Blog
What is Real Estate Investment?
Real estate investment is the process of buying or acquiring a property to generate more income. It includes any building, property, or land that is immovable but transferrable. Real estate investments can be classified into residential, commercial, and industrial. Even though the initial investment in real estate is more, it is one of the best ways for capital appreciation.
What are Real Estate Investment Strategies?
There are various beginner-friendly ways for real-estate investing in India. Following are the most common ones -
Rental Property
Purchasing a rental property not only helps you build wealth over time with the appreciation of the asset but also secure a monthly income source for yourself. This investment could be in a single-family house, multi-family residence, warehouse or a commercial property. This can be used for renting out to others.REITs
REIT stands for Real Estate Investment Trust. These REITs run a number of real estate holdings warehouses, shopping complexes, residential building and hospitals. It is a type of business that manages and owns income-genrating real estate. It works in a manner similar to the share market. The investors can simply acquire REIT shares and earn profit from it without owning any physical real estate property.
What is Real Estate Tax in India?
Real estate tax refers to the tax levied on the gain from sale of a property, which is a capital asset. The gains from property sale are also known as capital gains.
Capital gains are the earnings derived from the sale of a capital asset - a residential house, business facility and a plot or land, when the sales price is more than the purchase price. These capital gains can be both short-term and long-term in nature depending on the time duration for which it was held. Long-term capital gains get taxed @20% depending on the tax bracket in which it falls.
The rental income earned from property is also taxed under the section 24 of the Income Tax Act in the hands of the owner. The rent received from leasing an unoccupied land is levied to tax under the head ‘income from other sources.’ The Indian income tax law allows a standard deduction of 30% on the rental income from the house property.
What are the Tax Benefits of Investing in Real Estate?
There are various advantages of investing in real estate. But it can be overwhelming to understand and discovering the potential solutions to your tax problems. Here is a list of the top tax benefits of investing in real estate -
Home Loan Tax Benefits: If you invest in real estate by taking a loan, you can get multiple benefits on real estate taxes. Given below are some deductions you can claim on a home loan -
Deduction on Interest Paid - If a home loan is taken for the purchase or construction of a house property then the assessee can claim a tax deduction. The interest on home loan EMI can be claimed as deduction from total income upto a maximum of Rs.2 lakhs. However, there is no upper limit for interest deduction on let out property.
Deduction of Principal Repayment - The principal paid on the home loan EMI can be claimed as a deduction from the total income upto a maximum of Rs.1.5 lakhs. However, the house property should not be sold within 5 years from the sale date.
Deduction for Stamp Duty - Apart from claiming a deduction for principal repayment, you can also claim stamp duty and registration charges under section 80C within the threshold limit of Rs.1.5 lakhs. However, these can be claimed only in the year of incurring the expense.
Additional Deduction - The home buyers can also claim an additional deduction of Rs.50,000 under section 80E. However to claim this deduction, the loan amount should be less than Rs.35 lakhs and the property value should be less than Rs.50 lakhs and the individual should be a first-time home buyer.
Additional Deduction u/s 80EEA - Section 80EEA allows homebuyers a deduction of a maximum upto Rs.1.5 lakhs. The stamp value of the property should not exceed Rs.45 lakhs, the individual should be a first-time homebuyer and should not be able to claim 80EE deduction to claim this deduction.
Deduction for Joint Home Loan - If the home loan is taken jointly, then each co-owner can claim a deduction of upto Rs.1.5 lakhs under section 80C for principal repayment and upto Rs.2 lakhs under section 24B for interest on home loan.
Standard Deduction: Standard deduction is a tax benefit provided on rental income in India. As soon as you buy a property, it is assumed that it will undergo repairs and maintenance. Even if there is no actual expense, you can still claim a deduction of 30% on the rental income.
Depreciation: Depreciation can provide significant reduction in tax liabilities for homeowners. Real estate properties also suffer from wear and tear and require reinvestment in repairs and maintenance. The amount invested by the homeowner in repairs and modifications can be claimed as a deduction along with the depreciation.
In a country where property ownership is highly regarded, leveraging these tax incentives can prove to be a wise and strategic move for investors, ultimately making real estate one of the most attractive investment options in India. However, not everyone is aware of the benefits of investing in real estate. The best way to save taxes on real estate investment is to seek professional help.
