Applying for Home Loan or Balance Transfer Home Loan as an NRI / OCI/ PIO

Applying for Home Loan or Balance Transfer Home Loan NRI / OCI/ PIO

Most of the times, its a dream for NRI to buy a property in his/her home town or clear existing home loan before they return India. We come across NRI/OCI/PIO buying property in India very frequently. There are a lot of doubts which seem to be repeated by most clients.

This blog would give an insight of the process so that one can avoid errors and rework.

Process for Non Residents Indian / Person of Indian origin PIO or Overseas Citizen of India  OCI for Home loan application.

NRI OCI PIO Home Loans
NRI Home Loan Balance Transfer

HOW TO APPLY FOR NRI BALANCE TRANSFER HOME LOAN ? 


First Step is to Decide the Power of Attorney (POA) Holder

The first step for any NRI/OCI/PIO is to decide who would be the POA holder. He/she has to be a blood relation residing in India preferably in a metro like Bangalore,Hyderabad, Mumbai, Mysore, or Pune.

Most of the banks ask for a Co-applicant. Your blood relative in India that is your parents/spouse can be a co applicant. You also need to convey the property ownership details .

In case you are buying in joint name i.e either your spouse / parents, he /she would have to be on the loan as a co applicant.

Please note the POA holder is the person who would be called in case you delay/ default on our loan.

Power of Attorney(POA)

The most crucial document you need to execute is the POA in the format of Bank that you are applying for the home loan. Each Bank has its own format for the Power of Attorney.

Do not execute a generic general power of attorney as most banks refuse to accept the same for the application. Once you have the power of attorney format of the bank that you wish to avail home loan from since you would be executing the POA outside India, you need to visit the Indian Embassy and complete the process.

In case your co applicant is an NRI you would need to execute POA for him/her also. Both POAs can be given to the same relative in India.

Please get the Power of Attorney checked from your banker before notarizing it from the embassy. Any errors can be rectified.

Kindly note that the POA attracts a fee in the embassy as well as here in India. In India you need to affix a Rs 500 stamp paper and get the documents notarized.

Kindly note in case there are any errors / gaps in the POA you waste a lot of time, energy and money because the entire exercise has to be repeated.

For Property Registration

The power of attorney you have executed for the bank can also be used for the registration of the property document. However you need to get the same checked from the developer from whom you are buying property.

All the income and personal documents as per the list have to be self attested by you (signed by you/POA holder) when you despatch the same to India.

Kindly also provide your overseas address proof which can be your employer’s letter in original.

You need to provide following documents attested by Indian Embassy : PAN CARD COPY, PASSPORT COPY and Overseas Residence proof

WHAT TO SUBMIT FOR NRI BALANCE TRANSFER HOME LOAN ?

List of Documents for NRI

  • Photo of Applicant and co-applicant
  • Latest 4 months salary slip
  • Appointment letter
  • Increment letter with salary breakup
  • Address proof
  • Previous work experience letter
  • Pan card copy & Passport copy
  • Processing fees cheque from NRE account
  • Co-applicant photo ID proof and sign Proof ( Pan Card ,Passport, Driving License copy)
  • Employment contract (English copy if the contract is not in English, attested by the Embassy/Employer).
  • Latest work permit.
  • Details of previous employment.
  • Identity card issued by current employer.
  • Bank Account Statement For Salary & Saving a/c (six months).NRI,NRO A/C
  • Pages with visa stamp on the passport.
  • Power of attorney For Bank Format
  • Pan Card Copy, Address proof, Photo for POA holder
  • Detailed credit report from Equifax / Experian

Credit Report

A credit report is a mandatory document for NRI/OCI/PIO US/UK/European countries, Australia, New Zealand and South Africa.

The credit report is not required for professionals working in the Middle East

Please download a detailed credit report which would clearly state your credit score. Most of the times you would have to pay fee to download the credit report. the credit reports available free of cost do not provide detailed credit history and might not provide the score.

WHERE TO PROCESS FOR NRI BALANCE TRANSFER HOME LOAN ?

We would recommend to process with Bank or institution which is providing Online Access to monitor, manage and allow part payments online. Most of the banks provide online access. So make sure you collect all the required online access details at the end of Loan process. We, at Loanyantra as part of process checklist, make sure our customers get the required online access to the loan process.

WHOM TO APPROACH FOR NRI BALANCE TRANSFER HOME LOAN?

NRI/OCI/PIO Loans if not professionally handled it might be very cumbersome job. It is always good to be ready with all the documents before starting the Home Loan process. In case of additional documents required then it would take extra money to send , extra time it would take to receive and extra efforts by the  Power of Attorney(POA) to submit the documents. We would recommend, use services from a prompt loan professional to process it smoothly. Loanyantra.com, India’s first online loan management company, a reliable and perfect source if you are looking for a smooth process.

In a hawk’s eye, Loanyantra provides professional service at free of cost. As our process protocol, we first send entire checklist and have a professional call before we start the process. Once the process starts you get online access on Loanyantra portal which would update the status of the Loan process and it provides a chat facility between you, Loanyantra executive appointed for your process and the Banker. We make over all experience a cake walk.

5 questions for home buyers to ask!

