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 instalment payment. Timely payment of all instalments 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 instalment 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 NRI's 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 in the Exchange Control Poicy, 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 NRI's 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 Indian 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, however, 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 remains unchanged, the farm houses will henceforth be liable to wealth-tax if situated within 25 kilometres 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.

AVALIABILITY 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 to our clients approximate solutions with respect to financing their apartment being purchased from us.We have special arrangements for NRI's.The solution offered by us are usually suited to the individual needs and we ensure that our clients do not harass themselves in the process.