March 2017 - Loanyantra Blog

What is Price Protection Policy in Real Estate Market?

You’ve finally decided to buy a home but it is plagued with uncertainties, speculation, opinions and uncalled for advice. Relatable, isn’t it? That’s because a home is possibly the biggest purchase in one’s life.

Needless to say, there’s a plethora of doubts and fears in your mind before you finalize on anything. You might take into account about the location, the market reputation of the builder, the size, and the amenities but it all boils down to 1 simple question: is your investment safe? More so in today’s financial scenario where the markets are weighed down by demonetization, slow down and the anticipation for real estate prices to fall further.

The Price Protection Policy comes in as a savior in such times; especially for those who are sitting on the fence still wondering whether to buy or not. Price Protection Policy is a solution to all your worries and has the power to instill confidence in both the buyers’ as well as the builders’ minds.

“You had my curiosity, but now have my attention”.

So what exactly is Price Protection Policy?

From the clothing industry to the automobile industry, brands use ‘cashback’ to retain their customers’ interest.

In the realty market, Price Protection Policy is that ‘cashback’ which helps us retain your confidence. It protects your investment from fluctuating prices such that, if the price of the property you’ve bought falls, the builders, refund you the difference.

price-protection-policy_loanyantra-com For instance, if you buy a home for say, 80 lakhs, and due to market movements it drops to 75 lakhs, the builder will refund you the difference, i.e. 5 lakhs, under the Price Protection Policy, NO QUESTIONS ASKED!

Isn’t that so assuring and relieving?

But it’s important to note that the price protection window might differ from builder-to-builder. That means each builder might offer a different time frame to cover your properties under Price Protection. Usually the builder offers it till the buyer takes the possession.

How does the Price protection policy benefit the home buyer?

Price protection policy is first implemented in 2008 by a renowned builder Rohan Builders for their projects in Pune. This was done in the wake of global economic recession and real-estate crisis that crippled nations and organizations worldwide. As was mentioned in the property agreements, the difference was actually refunded to the customers.

It is a safety net for one’s life savings. In a market so volatile that even vegetable prices keep changing week-on-week, one is wary about parking lakhs or even crores of rupees in an asset like home if it’s their necessity. The Price Protection Policy alleviates that fear and instills confidence.

The realty market is betting big on this new policy. Make sure that you not only have a verbal commitment but also make the builder mention in the document.

Be optimistic to get something tangible and legal to hold on to when you buy your dream home from your builder. There are many known builders who follow this policy. Find out from your builder if he follows the policy. We only hope that every realtor follows for the betterment of the overall realty market.

Price protection policy followers

Pethkar Projects’ Seyona at Punawale is offering Property Rate Protection Policy from the day project was launched in 2014. Some of the followers of the price protection policy are Concord Builders, Tata Homes, Mahaveer Group, Runnal Group, Lodha Group, Oyster Living, Citrus Ventures. These developers had started implementing the policy post demonitization to bring back the boom in the realty market.

The purpose of the policy is in the interest of the home buyers not loosing their hard-earned money during the post demonetization when the realty market was going low. But with the decrease of home loan interest rates, the real estate market had become a hit again.

Is home loan a good thing?

If you plan it well then the Home Loan is good and you can be loan free faster. If you haven’t plan it well then assert backed by a big liability.

How to plan your Home Loan well ?

First based on your financial needs, you need to opt for minimum loan.
Start with right EMI. If you are capable of paying more toward EMI, always pay more.
Increase your EMI every year by at least 5%. Your 20 years loan will close in 15-years. If you increase by 10% then your 20-years loan will close in 11-years.
When ever you get bonus, make a part-payments.
Very important point, when ever the rates are changing, you need to check if you are paying more. In case you are paying more than get it corrected to new rate. This save 20–30% of loan amount. For example 50-lac loan with 0.50% more interest rate will pay 30-EMIs extra and almost Rs 15 lac more.

It’s like buying a car. If you maintain it well, it will run well. If not you would continue to pay heavy maintenance bills.

LoanYantra | Get Home Loan Online is India’s First Home Loan Management Company which will help the customers find the right home loan and after that help in Managing the Loan. It helps in closing the loan faster.

Is it better to save money for a few years and then buy a 2 BHK home, or take a home loan and end up paying double the cost?

Debt is not bad when it comes at Home Loan Rate. Home loan is given considering you continue to earn and you are capable of paying it back. So Debt allows you to save and pay the debt.

Real Estate is little tricky. Consider you want to buy a 35 lac home now. But you have only 10 lac now. So for you to buy only option would be going for 25 lac loan or you want to save another 25 lac and delay the purchase. To save 25 lac you would take at least another 5 years. Lets say the price of the apartment appreciates very little to only 50 lac. Now you have to save another 15 lac more. Lets say you take another 2 years to save another 20 lac. Now you go and buy same apartment for 55 lac. When you saw it for the first time it was costing you only 35 lac but now its 55 lac. Also for 7 years you would have stayed in rented house and continued to pay say Rs 10,000 on average. So you would have paid Rs 8.40 lac as rent. And lets not forget the tax benefit the home loan gets you. For last 7 years lets consider you can save a tax of 2 lac.

So in total for delaying the purchase your total cost is

Rs 65.4 lac = 55 lac + 8.4 lac (Rent)+ 2 lac (Tax)

That’s almost close to what you will be paying for 20-years loan.

Unless you have a huge windfall gain or you got lot of cash because you sold property somewhere else loan is a good.

If you plan your loan well, you will be able to close it faster and home will be fully yours. Instead of paying double the cost you can pay 50% more and close it fast.

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

Capital Gains Tax

What is Capital Gains Tax?

