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Must Know! Stamp Duty And Taxation On Exchange Of Properties

Exchange of one property with another is permitted under the Indian property law. In addition, the exchange can take place between residential and commercial properties as well. However, such exchanges involve stamp duty and tax implications.

Stamp Duty
There are two ways through which properties can be exchanged:
1. Exchange Deed: The owner needs to execute an exchange deed (not sale deed), as an exchange transaction and sale transaction are very different.

2. Two Separate Sale Deeds: In this method, you need to pay the stamp duty on both the agreements. The property with higher market value is taken as the value for the purpose of stamp duty. This means, in case of an exchange of a bigger property with a smaller one, the stamp duty will be payable on the larger property’s market value.

In case of a sale deed, the buyer by default bears the stamp duty cost if there isn’t any express understanding between the parties, but in the case of an exchange deed, this has to be resolved through mutual understanding on who pays the cost of stamp duty.

Income Tax Implications
The exchange of immovable properties falls under the ambit of income tax implications. If the property has been held in possession for more than 24 months, the profit/loss under the exchange shall be considered as long-term. But in case of property possession of less than 24 months, any profit/loss shall be considered as short term.

In the case of exchanges that only mentions the differential amount and not the values of the properties, capital gains are worked out by comparing the market value of the property as per the stamp duty with the purchase cost of the property.

In the case of an exchange of a commercial property for a residential property, one must check if the investment value on the residential property is close to the commercial property’s market value, which upon deficiency can be invested in capital gain bonds. Although, any sort of claims and tax exemptions cannot be availed in the case of exchange of a residential for commercial property.

The conclusion: Although you do not get any special tax benefit on the exchange of properties, you can save stamp duty money through an exchange deed.

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With E-LOC You Can Navigate to a Destination’s Doorstep

In another drastic move towards digitization, the government of India seeks to digitally map addresses, both residential and professional addresses. The prime objective of the project is to create an e-directory of all address’ locations.

The DoP (Department of Post), an arm of the ministry of communications, will be running a pilot project for two postal pin codes, Delhi and Noida. The project, also known as eLoc (e-Location) will tag each property with a 6 digit alphanumeric digital address. Currently, the addresses are difficult to be read digitally; with an alphanumeric digital address, the task becomes easier, rather plausible. The e-linkage will make identifying complex addresses a lot easier. Think of it as a kind of Google Map. The eLoc can be further linked to important information such as ownership and property tax credentials, details on civic amenities and utilities such as water, electricity, and gas.

Although Map my India, a private mapping company, will execute the project for the DoP, the sole ownership of the information and other sensitive data will remain with the department. This is to prevent the use of information by private companies for commercial purposes.

The private company has partnered with ISRO to get access to effective mapping coordinates. Upon success full implementation and operation of the pilot run, the government will move towards national expansion. The eLoc can also be used in parallel to the existing postal address.

A big advantage for both resident individuals and businesses is that the eLoc will enable them in navigating to the doorstep of a destination. This is expected to reduce many costs and increase time efficiency for businesses. Areas such as logistics, transportation and field operations can reap many benefits from the reduced fuel wastage.

With such a bold step towards digitization of the nation, let us hope for this move to be a step towards a better tomorrow, than another big vision that fails to address the need of the hour.

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Why Are Homebuyers Paying More When GST Is Meant To Reduce The Burden?

There is a general perception among homebuyers that GST is applicable only to projects that are under construction, and not on ready to move in apartments. Well, that may be true but does that mean homebuyers will now have to pay less for such apartments?

Under the new tax regime, GST on projects under construction will be paid by homebuyers on the sale price. Though developers have to pay GST on the entire project, they can avail credit only on the construction cost. This means developers will adjust/hike apartment rates in order to bridge the gap.

Homebuyers have been informed by developers that the prices of apartments will be hiked. With GST, buyers will now have to pay more for ready to move in apartments since developers are going to escalate prices in order to compensate the amount paid for GST compliance.

Nevertheless, industry stakeholders say that GST offers many benefits for homebuyers. The cost for construction is also expected to come down. Homebuyers who purchased the property after the developers have acquired Occupancy Certificate won’t have to pay any additional tax.

Prior to GST, developers paid excise tax and VAT on inputs such as cement and steel at 27.7% and 18.1% respectively. Now under the GST regime, the inputs like cement and steel are taxed at 28% and 18% respectively. However, the completed apartment will be taxed at 12%. This makes those customers buying a ready to move in apartment free from the tax burden.