Top 7 Advantages of Investing in Real Estate in India
Rental Income Potential. ...
Tax Benefits and Incentives. ...
Diversification and Risk Management. ...
Long-Term Value Appreciation. ...
Return on Investment. ...
Financing and Leverage. ...
Emerging Trends and Opportunities.
Find out more about how real estate is a profitable investment option :
It is a safe investment option
Compared to other investments like the stock market, gold, cryptocurrencies, and even banks, a real estate investment can be a lot safer. The stock market fluctuates all the time. Gold prices may help to offset the market’s fluctuations, but gold brings in other hassles like storage and theft issues. Cryptocurrencies are the “new kid on the block” so, very little is known about them.
When it comes to real estate, the sector has been witnessing a growth in the last few years because of the implementation of RERA, reduced home loan interest rates, etc. On the other hand, the interest rates on savings accounts in banks are considerably low, especially when compared to the rising inflation.
You can park your surplus funds by investing in a property. It is less susceptible to frequent fluctuations and there are minimal chances of theft. Furthermore, the longer pricing cycle in real estate as compared to other assets with shorter pricing cycles means that real estate prices are more predictable and steadier.It is a rapidly growing sector
The Indian real estate market is growing at a fast pace. The market for real estate is expected to grow from ₹12,000 crores in 2019 to ₹65,000 crores in 2040 and contribute to almost 13% of the country’s GDP by 2025.
With residential and commercial spaces coming up in several cities around the country, including tier 2 and tier 3 cities, you can benefit from exemption on long-term capital gains tax on investment in a residential property under Sections 54 and 54F.High potential for growth
With the global attention shifting from China to India, a real estate investment can be a profitable option in the current scenario. With more and more international companies making their way to India, there is expected to be a surge in the number of jobs in the country. With the influx of money, more and more people are likely to purchase homes and increase the demand for real estate. This means good news for real estate investors, since they can avail of capital gains tax exemption under Section 54F of the Income Tax Act.
High return of investment
The returns on investment in real estate surpass the inflation rate, offering you real profits. Compared to other high reward options like direct equities, etc.-, real estate can offer you a high return without much risk. The process of investment in real estate is also quite streamlined with legal procedures like registrations and stamp duties well in place, thereby reducing the chances of loss due to frauds or scams.
Tax savings
Home loans contribute to tax savings. If you are a first-time homebuyer, you can save up to ₹1.5 lakh on the principal amount under Section 80C, up to ₹2 lakh on the interest payable under Section 24. These tax savings can help you lower your investment cost and make the investment a lot more affordable.
To sum it up
The Indian real estate market is booming and being a part of its growth can shower favourable returns in the future. So, ride this tide to secure your future, live a luxurious life, and leave a legacy behind for your loved ones.
Piramal Realty offers luxurious homes across Mumbai that offer you the best of amenities at affordable financial solutions. Check out our properties in Mumbai and reap endless returns for life.
CAPITAL GAIN TAX ON SALE OF PROPERTY IN INDIA (2023)
There are a variety of assets in which an individual can invest in India to gain good profits. These may include stocks, mutual funds, bonds, derivatives, commodities, etc. While all these investment instruments are extremely popular, real estate investment accounts for the maximum share of a typical Indian household. As per a report by the Finance Household Committee, Reserve Bank of India, an average Indian household invests 77% of its total wealth in real estate.
However, one thing that every real estate investor should remember is that capital gains or profits generated from selling real estate properties in India are not entirely tax-free. As per the income tax laws of India, capital gain on the sale of property attracts an income tax at a specified rate. This rate is decided as per the nature of the property and the duration for which the investor held it before it was sold.
What are capital gains and capital gains tax in India?
Any profits or gains generated by an investor from the sale of assets like gold, shares, mutual funds, or real estate are known as capital gains. In India, capital gains tax is applicable to both short-term and long-term capital gains. The income tax levied by the government on these profits is known as capital gains tax. Depending on the holding period of these assets, capital gains tax in India is classified into two categories – Long Term Capital Gains Tax (LTCG) and Short-Term Capital Gains Tax (STCG).
What is a long-term capital gain tax on property?
