Ownership Documents of the Land Owner/Promoter including title certificate . Development Agreement, if the Developer/Promoter is not the owner and has acquired the development rights. Intimation of Disapproval (IOD)/Development Permission/ Commencement Certificate and the building plan/s approved by the competent authority. Commencement Certificate. Other permissions issued by the competent authority depending on the nature of plot/type of development. If the construction is completed then the Occupancy Certificate issued by the competent authority. Draft of Agreement for Sale and brochure for specifications, layout and amenities in the flat/complex/layout.
The Developer/Promoter shall execute an Agreement for Sale as per the provisions of the Real Estate (Regulation & Development) Act, 2016
The procedure involved is three-fold:
Firstly, the payment of adequate stamp duty on the Agreement for Sale Secondly, Execution of the Agreement for Sale by the Developer/Promoter and the Purchaser/Allottee(s) and; Thirdly, Registration of Agreement for Sale. We shall deal with the above aspect in detail as under:
Stamp Duty Execution Registration
Unless there is an agreement, the stamp duty shall be borne and paid by the purchaser as per Section 30 of the Maharashtra Stamp Act, 2013. The stamp duty to be paid on the Agreement for Sale shall be equivalent to 5% on the market value of the unit. The mode of payment of stamp duty is E-Payment through GRAS (Govt. Receipt Accounting System).
Deduction from house property-
Section 24 of the Income Tax Act
This section deals with deduction available u/s 24(b) – Interest paid on capital borrowed for purchase, construction, repair, renewal or reconstruction of property. That is, you are allowed to deduct an amount equivalent to the total interest payable on the housing loan from your taxable income within the same financial year, the maximum amount eligible for deduction if capital is borrowed on or after 1st April 1999 in the case of self-occupied property to Rs.2,00,000.
The criteria being:
a) Capital is borrowed on or after 1st April 1999 for acquiring or constructing a property.
b) Acquisition or construction should be completed within 5 years (3 years, applicable up to the Assessment year 2016-17) from the end of financial year in which the capital was borrowed.
Please note that
Interest of pre-construction period is deductible in five equal instalments. The first instalment is deductible in the year in which construction of property is completed or in which property is acquired.
If Capital is borrowed for any other purpose, i.e. if capital is borrowed for reconstruction, repair or renewal of house property then the maximum amount of deduction is available Rs.30,000.
Deduction from Gross Total Income –
Section 80C (2) (xviii) of the Income Tax Act
A deduction is available on repayment of principal during a financial year up to Rs.1,50,000, this aforesaid limit is within the overall limit of Rs.1,50,000 lakh specified in section 80C of the Income Tax Act. Stamp duty, registration fee or other such expenses paid for transfer of such house property to the assessee is also considered under this amount. This deduction is made from one’s Gross Total Income.
Income Tax certificate:
Every bank issues an Income Tax Certificate that serves as requisite proof to let you avail of tax benefits that accrue on repayment of a home loan. This will typically contain the total amount of interest and capital repaid during the Year. The Income Tax Certificate is mandatory to claim the tax benefit in respect of self-occupied property. You will have to file it with your tax returns. and submit this to your employer or Chartered Accountant to calculate your tax liability.
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