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LAWYERS SUGGESTION KEY POINTS:

  1. Buyers association either registered or unregistered can represent the case. However, registration would give more benefits so  the builder is forced to talk to one identify who represents buyers benefit. Builder will naturally respond / negotiate once an association is formed.
  2. Registration can be done before Occupancy Certificate (OC)  but need to get the sale deed clearly checked line by line, by lawyer on this channel showed his suspicion of only 2 blocks ready out of 8 blocks: chances of many issues. Registration agreement needs clear scanning by lawyer to avoid future mistakes as the project isn’t complete.Buyer can register the property but do not tie registration to OC as that will clear all the uncertainty of owning the flat.
  3. Possession without OC is at builders cost. Builder is liable to bear all cost such as taxes, power, maintenance etc. Buyer can take possession if builder is giving alternate power but should be at his cost not owners.
  4. Maintenance agreement: There is no legal binding to sign any maintenance agreement during registration you can deny as it is one sided. Strictly No to maintenance agreement of 10 yrs..Builder cannot enforce this for signing. Demanding 1 year maintenance cost in advance is ok. Maintenance payments to be in the name of different or specific bank account. Need not pay more than 1 year.
  5. Arbitration clause is not applicable for filing case in consumer court. There is only consumer court for this issue and can be through association and effective through association rather individual. Interim relief for completion of amenities/services can be claimed at consumer forum.
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4 Home Loan rules most of the investors don’t know about

Can you claim tax deduction for your under-constructed house? Can you claim tax for the home loan taken from your friend and not from Bank ? These are some of the questions which are not generally discussed over and lot of investors have no idea about actual rules. In the video below I will talk about four not so known rules of home loans . Keep reading ! . Readers on email can watch the video on this article.

eTutorial – TDS on sale of property

Click here to download eTutorial – TDS on sale of property-HOW TO PAY TDS ON PURCHASE OF NEW PROPERTY

1% TDS rule on sale of property explained:The 1% TDS rule on sale of property was introduced in the 2013-14 Budget to put a check on underhanded property deals.

In effect since June 2013, the regulation mandates that on sale of property exceeding Rs. 50 lakhs in India, a tax of 1% has to be deducted on the total sale consideration before making the payment to the seller.

The buyer must then deposit this 1% TDS to the Government. PAN of both the buyer and seller must be compulsorily specified while filling out Form 26QB to ensure that sellers don’t avoid taxes on the capital gains they make.This rule does not apply on sale of agricultural land.

What is the procedure to deposit TDS?

  1. Calculate 1% TDS on the total sale consideration. For a property getting sold for Rs. 60 lakhs, the seller would receive Rs.59,40,000 after tax.
  2. Make the payment online on Form 26QB. A challan is generated. Note that this must be done within 7 days from the end of the month in which TDS is deducted.
  3. The payment is reflected on the seller’s Form 26AS under the head Part F within 7 days.
  4. The buyer is then required to furnish a TDS certificate called Form 16B to the seller. This can be downloaded from the TRACES website.
    -For this, register on the TRACES website with your PAN and challan number.
    -Click on “Application for request of Form 16B” from the header.

Read Ahead:TDS rule on sale of property