As per the Income Tax Act of 1961, if a real estate property is held for more than two years or 24 months by an investor, the profits or returns generated from it are termed long-term capital gains or LTCG. The income tax applicable on the sale of such properties is known as the long-term capital gains tax.
Currently, the applicable rate for long-term capital gain tax on property in India is set at -20% by the government. It means that if an investor sells their property after holding it for more than two years, they will have to pay a tax of 20% on the profits generated from the sale. The investors can avail of the indexation benefits on the tax paid by them.
Below are a few points that one should remember while calculating the LTCG tax on property:
The taxpayer can subtract the commission or brokerage paid to an agent while calculating the taxable amount for long-term capital gain tax on property.
The taxpayer can also deduct any additional expense incurred by them for home improvement or construction while they were holding the property.
The taxpayer can claim certain tax exemptions under sections 54, 54B, and 54EC while evaluating the LTCG amount.
What is a short-term capital gain tax on property?
If a real estate property was held for less than 24 months by an investor before it was sold, the return or profit generated from its sale is known as short-term capital gains or STCG. The income tax levied on short-term capital gain is known as short-term capital gain tax.
As per the existing income tax laws, short-term capital gain generated by an investor is added to their annual taxable income and will be taxable as per the relevant income tax slab rate. For example, if a person makes a short-term capital gain of ₹5 lakhs and falls in the 30% tax bracket, they will have to pay an STCG tax of 30% on ₹5 lakhs, i.e., ₹1.5 lakhs.
Like LTCG tax, an individual can subtract the brokerage amount and home improvement costs while calculating the taxable income for short-term capital gain tax on property.
Proposed changes for 2023
The Government of India has proposed a few changes in the existing structure for the capital gain tax in India. Currently, different asset classes attract tax at different rates, and their classification of LTCG and STCG is also defined differently. However, the government is planning to bring anonymity to the capital gain tax structure of India by announcing the changes during the 2023 Union Budget.
It means that all types of assets that can generate capital gains, including equity shares, mutual funds, and immovable properties, can attract the LTCG and STCG tax at the same rate after 2023.
To sum it up
The calculation of the capital gain tax on the sale of property in India is complex. One can take the help of a property tax consultant or advisor while determining the payable tax amount. These professionals can also help in lowering taxes and maximizing profits.
FAQs
How much long-term capital gain is tax free?
Sections 54 to 54F limit the amount that can be excluded from long term capital gains tax to Rs. 10 crores. Please be aware that if this new property is sold within three years of the purchase or completion of the building, the exemption may be revoked.
What is the tax on long term capital gains section?
For gains in stocks and equity mutual funds, Long Term Capital Gainis 10%. Gains from real estate, debt funds, and other assets, as well as the advantage of indexation, are 20%.
How Do I Avoid Short-Term Capital Gains Tax?
The simplest strategy to avoid paying short-term capital gains taxes is to keep the asset for longer. Keeping the item for at least a year result in substantially lower tax rates for the taxpayer.
What is an Agreement to Sell?
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell an asset or property to the buyer at a specified price. The agreement to sell is also known as a sale agreement. It is generally used to sell immovable property such as land or buildings. The Agreement to Sell includes all the terms and conditions agreed upon by both parties. Generally, in India, sale agreements are made before registering the sale deed so that all conditions can be negotiated and finalized between the parties before making it legally binding.
Importance of Agreement to Sell
An Agreement to Sell a contract is crucial because it legally binds the parties involved in the sale of a property. This contract outlines the terms and conditions of the sale, including the price, date of sale, and any contingencies that must be met before the sale is finalized. The agreement also protects both buyers and sellers from fraud or misrepresentation by clearly stating all material facts about the property. Lastly, this contract can be used as evidence in court if there are any disputes between the parties after the sale has been completed and the Agreement is registered.
The Maharashtra Stamp Act of 1958 governs the stamp duty payable on an Agreement to Sell property in India. Under this Act, any document which transfers or assigns an interest in immovable property for consideration must pay stamp duty and registration fees as prescribed therein and also register the Agreement to Sell with the relevant Office of the Sub-Registrar of Assurances. The registration fee for an Agreement to Sell is calculated as a percentage of the sale price/market value of the property.