If answered accurately, they will help you take a more informed decision

Questions for home buyers to askNo loans to repay, modest aspirations and not a very ambitious retirement target. For Mumbai-based bank executive Alpesh Mehta and his schoolteacher wife Deepali, saving for their child’s education and marriage, as well as their own retirement, will be a breeze. But this could change if they go ahead with their plan to buy a house.In Mumbai, the minimum price of a 800-1,000 sq ft house is `1 crore. They will have to liquidate all their existing investments to raise about `20 lakh for the downpayment. The balance `80 lakh, if borrowed at 10% for 20 years, will mean an EMI of `77,200, which is roughly 60% of their combined monthly income of `1.3 lakh. Either the Mehtas will have to stop saving for their child’s goals or their retirement will have to be pushed back.The Mehtas are not the only ones entering this minefield. Across the country , a number of people are firming up plans to buy a new house. The New Home Index of Zyfin Research, an indicator of home buying plans of 3,000 households across 11 cities, has inched up in the past 12 months (see graphic).Though it is still in pessimistic territory, buyers are less pessimistic now than they were in May 2014. “The decline in pessimism has more to do with increased optimism about future income and job security than lower borrowing costs,“ says Debopam Chaudhuri, Chief Economist and VP-Research, ZyFin Research.

Despite the surge in buyer sentiment, real estate is still not a good investment in most parts of the country .Property price are still very high and despite the recent interest rate cuts, the cost of borrowing has not come down significantly. Before they take the plunge, potential borrowers need to ask themselves 10 questions. Your answers will tell you whether you should save more for a bigger down payment, buy a smaller house, invest in a cheaper city or not buy at all.


1. Can you afford the home loan EMI?

It might sound a no-brainer, but many home buyers get this wrong and bite off more than they can chew. The home loan EMI should be around 40% of your net household income. But that is if you don’t have other loans. A high EMI outgo can put your house-hold budget under pressure. If the home loan EMI accounts for more than 50% of the net household income, other goals will have to be downsized or junked altogether.Don’t be fooled into thinking that the recent cut in home loan rates have made property a viable investment. It will have a marginal im-pact on the total EMI. A 25 basis point cut will reduce the EMI of a `50 lakh loan for 20 years by `826.

It’s easy to get ambitious and go for a bigger loan if you are expecting generous increments in the coming years. Don’t make the mistake of leveraging on future income. While your income would certainly rise, but so would your expenses and financial commitments.


2. Have you factored in the other costs?

The advertised price is usually the base price of the property . The add-ons are usually kept hidden till you sit down with your cheque book. Many builders will slip in charges for facilities that you thought were free with the property. Others will keep certain charges hidden from the buyer by tucking them away in the fine print. These apart, there are other big-ticket add-ons such as the legal costs. The stamp duty and registration charges payable to the authorities add up a neat 7-8% to the overall price of the property. In all, these charges can push up the property price by 20-25%. Make sure you have factored in these additional costs.


3. Have you considered renting?

The high property prices means that renting is a better option in most cities.A 2-BHK house in Mumbai will cost close to `1.2 crore. If a buyer puts in `40 lakh as downpayment and takes a loan of `80 lakh, the EMI for 20 years comes to about `76,500. He also loses around `23,500 in interest that the `40 lakh downpayment could have potentially earned. The total cost per month comes to `1 lakh while he can easily get a similar house on rent in Mumbai for about `40,000-45,000 a month.

Don’t go by hypothetical examples.Instead, use an online rent-or-buy calculator to find which is is better for you.The one developed by Bigdecisions.com is a sophisticated online tool that takes into account several things, including the cost of the house, the amount of downpayment, the rate of interest of the home loan, the expected appreciation in the house price, the rent payable for a similar accommodation in the area and even the expected hike in the rent every year.


4. Will house value rise faster than the interest on loan?

In the early 2000s, when home loans were available at 6-7% and property prices were galloping at 20-25%, it made eminent sense to invest in an upcoming apartment project. Now, property prices are appreciating at a slower pace. In some markets, such as Noida and Greater Noida in the NCR, prices have even come down in the past 12-18 months.

If you are buying property as an investment with a loan, first assess whether its price will appreciate at a rate higher than what you are paying on the loan. “If you are payings 10% on the loan and the property price is expected to appreciate by 5-6%, then it is a bad buy,“ says Manish Shah, Cofounder and Chief Executive of Bigdecisions.com. Shah says the expected rate of appreciation is the single biggest determinant in their rent-or-buy calculator. “It makes the biggest difference in the decisions,“ he says.


5. Will this purchase force you to postpone other major goals?

Stagnant property prices and high EMIs are not the only problems that potential home buyers should be wary of. Their home buying plans can have serious implications on other financial goals, such as saving for their children’s education and marriage and their retirement. If the home loan EMI is too big, it will push other goals out of the financial plan. Worse, buyers like the Mehtas might have to liquidate existing investments to raise money for the downpayment. Though parents are unlikely to surrender child insurance plans and education related investments, retirement planning is easily sacrificed. “Younger people tend to think that retirement is an old age problem and defer the investment,“ says Shah of Bigdecisions.com. It is easy for investors to raid their retirement savings to fund their real estate dreams.You can take loans from the Provident Fund or the NPS for buying a house.Buy a house only if the purchase will not impact other goals. Otherwise, be ready for an asset-rich but cash poor retirement. Or not having enough money to send your child to a good college.