For financial services, GST is taxed at 18%. Though that may be negligible for the affordable housing segment of buyers, the higher segment buyers will have to bear the brunt of it.

Although the new tax regime has a lot of benefits to offer, there are many challenges that need to be tackled in order to really make it beneficial for both homebuyers and realtors.

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Significance of Corporates in Gurgaon Real Estate

Gurgaon has now risen to stand up clearly attop in the list ofhighest per capita income in India. Commonly known as Millennium city, Gurgaon has about 50% of the fortune 500 companies. The city’s closeness to Delhi implies simple access to political decision makers. Here Maruti Suzuki Private Limited was the first primary organization that set up an assembling unit in 1970s. Eventually, DLF started procuring land in the city in huge extents. Later, the American brand General Electric came up with their operations in Gurgaon in 1997. GEignited the growth of the city by alluring other national and international companies to set up their operations.

Gurgaon stands out to be the most imperative offshoring destinations in the world. The leading MNCs are all planning to move to the city for their offices and operations. Various global organizations including Coca-Cola, Pepsi, BMW have picked Gurgaon to be their Indian corporate headquarters. With the nearness of 26 shopping malls, retail is also an essential industry in Gurgaon.The city is home to a portion of the country’s most profitable land. This has directly impacted the Gurgaon real estate in a positive manner.

The rise of corporates in the city has increased the demand for furnished office spaces in Gurgaon to house the working class in a premium area. Science has proved that a good working environment and infrastructure is very important, in addition to person’s own ability. This is the reason, that companies like Google keep high focus on providing a good working area to their employees.

What else does a company need to establish itself to the utmost level? It is the better working place and a nearby residential area with amenities that can house the employees in an appropriate and luxurious way: the residential projects present in and around the area can make them feel like a home away from home.

The incrementing corporates in the city has also raised the housing needs, and for this inference the search for premium apartments in Gurgaon has also risen to great extent. The youth in these industries are expecting luxurious and quality built apartments that can clearly enhance their living. The amenities and the surroundings that are generally expected by the home buyer are present in many residential projects in Gurgaon. The city is at full pace towards its growth and the real estate market of Gurgaon caters to all buyer requirements, especially those of the first time home buyers.

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Raheja Developers – Live in Awe every second of the day

With the extensive growth of a city, comes the essential need for more residential and commercial spaces. Research suggests that the coming years shall witness an increase in investments into the commercial office space sector as new investment grade projects are coming in. Commercial office spaces keep on gaining pace with foreign investors looking at a pie of the market potential.

fully furnished office spaces in Gurgaon

Astounding fully furnished office spaces in Gurgaon, represent our authenticity in design and attention given to providing the utmost comfort. We work closely with seasoned experts to guarantee that every one of their ventures is delivered to build trust and value. We consistently look to enhance social and monetary commitment and strive to be the most sought out commercial developer in the country. Every venture is of cutting edge design and are proficiently offered on a built-to-suit and ready-to-occupy basis. Raheja constantly adapts reinforced frameworks that have proven to be a catalyst for their successful ventures in relentless development in the commercial sector.

Commercial office spaces in Gurgaon from Raheja Developers have been turning many heads, as they are located in the prime commercial, business, and IT localities. Utilizing an innovative approach and positive vision for the future, we constantly strive to expand businesses, coupling a sense of innovation by providing integrated and astounding furnished office spaces in Gurgaon. This has helped to add ever increasing advancements, to effectively cater the specific needs of the clients from all over the world.

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Raheja Redefining Luxurious Living

The real estate development is on the rise and there is no question about it. Diverse information from all over the country has declared the massive growth in developments like we have never seen before. Numerous ventures aimed at enriching the lifestyle of home owners have been rising in major cities across the country. In reality, the future of prime property development looks energizing. As we look forward into recent advancements in development, we cannot overlook the ultimate luxury living perception that these developers have provided us with.

We take much pride in facilitating homes that are equipped with extravagant luxury amenities that promise to make anyone indulge in luxury. We have fabricated development and high-stature through well planning and adapting quality parameters that have genuinely had a huge effect on the development of plots in Gurgaon just as they strive in developing other major cities in the country. Today, the organization appreciates a solid proximity with NCR and has made its position as one of the biggest names in the property development sector. We give special attention to details such as accentuation on contemporary design, solid venture execution and quality development. The spectacular plots in Sohna Road facilitate simplicity, solace, and productivity of its residents.