Agreement to Sell: Rights of the Seller
The seller has certain rights under an agreement to sell, which are as follows:
The right to receive the sale consideration from the buyer.
The right to deliver possession of the property to the buyer.
The right to sue the buyer for specific performance of the contract in case of breach by the buyer.
The right to terminate the contract in case of breach by the buyer.
The right to withdraw from the sale completely if there is no agreement between the parties, or if either party cancels or backs out of the sale, etc.
Stamp Duty on an Agreement to Sell
In India, the buyer is liable to pay stamp duty whenever any immovable property is transferred. The amount of stamp duty payable depends on the state in which the property is situated as well as the value of the property.
Similarly, when an agreement to sell is executed, stamp duty is also payable on it. The amount of stamp duty payable on an agreement to sell depends on various factors such as the property’s value, the nature of the transaction (sale/purchase/exchange/lease), etc.
The party who executes the agreement to sell is liable to pay stamp duty. In most cases, the buyer pays stamp duty on an Agreement to Sell. However, there are some instances where the seller may also be liable to pay stamp duty.
It is important to note that the amount of stamp duty payable on an Agreement to Sell is generally lower than the stamp duty payable on a sale deed. This is because an “Agreement to Sell” is only a preliminary contract and does not transfer property ownership.
What is RERA?
As mentioned, the Real Estate Regulation and Development Act (RERA) was passed by the Government in the year 2016 to regulate the real estate industry in India and safeguard homebuyers’ rights. Till then, homebuyers in India often complained that the real estate sector is heavily tilted in the favour of the builders and developers. That is why the Government passed the RERA to make real estate transactions between customers and developers fairer and more equitable.
The primary objectives of the RERA in real estate include:
To protect the rights and interests of the homebuyers in India
To maintain transparency in real estate transactions.
To ensure the accurate flow of information between developers and homebuyers
To impose greater responsibilities on builders as well as buyers
To uplift the credibility of the real estate sector in India and attract investors
To establish an adjudicating mechanism for speedy dispute redressal.
Why is RERA important?
The real estate industry is one of the leading revenue generators for the State Government and the Government of India. They impose various types of taxes on real estate transactions, such as stamp duty, registration charges, property tax, etc.
Regulation like RERA was required to also strengthen the trust of investors in India’s real estate sector. RERA provides a middle ground for both property buyers and developers and helps in reducing the risks faced by people before this act.
After the implementation of the RERA in real estate , the buyer can know all relevant details about a project and can also check the documents related to it. The developers or builders will have to ensure that timely possession is given to the homebuyers or pay interest and/or compensation for delayed possession. The RERA has to also ensure that the developers sell properties based on their carpet areas instead of super-built areas. This has contributed to greater transparency and trustworthiness.
What is RERA Registration?
As per the RERA, a real estate project shall be registered under the RERA, if the area of land proposed to be developed exceeds 500 square metres or more than eight apartments. It further provided that projects for which the completion certificate (CC) or occupancy certificate (OC) has not been issued on or before the date of enforcement of the Act were also required to register under the RERA.
While completing their RERA registration process, the builders are required to reveal all information about the project, such as its land status, approvals, proposed completion date, promoter details, etc. The developers/ builders cannot advertise and/or market any real estate project or any part thereof without the mandatory RERA registration.
To Conclude
The Indian Government passed the RERA in 2016 to bring more transparency to the real estate sector and uphold the rights of property buyers. For developers and builders, it brought greater responsibilities and legal obligations.
Frequently Asked Questions
How to register a real estate project under RERA in Maharashtra?
Application for registration of the real estate projects under section 4 of the RERA shall be made in Form ‘A’. The process for RERA registration is different for promoters and real estate agents.
How to check if a project is registered under RERA?
Once a project gets registered under the RERA, a unique RERA registration number is allotted to it. You can check for this RERA registration number on the project’s website to know if it is registered under the RERA Act or not.
How is Rental Income Taxed?
Rental income from any residential and commercial property, whether it is a house, apartment, or factory, is subject to taxation. The property’s Gross Annual Value (GAV) is computed to calculate the income tax on house rent after deducting standard deductions, municipal taxes, and interest paid on the home loan. Any deductions on interest are applicable only if the buyer has taken a home loan.
