Outgoings For Your Apartment
The contract value, indicated in the enclosed payment schedule,
covers the cost of your apartment and the cost for the undivided
share in land. The availability, location and cost of the
car park, will be indicated to you at a later stage. Sales
tax is charged extra. It is computed at a flat rate of 2%
on the construction value of apartment and garage and extra
works. Stamp duties and registration charges will be payable
by you at the rates actually prevailing at the time of registration
of land ownership in your name. Meter deposits, cable charges
and other expenses incidental to power, lighting and water
connections are payable at the time of handing over. A maintenance
deposit is payable. Building taxes, corporation taxes and
other taxes applicable are also payable. These taxes and
any other taxes, levies or charges, relating to your apartment,
demanded by the government or any statutory body retrospectively
or otherwise, shall remain payable by you.
Timely Payment
Your payment schedule will be indicated in the land and
construction agreements. Two percent sales tax must be paid
along with each installment payment. Timely payment of all
installments on due dates is the essence of the contract.
A maximum grace period of 10 days may be permitted from
the date on which the installment falls due. Payments beyond
the grace period are liable for interest @ 18% p.a. All
payments may be made by demand drafts or local cheques,
drawn in favour of M/s. Devinarayan Housing and Properties
Developments (P) Ltd., All payments by NRIs shall be made
only through their NRE/NRO accounts. Bank charges for outstation
cheques will be debited to your account.
FERA Disclaimer
The provisions relating to the purchase and sale of immovable
property are governed by the Foreign Exchange regulation
Act, 1973 (FERA) and Income Tax Act, 1961. Consequent to
the liberalisation shown in the Exchange Control Policy,
the Government has eased the procedures to encourage NRI
investments in real estate. Non-resident Indians holding
Indian passport do not require prior permission to acquire
immovable property and NRIs holding foreign passport have
been granted permission subject to certain conditions. Foreign
Nationals of non- Indian origin are permitted on an application
to the Reserve Bank of India to hold, acquire, transfer
or dispose immovable property subject to fulfillment of
certain conditions (refer NRI Guide to buying an Apartment).
The responsibility of obtaining clearances/permissions if
any, from the Reserve Bank of India and / or other statutory
Authority with respect to the provisions of the above mentioned
Act or any other applicable laws rests with you.
Wealth Tax
Non-Resident Indians would be liable to wealth-tax in India
only when his net taxable wealth exceeds Rs. 15 lakh each
effect from the assessment year 1993-94. Therefore wealth-tax
outside India is generally exempt in the case of NRIs. The
Finance Act, 1992, had made drastic changes in the scheme
relating to the charge of wealth tax with effect from the
assessment year 1993-94 (Valuation date: 31 March 1993).
A list of assets has now been specified which are chargeable
to wealth-tax. They are:
a) Any guest house.
b) Any residential house (subject to certain exceptions).
c) Motor cars (other than those used by the assessee in
the business and running them on hire or as stock-in-trade).
d) Jewellery, bullion, furniture, utensils or any other
article made wholly or partly of gold, silver, platinum
or any other precious metal or any alloy containing one
or more of these precious metals where if any of these items
is used by the assessee as a stock-in-trade, it is not liable
to wealth-tax.
e) Yachts, boats, aircraft
(other than those used by the assessee for commercial purposes).
f) Urban land.
g) Cash in hand in excess of Rs. 50,000 for individuals
and HUFs and in the case of other persons, any amount not
recorded in the books of account.
Wealth Tax Exemptions
The items which are now completely exempt from the purview
of wealth-tax (with effect from the assessment year 1993-94)
are: a) One residential house used for residential purposes
(with effect from assessment year 1994-95) b) Bank fixed
deposits. c) Units of the UTI. d) Units of Mutual funds.
e) Government securities. f) Loans and advances. g) Commercial
property. h) Shares and debentures. i) Industrial assets,
etc. Specific exemption includes in the case of an NRI who
is ordinarily residing abroad and who, on leaving the country,
has returned to India with the intention of permanently
residing therein, money or the value of assets brought by
him to India and the value of assets acquired by him out
of such money within one year immediately preceding the
date of his return or at any time thereafter. However, this
exemption would apply only for a period of seven successive
assessment years commencing on the Assessment Year next
following the date on which such a person returns to India.
The basic exemption for wealth-tax is Rs. 15 lakh with effect
from the assessment year 1993-94. Property will be exempted
from wealth-tax only when the total wealth is below Rs.
15 lakh. While the rules of wealth-tax for valuation of
house property remain unchanged, the farm houses will henceforth
be liable to wealth-tax if situated within 25 km of the
local limits of a municipality or other local authority.
Wealth Tax Rate
The flat rate of tax which will be same for individuals,
HUFs and companies (whether closely-held or widely-held)
now is 1 per cent of the amount by which the net wealth
exceeds Rs. 15 lakh with effect from the assessment year
1993-94. It is significant to note that an amendment deals
with the clubbing of the wealth of a minor with the wealth
of his parent. If the assets held by a minor do not fall
within the category of chargeable assets, then the clubbing
of wealth will not arise.
Availability of Financial Assistance
Properties being developed by 'Devinarayan' are entitled
for Home loan assistance from premier Housing and Finance
Institutions such as LICHFL, Canfin, Bank of India etc.
As an extended service we offer our clients, approximate
solutions with respect to financing their apartment being
purchased from us. We have special arrangements for NRIs.
The solutions offered by us are usually suited to the individual
needs and we ensure that our clients do not harass themselves
in the process.