By efficiently collaborating with the best professionals, we aim at changing world wide patterns, at the same time, bringing in newer and better reforms that can enhance luxury living experiences. Keeping in mind, the goal to accomplish new strata of prime luxurious properties in Gurgaon, we work with much versatility to embrace improvements in the fields of design, planning, building, and development.

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Seven Key Highlights Of Rera For Home Buyers

The real estate sector in Gurgaon has witnessed a surfeit of changes ever since the Indian economic growth picked up pace. Furthermore, migration into key industrial centres like Gurgaon, an upsurge in the disposable incomes and foreign investments has steered the demand for all forms of real estate in the country.
Another emerging trend that has been observed over the course of time is the growing demands for affordable. This Is largely due to an ever-expanding industrial footprint in the region that has contributed tremendously in augmenting the earning capacity of workers and encouraging an increasing number of career oriented professionals to migrate to the city. Hence, it is quite evident that the increasing number of flats in Gurgaon has been augmenting the growth of the city.

affordable housing schemes in Gurgaon
Although the segment of affordable housing in Gurgaon continues to develop, the need for transparent protocols and uniform guidelines has been demanded by the Industry which was constantly perceived in a negative light by prospective home buyers. As options for affordable housing in Gurgaon have been ever increasing lately, discrepancies have been reported due to a lack of transparency in the particular sector. It could, therefore, be said that there wasn’t a better time to introduce the Real Estate Regulation and Development Act as the Government focuses on – housing for all, passing a series of affordable housing schemes in Gurgaon.

Following is a list of prudently conceived highlights from the historic legislation: Following is a list of prudently conceived highlights from the historic legislation:

1. The home buyers will be entitled to receive important information about the sanctioned plan, layout plan as approved by the regulatory authorities, phase wise time schedule of the project completion and the services promised by the real estate developers such as drinking water facility, electricity, sanitation etc. After receiving the physical possession of the unit, the consumer has a right to acquire all the necessary documents and plans including that of the common areas.
2. The homebuyers can claim possession of the unit and the association of homebuyers can collectively claim possession of the common areas as & when declared by the real estate developers.
3. If the real estate developers fail to meet the timeline or fail to deliver what was promised, the consumer will have the right to claim refund of the amount paid along with prescribed interest and compensation for the same.
4. It is mandatory for a consumer to make timely payments to the real estate developers as per the agreement for sale. They will also have to pay their share of registration charges, municipal taxes, maintenance charges, ground rent, electricity charges, water supply charges and any other services.
5. Once the occupancy certificate is issued by the real estate developers, the consumer will be required to take possession within two months’ time.
6. If the homebuyers are not able to make timely payments for their purchase, they are required to pay interest at a prescribed rate.
7. It is compulsory for buyers to manifest active participation in the formation of an association, a cooperative society, or any federation of homebuyers.

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Top 4 Leisure Attractions in the Bustling City of Gurgaon

Gurgaon has been at the center of the nations development plan and has come a long way in developing key infrastructure over the course of time. The city boasts the 3rd highest per capita income in the nation and has set the bar too high in defining the standards of living when compared with other industrial cities.

The growing desire to own that high rising apartment in Gurgaon has been a dream for many seasoned professionals working across the diverse industries in the region. This has largely contributed to enhancing the image of the city, adding its name amongst one of the most liveable cities in the country.

The luxury apartments in Gurgaon for sale are packed with a plethora of intelligent features that add great value to the buyer’s life and eventually go on to redefine their way of living. Apart from the luxuries, an individual can resort to inside the confines of their homes, the glimmering city of Gurgaon has plenty to offer for fun, amusement, and entertainment. The residents of Luxury apartments in Gurgaon avail exquisite benefits. Living in luxury amidst all the extravagance that the city has to offer. Apartments in Gurgaon stands a class apart as it entices home buyers from diverse geographies. New and revised technologies equip developers in creating astounding living spaces.

Some top attractions that are a must visit for everybody staying in or visiting the city are:

Kingdom of dreams: It is one amongst the first live entertainment and leisure destinations in the country. The place is spread across an expansive stretch of land and encompasses The Idea Buzz Lounge, The Nautanki Mahal, The Showshaa Theatre, The Culture Gully, and a Theme Restaurant, making it one of the most popular leisure attractions in Gurgaon.

The Leisure Valley: It is a very sought-after leisure attraction and is situated amidst the sky scrapers of the radiant city. The wide open lush green spaces of this place are spread over an expansive stretch of land that encapsulates amusement rides, a musical fountain, restaurants, a jogging track, and a lush green garden. The fountains are illuminated at night time and the water flows out in the rhythm of the latest songs.