The taxation system in India is intricate and many a time complex to understand. Capital Gains Tax is an important aspect in Taxation. Here we go through an important part of Indian taxation system on the capital gains. Let us first understand what capital gains is and what the different implications of a tax on it are.

Firstly, Capital Gains is the profit which one earns during the sale of the capital asset. So, Capital gains tax is the tax levied on the profit after the sale of the asset. Capital gains tax is levied in the same year in which the transfer of capital assets takes place.

Capital gains tax is not applicable on assets which are inherited. As per the Income Tax Act of India, assets which are exempted from tax slab include gifts which are inherited or are transferred via will.

What all comes under capital asset?

Some of the common inclusions in the list of capital assets include the following:

Land
House
Building
Machinery
Jewelry
Trademarks
Vehicles
Patent
Leasehold rights

The following assets do not fall into the category of capital assets:

Any kind of stocks, raw material or consumables which are held for business purpose or profession.
Agricultural land in rural area
Personal goods like furniture, clothes etc. which are held for personal usage
The following are not considered capital assets:
Gold bonds
Special Bearer Bonds 1991
Gold Deposit Bond issued under the Gold Deposit Scheme, 1999

What is the difference between long term and short term asset in capital gain taxation. Long-term capital assets are those which are held for a period longer than 36 months whereas the short-term capital assets are held for 36 months or less.

Another important point of consideration that one need to take care of is the holding period which is applicable to the particular assets held by the person. In certain assets, the holding period is more than 12 months but still, they are considered as part of the long-term asset. This rule comes into picture if the asset has been transferred after 10th July 2014 (date of purchase stands irrelevant).

The following assets when held for a period more than 12 months are considered to be long term capital assets:

Equity or preference share (of company sites in stock exchange of India)
Units of UTI
Securities like bonds, government securities, debentures etc.
Zero coupon code
Units of equity oriented mutual funds

Calculation of Capital Gains:

tax calculation — calculate your tax now

Tax on long-term capital gain: It is taxable at 20% + surcharge and education cess.

Tax on short-term capital gain: In the case of securities, transaction tax is applicable, then tax applicable is at the rate of 15%+surcharge and education cess.

Calculation of Capital Gains:

Short-term capital gain = Full value consideration- (cost of acquisition + cost of improvement + cost of transfer)

Long-term capital gain = Full value of the consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer). Where;

Indexed cost of acquisition = Cost of acquisition X cost inflation index of the year of transfer/ cost inflation index of the year of acquisition

Indexed cost of improvement = cost of improvement X cost inflation index of the year of transfer/cost inflation index of the year of improvement

The cost of transfer is a brokerage paid for arranging the deal, legal expenses incurred, the cost of advertising, etc.

capital-gains-tax — Capital gains tax. Do not miss this.

Advantages of capital gain tax

The tax payments differ till the time assets are sold. Security investor doesn’t have to pay tax on profits earned from bonds and stocks till the time he/she sells the assets.
Tax rates on long-term capital gains are lesser than normal income tax rate.
Capital gains rate does not apply to inventory, even if this asset is held by you for more than one year.
As per the Section 54 and Section 54F of the Income Tax Act, there is a provision wherein long-term capital gains can be used to construct or acquire resin details house property if, conditions like time frame within which the gain must be invested for buying or constructing property, then the person is exempted from capital gain tax.

Loanyantra stands with you if you look for investing your capital gains in a property. It helps you for a easy and hassle-free home loan process and management.

It is always advisable to take expert advice how to invest and where to invest before selling the assets.

What is the best home loan if I can increase EMI by 10% and can pay extra EMI per year?

If you have excessive cash then lots banks have a Over Draft Loan products. Where in you can park the excessive cash in the OD Loan account, for the amount of cash you have parked they will not be charging you interest on it. This helps in closing the loan much faster.

Let me give an example. Consider you have taken 50 lac loan. For simplicity lets consider you are paying Rs 55 ,000/- as EMI. Out of which Rs 50,000/- is going toward interest and Rs 5,000/- is going toward principle.

Say you have Rs 10 lac cash which you deposited in the OD Loan account.

Then next month your EMI will still be Rs 55,000/- the way it is distributed is

Rs 55,000 = Rs 40,000(Towards Interest) + Rs 5,000(For Principle) + Rs 10.000(Gets added to Rs 10 lac)

So your Rs 10 lac now becomes Rs 10,10,000/-

Best part is when you want your Rs 10 lac, you can withdraw it any time and you EMI will be amortized as per schedule.

List of banks which provide OD Loan facilities are

SBI
1. Max Gain Home Loans (its interest rate is 0.10% higher than normal loan)
Standard Chartered
1. Smart Saver
IDBI
CITI Bank

In case, you increase your EMI every year by 10% then your 20-years loan will close in 12-years. If you plan your loan well, you will be able to close it 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

Home Buying Tips for Women

Buying a home today takes a certain confidence – in the market and in your own financial strength. A lot of single, female homebuyers are taking that bold step in high heels, with no one at their side.

By educating and empowering themselves, single women have acquired a sense of home-buying confidence, making the dream of home ownership a reality. It’s a process that doesn’t necessarily begin with love first—unless it’s for her dream house. She just needs a good real estate agent, an educated understanding of navigating the home-buying process, and a happy and pleasant mood to celebrate after signing on the 50,000 dotted lines at closing.

Not just the single woman, a married woman too, apart from being an earning member, also has a complete grasp of the family’s current and future financial abilities. Developers are aware that they play a role in a family’s home purchase decisions. A woman has a better perspective about what should be included or excluded. Still, buying a home is not just a matter of instincts and good taste, but also one for adequate planning and foresight.