Which is the best way to repay the housing loan faster?

Pre-Payment is not the only way to close your loan faster. To close the loans faster we can follow the 3 different methods.

I will be giving you a detail advantage of each of the method.

  1. Increase your EMI
  2. Make a part-payments
  3. Loan as OD account product
  4. Monitor you loans and correct to lower rates when ever possible.

Let me explain in detail of each of the method

  1. Increase Your EMI :

This option to be used when you have more monthly savings and want to be debt free faster. Very important here is more monthly savings. Keep the sufficient buffer from your salary for living expenses and additional 10% as the buffer so that you don’t by increasing the EMI later day you don’t have tough time.

Increasing the EMI is much better option if you have steady flow of income and if you are planning to save some money and make a part-payment, then mathematically its better to increase the EMI. For example if you have to increase your EMI by Rs 5000 or saving Rs 5000 every month and after 12 months you make a saving of Rs 60,000/- and make a part-payment. Option 1 is better as it would contribute towards principle every month compare to after 1-year. You might be saving at-least extra Rs 2000 more.

One important thing to note is , most of the banks allow you to increase your EMI but very few allow you to decrease the EMI amount. So think before you do.

2. Make a Part-Payment :

This option to used when you have a lump sum amount received in the form on Bonus or when you have sold something and received the amount. Its said to keep things simple and stupid always clear your loans when ever you get a lump sum amounts.

One important thing to note is , each bank follows specific rule while receiving the part-payment. In case if you are walking to the branch mostly minimum part-payment should be 1 month EMI. If you are planning to pay via online it might be minimum 3-months EMI. Note each bank has its own policy, so please check.

3. Loan as OD account product

This option can be used if you have availed a special loan product which provides OD facility. Let me explain what is OD Facility for the Loan. If you have availed a 50 Lac loan and say you have got 10 lac as bonus. Now if you transfer the 10 Lac to your Loan OD Account then Interest would be charged for only 40 Lac amount. Now after a 1-year, if you like to withdraw the 10 lac, then you can withdraw the amount as its parked. Then from that day what ever is the principle left, bank will be charging interest on the pending amount. What ever interest you have earned on 10 lac will be adjusted toward the principle. This allows to close the loan faster.

All banks don’t provide this products. Banks like Bank of Baroda, SBI , Standard Charted & IDBI have this option. These days banks are charging 0.10% to 0.20% more for this product. So avail them only if you are receiving a lump sum amount and want to use it later day or else make a part-payments to close the loan faster

4. Monitor you loans and correct to lower rates when ever possible.

This option is least used but most powerful one with very little payment. When ever rates fluctuate one need to compare how his/her interest rate compare to ongoing market rate. In case if you are paying higher rate then ongoing we need to check are you going to really pay higher next change or not before correcting.

Interest rate has two components,

Interest Rate = MCLR(Base Rate) + Margins

When you avail your loan in variable rate, the margin gets fixed. So say you availed a loan at 8.50% where in MCLR is 8.00% and Margin is 0.50%

Interest rate = 8.50% = 8.00% + 0.50%

Next change if MCLR(Base rate) changes to 9.00% then your rate would be 9.50%

if it become if MCLR(Base rate) changes to 7.00% then your rate would be 7.50%

Now suppose, if you are paying 9.50% at a given time and in the market if the new customer is getting at 9.25% then we have to check why is he paying 9.25%

There can be 2 cases .

  1. He is paying lower margin then you. Say MCLR(Base Rate) is at 9.00% and his Margins are only 0.25% then its a time to correct your margins from 0.50% to 0.25%
  2. He is paying higher margin then you. Yes its possible if the MCLR(Base Rate ) is at 8.50% and Margins are at 0.75% then he would still pay 9.25% 0.25% less than you for 1-year. But later after 1-year if the MCLR(Base Rate) changes to 10% then you would be paying 10.50% where as this person is going to pay 10.75%.

Note : Lower doesn’t mean lower always. It can be only for a short time. Loans are normally tend to be longer specifically Home Loans. So Manage them well. We help you managing all this to close your loans faster for more help check Manager my Loan

We are specialised in this process. Avail all services at free of cost.

Budget Highlights 2018-19 On Tax: Direct Taxes & Indirect Taxes

High anticipation on budget on Feb-1st

We have complied budget Highlights of 2018-2019.

Personal Taxation : Budget Highlights – DIRECT TAXES

Heading

Comments

Tax Rates

No Change in income tax slab or tax rates or surcharge

Education cess substituted with Health and Education cess of 4%

Standard Deduction

Standard deduction of INR 40,000 or amount of salary received whichever is less.

However transport allowance for INR 19200 and medical reimbursement for INR 15,000 was previously available and post this proposal , a bundled exemption of INR 40,000 is available i.e. only an increase of INR 5800.

Transport allowance exemption is available only for differently abled person.

