The largest contributor and employer in India, second only to agriculture, the Real Estate makes for 11 percent of the GDP approximately. The sector is expected to increase further as a response to the shift in consumer’s perspective and preference for homeownership.  Real estate is anticipated to contribute 13% of India’s GDP by 2025. Development in real estate would have a rippling impact on ancillary industries such as infrastructure and cement, leading to the growth of direct and indirect jobs.

 

Key Trends

 

• With the lockdown after the pandemic outbreak, the real estate market hit hard, with prices dropping down and construction workers leaving most of the building sites.
• Young professionals that have formerly added to the rental of Gurugram’s real estate groups are on the lookout for buying houses for both personal and investment purposes.
• Another development is the spread of automation, which has streamlined some activities and decreased labour dependency considerably. Technology service providers are expected to benefit tremendously as all real-estate companies are using upcoming innovations. 
• With sustainability gaining new momentum in real estate, eco-friendly developments and energy-efficient buildings are valued by customers.

• Real estate, whether industrial or residential, is perceived to be a comparatively secure asset class for investors. India’s rising economy and a strong customer base are conducive to investment in real estate. Renowned international architects are now looking to the Indian market and are partnering with leading real estate companies to design remarkable projects. The Amaryllis by Unity Group is one such project where the Italian luxury brand, Versace, has doled out its designing flair in the upcoming tallest residential structure of the city. 
• The situation of depreciating rupee and declining crude oil prices further articulates investment opportunities in India. Multiple work openings at Corporate Inc in India, work shortages on the foreign market and economic instability triggered by the pandemic would lead to NRIs seeking to return to their country.

 

Improvement Areas

 

• The exemption from stamp duty for long periods of subsidized accommodation could be a strong tool to improve the real estate market. While stamp duty is a source of revenue for the government, in the past, many state governments have increased stamp duty to 6-7%, which is not in line with today’s market realities.
• The launch of RERA in primary residential real estate was a groundbreaking development of India’s primary housing sector. But, the secondary market as an entity is extremely disaggregated and, considering the lack of knowledge, commodity standardization, and confidence. It is important to ensure that any agreement in itself is well established and that any violation of contract on the grounds of malfeasance can be deterred.
• The digitization of land records is a defining feature of the established real estate industry and should be a priority, as this will be the biggest factor in building a reputation to allow glitch-free investment in the industry, both nationally and internationally. This would also promote the large-scale construction of surrounding suburbs by private sector companies, generate direct and indirect jobs and raise the country’s GDP.

The 1% TDS provision on the selling of land was implemented in the 2013-14 budget to track underhanded property transactions. In force since June 2013, the Law stipulates that, in view of the selling of property above Rs. 50 lakhs in India, a tax of 1% on the overall amount for selling must be deducted before the payment is made to the seller. The purchaser must then deposit this 1% of the TDS to the Government. Both the buyer and the seller’s PAN must be asserted before filling out Form 26QB to ensure that buyers can not avoid taxes on the capital gains they make.

 

TDS is paid on the entire sale amount. This applies even if there is more than one buyer or seller. The Union budget 2019 suggested a concept of “immovable property consideration” to cover any payments in the form of club membership dues, car parking fees, power or water charges, repair fees, advance fees or all other charges of a similar nature. This shall refer to immovable property acquired on or after 1 September 2019. TDS on the immovable property to be charged using Form 26QB within 30 days from the end of the month in which the TDS is deducted.

 

Now, the question arises how to go about the payment procedure. The payment is made through Challan 26QB and both online and offline modes are available. There are 2 modes of payment on the form 26QB: e-tax payment immediately (through net banking facility) and e-tax payment at the next date (e-tax payment through visiting any bank branch office). If you can not pay online, an electronic receipt for Form 26QB with a specific acknowledgement number will be created for you, which is valid for 10 days. You can take this to any of the pre-approved banks. The bank will continue with online transfer.

 

And if you are a first-time user, register with TRACES as a taxpayer with your PAN card number and challan number recorded during payment. If you enrol, you will be able to receive the certified form and you will issue this form to the seller. It has all the information;  TDS certificate number, the name and PAN of the deductee, the date and duration of the purchase, the approval number, the date of the deposit and the TDS deposited.