For women who are investigating the market for suitable properties, either for themselves or for their family, here are some points to consider.

Be realistic, stay focused

Home ownership is a great move for a woman and a step towards independence in her retirement years. But your first home is not necessarily the only home you will ever buy. Remember that you can always upgrade in the future if required, so there is absolutely no need to buy the biggest-possible flat now. So try not to compromise your current financial viability by buying a needlessly expensive home.

The home you live in today does not have to be the one you will be living in when you retire. When it comes to real estate, it is always a good thing to upgrade as financial ability improves, but this process can and should be planned out over the entire course of one’s working life. For a woman who is at the outset of her career, nothing is more important than financial stability on every front.

To plan for upgrading to a bigger and better home further down the line, it is advisable to invest (and stay invested) in good mutual funds which deliver more returns than savings accounts. Direct stock market speculation into single company stocks and bonds as a potential source of real estate funding should be avoided; as such investments are not sufficiently diversified to offer a safety net in case a company experiences a downturn.

Shop aggressively for financing

The home loan market in India is currently very competitive, and banks are falling over themselves to attract customers. Make specific inquiries about special interest rates and other incentives that a bank is offering women borrowers (usually 0.05% lesser than the prevailing interest rate). Never take the first thing that is offered to you — most banks have a considerable margin of flexibility to accommodate borrowers who know what they want and are determined to get it.

Check rates with several mortgage lenders, and don’t simply select a lender based on a recommendation from a friend or a realtor.

Don’t stretch your budget too far

First figure out the monthly mortgage and whether they will be able to afford it. Online mortgage calculators can be helpful, but they tell you the value of the principal and associated interests. There are other monthly expenses involved in home ownership, and these include insurances, taxes, maintenance charges and utilities charges.

For working, single women, it is important that all these amounts put together do not exceed 35-40 per cent of their net income. Keep in mind that property is not the only investment you should make towards your ongoing financial security. You should also set aside at least 10 per cent of your monthly income into a retirement plan.

When it comes to home purchase, every financial angle must be examined well in advance. It is advisable to use the services of an experienced financial planner. The process of buying a dream home should not turn into an unexpected nightmare at any point.

Those who are just starting out in their careers should not allow themselves to fall too deep into a credit trap. It is always best to use free and clear capital as far as possible.

Make sure the developer has a strong reputation in the market by doing multiple checks. It is highly advisable to patronise only established developers with a readily verifiable track record for timely completions and 100 per cent adherence to the agreements they make with their customers.

Loanyantra Quora Answers.

Which bank gives instant approval for home loans?

Most of the bank will give you instant sanction of Home Loan based on your Eligibility. This doesn’t mean you will compulsory that you will get a home loan for that property.

Home Loan Sanction means you are eligible for certain amount of Loan. During the sanction whey would check following things

Your Salary
Your age
Your Existing EMI
Your Credit score
Your KYC

If all are in place, then banks you issue a Sanction letter. Then you can go with legality Check and technicality check of the property you have selected. If everything is clear then you would get a loan. In case any of it fails then you have sanction letter and you have 3–12 months validity based on bank. You can search for one more property and continue with the loan.

Banks also have a Pre-approved loan concept. Where in banks would issue a sanction letter and later you have certain time to finalize the property.

Advantage of Pre-Approval Loans is

You get to know your Loan eligibility
You reduce one step of loan before you finalize the property

Disadvantages of Pre-approval loans is :

You have to pay the processing fee.
It has 3–12 months validity so you have to finalize the property with in that span or else you need to submit all the documents again. Trust me selecting the first home is not so easy and not so fast unless you are lucky.
Most of the case you might have to submit the KYC documents again.

I would recommend you check your eligibility on home loan comparison portals like LoanYantra | Get Home Loan Online and then you select the property. Instead of going for pre-approvals.

If you plan your loan well, you will be able to close it 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

What is the best home loan if I can increase EMI by 10% and can pay extra EMI per year?

Say you have Rs 10 lac cash which you deposited in the OD Loan account.

Then next month your EMI will still be Rs 55,000/- the way it is distributed is

Rs 55,000 = Rs 40,000(Towards Interest) + Rs 5,000(For Principle) + Rs 10.000(Gets added to Rs 10 lac)

So your Rs 10 lac now becomes Rs 10,10,000/-

Best part is when you want your Rs 10 lac, you can withdraw it any time and you EMI will be amortized as per schedule.

List of banks which provide OD Loan facilities are

SBI
1. Max Gain Home Loans (its interest rate is 0.10% higher than normal loan)
Standard Chartered
1. Smart Saver
IDBI
CITI Bank

In case, you increase your EMI every year by 10% then your 20-years loan will close in 12-years. If you plan your loan well, you will be able to close it 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

Is it better to save money for a few years and then buy a 2 BHK home, or take a home loan and end up paying double the cost?

Debt is not bad when it comes at Home Loan Rate. Home loan is given considering you continue to earn and you are capable of paying it back. So Debt allows you to save and pay the debt.

So in total for delaying the purchase your total cost is

Rs 65.4 lac = 55 lac + 8.4 lac (Rent)+ 2 lac (Tax)

Thats almost close to what you will be paying for 20-years loan.

Unless you have a huge windfall gain or you got lot of cash because you sold property somewhere else loan is a good.

If you plan your loan well, you will be able to close it faster and home will be fully yours. Instead of paying double the cost you can pay 50% more and close it fast.

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

Can I get a loan of 80 lakh from any bank if I come from a middle class family?

To get a home loan of 80 lac, it doesn’t depend on Status, Caste, Creed, Religion, Colour.

It depends on following factors

Your Salary or Your Business turnover
Your age
Your Existing Loans
Your Credit Score.
Last but not the least the Property you are buying & Own contribution to pay 20% 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.