Further, the property’s GAV is based on the amount for which the property can be rented out or the rental income received by the property.
Section 24 of the Income Tax Act of 1961: Income tax on rental income
According to the Income Tax Act of 1961, rental income is taxable under Section 24 for the property owner under the head ‘income from house property.’ Rental income earned from shops is also taxed. But, if the property is used for providing professional services by the owner or running a business, this section is not applicable. Additionally, a taxpayer must pay taxes on ‘income from house property’ only if there is a building in question. Rent earned from vacant land is taxable under ‘income from other sources.’
How to save tax on rental income?
Here are some ways one can claim exclusions and deductions on the amount paid as rental income tax.
Maintenance charges:
Some homeowners increase the total rent by including maintenance fees, which increases the rental income tax rate. One of the easiest ways to save tax in India is by reducing such maintenance charges. Individuals can add a line in the rental agreement stating that the tenant will clear the maintenance charges by paying them directly to the society’s association and not to the landlord. If the tenant is not convinced with the clause, the landlord can receive the two components – rent and maintenance charges, as separate payments from the tenant.
Municipal taxes:
Municipal taxes are levied by any local authority. They can include sewage and property taxes and are deductible from rental income tax. However, the owner can deduct municipal taxes only if they have paid them during the concerned financial year. Therefore, landlords must ensure to pay municipal taxes on time every year. Additionally, one must note that municipal taxes are always paid by the owner, not the renter.
30% Standard deduction:
Section 24 offers a 30% tax deduction on the net annual value of the property for maintenance and repairs. This amount does not include municipal taxes. A 30% house rent deduction in the income tax section is permitted regardless of whether the actual expenditure of repairs is lower or higher than the 30% deduction.
Joint property:
Another way to save on rental income tax is by buying a joint property. If two people own the property, the rental income is divided into two, and taxes are charged proportionately from all the joint owners.
Semi-furnished or fully furnished property:
Some homeowners provide facilities like DTH/ cable, newspaper, piped gas connection, Wi-Fi, security, etc., to the tenant. Generally, these charges are collected under rent, and bills are paid to the concerned authorities by the owner. To save taxes on rental income, the owner can request the tenant to clear the dues of such services and deduct the equivalent amount from the rent. This lowers the overall rent and the subsequent tax.
Rental income taxation for Non-Resident Indians (NRIs)
NRIs earning rental income by renting a property also need to pay taxes under Section 24 of the Income Tax Act of 1961. NRIs have the same deductions as people residing in India. But, in this case, the tenant is responsible for paying taxes on the property.
Since it is necessary to submit the Tax Deducted on Source (TDS) form to the tax authorities, the tenant will have to deduct a 31.2% TDS on rent and then send the payment to the NRI landlord’s bank account.
To sum it up
Before renting a property to someone, it is vital to go through the rental income tax laws in India to understand how to save tax. A clear understanding of these laws and timely payment of rental income tax can bring a host of home loan and co-ownership benefits for landlords.
GST on Residential Property in India: What Is It?
Before the implementation of GST, property purchasers had to face the hassle and stress of several taxes, like the central excise, the value-added service tax, and so on. There’s no doubt that the taxation of properties back then lacked transparency and was intricate. Things are not the same thanks to the GST.
At first, the GST on residential property purchases was 8% (affordable housing) and 12% (non-affordable housing). The taxation scheme allowed property buyers to avail themselves of the benefit of the ITC (Input Tax Credit) on the initial applicable GST rates.
However, as of April 1, 2019, new and revised GST rates are now applicable, which were decided at the 33rd GST council meeting. The revised GST rate on flat purchases is now 1%, provided it’s an affordable housing unit. On the other hand, the GST rate on luxury or non-affordable properties is 5% without ITC.
GST on Flats: Learn All About It
Everyone has to pay GST on flats and apartments if such properties are under-construction developments in one of India’s megacities. Nevertheless, it is important to be aware that the purchase of apartments or flats in finished complexes with an Occupation Certificate is not subject to the GST.