 

After your payment has been displayed in Form 26AS, log in to TRACES. Go to the Download tab on the “Form-16B” tab and press “Form-16B” After verifying all the details thoroughly, proceed further. 

 

The Department of Income Tax receives the Annual Information Return (AIR) from the Registrar / Sub-registrar Office on a daily basis. From this paper, the department will ascertain if you have made a property transaction in excess of Rs.50 lakh. In case the payment has not been made, you can get a notice from the IT department. 

 

Real estate is one of the most important pillars of the Indian economy. The real estate sector contributes appproximately7.8% to India’s Gross Domestic Product ( GDP) and is second to the IT industry in terms of job generation. Thus, with numerous taxes already in place, such as service tax and VAT, with GST in the picture, the indirect taxation in this sector is remodeled recognizing its potential. 

 

The implementation of this tax law will, on its own, address the problems facing the real estate sector thus enabling it to emerge from its long dormancy. GST brings clarity in the operation of the real estate market, and the estimated price rise for new residential properties may be lesser than for new commercial properties. In order to minimise the cost of purchasing houses for buyers as under the previous tax system, they had to pay service tax and VAT on the purchase of residential units as sold before they were built, developers had to pay excise duty, customs duty, CST, entry tax which is non-creditable tax cost on their business side. But, with a single tax rate, developers can have GST production incentives charged for utilities and products bought by them, which will lower their expenses and will be passed on to consumers. 

 

In an effort to stimulate demand in the middle of a persistent recession, the government drastically lowered the rate of GST on property transactions. This could possibly cut the purchaser’s pay-out by 4-6 per cent of the total purchase. Although the government has already lowered the GST rate for real estate and there could be no scope for further lowering rates for the sector. But lowering rates for other goods and services could cause investment in real estate at a time when home prices have plummeted due to the economic crisis following the Coronavirus pandemic. 

 

Goods and services tax has made the housing affair cheaper, as tax chaos has had an effect on real estate prices. A reduction in GST prices and stamp duty charges along with a rise in the income tax exemption limit will definitely accelerate the demand among buyers during these tough times. Decreased ready-to-counter prices would come as a relief to help transform housing demand. As a result, the real estate industry needs concrete steps to resurrect demand and address the concerns of its stakeholders. 

Builders are also providing buying rewards, such as price security plans, flexible payment systems, and deals such as waiving stamp duty and licencing fees to guarantee purchases. Many developers are trying to sustain their margins and do not have too much room to further reduce costs. Lower prices are successful as they can help to minimise inventory, but it may not be the most attractive alternative. We hope that the Government and the Authorities can help Real Estate re-initiate the building activities so that by Diwali, it begins to recover.

Buy land, they’re not making it anymore. – Mark Twain, humorist and writer.  A simple yet thought-provoking quote exhibits the right disposition of Real Estate. In a world where humans are creating replicas of everything, the land remains untouched. We humans can only acquire a little space in this vast natural world. We can own land, but can never create one. The exclusive and distinguished asset that Real Estate is only can only be bought or inherited.

 

Real Estate is an asset that you buy once and reap the benefits forever, not only in this lifetime but also the succeeding generations share prosperity. It creates a regular flow of income and you can enjoy the gain without indulging in it daily. It can provide a safe and secure form of investment that guarantees substantial returns in the long term. Investing in Real Estate also gets you tax benefits and is a low-risk investment compared to others. 

 

Investing in real estate must be implemented correctly, with the appropriate understanding of the business environment and the type of real estate you are investing in. It calls for a large investment, based on the price of the property you want. You need a lump amount of cash in hand to buy a house. If you buy the property by mortgage finance, you will have to face the extra responsibility of paying the payments.

 

Investing in gold has always been popular in our country. And it does provide flexibility and lesser investing amount as gold can be purchased in small quantities. But, if your looking for long term benefits, then Real Estate is the ideal choice. Real estate investing will give you a regular monthly income if you’re going to have a rental agreement. The money earned can also be used to repay loans. The price of gold fluctuates and the value of your investment may decrease depending on the market conditions. Gold or real estate – which is a better investment choice depends on the financial condition and intent and whether you are able to lock up for a longer period of time with real estate or are you in a rush to reap the benefits and liquidity of gold. 