Capital Gains

Provisions of section 54EC – The lock-in period for investment of specified bonds under 54EC is increased to 5 years from 3 years. This is pertaining to capital gains arising from long term capital assets, being land or building or both. This amendment is effective April 1, 2018

Senior Citizen Deductions – health insurance premium and medical treatment

Section 80D provides a deduction in respect of payments towards annual premium on health insurance policy or preventive health check-up of a senior citizen or medical expenditure in respect of very senior citizen. This has been proposed to increase from INR 30,000 to INR 50,000.

Section 80DDB provides deduction to individuals or HUF‟s in respect of amount paid for medical treatment of specified diseases. The deduction value is proposed to be increased to INR 100,000 from INR 60,000

Withdrawal from NPS S c h e me

An employee contributing to NPS is allowed an exemption in respect of 40% of the total amount payable to him on closure of his account or his opting out. This was previously not allowed to non-employee subscribers. However, it is proposed to extend the said benefit to all subscribers

Deduction in respect of interest income to senior citizen

Deduction of INR 10,000 is allowed under 80TTA with respect to interest income from savings account. It is proposed to allow a deduction of INR 50,000 in respect of interest income from deposits held by senior citizens.

Also it is proposed to amend section 194A to raise the threshold for deduction of TDS on interest income from 10,000 to 50,000

PF / Pension

As a measure to incentivise employment of women in formal sector and to enable higher take home wages, women employees contribution for first three years of employment is proposed to be reduced to 8%. However, employer contribution to continue at current rates.

Non-Corporate Assesses – Tax
Assesses (less than <) 60 Years

 

FY 2018-19

Tax rate

0- 2,50,000

Nil

2,50,001- 5,00,000*

5%

5,00,001- 10,00,000

20%

10,00,000 Plus

30%

Surcharge Applicable to Individual Income

FY 2018-19

Tax rate

0- 5,00,000

Nil

50,00,001- 1,00,00,000

10%

1,00,00,000 plus

15%

Assesses (more than >) 60 years and (less than <) 80 years  / Senior Citizens

FY 2018-19

Tax rate

0- 3,00,000

Nil

300001- 500000*

5%

5,00,001- 10,00,000

20%

10,00,000 Plus

30%

Assesses (more than>) 80 years 

FY 2018-19

Tax rate

0- 5,00,000

Nil

5,00,001- 10,00,000

20%

10,00,000 Plus

30%

Corporate Assesses – Tax 

Sub Category

Comments

Tax Rates

Corporate tax rate reduced to 25% (plus applicable surcharge and cess) for domestic companies with total turnover or gross receipts not exceeding INR250 Crores for assessment year 2017-18

Health and Education Cess at 4% instead of Education Cess of 3%

MAT relief for Companies undergoing Corporate Insolvency Resolution Process

It is proposed to amend section 115JB to provide that the aggregate amount of unabsorbed deprec iation and loss brought forward (excluding unabsorbed depreciation) shall be allowed to be reduced from the book profit, if a company‟s application for corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 has been admitted by the Adjudicating Authority.

Benefit of carry forward and set off of losses pertaining to companies undergoing corporate insolvency resolution process

Section 79 of the act provides for carry forward and set off of losses in a closely held company only if there is a continuity in the beneficial owner of the shares carrying not less than 51% of the voting power on the last day of the year or years in which the loss is incurred.

In case of company seeking insolvency resolution involves change in the beneficial owners of shares is beyond the persmissible limit under section 79. Therefore, it is proposed to relax the rigors of section 79 in insolvency cases.

Measures to promote Start ups

Deduction under 80 IAC shall be available to eligible start-ups for consecutive three out of seven assessment years if it

> is incorporated on or after 1 April 2018 but before 1 April 2020,

> turnover doesn‟t exceed INR 25crores for seven previous years

> if it is engaged in innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation.

International financial services centre (IFSC)

It is proposed to amend section 47 of the act to provide that transactions pertaining to transfer of a capital asset being bond or global depository receipt under 115AC, through recognised stock exchange located in international financial services centre be exempt where consideration is paid in foreign currency.

Alternate Minimum Tax for a unit located in International Financial Services Center to be 9% (plus applicable surcharge and cess)

Application of dividend distribution tax to deemed dividend

Deemed Dividend under section 2(22)(e) is taxed in the hands of the recipient at the applicable marginal rate.

Now it is proposed to bring deemed dividend under section 115 O and proposed to be taxed at 30%, without grossing up.

Royalty and FTS payment by NTRO

Section 195 requires a person to deduct to deduct tax at the time of payment or credit to a non resident.

The national technical research organization (NTRO), it is proposed to amend section 10 so as to provide that the income arising to the non resident , not being a company or foreign company, by way of royalty from or fees for technical services rendered in or outside india to the NTRO will be exempt from income tax.

Aligning the scope of business connection with modified PE Rule as per Multilateral instrument

Business connection amended in section 9 to include any business activities carried through a person who, acting on behalf of the non-resident, habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by the non-resident. It is further proposed that the contracts should be-

o in the name of the non-resident; or

o for the transfer of the ownership of, or for the granting of the righttouse, property owned by that non-resident or that the non-resident has the right to use; or

o for the provision of services by that non-resident.