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

Suppose my home loan EMI is 13,500Rs. If I don’t have enough money to pay one particular month, what is the minimum amount I need to pay toward my loan?

Yes there is a concept of minimum amount to be paid in Home Loans too. It’s called Pre-EMI.

You can visit your Bank/NBFC and request them to convert to Pre-EMI. After your financials are under control you can convert them to full EMI again.

What is Pre-EMI ?

I hope you understand what is EMI. In Pre-EMI, you only pay interest part of the EMI. You Don’t contribute towards Principle.

Let me explain what is EMI. EMI normally is a constant amount you pay to lender and EMI consist of 2 componenets

EMI = Interest amount for this month + Principle amount you want to pay

Example : If your EMI is Rs 100.

1st EMI : 100 = 90 (Interest) + 10(Towards Principle)

2nd EMI : 100 = 89(Interest) + 11(Towards Principle)

You continue to pay till interest becomes ZERO

Where as in Pre-EMI , if your Pre-EMI is Rs 90 then

1st EMI : 90 = 90 (Interest) + 0 (Towards Principle)

2nd EMI : 90 = 90 (Interest) + 0 (Towards Principle)

Till you start contributing toward principle , the interest will not come to Zero. So you will be paying for ever till you convert back to full EMI

What are the advantages ?

When you are short of money you can fall back to Pre-EMI so that your CREDIT score is healthy and your Loan doesn’t become a NPA and bank doesn’t seize the property.

What are the disadvantage ?

Biggest disadvantage is the loan tenure will not reduce. For example if you have opted for 20-years loan and then you opted for Pre-EMI and paid it for 5-years then after 5-years you still have to pay for 20-more years.

For more information and difference on Full EMI Vs Pre EMI – Get Home Loan Online In India

Plan your loan well, you will close fast 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

Taking personal loan (for down payment) and home loan for buying house, is it possible to convert/merge personal loan to my home loan later?

There is no direct way of merging your personal loan with home loan. Only one way is to take top-up loan after 6–12 months and use the top-up loan to close the personal loan.

But, the option of using top-up loan to close the personal loan is not a good option. As the tenure of personal loan is normally not more than 5 years and home loan tenure in normally more than 10-years, you end up paying more interest on top-up loan.

If you plan your loan well, you will be able to close it 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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

Is there any difference while taking a home loan from a private or nationalized bank?

The simple answer is No.

All the private & nationalized banks follow almost same procedure. So answer is no.

Complicated answer is Yes, even yes for 2 different nationalized banks too.

In broader sense all the banks follow the same procedure but when you go into internal policy and into more details of each bank & NBFC, they have there own credit risk policy which the CRO & his team(Chief Risk Officer ) would be continuously working on. Based on the credit risk policy, banks would create multiple home loan products. Also if you future go deep into the credit risk policy of some banks, some times they would limit the maximum number of loans for certain home loan product to certain number. For example : Maximum home loan for this Quarter for Full fixed home loan tenure product, should not cross Rs 100 Cr and not more than 250 files. As the risk mitigation is high.

Every bank and every loan product has advantage and its own disadvantage.

When you are selecting a bank , you nee to be clear on what you want.

Faster processing of loan. With all the documents in place
Faster processing of loan. With some documents in place
No processing fee and other fee
Want more LTV. More Loan eligibility
Lesser Interest rate
Need OD home Loans. Smart saver
No other charges in future
Need to add co-applicants like Mother, Father, Brother or even Father-in-law and others
With Bad credit score with all NOC in place
Less charges and overhead while processing the loans
Easy to pay Part-payments and accepts any amount as part-payment
Easy to foreclose the loan
In future want to avail top-up loans
Want interior loan with the same rate of home loan.
Pre-sanction of the loan.
Loan for property in the outskirts of the city.
Loan for the property with deviation.

Based on above, you would have only few products and few banks which you give you hassle free loan.

I would recommend you check your eligibility on home loan comparison portals like LoanYantra | Get Home Loan Online and they would help you in choosing the right home loan.

If you plan your loan well, you will be able to close it 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

Which is the best bank to take home loans in Bangalore?

First check you eligibility and compare which loan product and which Bank/NBFC will suit you. LoanYantra | Get Home Loan Online is one website which will help in identifying the perfect home Loan product that would suit your financials and your property legal and technical.

In Bangloare, be cautious while buying a property. You have multiple types of approvals. Based on the approval banks give you home loan.

BDA approval properties: Normally all banks & NBFC will give loans
BBMP A-Khatha approved: Normally all banks & NBFC will give loans
BBMP B-Khatha approvedwith construction approval plan : Few Banks & NBFC give loans.
BBMP B-Khatha without construction approval plan: Very few NBFC will give loans
Grama panchayat approval with construction approval plan: Very few NBFC will give loans
Grama panchayat approval without construction approval plan: Almost none of the banks & NBFC will give loans
Unconverted plot: Almost none of the banks & NBFC will give loans

If you plan your loan well, you will be able to close it 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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

How much EMI will I have to pay if I get a home loan of Rs 50 lakhs?

Before some one answers this question, one need to know what is your exact age & if you are salaried or a business man and last but not the least at what rate you have availed the home loan at.

Why do we need to know your age ?

Your age will determine what would be your maximum tenure eligibility. As per India, a salaried person should retire by 58-years. Which would mean your earning would ideally stop at age of 58-years. So banks would calculate your EMI based on the age. Meaning if you are 35-years then maximum tenure your would get is only for 23-years. if your age is 48 -years then your maximum tenure can be only 13-years. If you are a Central Government Employee with a pension then your based on your Job cadre you might get higher tenure.