 

Buying your dream house is an exciting journey, from touring various places to imagining your life there before zeroing in the one. A new home brings with it a new adventure, a new lifestyle but also taxes and stamp duty along with others. It could be a daunting experience, especially if you are a first time home buyer. We’ll decode it for you so your property purchase becomes effortless without the taxation hassle as it is an integral part of buying a place. 

 

The Registration Act 1908

 

The Registration Act of 1908 obliges the purchaser of the property to pay the stamp duty at the time of registration of the property. By means of the registration process, the ownership of the property is transferred from the old to the government records in the name of the new purchaser. 

 

Rate

Stamp Duty and Registration Charges are two key factors that make up a significant part of the expenditure when purchasing a property in Delhi. However, with a view to growing home-ownership, the stamp duty in Delhi is held lower for women buyers. It is the government’s way of advocating women to own a house. There is also a reduction in the Stamp Duty and Registration Charges if you want to purchase a property jointly, a man and a woman. To be specific, the Stamp Duty rate for a male is 6 percent, while it is only 4 percent if you are a woman. In case you plan to buy joint property, the rate of Stamp duty would be 5 percent. But, the Registration Charges stay at 1 percent in either case. 

 

Factors

Not just varying rates for each gender, there are various other factors that affect the Stamp Duty Charges in Delhi. The location of the property is one such factor. The circle rate in Delhi for residential plots is dependent on the category of the location. Also, the purpose of the purchase matters. The stamp duty applied to a commercial property is greater than that applicable to a residential property. The age of the property also matters. As the stamp duty is imposed on the value of the property, the old houses, due to their low price, are subject to a lower stamp duty than the comparatively new ones.

 

Payment

E-stamp papers were introduced on 6th February 2012 in India and Delhi became the first state in the country to issue e-stamps. With the government implementing e-stamping, stamp duty must be charged by e-stamping in Delhi. Consequently, there are no offline networks by which this obligation can be paid. The e-stamp paper can be collected through selected Corporation bank or visit Stock Holding Corporation of India Limited (SHCIL), the agency appointed by the centre. If you are working through the ACC, you may also pay the stamp duty in cash. You may also pay the fund via check / demand / deposit / pay order / RTGS / NEFT / account transfer.

 

The real estate sector, which was still on the brink of digitizing its operations virtually has integrated technology seamlessly with the unfolding COVID-19 pandemic and the declaration of the shutdown. Developers have made a global jump in residential real estate. They have become more likely to engage in online shopping programmes to ensure a fast home sales process during the pandemic.

 

There is a fair deal of momentum in demand for new housing, and we’re seeing growth come back to the market. There is a rise in digitizing the sector, with most consumers using automated tools for house searching and project shortlisting in the midst of the lockout. The sudden occurrence of this ongoing crisis has undeniably intensified the pace of digitization within the market; redefining the boundaries to ensure that the sector remains afloat.

 

Several real estate developers have managed to digitize the full purchase process with the aid of state-of-the-art technologies thus keeping with their social distance policy.

 

There are several approaches that have made it easier for developers to respond to evolving conditions and that will be necessary during the ‘new normal’. Social media has become increasingly significant. Realtors, along with their industry peers, aids to build powerful networks with customers and prospects across different social networking sites.

 

Video conferencing has emerged as a versatile multimedia platform that has increasingly been embraced by real-estate companies. While upholding social distance expectations, developers have ensured that they are in continuous communication with their consumers through the use of digital platforms. Product launches, live bookings can all happen online, without the need for any paper interference. Social isolation has modified the way people communicate and function in physical environments. Developers are working to integrate technology and to reach a larger audience and provide home buyers with exclusive virtual tour experience. These contactless walk-throughs save time, discourage multiple users from visiting homes, and are suitable for the initial stages of online home viewing.

 

Customers, today are active on internet platforms, and developers are continuously coming up with new ways to market their homes digitally.This adoption of technology has provided them with ease, and it is not going to cease even after the pandemic. Digital platforms that serve the industry today will form a solid base for companies tomorrow, and these emerging tools will create a smooth shopping process for homebuyers.

