Issue 01 â€“ October 2013
REAL ESTATE MAXIMUM Real Estate Regulatory bill will bring Oligopoly in the Sector
Contents Advertorial 05 Hot Properties For Sale and Rent
Real Estate regulator bill will bring oligopoly in real estate sector 15 Ahmedabad Real Estate Market 17 Technology Article
Taxation and Vaastu Tips
HonoraryEditor : Manan Choksi Published by : Madhuvan Space Management Pvt. Ltd. Circulation : Tanmay Mehta +9171727100 Volume
Regd. Office : G5, Block A, Safal Profitaire, Corporate Road, Prahladnagar, Ahmedabad -15 www.realestatemaximum.com firstname.lastname@example.org Disclaimer: This magazine is for private circulation only. The data published in this magazine is based on the inputs provided by various sources. The publisher, printer and the Editor do not guarantee the authenticity of correctness of the data published herein. Printed and Published by MSMPLat Ahmedabad.
e are happy to publish this first magazine at the time when India celebrated its 67th Independence Day and Real Estate Regulatory Bill is just round the corner to help Real Estate Industry The Real Estate Regulatory Bill, when enacted into law, will ensure that home or property buyers get timely possession, and as per the specifications promised by developers, say realty firms and consultants. Besides, it will improve the image of the realty sector by bringing in transparency. The bill will pave the way for providing the much needed transparency by seeking to regulate the hitherto largely unregulated housing sector in India. However, industry experts highlighted that the bill does not provide relief to builders in getting faster approvals for. The ambit of the proposed law is quite large and seeks to cover all major private residential developments across the country as the bill applies to all projects over 4,000 square meters. Real estate agents will also be asked to register with the regulator, a move that is expected to help in curbing money laundering. The bill that seeks to provide a uniform regulatory environment to the sector was earlier opposed by private developers but the government stuck to it on the argument that it will infuse transparency. It has provisions under which all relevant clearances for real estate projects would have to be submitted to regulator and also displayed on a website before starting construction. The bill has tough provisions to deter builders from putting out misleading advertisements related to the projects carrying photographs of the actual site. Failure to do so for the first time would attract a penalty which may be up to 10 per cent of the project cost and a repeat offence could land the developer in jail.
REAL ESTATE MAXIMUM
Wishes from RE/MAX MGM on a launch of Real Estate Maximum
tâ€™s a matter of great pride that a magazine is being
its franchisees are active and working with Real Estate
launched for the people of Gujarat, especially de-
buyers and sellers with most pr fessional manner than
dicated to Real Estate trends, news, listings and
any other brokers.
projects. The name of the magazine, Real Estate
MAXIMUM denotes that it will be covering maximum coverage of Real Estate happenings. This magazine would be focusing on giving all its readers monthly updates on various aspects of Real Estate in India and what is happening globally which affects our Real Estate trends. To my mind Real Estate regulatory bills is a first step towards empowering Real Estate Consumers and their rights will be protected and now only professional and ethical builders will be trusted. RE/MAX MGM hopes to capture more market
share in Ahmedabad Mumbai and Pune market where
Regional Owner, RE/MAX MGM
eal Estate Maximum â€“ A Real Estate Maga-
Indicates which property sectors offer the best oppor-
zineis a monthly series of trends and fore-
tunities and which ones to avoid.
cast publication that reflect the views of leading real estate executives. Real Estate
Explains how the economy and concerns about credit issues are affecting real estate.
Maximumprovides an outlook on real estate invest-
Discusses which metropolitan areas offer the most
ment and development trends, real estate finance and
and least potential. Describes the impact of social and
capital markets, property sectors, metropolitan areas,
political trends on real estate.
and other real estate issues.
Each issue of Real
My best wishes to Real Estate MAXIMUM
Estate MAXIMUM: Tells you what to where the best opporElaborates capital markets, ding sources and flows of equity and debt capital.
