FAQs
The Real Estate (Regulation and Development) Act, 2016 (the Act, from hereon) is an initiative by Indian Government to enhance transparency in the real estate related transactions by creating a systematic and a uniform regulatory environment, thereby protecting consumers’ interest and making real estate developers liable for timely completion of projects.
These are the five major objectives of RERA, 2016.
a.To establish the Real Estate Regulatory Authority (RERA)
b.To promote transparency and efficiency in the sale of real estate projects
c.To protect the interest of consumers in the real estate sector
d.To establish an adjudging mechanism for speedy dispute settlement
e.To set up an Appellate Tribunal to hear appeals from the decisions, directions or orders of the RERA
Yes, this act is applicable to all Indian states excluding Jammu & Kashmir.
Initially, the bill was supposed to cover only residential projects. On further amendments, commercial projects including shops, offices and buildings were also included.
a.As per the RERA rules, the consumer is entitled to receive information about the sanctioned plan, approved layout plan, stage wise progress of the project, carpet area and facilitation of basic amenities & services such as drinking water, electricity, sanitation etc.
b.The consumers can claim possession of the unit and the association of consumers can collectively claim possession of the common areas as declared by the real estate developer.
c.In case the real estate developer fails to meet the timeline or does not deliver what was promised then the consumer has the right to claim refund of amount paid with prescribed interest and compensation for the same
The Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (CLSS) introduced by the Central Government. It is a first-of-its-kind initiative designed to provide ‘Housing For All’ the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), and Middle-Income Group-II (MIG-II) of the Urban society by the end of the year 2022. Under this Pradhan Mantri Yojana, they will be provided with home loan interest subsidy on purchase / construction / extension / improvement of their home.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body of private Real Estate developers representing 12,500 Members spread across 23 State level Chapters and 205 City level Chapters in India. Following are the benefits of becoming a member of CREDAI.
1.Collective representation and unified voice of the real estate industry.
2.Influencing policy and processes relating to taxation, interest rates, FDI, RERA, environment, labour legislation.
3.Enhancing perception of the real estate industry through social action on skill development, solid waste management, labour welfare and education.
4.Bonding, interaction and consensus building among real estate community.
5.Participation in debate, discussion for strategic action.
Group has more than 3 decades of experience in the field. We are one of the top builders in Bangalore because of its quality work and trust it has established with its clientele. We have a number of upcoming projects in Bangalore- Residential & Commercial. You can get more details about our new projects on the website.
You can find our properties in Bangalore and Hyderabad.
You can find a number of luxury, affordable residential homes. We also build commercial properties in Bangalore.
If you face any issues while booking your home or after, you can always write to us sales@dsrinfra.com (Residential Project Enquiries)
You can ring us at +91 90191 92000 and book you home. For any residential project booking or query you can write to us at sales@dsrinfra.com.
A small contact form is also available on our website. You can fill your contact details and our team will get in touch with you.
A member of DSR Group shall contact you within twenty-four hours of the request.
All our projects are approved and tied up with leading banks.
The price that a property can command in the open market is known as its market value.
There are several benefits: if you convert the property to a freehold property, you become a full-fledged owner by getting the sale deed and having it registered. A freehold property has better marketability and can be sold, mortgaged or kept for standing security, which cannot be done with leasehold property.
If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good.
The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.
When a piece of property is given or ‘leased’ to an individual (known as the ‘Lessee’) for a stipulated period of time, by the owner of the property (known as the ‘Lessor’), the property is referred to as Leasehold Property. A certain amount is fixed by the Lessor to be paid as lease premium and annual lease. The land ownership rights remain with the Lessor. Transfer of property requires prior permission.
When ownership rights for a piece of property are given to the purchaser for a price, that property is referred to as Freehold Property. Unlike in the case of leasehold property, no annual lease charges need to be paid and the freehold property can be registered and / or transferred in part(s).
An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession.
Stamp duty is based on the market value or the agreement value of the property, whichever is greater.
Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area.
Though this may give a fair idea of the property’s market value, an official property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank’s loan approval process would be faster and smoother if the property is certified by an official valuer. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned.
Another benefit of official valuation is that it is a useful negotiating tool when selling the property.
Such certification also becomes essential in situations where the correct value of the property has a legal bearing—such as, a will statement, insurance papers, business balance sheets etc.
The mere acquisition of property does not attract income tax. However, any income accruing from the ownership of it, in the form of rent (if it is let out)/annual value of the house (if is not let out and it is not the only residential property owned by that person in India) and/or capital gains (short term or long term) arising on the sale of this house or part thereof is taxable in the hands of the owner.
