TAX BENEFITS

It pays to invest with us

Real estate is an investment that comes with great tax benefits! Wish to know what are the various tax benefits you get when you invest with M Y Construction? Read through the document to get a clear idea.

LOAN ASSISTANCE

It pays to invest with us

Real estate is an investment that comes with great tax benefits! Wish to know what are the various tax benefits you get when you invest with M Y Construction? Read through the document to get a clear idea.

FAQs

• How can payments be made?

Payments can be made in Indian Rupees by any of these methods:
- Cheque
- Draft
- Pay Order
- Banker’s Cheque
- Wire Transfer
- RTGS/NEFT
You can pay with foreign currency through wire transfer.

• Does M Y Construction help customers with home loans?

Yes, definitely. Our projects are pre-approved by certain large HFIs/Banks. We help you acquire necessary approvals for your home loan from these HFIs and co-ordinate with them (as developers) to provide all necessary documents.

• What is Capital Gain?

Capital Gain will accrue from the date of Sale Deed or possession or whichever is earlier and if the property is sold within 3 years of the above date, the same will be treated as Short Term Capital Gain and if this period is more than 3 years from the above dates, the same will be treated as Long Term Capital Gain.

• What is Saleable Area?

It is the sum of the Built-Up Area (Carpet Area + Wall Area) and the Common Area.

• How much is the loading from Carpet Area to Built-up Area for M Y Homes?

The loading is approximately 30-33%.

• What is the difference between GPA and POA (specific)?

General Power of Attorney (GPA) is an authorization given by the customer to a person if he is, owing to his professional commitments, unable to personally attend to the purchase, negotiations, registration and complete other formalities pertaining to the apartment he has bought. He will appoint and constitute one person known to him as agent and attorney in his name and on his behalf to do any of the following acts deeds and things; this is given in general to do all the activities on his behalf. Power of attorney given to a person only for a specific purpose, for example, possession or registration purposes is called Specific Power of Attorney.

• What is the difference between Agreement to sell and Sale Deed?

Agreement to sell is a legal document which is executed between the builder and the customer, after the customer has paid 20% of the agreement value of the apartment. This document will have the terms and conditions of the seller and the buyer after the purchase of the property. This is a basic document on which the bank or any financial institution will lend money to the customer. But this is not considered as the final document when it comes to the title of the property. Sale deed is the final and very important document which authenticates that the title of the property is conveyed to the buyer.

• What is e-stamping/Franking/Notarizing?

Any legal document which is not executed on a stamp paper has to be registered with the Government by paying the necessary judicial charges. This is called e-stamping/franking. Though printed on the stamp paper, some documents need to be authenticated by a legal person or an advocate who is called a notary and the process is called notarizing. Documents such Power of Attorney, Affidavit, etc. need to be notarized.

• What details are NRIs needed to furnish and why?

Documents with the following details need to be furnished:
- Nationality
- Whether NRI or PIO (Person of Indian Origin)
- Residential status
- Passport details
- Complete postal & permanent address (local or overseas, as applicable)
- Name, address & account no. of customer’s bank
These NRI details need to be produced because this is a directive by the Government of India to all builders as a mandatory requirement. Failure to furnish the details called for is an offence punishable under the Foreign Exchange Management Act, 2000.

• Who is a Non Resident Indian (NRI)?

An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident (persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments, which are also to be treated as non-temporary assignments, are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non-resident Indian citizens (NRIs).

• Who is a PIO?

A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:
- held an Indian Passport at any time, or
- who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955

• What are the various facilities available to NRIs/OCBs?

NRIs/OCBs are granted the following facilities:
- Maintenance of bank accounts in India
- Investments in securities, shares and deposits with Indian firms/companies
- Investments in immovable properties in India

• Who can purchase immovable property in India?

Under the general permission available, the following categories can freely purchase immovable property in India:
- Non-Resident Indian (NRI) – that is a citizen of India resident outside India
- Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who
  - At any time, held Indian passport, or
  - Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
The general permission, however, covers only purchase of residential and commercial property.

• Can NRIs sell the properties they hold in India without Reserve Bank’s permission?

Yes, they can.

• Can NRIs acquire or dispose residential property by way of gift?

Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not.

• Can NRIs acquire commercial properties in India?

Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

• Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

The Reserve Bank has granted some general permission to certain financial institutions providing housing finance like HDFC, LIC Housing Finance Ltd., etc. and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts.

• What is meant by the ‘Open Market Value’ and ‘Government Market Value’ of immoveable property?

The ‘Open Market Value’ of any immoveable property would be the price it would fetch if put for sale in the open market. Such market value depends on various factors such as demand and supply forces operating in the market, location of the property concerned, the quality of the construction and the amenities provided therein, accessibility, etc. The Stamp Authorities under the Bombay Stamp Act, 1958, have prepared a ‘ready reckoner’ of property values in and around the city of Pune. This ‘ready reckoner’ gives the ‘Government Market Values’ of land / residential flats / commercial premises in various locations in or around the city of Pune. However, such a ‘ready reckoner’ is merely indicative.

• How is the Stamp Duty payable on purchase / sale of any Immovable Property determined?

Stamp Duty is payable on ‘Government Market Value’ of property or the consideration agreed to be paid for purchase of the same, whichever is higher. In areas within the limits of the Municipal Corporation of Pune, the rate of Stamp Duty payable is 6% whereas for areas outside the Corporation Limits, the rate is 5%.

• What is the payment schedule for purchase of a residential flat / commercial premises in any of the M Y projects?

If the construction of the project in which the flat / commercial premises is situated is in progress, the agreed purchase price is to be paid to the promoter in instalments according to the progress of the construction of the building in which the flat / commercial premises is situated.

• When does the unit agreed to be purchased becomes his / her property?

A duly registered Agreement for Sale coupled with possession effectively completes the de-facto title of such a purchaser to the unit agreed to be purchased by him / her. However, in case of a co-operative housing society being formed by all the purchasers in the project, the land and all the buildings thereon are conveyed to the co-operative housing society. The purchaser of every unit in the project will be admitted as a member of the society and share certificate of five shares will be allotted to each purchaser. In the event a Condominium of Apartment Owners of all the units in a project is to be formed, a Deed of Apartment will be executed in favour of the purchasers of each unit, thereby conveying the unit together with a pro-rata undivided share in the land covered by the project and in the common areas and facilities thereof.

• Which law governs the sale of units by a promoter to the purchaser thereof?

All transactions are governed by the provisions of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. Neither the promoter nor the purchaser can contract out of the said Act.

• What is the definition of ‘carpet area’ of a flat?

‘Carpet area’ is the entire area measured from wall-to-wall excluding the thickness of all walls.

• What is the definition of ‘carpet area’ of the terraces?

‘Carpet area’ of a terrace is the entire area thereof measured from wall-to-wall excluding the thickness of all walls.

• What is the definition of ‘saleable built-up area’?

The saleable built-up area of any unit is the actual area including the thickness of the interior / exterior walls, the area of any balconies or sit-outs at eye-level and adjoining terraces and a certain percentage of the aggregate area of the common areas of the building in which such a unit is situated.