expect and tunities are. trends in the incluAashil Patel, Regional Owner, RE/MAX MGM
Welcome to New Franchise Owner RE/MAX Mumbai Gujarat Maharashtra proudly welcomes Mr. Munish Gupta as a Broker Owner of RE/MAX DREAMZ. RE/ MAX MGM wishes him all the best. Mr. Munish Gupta has been a most successful broker Associate in India and now he has started a new journey as a Broker Owner. The Broker Owners of RE/MAX Gujarat are meeting twice in a month at Regional office over a breakfast early in the morning to discuss various issues and suggestions to grow the RE/MAX network. They discussed marketing and recruitment related queries among each other. The inputs and suggestions by franchise owners help everyone conducting their business more effectively and spread services of RE/MAX to more and more people. RE/MAX MGM has started a new initiative of marketing in form of NO PARKING boards in Prahladnagar, Vastrapur and Bodakdev areas. These boards have got tremendous visibility and spreading brand awareness of RE/MAX ONLINE TRAININGS: In August 2013 RE/ MAX MGM regional office gave online training for How to Break Bread with Customers, The Attitude of Peak Producer, Professionally Serve Every Listing and Managing Your Time and Productivity. All the trainings given by RE/MAX MGM are available on slidshare.net and YouTube video channel. Anyone can take advantage of the same and learn many real estate topics for self-development which ultimately helps service clients better than any other real estate brokers. In ONLINE TRAINING IN JULY 2013 four topics were covered namely CREATING REFERRALS, WORKING WITH BUYERS â€“ THE REFERRAL WAY, WORKING WITH SELLERS, and SETTING SMART GOALS.
REAL ESTATE MAXIMUM
Master Franchise Show Participation by RE/MAX MGM in Mumbai
A tips shared by Mr. Anand Choksi, Broker Owner of RE/ MAX ADVANTAGE Ahmedabad gave tips on suceesful real estate investing in a houseful Seminar at Rajpath Club Ahme-
RE/MAX MGM participated in The Master Franchise Show
dabad with all ears eager to listen to magical orator . Many
which is the premier event in master franchising, attracting
clients and investors attended the seminar by spending their
the most successful multiunit / Brand operators, Global
valuable time and make this Seminar very successful! RE/MAX MGM Congratulates Mr. Anand Choksi for such a great initiative.
RE/MAX MGM Congratulates Mr. Vivek Parikh of RE/MAX Metro on successful completion of 3 years in RE/MAX Real Estate Business
brands, and service providers in the industry. The exhibition had variety of International franchises outlining their concepts and business operations. Master Franchising allows people or corporations to purchase the rights to sub-franchise within a certain territory. Mr. Manan Choksi, Mr. Aashil Patel, Mr. Sahil Shah from RE/MAX MGM and Mr. Puneet Verma from RE/MAX India represented RE/MAX in this master franchise show.
Seminar on Successful Real Estate Investing by Mr. Anand Choksi
RE/MAX MGM heartily congratulates Mr. Vivek Parikh, Franchise Owner of RE/MAX METRO for a successful journey of 3 years as a realtor with vibrant team of 14 broker associates. RE/MAX METRO grandly celebrated the occasion and invited everyone associated with them in last 3 years. Moreover, Mr. Vivek Parikh gave RE/MAX METRO Branded chocolates to its clients and well-wishers which was a very unique idea liked by all. We wish them more successful years ahead.
RE/MAX Role of Technology in Real Estate
Open House by RE/MAX Advantage RE/MAX Advantageâ€™s Broker Associate Mr. Ajay Sharma organized an open House of Aishwarya Flat, a beautiful 4 BHK at Ambawadi on Sept 8, 2013 and got a good response. All the broker associates of RE/MAX must go for open house for their rightly priced properties for faster selling of the same.
This Education Program was arranged by Thane Estate agents associates of Thane for the real estate brokers and Sahil Shah from RE/MAX MGM conducted the seminar and gave presentation on the use of technology in real estate to make effective use of their time and serve clients more efficiently.
RE/MAX Files Registration Statement for Proposed Initial Public Offering RE/MAX, one of the worldâ€™s leading franchisors of real estate brokerage services, today announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its common stock. The RE/MAX brand name has held the number one market share in the U.S. and Canada since 1999. The timing, number of shares to be offered and the price range for the offering have not yet been determined. RE/MAX intends to apply to list its common stock on the New York Stock Exchange. Morgan Stanley, BofA Merrill Lynch and J.P. Morgan will act as joint book-running managers for the offering. Perella Weinberg Partners is acting as advisor to RE/MAX.