The government of India has granted general permission for NRI/PIO/OCI to buy property in India and they do not have to pay any taxes even while acquiring property in India. However, taxes have to be paid if they are selling this property. Rental income earned is taxable in India, and they will have to obtain a pan and file return of income if they have rented this property. On sale of the property, the profit on sale shall be subject to capital gains
If they have held the property for less than or equal to 3 years after taking actual possession then the gains would be short term capital gains, which are to be included in their total income as tax as per the normal slab rates shall be payable and if the property has been held for more than 3 years then the resultant gain would be long term capital gains subject to 20% tax plus applicable cess.
Yes. Long-term and short-term capital gains are taxable in the hands of non-residents.
Type of asset: assets like house property, land and building, jewellery, development rights etc. Rate of tax deduction at source (TDS)
o Long Term – 20.6%
o Short Term – 30.9%
Exemption available (only for long term capital gains) the long term capital gains arising on sale of a residential house can be invested in buying/ constructing another residential house, within the prescribed time. The exemption is restricted to the amount of capital gains or amount invested in new residential house, whichever is lower. If the amount of capital gains is invested in bonds of National Highways Authority of India (NHAI) or rural Electrification Corporation, then the entire capital gains is exempted, else the proportionate gain is exempted. As per the financial budget 2007-08, a cap of Rs.50 lakhs has been imposed on investment that can be made in capital tax saving bonds.
Under Foreign Exchange Management Act, 1999, Non-resident Indian are:
Indian citizen who stays in India less than 182 days during the preceding financial year. OR
Indian citizen who goes out of India or who stays a/divoad for employment or carrying on business or on vocation or for any other purposes, in circumstances indicating an uncertain period of stay a/divoad, OR
Government servants deputed a/divoad on assignment or posted to their offices including Indian Diplomatic Missions a/divoad, OR
Indian citizen working a/divoad on assignment with foreign government regional/international Agencies like the UNO, WHO, IMF, World Bank etc.
As per FEM (Acquisition & Transfer of Immovable Property in India) Regulations, 2000 a Person of Indian Origin means a citizen of any country (other than Pakistan or Bangladesh or Sri Lanka or Afganistan or China or Iran or Nepal or Bhutan), if
He at any time held an Indian passport; or
He or either of his parents or any of his grand-parents was a citizen of India by virtue of Constitution or India or Citizenship Act, 1955;
A. NON-RESIDENT (ORDINARY) ACCOUNT
Who can open and how?
An existing bank account of an Indian national going a/divoad and becoming a Non-Resident Indian is automatically designated as Non-Resident (Ordinary) account (NRO). An nri can also open such ordinary accounts even by making remittances from a/divoad or by transfer from an existing Non-Resident account in India in his own name. Such accounts can also be opened by Overseas Corporate Bodies (OCBs). NRO account can be opened, while a nri is on a visit to India or simply by making remittances from a/divoad. NRO accounts can be in the sole name of an nri or in joining names of more than one nri or in joint names with any of the close relatives in India. In other types of joint accounts, prior permission of Reserve Bank of India (RBI) is required.
What type of accounts can be opened?
NRO account can be in the categories of current, saving, and term deposit accounts.
What types of transactions are permitted?
All types of transactions of deposits and withdrawals to and from NRO account are normally permitted. However, the RBI has prescribed certain transactions required to be reported to RBI in prescribed forms.Can the funds be repatriated?Repatriation is subject to RBI approvals however, the funds can be freely withdrawn from the local disbursement without RBI approval.Is interest earned exempt from tax?The interest of deposits in nri accounts and balances standing to the credit of such accounts are not exempted from Income Tax.
Who can open and how?
nri as well as OCBs are permitted to open NRE account. NRE accounts can be opened by depositing foreign currency alongwith the account application form i.e. account opening form may be signed by nri a/divoad and the signature of nri may be verified by bank a/divoad or by Indian embassy or by Notary Public Officials a/divoad. NRE account can be opened during the visit to India by tendering foreign currency traveller’s cheques or foreign currency notes.
What type of accounts can be opened?All types or account i.e. current, saving and term deposit can be opened under NRE accounts scheme. NRE accounts can be opened in single or joint name. However, in case or account opened in joint name, all the joint holders should be resident of external group countries.Can the funds be repatriated?The entire credit balance can be repatriated outside India at any time without any reference to RBI. At the time of repatriation, the amount to be repatriated is converted into the designated foreign currency at the prevailing market rate of exchange. NRE account offers all the facilities of the NRO account plus complete repatriation without informing the Reserve Bank.