A Summarized table on GST on Flat Purchase 2022:
Types of Residential PropertyGST Till 31-03-2019GST From 01-04-2019Non-Affordable or Luxury Housing (Except For Under Construction)12% + ITC5% Excluding ITCAffordable Housing (Flats or Apartments) Under Construction8% + ITC1% Excluding ITCFor Completed Residential Projects (Ready-To-Move-In Properties)GST Not ApplicableGST Not Applicable
Note: The revised GST rate on apartmentsor any other residential property, excluding the ITC or input tax credit, applies to every new residential project. It applies only to unfinished development projects till 31-03-2019
GST on Residential Property: Prerequisites & Conditions
It is mandatory to meet certain conditions or prerequisites to purchase a residential property with a 1% GST exemption. The housing project will be eligible for affordable housing under the following conditions:
Residential Property in Non-Metro Cities Comes Under the Affordable Housing Category When-The area of the Under-Construction Flat/House/Apartment is 90 sq.m. with pricing till 45 lacs.Residential Property in Metro Cities Comes Under the Affordable Housing Category When-The area of the Under-Construction Flat/House/Apartment is 60 sq.m. with pricing till 45 lacs.
Need 1% GST on Flat Purchases? Meet These Additional Conditions
To qualify for a 1% GST rate on flat purchases, one must purchase a minimum of 80% of the raw materials from any registered dealer. If not, under RCM, the flat or housing project developer must pay 18% GST.
There’s no ITC to get entitled to a 1% GST rate on affordable housing that’s under construction. Thus, when paying GST for property acquisition, the GST won’t be deductible from the buyer’s income.
Conclusion: The Influence of GST on Real Estate
The Indian real estate industry underwent a major reform after the introduction of GST. Earlier, the housing developer used to pay permission fees, service taxes, legal expenses, excise duty, VAT, customs duty, etc., affecting their taxation procedures and increasing the payment load on property purchasers.
However, things have become simpler and more streamlined under the GST law. By surging the real estate tax rate to 12%, the latest GST tax regime has significantly reduced the burden on property purchasers. The GST rates on real estate have been lowered after the GST council meeting in 2019. Since then, buying property has become less of a headache for Indians.
At Piramal Realty, we handle all real estate requirements, from locating the ideal property to negotiating the best price. For a hassle-free real estate experience, contact us right away!
BASICS OF VASTU FOR HOME – WHAT IS VASTU SHASTRA, BENEFITS & MORE
September 6, 2022
Author: Team Piramal Realty
The science of Vastu Shastra is over 5000 years old and focuses on arranging things such that the five elements of the universe – fire, water, air, earth and space, and the energy fields, are balanced. Recently, astu Shastra for home has gained immense popularity as it brings peace and prosperity to homeowners.
Vastu’s tips for the house focus on a list of suggestions for newly constructed homes and properties. This ancient Indian science helps eliminate negative energies and enhance positive ones in and around a person or place. If you have positive energies around you, you attract an abundance of pleasant vibrations, positivity and good fortune.
Importance of Vastu Shastra
The application of Vastu Shastra helps in increasing peace and harmony at home or in your living space. It was initially created for temples; however, people realized its efficient results and began applying the principles in constructing homes and designing hospitals, industries, schools, colleges, and offices. Today, this wisdom of elements and directions applies to building gardens, agricultural farms, and vehicles, as well as designing business cards.
Benefits of Vastu Shastra
Vastu Shastra can help improve interest in spirituality. The art and science of Vastu helps promote internal peace and calm. Moreover, it can promote cooperative relationships among the people living inside the home.
The basics of Vastu for home focus on directions and the shape of structures. The shapes of the room can be square, rectangular, wheel-shaped, and bar-shaped, among others. The directions are Agneya – South East, Nyruthi – South West, Eesanya – North East, and Vayuvya – North West. Apart from the components focusing on shapes and directions, there are 12 principles, such as furniture requirement, circulation, aspect, privacy, roominess, flexibility, economy, elegance, prospect, grouping, sanitation, and other practical considerations, used for planning the design of a structure.
Vastu Shastra helps establish a connection between the physical environment and quality of life. It can promote happiness and good health of the mind.
Vastu tips for your house
Everyone dreams of owning a home someday. When that finally happens, you want to ensure that there is abundant peace, prosperity, good health, and happiness. Here is a list of Vastu principles you can follow for good omen and positivity:
Keep your main door stronger and bigger than the other doors in the house.
