Buyers Guide

Tax benefits are available to consumers of house loans for the interest component as well as principal component of the housing loans. The current budget has left the upper limit of the interest payment deduction at Rs 2,00,000 per annum. The section 80C also allows tax benefits on principal repayments.

It depends on a person’s repaying capacity based on your income. You can add your spouse’s income to increase the amount of loan.

Step 1: Approach a Housing Finance Company with the latest 3-4 month’s salary slip and TDS Form 16 of the last two financial years of yourself and your co-applicant. The loan officer will informally tell you the amount of loan you are eligible for, the areas in which they finance flats and the terms of the same. Collect a loan application form and confirm the needed documents (mainly proof of income & KYC). Visit more than one company since you are likely to get better terms/ larger loan amount if you shop for the best deal. Step 2: At your chosen HFC, submit the duly filled loan application, along with the requested documents and an application fee (around 0.5% to 1%). They will then evaluate you on the same. After conducting an appraisal of your application, the HFC will give an in-principle sanction of your loan. Step 3: You now have to submit your property documents, which should show a clear title. The HFC will check these and levy an administrative fee (around 0.5% to 1%). It will then disburse the loan, either fully or in instalments, directly to the builder/ seller of the flat. FOR SALARIED – 4 month’s Salary Slip, Bank Statement of 6 months where the salary is credited & 2 years of Form 16 along with KYC.

No. Non Resident Indians are allowed to make real estate investments in India without any cap on quantity or the number of investments.

Any person of Indian origin (Indian Citizen) living abroad for purpose of education, employment, carrying on business etc. for a long duration abroad is a non-resident Indian. Non-residents foreign citizens of Indian Origin are also treated on par with non-resident Indian Citizens (NRI’s) for purpose of certain facilities.

Stamp Duty is a tax collected by the Government on every document by which any right, title, interest or liability is created, transferred, extended, extinguished or recorded. Since the values of transactions in the real estate market tend to be quite high, the amount of stamp duty is also a large amount. Only exception to Stamp Duty is when the property is transferred through “Will” of a deceased person. All other transfer documents like agreement to sell, development agreement, Conveyance Deed, Gift Deed, Mortgage Deed, Exchange Deed, Deed of Partition, Power of Attorneys, lease deeds, etc. have to be properly stamped before registration.

PMAY is a Credit Linked Subsidy scheme, for Economically Weaker section (EWS) and Low Income Group (LIG) which has been implemented by the Ministry of Housing & Urban Poverty Alleviation (MHUPA) effective from 17th June 2015. Pradhan Mantri Awas Yojana Subsidy can be allotted to all eligible home loans sanctioned on or after 17th June 2015. The beneficiary would be eligible for interest subsidy on purchase/construction of a house

Beneficiaries of scheme are as under: Families comprising of husband, wife and unmarried children - they should not own a pucca house in his/ her name or in the name of any member of the family, in any part of India. Economically Weaker Section (EWS), whose annual house hold income is up to Rs. 3 lakh. Low Income Group (LIG) whose annual house hold income is above Rs.3 lakh and up to Rs. 6 lakh. The House constructed/acquired should be in the name of female head of the household or in the joint names of male head of the household and his wife. Only in cases, where there is no adult female member in the family, the house can be in the name of male member of the household. However, this stipulation is applicable only for new purchases and not for new construction (on an existing piece of land) or for enhancement/repairs of an existing house