TDS on the Property from June 1, 2013

It is an added liability now for all the owners who own the property above 50 lakh. According to Union Budget 2013-14 an additional tax is now being imposed on property transactions. In order to track real estate transactions more widely, the Finance Minister has introduced this new TDS provision through Section 194IA with the current TDS provisions contained under the Income Tax Act. This provision will be in effect from tomorrow i.e. 1st June 2013.

The bill has proposed that purchaser of an immovable property worth Rs 50 lakh and above, which excludes the agricultural land is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor and also that the tax will be cut from the total value and not the balance amount. The sole idea behind this policy was to bring transparency in the whole process of property dealings.

This will add to the responsibilities of buyers as they will have to deduct the tax amount from the payout and deposit it with the government. So, for instance if the property is of Rs 1 crore then a tax of Rs 1 lakh is deductible.

Now, every buyer will have to obtain a TAN number to comply with the provision, deposit the tax deducted within the specified time limit with the government and file the quarterly TDS returns mentioning the Permanent Account Number of the seller. He will also have to issue a TDS certificate to the seller. The proposed TDS provision is required to be applied on gross transaction value and not on the net gains.


Property in Gurgaon

Subvention Scheme for Real Estate Customers: TRICK or TREAT?

Real Estate is a big industry and like any other industry, Real Estate as well relies a lot on its substantial customers. Last year had not been very great for the industry and thus many alluring schemes came out in the industry to attract customers. One of such scheme at hype is subvention scheme.

What is Subvention Scheme?

Subvention scheme is the best scheme for the buyer to save himself from paying the EMI till the possession. Under this scheme, a buyer of an ‘under construction’ building is not required to pay monthly EMIs for a defined time-frame or until he takes possession. But the buyer is required to pay some percent (usually 15-20%) of the booking amount and rest after the possession. This scheme no doubt is beneficial for the buyers as it makes home buying easy and hassle free.

At present only non banking finance corporations and private banks like ICICI and HDFC are associating with the developers for subvention scheme. Under the subvention scheme, once a buyer applies for loan for an under construction property then the borrower need not have to pay any EMIs. Instead, all the interest for first two years will be paid by the concerned builder. Due to heavy risks involved, banks have agreed to associate with Category ‘A’ builders.

Who is offering Subvention Scheme Projects?

Banks are reluctant to finance such schemes with only Category ‘A’ builders, due to which small builders in the industry might find it very difficult to get their projects financed with the banks under such scheme. Experts say that Subvention Scheme works really well with mid-segment projects. Around 200 developers across the country have been trying to attract home buyers with the scheme.  Some of the well known Builders in Gurgaon/NCR that are attracting buyers with such schemes are Tata, CHD, Sare Homes, 3C and BPTP.

Trick or Treat?

This scheme is beneficial for all the three parties-Bank, Builder and Buyer.

For the banks, the scheme is beneficial as the bank gets an access to a larger amount of customers which in return is really good for the business.

The builder can get access to the funds for the project at a much cheaper rate of interest as the funds come in the form of home loans which are cheaper than commercial loans.

Now coming to the buyer, the buyer is the one who gets most attracted to the subvention scheme. For a buyer can be tension free from the burden of paying the EMIs even before possession. Not just this, the customer can enjoy the cost appreciation till the time of possession as well.

Even after all the benefits and attractions there is a catch to this scheme. The buyer must always read the documents thoroughly as a little carelessness can be very risky.  In case of a disputed property the buyer would need to get the money back from the bank.

Apart from this, the buyer must also keep in mind not to fall prey to all these attractive offers without knowing the fine prints. So whether the scheme is a trick or treats completely depends upon the wisdom of the buyer.

Property in Gurgaon

Top 5 Traps to avoid when investing in Real Estate

High returns and safe investment is what is making Real Estate so popular among the investors.  But recently the Real Estate market is showing uncertainty and this is when you as an investor must take care of few this things before investing to save yourself from the Real Estate traps.

