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6 Tips while buying a home





  While reviewing a possibility of owning a home, one   invariably  comes across many cross roads- whether   to build or buy, whether  to live or for investment's   sake, whether a flat or an independent  house.   Investment in immovable property    may yield   lucrative returns  but ignorance or any slipshod while   drafting the    agreement or failure  to follow the   ground rules would only compound the    problem.

    Stamp Duty and Property Taxes



Upto Rs.1,00,000


Rs. 1,00,000 - 2,50,000

0.5% of the value

Rs. 2,50,000 - 5,00,000

Rs.1250 +3% of the value above Rs.2,50,000.

Rs. 5,00,000 -10,00,000

Rs. 8750 +6% of the value above Rs. 5,00,000.

Above Rs.10,00,000

Rs.38,750 + 8% of the value above Rs.10,00,000.

            Other Charges
            Conservancy Charges - 13%
            Water tax - (if no water meter is provided) - 2.5%
            Water benefit tax - 2%
            Drainage benefit- 4%
            Trees Cess - 1%
            Fire brigade - 0.75%
            Street Taxes - 5%

Procedures for Tax Assessment
The property taxes are payable for all flats as built-up property from  the date of obtaining the completion certificate for the flat. The  property taxes are calculated on the basis of rateable value of the  flat.

The Estimated Rent (ER) for assessment is predetermined as  mentioned below :

Rs.1 to Rs.1.30 per sq.ft. per month on carpet area for residential  premises depending on the location.This rent per sq.ft.per month is multiplied by 12 months to get the  annual rateable value.

In this Estimated Rent Value, 40% is given as concession for  self-occupied residential properties. After deducting this 40%, what we get is the Concessional Rate(CR). 15% is then deducted for maintenance charges. The balance is  called the rateable value of the property.On the rateable value, Stamp duty is payable on purchasing a flat.