What is the maximum age for a self employed or business man ?

Based on the nature of business, your maximum age to repay loan is upto 70 years.

You can check your EMI from http://loanyantra.com/Calculator…

Other factors of home loan will depends on following

Your Salary or Your Business turnover
Your age
Your Existing Loans
Your Credit Score.
Last but not the least the Property you are buying & Own contribution to pay 20% 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

All banks will not approve all the properties. In case your property is not approved by SBI, then it would take time for the process.

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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

Is it a good idea to take a second home loan?

Not at all a bad Idea, if you find the right property to invest. As the existing outstanding loan amount is only 13 lakhs the maximum interest you would be paying is less than Rs 1 lac. You can buy one more property to increase your assert.

First thing you need to do is, to check if your existing home loan rate is as per the market rate. Incase not, then try to correct to new rate by approaching the bank. As 13 lac is not a big amount try to close the loan as soon as possible so that your loan eligibility is high and you can invest in bigger and better property.

Now coming to the tax saving, regarding the second home loan.

Before Budget 2017 – Before Budget 2017, the loss from house property (in case of rented property) which is basically the interest paid on home loan was allowed to be adjusted from remaining incomes without any limit. It would reduce tax liability to a great extent. Several taxpayers considered investment in house property as a means of tax planning while creating an asset with a long term view.

After Budget 2017 – But now the budget 2017 will limit this set off of loss from rented house property to Rs 2 lakhs per annum. This change in budget would reduce the tax savings in comparison to pre-budget.

Deduction for home loan interest is now same for both rented and self-occupied property i.e. Rs 2Lakhs.

Note: The income tax act says that those who own more than one property, must treat one of them as rented property. Basically only one property can be treated as self occupied and others have to be assumed to be rented. Tax has to be paid on notional rent. A lot of people who own two properties, assumed the loaned property as rented and managed to claim the entire interest as deduction. Such taxpayers can no longer do so.

This change will bring parity between the tax benefit allowed on self-occupied property with the property that is rented.

In both cases loss which can be adjusted is limited to Rs 2lakhs.

Carry forward of loss

Unadjusted loss can be carried forward to 8 years. However in this manner, loss which has not been set off will keep on accumulating (every year’s unadjusted loss is carried forward) and is practically speaking a dead loss.

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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

Can I avail a loan against another property if I already have a home loan from a bank?

Yes you can avail Loan Against Property for other loan provided you meet the eligibility requirement.

If you are falling short of eligibility, how do you increase it ?

In case, if your spouse is working to increase the eligibility you can add the spouse as a co-applicant to increase the eligibility.
In case if you have rented your other house, then you can show rental income and increase your eligibility.
In case if you have a small loan where in you are paying high amount as EMI, then try to close it to increase the Eligibility.
In case if your tenure of existing home loan is less than maximum tenure you are eligible, then increase the existing home loan tenure to get more loan.
Last but not least, incase if you are paying higher interest rate then the market rate, first thing to do is to correct the EMI to existing rate and reduce the EMI. This would also increase your loan eligibility.

Your eligibility requirement would depend on following things

To get a loan will depends on following factors

Your Salary or Your Business turnover + other incomes
Your age
Your Existing Loans
Your Credit Score.
Last but not the least the Property you are buying & Own contribution to pay 20% of the property

Your Salary : You should be earning enough to pay the EMI + at least 40% of earning for your living expenses.

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

All banks will not approve all the 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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

What is the role of a co-applicant in home loan in India?

Co-applicant for a Home Loan – Who can be a Co-applicant ? Advantage & Disadvantages of being a Co-applicant.

In the present day, when the cost of living is going up and usually both spouses work, having co-applicant becomes more of a necessity than a requirement. There is no legal requirement to have a co-applicant.

In order to enhance the loan eligibility, a borrower has an option to resort to by having a co-applicant. This way, the total eligible income for the purpose of computing the housing loan increases, thereby resulting in higher loan eligibility.

Home loan co-applicant is a person who shares the equal responsibility towards the repayment of the home loan. Such type of home loans are called Joint home loans. Whereas a co-owner is the person who has a share in the property and rights on the property too. A co-owner of a property can be the co-applicant in home loan. But it is not necessary that the co-applicant of the home loan is the co-owner of the property.

Who can be a co-applicant

A bank does not permit friends or relatives who are not blood relatives to take a loan jointly. Only if the co-applicant receives income from a regular source will that income be considered for determining the loan eligibility.

In most cases, spouse is the most common and preferred combination.

In case of parents and children , these rules will apply:

Father/ Motherand son

If the applicant is the only son, he can jointly apply with his father with both the incomes being considered. The property should be in their names jointly and it does not matter who the main owner is. This is because in any case the son is the legal heir of the father’s property.

Father/ Motherand sons

In case a person has two or more sons and if he wants to apply jointly with one of them, he should not be the main owner of the property. This is because, on his death, his children should inherit the property jointly and may cause an inheritance dispute.
The father may only be taken as co-applicant and his income may be considered for the loan. He may be a co-owner or not own the property at all. Under no condition should he be the main owner of the property.

Unmarried daughter and Father/ Mother

An unmarried daughter can apply jointly with their father. However, the property should only be in the name of the daughter and the income of the father should not be considered . This is to avoid any legal complications on the subsequent marriage of the applicant .
Where applicant is the owner and has a son and a daughter, an affidavit may be obtained from the daughter that she has no claim on the property.

In case of Brother and brother/sister

Home loan co-applicant approval is subject to certain terms and conditions like address of both should be same which means a joint family and intent to stay together in joint family in future. It is at the sole discretion of the bank.