More details can be accessed from http://www.remax.com/c/ about/newsroom
REAL ESTATE MAXIMUM
India is all set to take on Pakistan in their opening match at the ICC Cricket World Cup 2015 which is being jointly hosted by Australia & New Zealand. With the RE/MAX Balloon soaring high above the Melbourne cricket ground, we all from RE/MAX in India would like to wish the cricket team all the very best!! Mr. Samir Chopra, Chairman Convention Committee, NAR India giving opening speech at 5th Annual convention & Exhibi-
Sam Chopra on NDTV Profit discussing real estate trends with other panelists in Property India program.
tion of NAR-INDIA. 1000 + top Brokers from across the country attended the 5th Annual Convention of NAR India which included Speaker sessions, networking, entertainment, educational courses, referral exchange program and much more. It was a great networking event.
RE/MAX franchising At RE/MAX, it all starts with you. It’s about your energy, ambition and leadership, backed up by an immense RE/MAX support system and extensive tools and resources. As you do your research, consider how RE/MAX compares to other real estate networks in philosophy, services, brand awareness and productivity. And think about the possibilities when you combine your strengths with the power of RE/MAX. When you join an established franchise brand like RE/ MAX, you hit the ground running with 40 years of operational expertise and global recognition behind you. What’s more, you’re armed with endless educational resources – both for helping you recruit top agents and for bettering your agents once they’re on your team.
Top 10 reasons to invest in a RE/MAX Franchise 1.
The power of the RE/MAX name
Recruiting and franchise support
Worldwide real estate leader
Powerful lead generation
REAL ESTATE MAXIMUM
RESIDENTIAL Properties for Buy / Sale / Rent Ahmedabad 4 BHK Fully Furnished, Luxurious Apartment for SALE, Near Marriott, Satellite, Ahmedabad. Gujarat.
Contact :Aja J Shah RE/MAX Metro
Total : 310 Sq. Yds Apartment Fully Furnished Apartment A designer hi-end apartment Two allotted Car Parking
A KingsizeVillla - with 1500 sqyds of a beautiful Villa. It already comprises of a huge portico, a large Living area, Drawing hall, a Study, floor to floor elevator, full size kitchen & store, 4 Bedrooms all with attached WCs/Baths etc. The lux bathrooms are provided with lifestyles of Jacuzzi, Steam & Sauna.
Contact:ParveshGirgla RE/MAX Aad Realty
Luxurious Bungalow on sale in Sec.19 â€“ Gandhinagar 1 Hall, 4 Bed Room all are with attach toilet, 1 Children Room, 1 Kitchen, 1 Pooja Room, Basement Home Theater, Servant RoomGarden, Privet Parking, V.VIP Area
Contact:SirazPadhiar RE/MAX First Choice
5 BHK Bungalows for Sale at Shrushti, Thaltej Area: Built Up: 3690 Sq.Ft. Plot: 2169 Sq.Ft. Home theater room 2 Car Parking, Garden Security, Park, Water Storage Private Terrace Only 9 Bungalow Scheme
Contact : Sameer Sood RE/MAX Realty Solutions
Call +91-85111 14115
Commercial Properties for Buy / Sale / Rent Ahmedabad Fully furnished corporate house basement+3 floor is available for sale, S G highway, bodakdev. Total Plot area of property is 6152 Sq.Ft and building comprising of Basement, Ground Floor, First Floor, Second Floor having total built up area 12304 Sq.Ft
Contact :Narendra Barot RE/MAX Advantage
For sale 3 bhk commercial apartment of 1305 sq.feet.
Contact :NishantChavda RE/MAX ADVANTAGE Plus
Main BRTS road touch. Presently used as commercial office.
Main Road Touch property available on RENT
Contact: Munish Gupta RE/MAX DREAMZ
Good for spa, boutique etc. ON C G Road, Ahmedabad
Ground floor showroom on rent,
Contact : Prashant Nair RE/MAX PLUS
Prime Location of IIM-Atira road New Commercial Building
REAL ESTATE MAXIMUM
Commercial Properties for Buy / Sale / Rent Ahmedabad Road Side Office Space for SALE in New Bodakdev. Very useful Space Suitable for restaurant / Doctor Office / Multipurpose use. corporate office, call center, it space, saloon, high end educational/training institution, diagnostic center
Contact: ParveshGirgla RE/MAX Aad Realty
3300 Sq.Ft. Fully Furnished Office On fourth floor, for sale at Maninagar - Fully Furnished Office with AC.- Located at a high end area of Maninagar - Near to public transportation - Ideal for Institutes
Call +91-8238002325 Contact: AtitFozdar RE/MAX RE/MAX METRO
1380 Sq. FeetOffice for Sale in Shapath-V, SG Highway,
Contact :Mukesh Patel RE/MAX ADVANTAGE
Strategically located on SG Highway, Very Closed to Corporate Houses, Malls, Multiplexes, Hospitals
Total area 935 Sq. ft. Carpet Area 720 Sq. ft, approx.