Business Connection to include significant economic presence

Explanation 2 to the section 9 which defines „business connection‟ is also narrow in its scope since it limits the taxability of certain activities or transactions of non- resident to those carried out through a dependent agent. Therefore, emerging business models such as digitized businesses, which do not require physical presence of itself or any agent in India, is not covered within the scope of clause (i) of sub-section (1) of section 9 of the Act.

In view of the above, it is proposed to amend clause (i) of sub-section (1) of section 9 of the Act to provide that ‘significant economic presence’ in India shall also constitute ‘business connection’. Further, “significant economic presence” for this purpose ,shall mean-

o any transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India if the aggregate of payments arising from such transaction or transactions during the previous year exceeds the amount as may be prescribed; or

a systematic and continuous soliciting of its business activities or engaging in interaction with such number of users as may be prescribed, in India through digital means.

The existing tax treaties would not be impacted by the concept of significant economic presence, however, attempts will be made to include the concept in the future Indian tax treaties.

Amendments in relation to notified Income Computation and Disclosure Standards.

Several provisions of the Act, as regards applicability of Income Computation and Disclosure Standards, stand amended. This is expected to ensure a higher level of certainty in relation to ICDS

Long term capital gain tax on sale of equity shares etc.

Long term capital gains on sale of an equity share of a listed company or a unit of an equity oriented fund or unit of a business trust by all assessees (including FII) in excess of INR 100,000 shall be taxable at 10% subject to satisfaction of certain conditions.

Equity Oriented Mutual funds to be liable to pay tax at the rate of 10% on income distributed to unit holders

Tax on transfer of immovable property

No adjustments to sale consideration, in respect of transfer of immovable property, will be required if the difference between the stamp duty value and sale consideration on transfer of immovable property is not more than 5%.

Rationalisation of provisions relating to country by country

Section 286 of the Act, contains provisions relating to specific reporting regime in the form of country by country report (CbCR) in respect of international group. The following amendments are propsed to be made so as to improve the effectiveness and reduce the compliance burden of such reporting :

The time allowed for furnishing the CbCR, in the case of parent entity or Alternative Reporting Entity (ARE), resident in India, is proposed to be extended to twelve months from the end of reporting accounting year;

> constituent entity resident in India, having a non-resident parent, shall also furnish CbCR in case its parent entity outside India has no obligation to file the report of the nature referred to in sub-section (2) in the latter‟s country or territory

> the time allowed for furnishing the CbCR, in the case of constituent entity resident in India, having a non-resident parent, shall be twelve months from the end of reporting accounting year;

> the due date for furnishing of CbCR by the the ARE of an international group, the parent entity of which is outside India, with the tax authority of the country or territory of which it is resident, will be the due date specified by that country or territory;

> Agreement would mean an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, and also an agreement for exchange of the report referred to in sub-section (2) and sub-section (4) as may be notified by the Central Government;

> “reporting accounting year” has been defined to mean the accounting year in respect of which the financial and operational results are required to be reflected in the report referred to in sub-section (2) and sub-section (4).

Deduction in respect of income of Farm producer companies

100% deduction in respect of income of farm producer companies for period of 5 years introduced (having turnover upto INR 100 crores)

Tax treatment of transactions in respect of trading in agricultural commodity derivatives

Trading of agricultural commodity derivatives which is even not charged to commodity transaction tax shall be treated as non-speculative

Others

* Disallowance for certain cash payments would be applicable to certain entities claiming benefit of section 10(23C)

* New scheme for scrutiny assessments (e-assessments) to be introduced by way of notification

* Compensation (capital or revenue) for termination or modification of a contract relating to business to be taxable as business income and relating to employment to be taxable as income from other sources

* Conversion of stock-in-trade to capital asset to be taxable as business income at the fair market value („FMV‟) as on date of conversion

Excise Duties :

Category

Comments

Excise duty on Petrol and Diesel

Changes in Basic Excise Duty on motor spirit (petrol) and high speed diesel oil (effective from February 2, 2018)

Categories

Existing Rate / litre

Revised Rate / litre

Unbranded Petrol

6.48

4.48

Branded Petrol

7.66

5.66

Unbranded Diesel

8.33

6.33

Branded Diesel

10.69

8.69

> Additional Duty of Excise (Road Cess) of INR 6 per litre on motor spirit (petrol) and high speed diesel oil will be abolished upon enactment of the Finance Bill, 2018.

> Road and Infrastructure Cess levied on petrol and high-speed diesel at INR 8 per litre.

> Upto the enactment of Bill, levy of road cess has been exempted on domestically manufactured and produced petrol and high speed diesel.

Other exemptions

The following products are exempt from Road and Infrastructure cess subject to payment of appropriate excise duties on petrol and diesel and GST on ethanol or bio- diesel used for making such blends.

(i) 5% ethanol blended petrol. (ii) 10% ethanol blended petrol. (iii) Bio-diesel, up to 20% volume.

Service Tax : 

Category

Comments

Retrospective exemptions granted

>> Life Insurance services provided to Coast Guard personnel by the Naval Group Insurance Fund (for the period 10 September 2004 to 30 June 2017)

>> Services by Goods and Services Tax Network to Central Government, State Government or Union Territories (for the period 28 March 2013 to 30 June 2017) are proposed to be exempted from service tax.