Who cannot be a co-applicant :

Father / Mother and Married Daughter
Brother and Sister
Sister and Sister

Documents Needed : Documents are needed from both the applicant and co-applicant.

General home loan documents needed are :

Identity proof
Address proof
Salary slips
Bank statements

Loan Eligibility

A common doubt is – ‘Will the home loan eligibility amount increase if we opt for a joint home loan?’ Yes, it will. Banks will be ready to offer you higher loan amounts if you opt for a joint home loan. The reason for it is that your repayment capacity increases as there are now two people who repay this loan. How much it would increase depends on the income of co-applicant. Apart from income, organization reputation is also considered. Be sure that you compare multiple loan offers before deciding on loan eligibility.

Benefits of being a Home Loan Applicant

Increase Home Loan Eligibility :

If you are not the co-owner of property but would like to help your spouse or relative to increase their Home Loan eligibility. In this case, you may consider being home loan co-applicant. It is absolutely necessary that you should be aware of all the risks and legal liabilities.

Taxation Benefits :

From a taxation point of view, a joint home loan is also beneficial as all co-borrowers can claim tax deductions under section 24 (upto Rs. 1.5 lakh) of the Income Tax Act against interest paid and under Section 80C (up to Rs. 1 lakh ) against principal repaid.

The tax benefits that can be claimed would be in proportion of the share that the individuals have in the loan.

Dis-advantages of being a Co-applicant

CIBIL score of the co-applicant will be impacted.
Reduced credit eligibility : Being a co-applicant will reduce the credit eligibility to the extent of 50% of home loan value. It may impact approval of any future credit requirement of co-applicant.
Operational Hassle : It is an operational nightmare for home loan co-applicant at the time of availing or closing the home loan.

Repayment Options

The repayment process for joint home loan is similar to that of a regular home loan. The payment, however, has to be made through one cheque.

Renu Sud Karnad, manging director, HDFC, explains, “Payments can be from a single or joint account by way of cheques or Electronic Clearing System (ECS).“

“Another way of repayment could be that the co-borrowers share the number of EMIsbetween them such that a specific number of cheques can be issued by one borrower and the balance by the other,” says Suvrat Saigal of Barclays Corporate India.

What if Dispute Arises

The problem arises when one of the co-borrowers refuses to repay the loan. Be warned that each party would be liable for part of repayment or up to as much as all of the repayments.

Renu Sud Karnad of HDFC says, “It does not matter whether the payment is made in the normal course by only one of the joint borrowers as long as the fullEMI is paid as per schedule”.

In the event of default, the lender will proceed with the normal recovery process which may include a legal recourse against all joint borrowers.

Solution

Agreement between all Home Loan Applicants –

To avoid any legal dispute in future, it is advisable to all home loan applicants to sign a separate legal liability agreement on a stamp paper. And get the paper notarized. This agreement will clearly segregate the liability of each party.

Online Term insurance Plan –

What if bank insists on a co-applicant. If the bank insists only to hedge risk against home loan repayment, then a simple solution is that the primary borrower can buy an online term insurance plan and can submit a copy of a that policy assuring bank that bank that he is insured against home loan.

Conclusion

Joint home loans are definitely beneficial as compared to normal home loans. In case you are looking for a home loan and you can speak to your blood relatives to get a joint home loan, be sure that the EMIs are paid as per schedule.

If you plan your loan well, you will be able to close it 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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

What are the different types of home loans and Explain?

Various kinds of home loans offered by financial institutions in India.

Home Purchase Loan

These are the basic home loans for the purchase of a new home. These loans are given for purchase of a new or already built flat/bungalow/row-house. Home purchase loan is most popular variety among home loan product offered by the Financial institutions, even government encourages Loan seekers by giving tax incentive.

Home Improvement Loan

These loans are given for implementing repair works and renovations in a home that has already been purchased by the customer. It may be requested for external works like structural repairs, waterproofing or internal works like tiling and flooring, plumbing, electrical work, painting, etc. Generally people consider option of personal loan to do this kind of works, home improvement loans are lesser than personal loan interest rate.

Home Construction Loan

These loans are available for the construction of a new home. The documents required by the banks or bank for granting customer a home construction loans are slightly different from the home purchase loans. Depending upon the fact that when customer bought the land, the lending party would or would not include the land cost as a component, to value the total cost of the property. Some banks don’t deal with this type of loan.

Home Extension Loan

Home Extension Loans are given for expanding or extending an existing home. For example addition of an extra room, etc. For this kind of loan, customer needs to have requisite approvals from the relevant municipal corporation. However subject to technical valuation of the bank.

Land Purchase Loan

Land Purchase Loans are available for purchase of land for both home construction or investment purposes. Therefore, customer can be granted this loan even if customer is not planning to construct any building on it in the near future. However, customer has to complete construction within tenure of three years on the same land. only few banks in india offer this type of loan and sanctioned amount is based on title and location of the property.

Bridge Loan

Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home. This loans are short period in nature having a tenure of minimum 2 weeks to 24 months maximum.

Balance Transfer

Balance Transfer loans help customer to pay off an existing home loan and avail the option of a loan with a lower rate of interest. Customer can transfer the balance of the existing home loan to either the same banks or any another banks, people opt for these type of loan if they realize fact i.e. small change in interest will influence the burden of EMI’s to them. For more details check “Cost of switching home loans to new lenders?”

Stamp Duty Loan

These loans are sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

NRI Home Loan

This is a special home loan scheme for the Non-Resident Indians (NRI) who wish to build or buy a home or land property in India. They are offered attractive housing finance plans with suitable reimbursement options by many banks in the country.

If you plan your home loan well, you will be able to close it faster and your home will be fully yours.