Contact: PunitChavda RE/MAX REALTY SOLUTIONS
One allotted car park, Unfurnished office for sale. Ideal for office.
Call +91 - 9601915605
Residential Properties for Buy / Sale / Rent Ahmedabad Excellent 3BHK Semi-furnished Flat for sale in Bodakdev
Contact: Rajan Talati RE/MAX REVOLUTION
-2450 Sq. Ft. -Very well maintained society, -With servant room -A/c fixed in all rooms, -Very spacious rooms -Allotted parking http://www.remax.in/505032001-15
Luxurious 4BHK bungalows in satellite High-Class Independent 4 Bhk Bungalow on Sale in nice and peaceful residential area with Luxurious Furniture and A/Cs. All common amenities like hospital, schools, markets, malls, famous theaters are nearby this society.
Contact: Devansh Kothari RE/MAX SYNERGIES
3BHK Apartment for sale in posh locality of DharnidarDerasar and Lavanya society. 2 units on each floor. It is located in one the prime area of Ahmedabad city. Hospital, Schools, Colleges, Auda Garden, Restaurants and Food Courts, Religious places.
Contact:Ashok Bhalani RE/MAX VINTRON GOLD
4BHK flat on sale at Corporate Road Prahladnagar
Call +91 9099948600
Contact: Munish Gupta RE/MAX DREAMZ
4500 sq.ft flat on sale at Corporate road, Prahladnagar.Luxurious new Built scheme.
REAL ESTATE MAXIMUM
Real Estate Regulator Will Bring Oligopoly in the Sector - Manan Choksi With the Union Cabinet approving the Real Estate (Regulation and Development) Bill, the popular view is that it will help property buyers benefit and make the system more transparent. The real purpose of the bill is to give a reliability of the delivery of the project once it is launched. While the bill has its good intentions, precedents show us how such regulations usually eliminate the small builders completely.
Highlights of the bill: 1.
All residential projects having units that are more than 4000 sqmts will
size of 4,000 square meters to follow a
areas of the city. Usually the local builder
fall in the ambit of this regulation.
few rules. Now such a regulation would
association has about 2,000 small and
2. All projects to be launched only
actually harm the big projects and buil-
medium builders which are now dor-
after all the permissions have been
ders would try to divide projects and do
mant – due to slow market conditions.
received for the construction of the
smaller projects only. However, a few
The SME segment has already got the
factors like cost of construction, cost
burden of lack of reliable brand, inability
About 70% of all the money collec-
of marketing and the cost of providing
of having fixed salaried staff and inabi-
ted for the project has to be used
common facilities push builders to do
lity to invest in modern techniques of
only for this project.
larger projects only. The customer even-
construction. When such a builder wants
tually thinks that he should invest his
to scale up to large sized projects, he
hard earned money in a project which is
will need to comply with the regulator’s
regulated rather than an ‘unscrupulous’
provisions which will deter him further.
4. Projects to be sold on carpet area only. 5. Each state will have a tribunal for redressal of complaints. In the past India has seen regula-
builders’ unviable project. This breaks
We have seen in stock market that
the back of small builders, who survive
eventually all the small and medium
on a single scheme at a time.
sized IPO and brokers are eliminated
tors like IRDA, SEBI, TRAI, CCI, RBI, DGCA,
These days in a metro city there
from the market. It is said that SEBI regu-
ICAI. What each of the regulator has
is already a lot of consolidation with a
lations have closed more brokers than
undoubtedly brought in is the required
few names like Lodha, DLF, Hiranandani,
the slow market. So we have a handful of
“buyer benefit”. However, a side effect
etc. dominating the real estate sales
stock broking houses like MotilalOswal,
of such a regulator’s impact on the
market. Lodha claims sale of Rs. 10,000
Angel Broking, Share Khan, etc. who
market is consolidation. For example,
crores in the last fiscal which is more
own practically the lion’s share of the
the proposed real estate regulator in
than DLF’s sale of Rs. 9,000 crores in the
market. It is said that unless a broking
the new bill makes it compulsory for all
same period. In a Tier 2 city there are lot
house has 10,000 customers there is no
new projects which are more than the
of local builders operating in selected
viability to run the operation. Oligopoly
is the future of real estate sector, be it a builder or a broker. The proposed bill has a concept called “registered brokers”. Hence brokers are also going to fall in to the ambit of regulation, which until now has been totally out of regulation. Such regulations in other countries have streamlined the entire industry and have brought a lot of transparency. Brokers slowly adapt to the regulated world and start building their own brand. This indirectly regulates the secondary market also. Even the CREDAI (Confederation of Real Estate Developers Associations of
velopers and end users. Implementation
in both the houses in the monsoon
India) has ‘strong reservations’ according
of this Bill as it is will cause substantial
session. The bill most probably will get
to the Credai president C Shekhar Reddy.