Iskate: It is the country’s first ever natural ice skating rink and cafe based in the popular Ambience Mall. The amusement area offers an exceptional experience for leisure and entertainment. This place can be visited throughout the year and offers a diverse variety of activities like private karaoke rooms, penguin buddies, an in-house photographer, and gourmet food and beverage counters.

The Lohagarh Farms: This place is spread over a huge stretch of an area and reawakens the memories from childhood by offering fun filled activities such as camel rides, mud Baths, fun games, Mehendi and local tattoos in a contemporary environment.

So, what are you waiting for? Invest in a luxury apartment in Gurgaon today and let the fun begin!!!

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11 Reasons Why Investment In Gurgaon Is A Must

The millennium city of Gurgaon is widely recognized for its ability to attract a plethora of foreign investors due to an expansive industrial footprint in the region. It is the financial and industrial center of India’s north-western state of Haryana and is often referred to as the call center capital of the world. Along with being New Delhi’s dominant satellite city, it is also considered as one of the best places to work and live in which makes it an exciting prospect for real estate investments.

Flat in Gurgaon

Having a monumental identity to its name and fame, buying that flat in Gurgaon is a major attraction due to the following reasons:

1. Multi-national companies, foreign investors, fortune 500 companies, NRIs and large business houses are all present in Gurgaon.
2. Stable and well-constructed legal infrastructure ensures that law and order is established and maintained.
3. Gurgaon is well constructed in terms of its social and supportive infrastructure, i.e. roads, railways, shopping malls to name a few.
4. Being home to several Special economic zones, the city is often touted as a separate ‘SEZ country’, which speaks volumes about the developing nature of our Indian economy.
5. It is very well connected to the national capital and key strategic locations such as the International airport which manifests the easy conveniences offered by the glimmering city.
6. High quality affordable office spaces are readily available, which opens doors for various other growing companies and ensures that people working in Gurgaon will remain in close proximity to their place of residence.
7. Complexes with a surfeit of pivotal amenities providing luxury flats in Gurgaon are available with lucrative deals.
8. An efficiently constructed transport infrastructure ensures that the city is well connected to important locations in and around the region.
9. Be assured of a High Return on Investment when you buy that property, be it a 4 BHK flat in Gurgaon or a 2/3BHK. With the ever-increasing growth and fame of this city, it will surely brighten up investment avenues even more in the years ahead.
10. Gurgaon can be titled as a recently industrialized IT hub of the country, which manifests that it is not just a booming city with respect to its infrastructure and investments, but is also making way for being a city filled with well educated, driven professionals.
11. With the ongoing transformational growth of Gurgaon, living in this city nearly assures one of a high standard of living and an enhanced social status. Making way for township complexes, multi-nationals, business houses and fashion trends, Gurgaon is definitely opening its arms to all things modern and new.

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5 Benefits a Ready to Move in Flat Offers Apart From Easy Possession

Are you making up your mind to invest in a real estate market or still confused about buying a home which is constructed by a builder but are not sure of which option is better?

When you decide upon buying an apartment or a ready to move in flat in Gurgaon, it purely depends on what you are looking for, an immediate possession or just an investment? For getting an immediate possession, ready to move in flats are surely a better option since there are various other benefits which they provide. Some such benefits are:


1. What you see is what you get: When you opt for ready to move in flats in Gurgaon, you can be sure of what you are getting, as evenbefore finalizing, the final make is already done.

2. You know your neighbors and surroundings: Fully constructed flats are usually located in fully developed areas that already have a notably high density. So, when you check for that ready to move in flat, you can thoroughly analyze how your surroundings and neighborhood is just to be sure of it well in advance.

3. Legal Status easily checked: Since the property or building construction is already completed and there are plethora of flats in Gurgaon for sale, you can easily check Occupancy Certificate, Completion Certificate, land titles etc.

4. Exemption from Service Tax: When you opt for ready to move in flats there is no need to pay service tax.

5. No Risks: The risks of possession delays, cancellations of the under-construction projects due to legal or other issues, property fluctuation rates, and various other risks can be averted if this option is selected, and there are luxury apartments in Gurgaon for sale, which are well constructed and ready for moving in.

Though these are some of the advantages a ready to move in flat can offer, but on a negative side, they might be overpriced when compared to the flats that are under construction,and usually would call for very limited or no modifications, they might involve more legal work like property transfer and ownership and inflexible payment options. But, these issues can be easily negotiated with the realtorsand one can have their best buys in the form ofready to move in luxury apartments in the budding real estate markets.

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