>> Government‟s share of profit petroleum on services by Government by way of grant of license or lease to explore / mine petroleum crude or natural gas or both (for the period 1 April 2016 to 30 June 2017).

>> Refund can be claimed within 6 months from enactment of the Finance Bill, 2018.

Customs Duty :

Category

Comments

CBIT C

> Central Board of Excise and Customs to be renamed as the Central Board of Indirect Taxes and Customs (effective from date of enactment of Finance Bill)

Assessment

> “Assessment” will include specific aspects such as classification, duty, valuation, exemption or concession of duty etc.

Rate of customs duty

> Rate of basic customs duty is 10%

Change in Customs Tariff Act, 1975

> IGST Valuation methodology and compensation cess for Warehoused goods sold prior to clearance for home consumption or export has been prescribed.

Social Welfare Surcharge

> A new levy in form of Social welfare surcharge at the standard rate of 10% on aggregate of customs duties has been introduced effective immediately. This e x c l u d e s S a f e g u a r d d u t i e s , C V D , A n t i – d u mp i n g d u t y a n d S o c i a l W e l f a r e Surcharge. Certain goods exempt from SWS and certain items such as Petrol, HSD, Gold and Silver are at 3% ( Notification 11/12/13 of 2018 ).

Road and Infrastructure Cess

> The existing Road Cess (levied at INR 6 per litre) on Petrol and High Speed Diesel has been replaced with the new Road and Infrastructure Cess (to be levied at INR 8 per litre). However, the total duty incidence on import of both the products remains the same due to change in CVD

Jurisdiction

> The scope of Customs Act has been expanded to apply to any offence or contravention committed outside India by any person unless specified otherwise.

Indian Customs Waters

> Definition of „Indian Customs Waters‟ has been amended to extend its limit to „Exclusive Economic Zone‟ of India upto 200 nautical miles from 12 nautical miles.

Redemption Penalty

> Requirement to pay redemption fine dispensed with in cases of voluntary payment of all dues. Further, the option to pay redemption fine to be void, if not paid within 120 days from the date such option was extended.

Risk based Selection

> Provisions introduced in Customs Act, 1962 to provide legal backing for verification of risk based selection of self-assessment through customs automated system. The methodology of Risk based Selection has been codified in the law

Show Cause notice

· Process of pre-notice consultation by the authorities before issuance of demand notice for recovery of duty or refund in cases other than collusion, suppression, etc. This is intended to enable ease of the process and to minimise litigation.

> Provision introduced for issuance of supplementary SCN in specified circumstances.

Revised guidelines for Advance Ruling

> Applicant to include any importer or exporter or any other person with justiciable cause to the satisfaction of the authority.

> Application for advance ruling is to be made to Custom Authority for Advance Rulings (CAAR) (Principal Commissioner or Commissioner of Customs)

> The time limit for pronouncement of ruling is reduced from 6 months to 3 months.

> Appeal against the order of CAAR can be made before Authority for Advance Ruling under the Income Tax Act.

Education and SHE Cess

> Education cess and secondary and higher education cess abolished

Time Limits

> Time limits set for adjudication proceedings except in certain cases. In the event that proceedings are not completed within the time frame, it shall be deemed as if no notice is issued.

Repairs

> Government is now empowered to exempt goods which are imported for repair, further processing or manufacture, Re-imported for repair, further processing or manufacture after exports.

E Payments

> A Facility of electronic cash ledger has been introduced and the payment of duty, interest and penalty is possible through such cash ledger

Basic Customs Duty Rates on – some products

Decreased

Raw Cashew
Bricks, blocks , tiles, ceramic goods
Solar tempered glass for manufacture of panels etc

Basic Customs Duty Rates on – some products

Increased

Crude Edible Vegetable Oil

Refined edible vegetable Oil

Food Preparations ( certain exclusions )

Perfumes, beauty, make up preparations etc

Specified parts of mobile phones

Truck and Bus radial tyres

Woven fabrics of Silk

LCD and LED panels

Footwear and parts of footwear

Refractory bricks and ceramic goods

Cut and polished coloured gem stones

Diamonds including lab grown, semi processed , half cut, broken etc , Non industrial diamonds

Imitation jewellery
Spark ignition engines of certain motor vehicles Compression ignition engines of certain motor vehicles Mattresses
Scent and toilet sprays
Cigarette lighters

Compile by NMR & Associates Chartered Accounts
For any information/assistance Contact: CA. NAGARAJ MUTT RACHAIAH

e-Mail ca.rajmrn@gmail.com | nmrandassociates@gmail.com

Cell: +91 9980 662 817 | Phone +91 8023 464 517

 

 

Reasons to Get a Personal Loan

Personal loan is always an option to look for when you need huge amount for unseen or unknown reasons. Though it is quite expensive, it is accessible. People look up for personal loan for different reasons. Some reasons can be really for true and good while others reasons for personal loan can be for a mere waste such as taking personal loan for gambling is really not a wise decision.

However, loanyantra helps you to find out the real reasons for when to get a personal loan.

