Frequently Asked Questions (FAQ)
What is the difference between carpet area, built-up area and super built-up area?
Carpet area- This is the net useable area of the apartment where a carpet can be laid down, i.e. it does not include the area of the walls, common areas and super built-up area. Built-up area- This is the area of the apartment from outer wall to outer wall. It includes all internal walls, plasters, skirting etc. It also includes the proportionate common area, i.e. the corridor, passage, staircase, lift, lobby etc of the designated floor in which the flat is located. Super built-up area- It is the saleable area, which includes the built-up area and also the proportionate share of all other common areas.
Does a foreign citizen non-Indian origin require permission from the RBI for acquisition of immovable property?
Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.
Why is it considered necessary to register a property?
What is the purpose of registration? By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered, and thus further transfer may occur.
I have a flat/residential land which I want to sell and buy a new flat/land bigger in area. What are my tax implications with regard to capital gains?
Any long term capital gain, arising from the sale of a residential property (whether self-occupied or rented) shall be exempt to the extent such capital gains is invested in the:
- Purchase of another residential property within 1 year before or 2 years after the due date of transfer of the property sold and/or
- Construction of residential property within a period of 3 years from the date of acquisition.
How much housing loan can one get?
It depends on your income and repaying capacity. You can add your spouse’s income to increase the amount of loan.
What tax benefits are available in regards to the housing loans?
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. 1,50,000/- p.a. The section 88 also allows tax benefits on principal repayments.
What is the reducing balance method of interest payment?
In reducing balance you reduce the amount of principal payment already paid by you from the initial loan amount. You pay interest only on principal unpaid till that point of time and not the entire loan amount.