Who can open and how?Both Non-Resident Indians, and OCBs are eligible to open FCNR (B) accounts. nri and OCBs resident in bilateral group of countries cannot open FCNR accounts without RBI approval. FCNR (B) accounts are permitted in the following currencies.Pound Sterling (GBP)Deutsche Mark (DM)US Dollar (USD)Japanese Yen (JPY)Euro or other Currencies as per RBI guidelinesThe rates of interest on the above account vary for each type of designated currency.What type of accounts can be opened?FCNR (B) account is permitted in the form of fixed deposits for a maximum period of 3 years. Current and Saving accounts are not available under this scheme.
nri are permitted to acquire immovable property in India other than agricultural/plantation property or farm houses.PIO resident outside India, are permitted:to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of(i) funds received in India by way of inward remittance from a/divoad, or(ii) funds held in any non-resident account of the investor, orto acquire any immovable property in India other than agricultural land/farmhouse/plantation property by way of gift from a resident person or nri or PIO; orto acquire any immovable property in India by way of inheritance from a resident person or a non-resident person who had acquired such property in accordance with the law of foreign exchange in force at the time of acquisition.Any non-resident person, who has established in India a /divanch, office or other place of business (excluding a liaison office) for carrying on in India any activity, in accordance with FEM (Establishment in India of /divanch or office or other Place of Business) Regulations, 2000, may acquire any immovable property shall furnish a declaration in Form IPI to the Reserve Bank of India within 90 days from the date of acquisition.
Non-resident Indians are permitted to transfer any immovable property in India to a resident person, and any immovable property other than agricultural or plantation property or farmhouse, to a non-resident Indian or person of Indian origin.Persons of Indian origin are permitted to transfer any immovable property in India other than agricultural land / farm house / plantation property, by way of sale to a resident person; any agricultural land / farm house / plantation property in India, by way of gift or sale to resident person who is a citizen of India; and any residential or commercial property in India; by way of gift to a resident person or nri / PIO.Any Non-Resident person who has acquired any immovable property in India, for establishing or for the purpose of a /divanch, office or other place of business (excluding a liaison office) , is permitted to transfer such property by way of mortgage to a authorised dealer as a security for any borrowing.
The sale proceeds of an immovable property in India can be repatriated if following conditions are fulfilled:The immovable property was acquired by the seller in accordance with the law of foreign exchange in force at the time of acquisition;The amount to be repatriated does not exceed the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in FCNR A/c, or the foreign exchange equivalent, as on the date of payment, where the amount paid of out of NRE A/c.In case of residential property, the repatriation of sale proceeds restricted to not more than two such properties.In case a non-resident person acquired an immovable property in India when he was resident or inherited it from a resident person, repatriation of sale proceeds of such property shall be allowed only with the permission of Reserve Bank. Similar restriction shall apply in case of successor of the aforesaid persons.No permission is required for renting / transfer or gift of property so long as there is no repatriation of proceeds.(The condition for non-repatriation of sale proceeds for a period of three years has now deleted by RBI circular dt. 1.11.2002)
Yes Authorised dealers and hosing financial institutions in India approved by the National Hosing Banks may grant housing loans to nris/PIOs for acquisition of immovable property in India subject to the following condition:The quantum of loan, margin money and the repayment period will be at par with those applicable to housing loans being granted to residents.The loans shall be fully secured by creating equitable mortgage of the property proposed to be acquired, and if necessary, be lien on borrower’s other assets in India.The loan amount shall not be credited to NRE/FCNR/NRNR account of the non-resident borrower.Repayment of loan may be made by the borrower in installments comprising principal, interest and other charges by remittances form a/divoad through normal banking channels or out of funds held in his NRE/FCNR/NRO/ NRNR accounts in India.
Typically the security for the loan is first mortgage of the property to be financed, normally by way of deposit of title deeds and / or such other collateral security as may be necessary.In additional interim security may be required, if the property is under construction. Collateral or interim security could be in the form of assignment of life insurance policies, surrender value of which is at least equal to the loan amount, pledge of shares other investments.
Yes, normally it is desirable to appoint a Power of Attorney in India to represent you in dealings in India. The power of Attorney should be executed as per drafts provided by the housing finance company. The power of Attorney can be given to any person of your choice in India.
Yes, normally it is desirable to appoint a Power of Attorney in India to represent you in dealings in India. The power of Attorney should be executed as per drafts provided by the housing finance company. The power of Attorney can be given to any person of your choice in India.
The RBI has granted general permission to nri’s and foreign citizens of India origin, to let out their residential properties. However, there are restrictions on the repatriation of the rental income earned from such letting out the property. The rental income is on a non-repatriation basis. Thus funds (rental income) can be credited to the NRO Account/ Residential Account in India.