increase in cost to buyers. In the long
passed uneventfully as officially only
He has expressed his concerns about the
run the bill has the potential to actually
the state of Chhattisgarh has opposed
License Raj re-entering the real estate
shatter the government’s initiative of
it. So the regulator will actually cause
world and unnecessary victimisation of
‘housing for all’ at affordable rates.
‘irregulations’ as it is not conducive to
members. It is important that the Bill
Right now the cabinet has passed
the small time brokers and is quite lop-
maintains equilibrium between the de-
the bill and it is scheduled to be tabled
sided in approach. Oligopoly seems to
REAL ESTATE MAXIMUM
Ahmedabad Real Estate Market: A Major Realty Destination
Ahmedabad, business capital
ket of Ahmedabad, by 3.5% in the past
Ahmedabad is attracting invest-
of Gujarat, is the fifth largest city and
six months. Genuine housing projects
ments not only from India but from
seventh largest metropolitan area in
with equipped amenities have facilita-
foreign countries as well. The capital
India. It is located on the banks of Sa-
ted the Real Estate sector of this city.
value for the real estate in Ahmedabad
barmati River. The city of Ahmedabad
With multifold infrastructural develop-
in terms of the residential properties
has a flourishing textile industry, and is
ments in every sector, the Real Estate
is easily affordable unlike other tier II
sometimes called the Manchester of the
Sector of Ahmedabad is booming.
cities in the country. The presence of
East. The Times of India chose Ahmeda-
Some of the best localities to invest
the superior infrastructural facilities and
bad as the best city to live in India, in the
in Ahmedabad include Ashram Road,
strategic location of residential proper-
year 2012. The city is beautifully planned
CG Road, Navrangapura, Chandkhede,
ties drive investors towards Real Estate
and has a lot of free land. With constant
Motera, Ghodasar, Isanpur, Hansol ,Na-
Market in Ahmedabad.
growth in trade & commerce and the
roda, Bodakdev, Makarba, etc. The wes-
Numerous upcoming integrated
establishment of various industries, col-
tern part of the city is posh; it includes
township projects across the city as well
leges and firms in the city, Ahmedabad
areas like Ambli, Bopal, Solagam, Thal-
as the suburban areas ensure the conti-
Properties are generating huge demand
tej, Shilaj Road, Vastrapur, Ambawadi,
nuity in the boom of the Real Estate Mar-
in the countryâ€™s Real Estate Market.
Prahaladnagar, Bodakdev and Jodhpur.
ket in Ahmedabad. Healthy economic
The National Housing Bank Index
Those in pursuit of lavish, spacious
growth and infrastructural urbanization
of the Reserve Bank of India, commonly
homes must scan these areas out, and
have contributed to position the city of
known as, the NHB Residex demons-
this should be done quickly for prices
Ahmedabad as one of the major realty
trates a price hike in the Real Estate Mar-
may escalate sharply very soon.
Vastu Tips for your Office entry:
information associated with all of data items. 2. The best way to manage so many emails that you receive every day is to segregate them in to two folders, “Pro-
1. Best entry for office is North entry going to South. A
cessed” and “To Process”. 80% of the emails you receive
Zero degree north entrance is the most coveted entry
are just for information and you are in CC. So after you
by Vaastu Standards.
read that email, you have to file it in “Processed” folder.
2. Second best entry is east going to west. 3. The office with west entry should be in the name of female.
put in “To Process” folder. 3.
4. South Entry is not recommended. is
You can write down all your to do things in
Tasks. It is very good way to remember a list of things to do and you can tick them off once its done. The done
5. South west entry office
Any email which requires action to be taken, have to be
at all good.
items are automatically hidden so it doesn’t clutter your viewing area. 4.