We will be discussing 5 Common Real Estate traps that any investor must avoid to get a beneficial deal.

1.       Check the Price:

Abide by the old proverb “You make money in real estate by what you pay for it, not what you sell it for”. The price of the property will thus ensure that you are going on the right track. If you are buying in a heated market or in a ‘hot’ neighborhood, then the price will surely be rocket high. Make sure that your property is value for money before investing a huge amount. Stay away from inflated prices.

2.       History of the Developer:

Before investing in any project, remember to know about the developer. Real Estate market is booming and this is attracting newbie in the industry. In this industry, experience matters a lot and thus, you must be well aware about the history of the developer like when did they enter the market, their past projects and also the success rate of those projects.

3.       Geography of the Project:

No matter you are going for commercial or residential location and neighborhood matters a lot. Choosing the right location can happen only when you know why you want to buy the property. Always choose the property matching your requirements. Remember it is not your property which states the standard of the neighborhood but the neighborhood will make the standard of your property.

Location of the project holds an equal importance in the case of commercial property as well. Location is the factor that will decide your customers, thus the success of your business. Do not go for words but check for yourself the location and future chances of development.

4.       Facilities & Amenities:

This again is the trap that developer through on the investors. After choosing the location and the project, choosing the facilities is equally important.

There are few basic facilities and amenities like parks, power back up, water supply, security, well lighted roads within the locality or society, availability of daily needs and ample parking space must be there with other modern amenities. As no matter how beautiful your house is but without these facilities your stay can become really hard.

Facilities & amenities play an important part even if you are investing in a commercial property. Do not go by the words of the developer, but make sure yourself of the availability of the amenities like power back up, ample parking space, good electrical fittings etc.

5.       All that glitters is not gold:

This is a universal truth and thus holds importance in the case of investing in Real Estate as well. You must always take care and do not get allured by the samples built by the developer. Make sure that all you are seeing must be present on the papers as well, so that in future you do not end up making a fool of yourself.

We hope that these 5 points will prove to be beneficial and wish you a HAPPY INVESTING!

Property in Gurgaon

Gurgaon’s 2031 Development Plan to shoot up the Realty Sector

The final Gurgaon-Manesar complex Development plan 2031 got approved. The plan brought mixed bag of reactions within the Realty sector. With little shortcomings, the plan in all is quite promising. With the final plan, Gurgaon and its satellite cities like Manesar, Dharuhera, Sohna etc are expected to go Northwards. This plan will bring a great buzz in both residential as well as commercial markets. Not to forget, the special economic zones (SEZs) will also get benefited by the upcoming residential projects.


The plan has projected population of 42.50 lakh and a total urbanisable area of 32988 hectares. This will bring great business opportunities for the realtors dealing in this region. Let us try to understand in brief, the plan and its effects.

What’s the Plan?

After the three trials in five years, this is the final Development Plan. The plan includes around 20 new sectors and estimates 12 new projects and 2 new townships. An area of about 50 hectares has been earmarked in sector-68B for providing housing to low and medium income group. An area measuring 215 hectares has been reserved for a University in sector-68 which shall also be exclusively set up by the Government or its agencies. Land measuring about 135 hectares has been designated as a Bio-Diversity Park. A 90 metres wide road has also been proposed in the Development Plan connecting the Development Plan of Gurgaon-Manesar Urban Complex up to Sohna.

This plan will bring development in the areas like Dwarka Expressway, Golf Course Extension Road, Faridabad, Nothern Peripheral Road (NPR), Manesar, Dharuhera and outskirts area like Kundli, Sonipat, Ballabhgarh, Palwal and more.

Not just this, development plan 2031 will make the millennium city grow till Dwarka.

The Effects:

Nothing in this world is perfectly right or perfectly wrong. Same goes with this plan, with few shortcomings the plan will bring a great development in Gurgaon and areas around.

If we talk about the development, it has already started. The Sohna road in Gurgaon has already started to emerge as an IT Hub.  This development will not only affect the satellites city but is said to reach till Bhiwadi. Bhiwadi is a residential hub at present and this will attract more industries to set up their offices/ factories in the areas nearby.

