Are you planning to invest in Godrej Aqua residential apartment?
Godrej aqua is
luxurious residential space that delimits the concept of reasonable but roomy
homes. This new flanged property is outfitted with fashionable amenities
keeping in mind the new age urban lifestyle. The Godrej Aqua project brings in the majestic
touch of the welcoming environment along with the impressive luxury living
amidst prime location of Bangalore.
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| Godrej Aqua Hosahalli |
As you are planning to invest in this
luxury, are you aware of the legal aspect of buying the property?
Post GST implementation the dynamics of taxes on real estate investment have changed.
Post GST implementation the dynamics of taxes on real estate investment have changed.
Rundown the taxes you are required to pay
for real estate investment.
After GST, the government levies 18% tax on
under-construct properties for which the land value equal to 1/3 of the total amount
charged by the developer is allowed as a deduction. Thus, giving relief of 2%
i.e. the effective GST rate on under construct units is 12%.
The registration and the stamp duty are levied by state so it would be imposed over and above GST.
The registration charge: It is mandatory by
Law. The process of registering the property includes recording all the
documents such as the sale or lease, the transfer of property with a
registering officer. If the property fails to register by any chance, the owner
of the property cannot contend any case in the court of law. Registered
document of the property protects the party buying the house in case of any
fraud transactions. The state government only decides the fees to be charged
for the registration. Typically, this fees 1% of the Agreement value but it
varies from state to state.
The Stamp duty charges: Stamp Duty charge
is about 5 percent of the properties market value. It is a sort of sales or
income tax forwarded to the government. Nonetheless, it varies from one state
to other and can be higher in some states. The stamp duty charge is paid by the
buyer before the property is registered at a designated bank. Any delay in
paying stamp duty attracts huge penalties from the buyers. The calculation of
stamp duty is done by the government on the basis of ready reckoner rate. And, the
property could not receive the legal status unless stamp charges are paid. The
calculated charge is paid on each transaction starting from the exchange of papers
to the completing of instruments.
Lastly, A new section in the Income Tax Act
introduced the Tax Deducted at source. TDS at some percentage is deducted from
the amount of the property paid during the execution of sale. The buyer of the property
pays TDS to the seller or builder or ownerfor the transfer of an immovable
property. Agricultural lands are not included in this. Tax Deducted at Source
is submitted in the name of the builder/seller/owner of the property. On an
immobile property where the consideration exceeds rupees 50 lakhs TDS is
deducted at 1 percent.
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| Godrej Aqua Bangalore |
All said and done, if you wish to make the
dream of buying residence true, there is an urgent need to rationalize the
taxes you need to pay. But, as these taxes make up a major portion in the total
value of your apartment in Godrej Aqua Hosahalli Bangalore we would suggest you
to stop stalling your decision to buy your house because the more you wait, the
more of a burden it will be on you in future.
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