Ensure the space outside your main door is always bright and lit up.
Vastu for the living room suggests avoiding dark colours like black and red for the walls.
The bathroom should not have a common wall with the kitchen, pooja room, or bedroom.
The lord of fire, Agni, resides in the South-East. Many ask, according to Vastu, the kitchen should be in which direction. The answer is the South-Eastern corner of the house. The kitchen windows should face the north or northeast.
If there is a mirror in the private quarters, the bed’s reflection should not be visible.
The dining space should be at a close proximity to the kitchen and not the main entrance.
The center of the house should be left empty.
Keep rooms clean, bright, well-lit, and airy. The shape of the home should be rectangular or square.
Hang a decorative nameplate outside the main door.
Summing up
The principles of Vastu Shastra are noticeable in the monuments and buildings of ancient times, highlighting the seriousness of our ancestors’ belief in discipline. Before investing in a property, many people prefer checking the basics of Vastu for a home. While Vastu Shastra plays an important role in giving you a prosperous lifestyle, the residential properties by Piramal Realty feature well-designed and spacious interiors, epitomizing comfort and luxury.
EAST-FACING HOUSE VASTU PLAN – DIRECTION, COLOR & MORE
November 7, 2022
Author: Team Piramal Realty
The east-facing Vastu is considered extremely auspicious because the sun is the fundamental source of positive energy. An east-facing house Vastu plan can bring prosperity and luck to a person’s life. Any property with its main door facing the rising sun is east-facing. This article sheds light on effective Vastu principles for east-facing properties.
Ideal Residents of East-Facing Homes
Vastu Shastra determines that government officials, politicians, and entrepreneurs are ideal for east-facing homes. Since the east side is governed by the sun god, the direction can be associated with power, elegance, and authority.
The east side also refers to the element of air and signifies creativity, focus, agility, and new beginnings. Therefore, artists, designers, photographers, writers, musicians, and dancers also benefit from staying in east-facing properties.
People with the Dhanus and Simha Rashi should also look for an east-facing house Vastu plan. Individuals from the Mesha Rashi also benefit from properties facing the east.
Suitable Colors for an East-Facing Home
According to Vastu Shastra, east-facing homes should have a balanced color scheme. The colors in an east-facing home should make the rooms look fresh. Light green, blue, and light grey are ideal for east-facing properties. Light pink and white are also suitable because they exhibit an amount of freshness.
Master Bedroom in an East-Facing Property
A 3 BHK east-facing house plan, as per Vastu, should have the master bedroom in the southwest direction. The master bedroom should be larger than all the other rooms in the home. The bed in the master bedroom should be in the south or west. People sleeping in the master bedroom should have their heads towards the west or south and their legs towards the north or east.
If a dressing room is present in the master bedroom, it should be on the north or west side. The door of the bathroom inside the master bedroom should be always closed. In a 3 BHK east-facing house plan, as per Vastu, the bathroom should never be in front of the bed.
Living Room Placement
Vastu Shastra suggests that the living room inside an east-facing property should be in the northeast direction. The west and south walls of the living room should be longer and thicker than the north and east walls. It will help bring prosperity and good fortune to both the professional and personal lives of homeowners.
Pooja Room for East-Facing Properties
A pooja room east-facing house Vastu plan recommends that the pooja room should be in the northeast direction. An east-facing 2 BHK house plan or 3 BHK property should have the pooja room far away from the bathroom. An entrance facing the southeast direction is ideal for placing Vastu pyramids. Individuals can place two pyramids on either side of the door and one on top. Placing a Trishul, Swastika, and Om on both sides of the door can be quite auspicious.
Kitchen in an East-Facing Home
An east-facing 2 BHK house plan should include the kitchen in the southeast direction. The northwest direction is also quite good for the kitchen. But the northeast, west, and north should be strictly avoided for setting up the kitchen. The person who is cooking should face the east in a kitchen facing the northeast and the west in a kitchen facing the northwest. Keeping the oven, stove, and toaster in the southeast and the refrigerator in the southwest direction can attract positive energy in the kitchen.
