could be made in North-east.
Last 3 Year Income Tax return along with Profit & loss a/c , computation of income, and balance sheet certified by C.A of Individual & Company
Audit report for last 3 years( If applicable)
Last 6 month Bank Statement (Saving & Current a/c) (Till Date) in Original of Individual & Company
Advance tax challans copy( Sale Tax, Income tax, VAT)
Company profile on Company letterhead with client list( If applicable)
Residence Proof & Office Address proof (electricity bill, phone bill, letter from employer, original bank statement, passport copy).
Age /DOB Proof, Photo ID Proof (Passport, , Pan Card etc).
One Photograph each of Applicant & Co-applicant (passport size).
Processing fee cheque of Rs (0.5% + service tax) in favour of HDFC Ltd from your salary account
Loan details if any loan running at present of Individual & Company (sanction letter copy or track record ).
Copy Of Qualification Certificate
MOA of the company( In case of Pvt. Ltd company)
Shareholding Pattern on company letterhead.( In case of Pvt. Ltd company)
List of director attested by C.A
Form 26AS for AY 15-16, 16-17, 17-18 of Individual & Company
Last 3 Years ITR + Computation of Income + Balance Sheet + P&L Account + Schedules, duly certified by CA, of the Company.
Provisional Balance Sheet & P&L Account with advance tax challan or 26AS or Form-16A for the Latest Year if not filed.
Audit report of last 3 year (If audited).
Bank Statement for latest 6 months of all Current Accounts of Company & of all Savings Account of Individual.
Company Profile with Major Client List on Companys Letterhead.
Details of all the obligations running
In case of any loan EMI going from any of your other bank, then copy of bank statement for latest 12 month. Along with a sanction letter (of that loan) or latest track record.
Date of Birth Proof of all the applicants (PAN CARD).
Current Residence of all applicant & Office address proof.
One Photograph of all the applicants.
Admn. Fees cheque from saving a/c: (0.5% of the Loan Amount+Rs 500/) of Service tax or Rs11970/ whichever is lower in favour of HDFC Ltd.
10. Application form duly filled and signed by all the applicants.
Last Higher qualification certificate copy.
Legal fee in case of resale property of Rs 4000/ at the time of transaction.
Dully filled & signed application NRI loan application form.
One passport size photograph to be affixed on the application form & to be self attested by applicant &/ co-applicant.
Copy of identify proof of both applicant &/ co-applicant. (Passport, pan card, driving license).
Copy of residence proof of both Indian and overseas address of applicant&/coapplicant. (Utility bill- electricity/telephone bill, lease agreement, passport, bank statement, letter from employer).
Copy of visa stamped on the passport. ( last visit details to be highlighted)*
Copy of employment contract.
Website address of the employer and contact details of HR Manager
Copy of last 3 months salary slip/ original salary certificate.
Bank statement of the overseas bank account for the last 6 months. (salary credits & rent paid to be highlighted)
Bank Statement of the NRE/NRO account for the last 6 months.( in India)
Profile of the applicant&/coapplicant and qualification proofs
Past occupational history (in case of less than 2 years of work experience or recent change in employment)
Copy of Latest Income tax return (Form W 2 in US, P60 in UK)
Details of any other loan availed from any other bank/financial institution in India or overseas.(to be mentioned on the application form)
Bank statement showing repayment of the loans availed from any other bank/ financial institution for the last 6 months / repayment track record from the bank/ financial institution the loan has been availed from.
Credit Bureau Report (incase facility not available in the country applicant&/ coapplicant are based at than declaration to be collected mentioning details of any other loans availed)
Processing fee cheque in favour of “HDFC LTD” from NRE/NRO account.
Power of attorney details or local contact person’s details to be updated on the application form
Incase property is selected, copy of property documents are also required. (please provide details such as complete property address, owners & payment made to the builder from own sources )
Most Important: All documents are to be self attested.
Date of birth proof of all applicants.
Aaddhar Card of all applicants.
ID proof of all applicants. (Pan Card)
Residence proof of all applicants.
Photograph of all applicants duly self attested on the front side.
Latest 3 months salary slip in original or fly attested by HR/Accounts deptt.(If there is variation in gross salary too then 6 months salary slips) & CTC (if required).
Latest six month bank statement (Till Date) in which salary is credited (original).
Latest Form 16 along with ITR (Assesment year 2016-2017 & 2017-18).
Copy of Appointment Letter/Contract Letter in case of job chnaged within one year along with previous employer’s Form 16.
In case of any loan EMI going from your any of your other bank, then copy of bank statement for latest six month along with a sanction letter (of that loan) or latest track record.
Latest Qualification Certificate (Higher professional Certificate).
Marriage certificate copy in case of wife as applicant (If title change).
Ration card copy in case of Parent or Sibling as applicant.
Copy of Property Papers (In case of direct allotment – Payment Receipt, Allotment letter or Booking booklet will do).