A home is a dream, a dream that takes a significant lifespan for a person to achieve. We work hard, save plenty and kill many dreams to build a house for ourselves and our family. A home is a fantasy for many, yet an achievable one with the tax benefits in India. Using the benefits smartly, one can buy a home without waiting for a lifetime. Here are a few listed below to educate you about the tax benefits which would come in handy when you plan to buy a house. 

 

• Tax savings can come from both the interest and principal elements of a home loan. Individuals who have taken out a loan to buy their house or for building purposes may demand the principal sum under section 80(c) and the interest may be charged under subsection 24(b).

 

• If the loan is taken on or after, one can get a discount on interest portion on home loans of up to Rs. 1.5 lakhs. 1st April 1999 for the development or purchase of a house. This exemption from home loan tax will be gained if the transaction or building is done within three years from the end of the financial year in which the loan was issued. Besides this, a certificate will be issued by the lending bank to certify that interest is due on the loan is taken to purchase or develop a home.

 

• When a person buys a house and wants to sell it within the same year or within a three-year period, he will be liable to pay tax on short-term capital gains. However, if the transaction occurs after three years one is entitled to pay long-term tax on capital gains. This is not taxable if the income sums are deposited in tax-saving capital gains trusts as stated in Section 54 thereby providing significant first-time tax incentives for home buyers.

 

• Only the person who has repaid a home loan will benefit from the tax deductions. If there is a co-borrower on the aforementioned home loan, he or she can demand only minimal advantages from the exemptions that one can take advantage of when applying for a home loan. It’s restricted more to the sum they’ll pay back.

 

• Another tax advantage is available on a home loan if one wants to make payments. If a person who lent money refuses to pay the EMI on time, he will not be entitled to demand the tax benefits on the sum that would have been paid.

The greatest thing about life is ‘Learning never stops!’ It is both incredible and overwhelming. “The world is a university and everyone in it is a teacher. Make sure when you wake up in the morning, you go to school.” ―T. D. Jakes. Great words said by Jakes aeons ago still hold a worth. We, At Unity Group, believe that learning is a continuous process and one must be curious to know, learn and experience life at all levels. Life presents various opportunities of learning at every step and here we’ll discuss how each vertical of Unity Group teaches us something invaluable.

 

‘Health is wealth’, an overused and abused but worth its word saying teaches us to value the most important faculty of our lives. Health can not enough taken care of. We must respect and take responsibility for our well being before life forces us to. Both physical and mental health plays an integral role in shaping our lives to a great extent.

 

 

 

Education is an asset that can never be taken away from us but it does take us places. The only thing that separates a fool and a wise is the former believes he knows everything. We must always focus on brushing up our skills and a curiosity to know more. The Unity Group’s education vertical works relentlessly towards the development of children; they are the future and we want to give our best to make the future brighter.

 

 

The commercial aspect holds a significant place in our lives. It is the driving force behind all the other aspects. We all dream of a lavish lifestyle but only a few of us are ready to toil for it. Only the ones who sweat it out reap the benefit of it. Never fear chasing your goals and or be scared of the long journey. Good things come to those who hustle. 

 

 

Home is our safe haven. And we learnt the significance of our safety abode in these testing times even more. The comfort of our home is irreplaceable and no place can match the contentment and convenience of a home. The joy, the memories, the life we create in our homes makes a prominent part of our lives. No worldly comfort can compensate for the warmth of one’s home.

 

 

Travelling teaches us without a scorecard. It enriches us, adds to our life experience and forces us to get out of our comfort zones. We, at Unity Group absolutely believe and aspire to make travel an enriching experience. The hotels by Unity Group would take away the journey’s stress and rejuvenate you to start afresh the next morning.

 

Whether we are buying your first car or making an addition to the pool of automobiles in your driveway, each car holds a special place in our hearts.

 

 

Unity Group deals in marbles along with its varied other verticals. Like in every sphere, we believe quality is the real hero and it goes a long way. Being one of the most expensive type of floor material, it has taught us to be that quality goes in before the name goes. It is something to ponder upon and instil in our lives.

 

 

 A car doesn’t just take you from one place to another, it holds the power of taking us anywhere if we dare enough. We must challenge ourselves and be brave enough to start the journey we all want to make. The first step towards achieving your ambition is to begin. Start small or start big, just begin.