Dining Room in a Home Facing the East
A 2 BHK or a 3 BHK east-facing house plan, as per Vastu, should have the dining room in the west, south, or east directions. While sitting at the dining table, individuals should face the east, west, or north. The head of the family residing in an east-facing property should always face the east while dining.
Ending Note
People staying in an east-facing property should place a rising sun painting in the east to improve their bonds with family and friends. An east-facing house Vastu plan recommends adding more greenery to attract growth. Purchasing Vastu-compliant homes from Piramal Realty will enable individuals to shine bright.
GST ON REAL ESTATE (FLAT PURCHASE, PROPERTY & MORE) – FAQS
November 17, 2022
Author: Team Piramal Realty
Real estate has emerged as the cornerstone of Indian economic development. Previously, under the tax regime, purchasers had to pay multiple taxes like registration charges, stamp duty, VAT, service tax, etc. However, things have changed since the implementation of the GST law.
Under the new GST law, purchasers must pay 12% GST on real estate properties that are under construction. However, they won’t have to pay any GST for ready-to-move-in or completed housing units, provided the Completion Certification has been granted for that property.
As of April 2019, the GST council decided to reduce the GST on residential property from 12% to 5%. It also reduced the rate from 8% to 1% for purchasing an affordable residential unit. However, no purchaser can avail of the benefits of the input tax credit (ITC) under the revised GST rate on a flat purchase.
This article explores all the frequently asked questions about GST on an under-construction property, commercial property, rental income, etc. So, keep reading.
What is the revised GST rate on residential housing projects?
Here is a table representing the latest revised GST on property purchase (residential) without ITC as of April 1, 2019:
BasisApplicable GST RateUnder construction affordable residential projects w.e.f April 1, 2019 (When the developer chose the new tax rates)1% without ITCNew affordable residential units started on or after April 1, 20191% without ITCNew projects, except for the affordable residential projects as of April 1, 20195% without ITCUnder-construction projects, except for the affordable residential projects as of April 1, 20195% without ITCDevelopment projects with less than 15% of the total carpet area devoted to commercial space1% without ITC
Conditions To Meet to Qualify for The Above-Mentioned GST Rates:
Buyers cannot claim the input tax credit (ITC).
A minimum of 80% of the total value of the raw materials must be purchased from a registered dealer.
Services Excluded from This Calculation:
Long-term land lease
Electricity value
Natural gas and motor spirit
Grant of developmental rights
Floor space index
High-speed diesel value
What is the revised GST on rental income?
Under CGST Act Section 2(83), rental income is incorporated within the term “outward supply”. Moreover, the CGST Act Section 7 also covers rental income under the segment “scope of supply.” Plus, the CGST Act Schedule II, which outlines the transactions or operations to be covered as the supply of services or supply of goods, especially mentions, and covers these rent types:
Letting out of a building (whether residential, commercial, or industrial complex) for commerce or business.
Any license, lease, tenancy, or easement to occupy and claim the land.
GST on Rent: For Commercial Properties
When someone rents any commercial property in India, they will be liable to pay GST charges. Currently, the GST on rental income from commercial properties is 18%.
GST on Rent: For Residential Properties
There is no GST on rent from residential units. No GST is applicable on income generated from renting a residential building for residential purposes. However, there won’t be any exceptions for renting residential property for commercial reasons.
What are the GST rates on commercial properties in India?
The GST on a commercial property is comparatively higher than the GST rate on a residential unit. Here is a table representing the most updated GST rates on commercial real estate projects in 2022:
Applicable GST RateType of Commercial Property5%Commercial properties are constructed within real estate residential projects with less than 15% of the total carpet area.12%Standalone commercial properties within the real estate residential projects with space of more than 15% of the total carpet area.
How to calculate GST on commercial property?
Here is an example that represents how to calculate GST on commercial property in India:
Valuation of the property (per sq. ft)INR 6000GST applicable5%GST valuation for every Square FeetINR 300Cost of the property after GST charges (per sq. ft)INR 6300The total carpet area of the commercial property400 sq. ftThe total cost of the property after GSTINR 25,20,000
When working with Piramal Realty, clients can relax knowing that their property purchases and rental revenue are not subject to the new GST. To guarantee a smooth and trouble-free experience for the buyer, we make sure that all our projects are conceived and produced in accordance with the most recent RERA criteria.