A variety of offers from different builders can make comparisons difficult. “Concentrate on offers that add to the value of the property and/or reduces its cost of acquisition,” says Anuj Puri, Chairman, Anarock Property Consultants. “To compare offers by different builders, use the criteria of ‘how much is the net reduction in payment and bring it down to just one number,” says Shishir Baijal, CMD, Knight Frank India. To arrive at the actual impact in just one number, you need to see. To arrive at the actual impact in just one number, you need to see how each of these offers work. For example, offers like a waiver of stamp duty, registration charges, GST, etc are straightforward savings that can be calculated easily. Free car parking, waiver of floor rise charges, etc can also result in significant savings and will be applicable for all. The next round of freebies like modular kitchen, air-conditioner, furnishings, etc will be of use only to some people. Further, the brands or quality offered by builders may not be of your choice. So, if the stuff offered is not what you like, try bargaining for a lower price.
Similarly, external offers like cars, gold coins, vacations, etc will be of use to a very small section. Assured rent-free accommodation till possession may be of some use to those who are living on rent and not to someone who is staying in his own house. Be careful with flexible payment options like a book with a small amount (5%, 10%, etc) and pay the balance at possession, etc. It is fine if this offer is coming directly from the builder and not through another funding agency. “Homebuyer. However, the value of the house as per the circle rate is Rs 60 lakh. Under income tax laws, if the difference between the actual sale consideration and the circle rate value exceeds 10 percent, then the seller of the house i.e. the developer will be required to consider the sale at Rs 60 lakh to calculate the profit as per the income tax law. Further, the house buyer will be required to show the difference i.e. the gain of Rs 10 lakh as ‘Income from other sources’ and pay the tax accordingly. In the above example, the difference between actual sale consideration and circle rate value is 20 percent (10 lakh divided by 50 lakh X 100). With the new announcement, the difference i.e. Rs 10 lakh will not be considered as income in the home buyer’s hand as the difference is up to 20% only.
Essentially, the home buyer is considered to have got a notional discount or benefit worth Rs 10 lakh which should therefore be shown as ‘income from other sources’. Hemal Mehta, Partner, Deloitte India says, “It’s a welcome move by Govt giving stimulus to the Developers across India by extending the limit from 10 to 20 percent between the actual sale price and the stamp duty value – this gives protection to both buyer and seller in the primary sale from the deemed tax which both were liable to pay if the transaction price was lower – due to the market situation developer across the country were forced to sale their residential units at a lower price. This benefit is only given to residential property and not commercial or retail.”Spark Global Limited