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

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 .

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

What will happen if the rate of interest on home loans decreases?

It would based on what you have fill while applying your loan.

They are two possibilities, when rate of interest on home loan decreased.

Option 1: Fluctuating EMI
- Here your EMI will be reduced.
Option 2. Fluctuating Tenure
- Here your Tenure will be reduced.

Let me explain which one is advantage of the both .

First, when you have applied for a loan with the floating rate of Interest, you have to opt what is the change you like to have from above two options.

By default most of the banks the Option 2 is by default, i.e tenure would decrease if the rate comes down and tenure would increase if rate goes up.

Which one is better ?

If you have opted for Option 1, that EMI should change then your tenure gets fixed and when rate comes down your EMI will reduce and when rate goes high your EMI would increase. So if you are contributing maximum of your salary towards EMI then be cautious about it. It can hurt other financials.

When the rates are downward trend the keeping the EMI constant would reduce your tenure drastically. For example, for a Rs 50 lac loan for 20-year tenure if the rate drops by 0.50% then your tenure would reduce by 30-months that is (2-years 6 Months) almost saving Rs 15 lac. But if the rate are upward trend then keeping your EMI constant then your tenure is going to go up same as above by 30-more months of EMI. Which would mean Rs 15 lac more.

So, its always good to manage your loan and keep changing EMI according to your financials. In interest rate downward times decreasing Tenure is good and in interest rate upward trend increasing EMI is good.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

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

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 .

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

Can I apply home loan from two different banks and can avail the best one after they both provide an approval letter?

Yes You Can .. but You Should Not.

You can apply for as many banks and NBFC you like to apply. But you need to know what are the disadvantages you will have if you apply for multiple loans.

Disadvantage of applying with multiple banks for home loan for same property ?

Every bank will check your credit report and its a hard touch. Which means on every time bank pulls your credit report your credit would come down by certain points. Also it would be reflected in you Credit report who had queried it. So it affects your credit score and it affect your loan eligibility over all
Every bank or NBFC would charge you a processing fee. Its compulsory to take a cheque leaf as a processing fee. If the banks or NBFC say ZERO-Processing fee, that would mean they would refund it once the loan is disbursed, it will not be refunded if its only sanctioned and not disbursed. So now you will have to pay to multiple banks.
In time to come all the banks are maintaining a common data base of the loan process state for a certain property. If one bank is processing then other bank till NOC from other bank will not process. This system is under proposal and will be available shortly. Right now Banks and NBFC use CERSAI for it.
Last but not the least, you will have to face multiple bankers, have to submit multiple times the same documents and the pressure the banker or brokers would put is not pain free. So avoid it.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

Instead of applying with multiple lenders its always good to get right suggestion and apply for one lender.

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

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

Is floating rate of a home loan always higher than fixed rate?

To start of with its always other way round.

Fixed rate is always higher than the floating rate.

Why do the bank take higher rate for Fixed compare to Floating rate ?

Banks normally charger 0.50% to 2.00% more than the Floating rate based on the fixed period tenure. You can opt for 2-years fixed, 5-years fixed or 10 years fixed or fixed till closure. Based on the how fixed tenure banks would charge higher than the floating. Banks higher higher so that they are covering the risk in future. If the REPO rates go up then banks have at least don’t make loss on your loan. For example people who have availed the loan say in 2000 with fixed and still holding it would be paying only at say 7.50% . To cover this risk they charge more.

When do you opt for Fixed rate Home Loans ?

If the rates are upward trend then you can go for Fixed Rate of Interest. Right now the interest rates are downward trending so be on Floating and convert to Fixed later.
If you want to be more secure and don’t want to be affected by rate changes then opt for Fixed rate. In case if you can manage your loan well , i.e make the necessary changes in the loan by making part-payments and correcting to new rates then go for Floating rate.

Disadvantage of Fixed Interest rate Home loans?

If you want to refinance from a different bank, because they are giving a better rate then you might have to pay 2% as penalty on the outstanding amount. Where as in floating rate, there are no penalty if you are refinancing.
If the rates are downward trending then you are at loss.
Look into the conditions banks would apply for fixed loans, like the part-payments, increase of the EMI or pre-closure by self funding. They vary from floating rate. Normally they are free for floating rate of Interest for home loans

My suggestion would be if the loan amount is small or the tenure of loan is small then go for Fixed rate of Interest for Home Loan or else its good advice to go with fixed rate of interest and manage it well.

If you plan your loan well, you will be able to close it faster and home will be fully yours.

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

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 .

-Vijayananda Reddy Kalluru
Founder and CEO of LoanYantra | Get Home Loan Online

After all my research about home loans in India I have come to the conclusion that every bank has its negative so which bank is the least problematic?

Every bank and every loan product has advantage and its own disadvantage.

When you are selecting a bank , you nee to be clear on what you want.

Faster processing of loan. With all the documents in place
Faster processing of loan. With some documents in place
No processing fee and other fee
Want more LTV. More Loan eligibility
Lesser Interest rate
Need OD home Loans. Smart saver
No other charges in future
Need to add co-applicants like Mother, Father, Brother or even Father-in-law and others
With Bad credit score with all NOC in place
Less charges and overhead while processing the loans
Easy to pay Part-payments and accepts any amount as part-payment
Easy to foreclose the loan
In future want to avail top-up loans
Want interior loan with the same rate of home loan.
Pre-sanction of the loan.
Loan for property in the outskirts of the city.
Loan for the property with deviation.

Based on above, you would have only few products and few banks which you give you hassle free loan.

I would recommend you check your eligibility on home loan comparison portals like LoanYantra | Get Home Loan Online and they would help you in choosing the right home loan.