The most popular reasons to get a personal loan are :

  1. Paying off debt / To consolidate Debt : You may be stuck up with some long-time pending loans which may be eating too much of your income. Personal loans are handy and affordable as you can avail the personal loan to pay off those debts. Some of such debts may include, credit card bills, car loans, home related loans like home improvement loans,etc.

At times, you might have different loans under different names paying different interest rates. To avoid confusion or if you find clearing all the loans is worth, then opting for a personal loan is best.

Home improvement loan is not given for 35 year old houses or if the applicant’s age is above 60 years. To get a personal loan, the banks will not ask to mention a reason. So, if you need changes for your old house, you can get a personal loan.

Paying credit card bills on-time will not affect your credit score. So, it is always advisable to get a personal loan within your limit and clear off all the debts and bills. This will help you in further loan applications.

Reasons to get a personal loan
Reasons to get a personal loan – Loanyantra’s support to you

2. Medical Emergencies : Nothing is more important or more expensive than health. Your insurance might take time to cover your ill health or your dear one’s expenses or medical bills. Or you must not have opted for insurance ever. So, you can avail personal loan to cover all your medical expenses either the unpredictable ones or expenses to fulfill daily medical expenditure.

3. Perform a Wedding : Now-a-days it is very common to plan well in advance to perform a wedding. But marriage is something you never knew what and where it happens or rather when it happens. It truly is ‘Planning the unplanned’.  The so called investments might not reach the maturity period and you might not be able to be left with cash in hand.

So, irrespective of the plans, you can anytime go for a personal loan to fulfill your heart content style of wedding.

But remember opt for a loan amount to an extent you can repay it.

4. Luxury Needs : Today’s world is in comfort-friendly zone. So, if you are in need of that high-end phone or a laptop, or if you crave for that newly launched car or a smart T.V., you can definitely get a personal loan. Usual lifestyle now in India is having a fun-filled and lovely family time. So, the financial crisis might interrupt your vacation plans.  Personal loans always help you to fulfill all your dream desires.

Personal loans are therefore also known as multi-purpose loans as they may be used for a variety of reasons. The lender does not question the intent of the borrower.

Moreover, loanyantra is always with you to take care of your financial health. We assure you with a lower interest rate and that too with the best bank. Also avail the discount for one full year which will again reduce your interest rate.

 

 

Home Loan Documents-Upgrade the property with the same builder

Anand & Deepthi, a smart couple, had booked a 2-BHK, an under construction property from a reputed builder in their locality. Anand had a passion to buy a home of his own. With in an year of booking they became proud parents of twins. So to support the couple, Anand’s parents moved to his house. They were flood of relatives who came down to wish them. As Anand & Deepthi were working away from his home town, most of the relatives stayed atleast for a day.  Anand realized he needed his parents support to raise his twins and a 2 BHK would be small for them.

So Anand, wanted to sell this flat and buy a 3 BHK.  When Anand spoke to the builder, builder said he can upgrade to 3 BHK apartment from his 2 BHK apartment.  Anand had availed a loan and already 30% of payment got released from his home loan.

He wanted to know, “What was the process in Home Loan for upgrading a property ? “.  So, he got to know the procedure from the banker who requests him to submit the below documents.

upgrade the property with the same builder
Upgrade your property with the same builder
Documents to be submitted for Upgrading a Property.

1)      Original Cancellation Deed required.

2)      Disbursement Against Registration.

3)      Letter from Builder about the property swap & OCR transferred to New flat no.

4)      Loan to be increased or downsize.

5)      2 cheques required from salary account.

6)      Original Agreement of sale copy.

Anand submits all the above mentioned documents. It took him more than a month to do the entire process.  Now he was happy as he had prepared his sweet home for the future.

Home Loan process for Swapping Flat

DO YOU KNOW

Statistics show that 1 in every 100 buyers upgrade their property after they had blocked it.

Loanyantra takes this platform to let you know more about Upgrading the property : 

Some famous justifications include for us Indians to upgrade the property are  “my family needs more room”, “we can free up some cash for our children’s education (or buy a car!)”, or “I’m sure we can make some money from selling the bigger house and downgrade after the kids grow up”.

So, what to know before you upgrade the property –

Are you in the financial position to upgrade? If yes, then cross check if you are aware of the below mentioned points, to ensure you are in the correct line.

  • Have you got the registration sale deed or Agreement of Sale?
  • You need to get the NOC from the builder and you can enter into a Deed of Exchange and you have bounden duty to pay the additional amount in respect of 3BHK.
  • Moreover, if you got the registration of Sale Deed, you have another option also, you can resale the flat to the builder by execution of Resale Deed by receiving your total consideration amount. Later, you can enter a fresh Sale agreement for 3BHK.
  • Also another option involved is Gifting the property to the builder. But please know all the legalities from your lawyer.
What Loanyantra can do when you upgrade the property.

Loanyantra can take care of your home loan and helps you in submitting the right documents. Enjoy the door-step service.

Let us know once you are done with the registration, we will carry forward the rest of the process with the bank you choose.

Always wishing to serve you – Loanyantra.com

When does Home Loan EMI start?