All this has made Realtors really happy. Gurgaon, in the coming months will experience a great boom in the Real Estate sector.  With all this there is a missing link as well. The government has allotted 250 hectares of land per person which will force the builders to develop larger units. This will ultimately make the units unaffordable for the potential customers.

But overall the plan is quite progressive and will surely boost the lost real estate trend.

Property in Gurgaon

Property Records: Now digitally yours!

Digitization has taken place everywhere around us. Municipal Corporations in Delhi are all set to provide the property records online. This will not only help to maintain the data, but also preserve the data for years.
Very soon you will have access to your property records including the layout plans at just a click of mouse.  It has become really tough to maintain the older records as over the years their state has become worse.


According to the civic body officials property records of the civic bodies were kept manually and the move which was making it difficult to preserve such records.

“Some of the old ones have started deteriorating. To preserve these years-old records, this move has been initiated,” a South corporation official said.

The digitization of the records will make it much easier for the owners to get the information regarding their property and will not have to visit the corporation office every now and then. All the information about the property would be available online at the ease of just a click. All you would have to do is sit at your home and relax.

Not just the property owners but various government agencies and organizations that need information regarding any property from the civic agencies would also be able to access data online.

“The new digitized plans will also have necessary data regarding a particular plot, nearby plots, all their layout plans along with details of the particular colony and the area,” the official said. This is a real good step marking a bright future in the Realty sector.

Property in Gurgaon

How to make your house a GREEN HOUSE?

“Big changes begin at home”

Starting with the same thought, we all are aware of the increasing global warming in the world around. A big change is what we require right now. Thinking that you are very small will never let us achieve great results. It is high time now blaming others, it is the time now to stand up and be the change you want to see!

We can do miracles if we determine. Here we are to give you few tips on how to start the change from your very own home.  You can bring benefits to your planet with small changes like recycling, changing the cleaning materials etc.



Make “Reduce- Reuse-Recycle” the mantra of your life. Let us see how:

1. Go green with your appliances: It is the time when you find less power consuming appliances in the market. So, changes your appliances for the good. Appliance use comprises about 18% of a typical home’s total energy bill, with the fridge at the top position. EPA suggests that if any of your appliances is more than 10 replace them with energy-efficient models that bear their "Energy Star" logo. It is unbelievably true that if just one in 10 homes used energy-efficient appliances, it would be equivalent to planting 1.7 million new acres of trees.

2.  Change the temperature: Go for energy efficient Air Conditioners.  Use your ACs wisely. Using a ceiling fan with your AC cools your room faster and for a longer period of time. Wear light clothing in summer so that the cooling affects faster, enabling you to cut down the AC use easily.

3. Save Water: Water saving does not need techniques but change in attitude is what is required. Using brooms, turning off the taps when not in use, using buckets to water plants are few of the changes that can bring miracles. With just turning the water off when you brush your teeth will save 4.5 gallons each time.

4. Save Paper: Hardly there would be a home where computer has not reached. Use devices to write and internet to share instead of wasting papers. Or choose wisely; go for 100% recycled paper. This will not only help in saving trees but will also keep more waste paper out of landfills.

5. Say NO TO PLASTIC: This is the best and the easiest step of all. Say No to Plastics and Yes to paper, cloth or jute bags. According to EPA, Unfortunately, plastics are made from petroleum — the processing and burning of which is considered one of the main contributors to global warming.

6. Green your Lights: Use CFLs!! Compact Fluorescent Light bulbs (CFLs) use 66% less energy than a standard incandescent bulb and last up to 10 times longer.

7. Opt for Bamboo Flooring: Research suggests that Bamboo Flooring is the most environment friendly product. This is because of its high yield and the relatively fast rate at which it replenishes itself. It takes just four to six years for bamboo to mature, compared to 50-100 years for typical hardwoods.

It is high time now, let us get up and come in Action and save our planet.

Property in Gurgaon