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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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How to Bring Down your Home Loan Interest?

Planning to buy your dream home, the one thing that kills you is not the principal amount but the interest on that.

If that is what you are going through we have some very useful tips and tricks to bring that down and make your dream home a reality.


The best way to bring down your interest cost is through ‘Prepayments’.

Prepayment is the amount paid during the initial period of the home loan tenure. It directly reduces from the principal component of your loan thereby reducing the home loan interest as well.

But, what should you take care of while making a prepayment? When you plan to make a prepayment, you should always check in the market if there is no other instrument available which can give you a higher return. If there is something that can get you a better return, it is always advisable to go for it.


It is inevitable for you to discuss with your bank before taking a decision on this as they can assess the market and give you the best update.

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Raheja Developers: Working For the Betterment of Buyers and Investors

As we all know that, Delhi has become crowded because of the aggressive real estate developments and there is hardly any scope for further development in Capital. There are certain projects which are available in Delhi, but they are not easily affordable. When it comes to the Housing Schemes of DDA, we are aware that it is totally dependent upon the luck factor and we cannot rely on the luck factor to buy our dream home. The best thing to do in this situation is to look for residential property in nearby areas of Delhi.

How will that help? First, neighbouring areas are being developed even better than the national capital,especially in terms of Real Estate because they are rapidly developing and they have a scope of future expansion.


Second, these areas are really close to Delhi so the time taken to commute would be less. So, the people who have to travel to Delhi on daily basis, they have multi-lane boulevard highways which are in close proximity towards Delhi from Gurgaon.

Third, these areas are full of greenery as compared to Delhi thus giving you nature’s touch along with the standard of living.

There are many Real Estate projects which have come up in neighbouring areas of Delhi, but there is one which has been the cynosure of Real Estate projects. It is the Vedaanta Project developed by Raheja Developers. This project is located close to one of the widest expressway of India i.e. Dwarka Expressway which is well connected towards Delhi from Gurgaon.

This is one of the best projects by Raheja Developers which describes luxury and affordable units. From the past so many years, Raheja developers is setting a benchmark of developing projects for every section of buyers. Be it studio apartments, luxury apartments or any kind of commercial or residential projects, Raheja Developers has delivered happiness through their projects. The CMD of Raheja Developers, Mr Navin Raheja works on the strict principle of quality assurance and timely deliverance which makes Raheja Developers a pioneer in the real estate sector.


Vedaanta Project is the first project that Raheja Developers have delivered near Dwarka expressway. This project is located mid-way between Delhi and Gurgaon thus making it convenient to people who work in both cities. The Vedaanta Project is also well connected to IGI airport which makes it more convenient to travel across different part of the country. The Vedaanta Project has been completed and investors have started taking possession of the property. If you are looking for a ready to move in flat near Dwarka expressway then you need to check out the residential units at Vedaanta which is an epitome of luxury with affordability.

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Raheja Developers : Developing Trust since Inception

Since its inception in 1990 Raheja Developers have been building trust by delivering to their customers what they have promised. They have been awarded with the prestigious award of the “Best Developer of India” for consecutive three years in 2011, 2012 and 2013 by Euro money Real Estate polls in UK. Apart from that, the company boasts of executable & sanctioned projects of over 60 million sq.ft. Spanning over 900 acres of lands at various stages of deliberations.

When a buyer gets misled or has any issues,he is bound to ask questions to the developers, while most of the developers avoid these questions, Raheja Developers have made it their duty to address them all not only that they even showcase where the project is headed and make sure that no stone is left unturned in order to deliver excellent results to their customers.

Few days ago,they arranged for a meeting with their customers and government officials to resolve infrastructural issues, which is commendable, done only by a handful of them. How often do you see a Real Estate Developer going out and speaking with their customers to resolve their issues? Raheja makes it imperative to comply strictly with its operative procedures in resolving clients’ issues.

Trust can never be built in a day, it takes years of hard work to build and requires more effort to sustain that trust. Raheja Developers have always aimed at delivering on promises and satisfying its customers to their fullest.

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