Your Home Loan EMI starts from the time the Bank has created a disbursement cheque. Some banks start your EMI from the date you picked the first disbursment cheque even before you have

First EMI is called broken period EMI. Which is lesser than your EMI.

What is Broken period EMI?

When you opt for EMI payment, say 5th of every month. Now suppose your disbursment cheque is handed over on 25th of the month. Then Bank would calculate interest for 25th till 5th of next month.. say for 10 days and it would take it on 5th. The next EMI will be as per your EMI schedule.

Again you can go for Pre-EMI or Full EMI. I would suggest if you are capable of paying full EMI then start with Full EMI. Most of the times Banks will keep it to Pre-EMI for under construction properties. Which will not decrease your loan tenure.

Plan your loan well, then only you will close it faster and home will be fully yours.

If you already have existing home loans then to plan well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA

If you are looking for Home Loans and want to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

21 Thumb Rules of Personal Financial Planning.

Personal financial planning
Personal Financial Plan
21 thumb rules of personal financial planning.

1. 30 % of your income must be used for monthly living expenses.

2. 30% of your income must be used for liabilities repayments, if any..

3. 30% of your income must be SAVED and INVESTED for your future LIVING.

4. 10% of your income must be spared for entertainments, vacations

5. 6 months expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc)

6. Home loan must be registered and applied on both husband and wife name. (Both can get benefits on Home loan Tax benefits)

7. Buying second house for investment is not advisable ( Survey reports – it will fetch you only around 3% return)

8. After 45 years of age, not supposed to enter into any BIG LIABILITIES (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. Property must be registered on both Husband and wife name. (As per legal act – after husband first legal heir is wife, after wife it goes to children).

11. Regular check on Nominations at all financial instruments. if  not nominated, do it now..

12. Only in insurance policy, claims payable to Nominee. In other financial instruments legal heirs certificate is must to get back the settlement

13. Must have Term Insurance to financially secure future of your dependants..

14. Don’t take any financial investment decisions EMOTIONALLY, and also Avoid last minute tax saving investment decisions, plan well in advance.

15. MEDICLAIM is must (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it’s very tough and costly to enter into mediclaim)

16. For your jewelry LOCKER, Only one lakh is payable by bank, if theft or fire happen at bank. Provided insurance done.

17. Like same way Government guaranteed only one lakh for your FD also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)

18. Know all Tax implications. You cannot avoid paying tax. But you can minimize by way of tax planning and investments..

19. All financial documents must be kept safely and keep family members informed of the same.

20. Financial investments must be followed through personal financial planning adviser.

21. Review your portfolio for every six months.

These are general suggestions, but personal financial planning and investment decisions depend upon case to case.

Have a Healthy and Wealthy Financial Year 2017-2018…..

How bank calculate interest, is it really 8.5% when they say it for home loans?

One should understand well to mange the home loan well else manage your loan for free on Home Loan Management Company India: LOANYANTRA

Interest rate consist of 2 components.

Interest Rate = Margin Rate + MCLR Rate for specific period or Base Rate

When you avail a loan for 8.50% that would be broken up into

8.50 % = 0.50%(Margin) + 8.00% (1-Year MCLR)

Its confusing right.

When ever you take a loan either Fixed or Floating the margin on that day gets fixed.

In case you loan is floating, then the floating will depend on the MCLR Rate for the specific period. Normally most of the banks give you for 1-year. Meaning every 1-year your rate would change as per that days MCLR for that period.

Say after year 1-year MCLR is 9.75% then your interest rate would be 10.25%.

10.25% = 0.50% + 9.25%

For more details you can check the blog : Demonetisation effect on Home Loans – Get Home Loan Online In India

Which is most preferred bank for home loan in India?

Home Loan depends on following factors

  1. Your Salary or Your Business turnover
  2. Your age
  3. Your Existing Loans
  4. Your Credit Score.
  5. Last but not the least the Property you are buying & Own contribution to pay 20% of the property
  6. Location , approvals of the property.

Your Salary : You should be earning enough to pay the 80 lac EMI.

Your Age : Based on your age, maximum Loan tenure will be decided. Before you retire i.e 58 years you should be clearing the loan.

Existing Loans : If you have any exiting Loans, you will be paying EMI so you overall eligibility would come down for the next loan.

Credit Score : Banks/NBFC would look at your credit report and based on how you have paid will decide to go if they want to give you loan

Property : When you are asking for Rs 80 lac loan, it would mean at least the property should be Rs 1 crore. Technically the price of the property should support it and you have to pay 20% from your self funding and 80% you can take loan. It should not be like for Rs 10 Lac property you are paying Rs 1 Crore.

Approvals of the property : Based on the Location and type of approvals and amount of deviation while constructing banks would take a call if they will be giving loan or not.

So based on the property you have selected and based on your financial profile you need to select the bank and the loan product. Some not so famous banks will have better products for certain properties.

Plan your loan well, so that you will close faster and home will be fully yours.

If you are looking for Home Loans and want right home loan fit for you and to plan it well to close fast then apply on LoanYantra | Get Home Loan Online .

If you already have existing home loans then to plan it well and close faster, then manage the loan on Loanyantra for free Home Loan Management Company India: LOANYANTRA