LEGAL

While purchasing a Millennium Group property in Navi Mumbai, get a copy of the title report by the solicitor of the property. Make sure that there are no conditions written in fine print and that there are no specific reservations by the state government.

Look for specific clearance reports. For instance, if the construction is near a seafront, you will need to check for a Coastal Regulation Zone (CRZ) clearance. If the project is being constructed over or in the close vicinity of a heritage building, you must check for any heritage reservations for the premises. We at Millennium Group have already taken the required precautions and clearances to ensure that you do not get stuck with a property that is, or may get caught in any sort of disputes. Since, lack of clearance of titles also means that you will not be able to avail home loans.

PERMISSIONS AND APPROVALS

Several permissions and approvals from relevant bodies are sought by Millennium Group before embarking on the construction of any project. Without these clearances, the construction may come under scrutiny and litigation. Here is a list of documents and approvals that the builder must possess for all building work to commence in Navi Mumbai/Panvel:

Commencement Certificate

Fire NOC

Height Clearance (Airport NOC)

TAX BENEFITS

Section 24 of the Income Tax Act

This section deals with deduction available on Interest paid on capital borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of property. The purchaser is allowed to deduct an amount equivalent to the total interest payable on the housing loan from his/her taxable income within the same financial year.

It began with Rs 15,000 being the maximum amount eligible for deduction in the case of self-occupied property. This later got doubled to Rs 30,000, then increased to Rs 75,000, and later enhanced to a limit of Rs 1 lakh. Currently, the limit stands elevated to Rs 1.5 lakh.

So borrowers now will enjoy a deduction of upto 1.5 lakh on interest paid, on loans taken to purchase, construct, repair, renew or reconstruct property, on or after April 1, 1999.

This applies only if the property is acquired or constructed within 3 years from the end of financial year in which the capital was borrowed and is self - occupied. A substantial figure, by any account.

AN EXAMPLE:

If taxable income is Rs 4. lakh

If interest payment during the first financial year is Rs 1.60 lakh

Taxable income then stands reduced to Rs 2.5 lakh (Rs 4 lakh - Rs 1.5 lakh (being the maximum tax deductable limit)

In this case, total tax will amount to Rs 24,720 (tax of Rs 24,000 + Education Cess Rs 480+ SHEC Rs. 240)

Tax saved will be Rs 46,350 (tax @30% on Rs 1.5 lakh plus 2% EC+ 1% SHEC, since purchaser is in the highest tax bracket)

Section 80C of the Income Tax Act

A deduction u/s 80C (2) (xviii) is available on repayment of principal during a financial year up to Rs. 1,00,000/-, this aforesaid limit is within the overall limit of Rs. 1 lakh specified in section 80C of the Income Tax Act. Stamp duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the assessee is also considered under this amount. This deduction is from Gross Total Income.