Contacts are not just email address or
Such an office
phone numbers. You can put address, birth
date, all kinds of numbers, picture of the
its entry or
contact and also write notes about the contact.
change the office. 6. The North or East
Calendar is very important tool to manage
your day. If you have appointment with someone, you can invite him to the meeting sending him an
entry should have a
email automatically from this interface. The best part
Ganesh tile at the top of the
is that if he accepts the meeting, his calendar is auto-
matically blocked for that time.
7. The South or West entry should have Hanuman tile at the top of the door.
6. Use a good image for your email signature. Each
of the emails will become a marketing of your brand. This will help you get free advertising
your brand. 7. There is a Social Connector which puts the senders photo from a social media website like Facebook along with their email. So easier for you to recollect who has sent the email. 8. You can configure multiple email accounts and get all Outlook Tips to increase your productivity
the emails access from one place. You can also send email from all such accounts and you can associate a
Microsoft Outlook is not just an email client, but it is also a PIM (Personal Information Manager) which records your meetings, tasks, notes, contacts and a lot of other
different signature with that email address. 9. Last but not the least archive and backup your folders regularly
REAL ESTATE MAXIMUM
5 Important facts about home loans Though most of us avail home
2017, in the next 5 years. Total limit for
loans, there are a few facts about them
this exemption will still be Rs. 1.5 lakh
Loan taken from family and friends
which are worth knowing. Let’s take a
look at two simple questions: 1. What are the available tax de-
Under Section 24, you can claim
The above example explains the
up to Rs. 1.5 lakh per year of interest
real scenario. Therefore, you cannot
on your loan. You will be able to claim
claim the interest but deductions can be
this even if you want to take it from
claimed later on in 5 equal installments
your friends, parents or any other indi-
for next 5 years starting from the year in
vidual. However, in order to be eligible
which property is acquired or construc-
for claiming the principal amount under
ted. This tax deduction is available only
Section 80C, you need to avail the finan-
if the construction is completed within
cial lending from some bank or financial
3 years from the end of the financial year in which capital is borrowed. ductions for your under-constructed house?
Extension or renovation of your house
2. Do you still get tax benefit from
If you are taking a loan for exten-
your home loan, if you have taken it
ding or renovating your existing house,
from a friend and not from a bank?
you can only claim the interest amount
Many of you might not be having
under Section 24 and not the principal
answers to these questions. To realize
under Section 80C. However, the limit
that one is ignorant is a great step to
in this case is only up to Rs. 30,000 for
Additional tax Deduction of Inte-
knowledge. So let’s try and explore
owner-occupied properties. If it is a
rest on loan taken for residential House
these new dimensions of home loans:
rented or leased property, or a second
property (New Section 80 EE)
Tax deductions for underconstructed houses Do you know that you should have
home which is not a self-occupied pro-
In addition to deductions mentio-
perty, no maximum limit has been pres-
ned above, deduction in respect of inte-
cribed in this case and the tax payer can
rest on loan taken for residential house
take tax deduction of the whole interest
property is allowed up to Rs. 100000/-
a certificate of ownership and posses-
amount under section 24.
for the loan that has been sanctioned
sion of the house to claim tax under
Selling a house serving home loan
by the financial institution during the
Section 80C? Without complete and
If you sell your house within 5
period beginning on 01st April, 2013
proper analysis, investors presume that
years from the date of buying, all the
and ending on 31st march, 2014 sub-
they can claim for tax deductions of
tax benefits which you have claimed
ject to certain conditions mentioned in
their houses which are under construc-
under Section 80C will be added in your
tion and go ahead with the loans.
salary in the year of sale and termed as
Let’s take an example. Say Mr
Knowledge is power. Knowing
Gupta bought a house on loan on 25th
For example, if you bought a flat in
these less-known facts about home
November, 2009. He paid a total sum
July 2011 and in next 3 years you have
loans will help you take better deci-
of Rs. 5 lakh as interest in the next 3
claimed Rs. 2 lakh under Section 80C,
sions. Informed decisions lead us to
years and obtained possession on 19th
this amount will become your income in
better results. And better results lead
November, 2012. He could claim this Rs.
the financial year in which you sell the
to progress, productivity and prospe-
5 lakh of interest in equal installments,
property and will be taxed accordingly.
which is 1,00,000 per year from 2013 to
However, the interest component is not