If you plan your loan well, you will be able to close it 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

e-Filing of Income Tax – Forms, Methods and Types

The below are three options to file Income Tax Returns electronically:

Option 1: e-File without Digital Signature Certificate. In this case an ITR-V Form is generated. The Form should be printed, signed and submitted to CPC, Bangalore, using Ordinary Post or Speed Post ONLY within 120 days from the date of e-Filing. There is no further action needed, if ITR-V Form is submitted.

Option 2: e-File the Income Tax Return (ITR-V) through an e-Return Intermediary (ERI) with or without Digital Signature Certificate (DSC).

Option 3: Use Digital Signature Certificate (DSC) / EVC to e-File. There is no further action needed, if filed with a DSC / EVC.

Note: The Digital Signature Certificate (DSC) used in e-Filing the Income Tax Return/Forms should be registered on e-Filing application.

Pre-requisite for registration in e-Filing application

A user must register at www.incometaxindiaefiling.gov.in

Pre-requisites to register

1) PAN (Permanent Account Number)

2) TAN (Tax Deduction Account Number)

3) Membership with ICAI – For Chartered Accountant

Registration process

1) Provide PAN / TAN, Password details, Personal details as per PAN / TAN, Contact details and Digital signature (if available and applicable)

2) Submit request

3) On success, Activation link is sent to user through e-mail and a mobile PIN to mobile number. Click on the activation link and provide Mobile PIN to activate e-Filing account.

Once registered, LOGIN using User ID (PAN/TAN), Password, Date of Birth/ Incorporation and Captcha code.

Methods of e-Filing of Income Tax

1) Preparing the Income Tax return off-line using return preparation software, available free of cost at the Income Tax Department e-Filing website and Uploading the Income Tax Return data.

A taxpayer can e-File Income Tax Return from ITR 1 to ITR 7.

2) Submit ITR-1/ITR4S Online– An Individual taxpayer can prepare and submit Income Tax Return- ITR 1/ITR4S-Online.

e-Filing of Income Tax Returns (Offline)

Steps to download utility and generate XML

Excel Utility –

1 ) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Click on the “ITR” under “Downloads”
3) Click on “Download” link and save the ZIP file (Excel or JAVA utility)
4) Extract the downloaded ZIP File
5) Open the utility, Click on “Import Personal / Tax details from XML” –>Browse and attached the downloaded Prefill XML file to populate the personal information and TDS details.
6) Enter all the Mandatory Fields –> Validate all the sheets –> Calculate Tax –> Generate XML.
7) Login using e-Filing user credentials
8) Navigate to “e-File” Tab –> Click on“Upload Return”
9) Select “ITR Form Name” and “Assessment Year” from the dropdown provided.
10) Browse and attach XML file.
11) Select “Do you want to digitally sign?”–>
12) On successful submit taxpayer will get an option to e-verify return.

JAVA Utility –

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Click on the “ITR” under “Downloads”
3) Click on “Download” link and save the ZIP file (Excel or JAVA utility)
4) Extract the downloaded ZIP File
5) Open the utility, Click on “Prefill” –>Enter “UserId”, Password, “DOB/DOI” and select “Prefill Address”(From PAN Details, From previous ITR Form Filed, None) –> click Prefill
6) Enter all the Mandatory Fields –> Calculate Tax –> save XML.
7) Click on “Submit” –>Enter “Password” and select “Do you want to digitally sign?” –>Submit

Process and Submission of ITR1/ITR 4S Online

The taxpayer has the option of submitting ITR 1/ITR 4S by way of Uploading XML OR by Online submission

e-Filing_of_Income_Tax_Returns_(Offline)2

Steps to e-File Online ITR (ITR 1 and ITR 4S) –

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Login using e-Filing user credentials
3) Navigate to “e-File” Tab –> Click on “Prepare and Submit Online ITR”
4) Select “ITR Form Name” from the drop down (ITR-1 or ITR-4S)
5) Select “Assessment Year” –> Select the Radio button “Prefill Address with” to auto populate the address –> Select the Radio button if DSC is applicable –> Click on “Submit”
6) Enter the mandatory details in the online form –> Click on “Submit”

Note:
1) To e-File using DSC, it should be registered in the e-Filing application.
2) If the Income Tax Return is digitally signed or electronically verified, on generation of “Acknowledgement” the Return Filing process is complete. The return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications
3) If the return is not e-Filed with a DSC (digitally signed) or EVC (electronically verified), an ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly verified ITR-V form should be signed and submitted to CPC, Post Bag No. 1, Electronic City Post Office, Bangalore – 560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing.
4) On receipt of the ITR-V at CPC, the return will be further processed and the Assessee will be notified accordingly.

Register Digital Signature Certificate (DSC):

Follow the below steps to register DSC in e-Filing of income tax

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Login with e-Filing user id and credentials
3) Navigate to “Profile Setting” Tab –> Click on “Register Digital Signature Certificate”
4) Download “ITD e-Filing DSC Management Utility” from the link provided in e-Filing website Extract the downloaded DSC Utility –> Open the Executable Jar File (DSC Utility)
5) “Register/Reset Password using DSC” – tab
6) Enter e-Filing User ID, Enter PAN of the DSC, Select the type of DSC
7) DSC using .pfx file
8) Select the Type of DSC .pfx file
9) Browse and attach the Keystore file (.pfx File)
10) Enter the password for your private key
11) Click on “Generate Signature file”
12) DSC using USB token
13) Select the Type of DSC (.pfx file or USB token) USB Token
14) Select USB Token Certificate –> Click on “Generate Signature File”
15) Browse and attach the signature file using the browse option –> “Submit”,

Modes of e-Verification

The below are the options provided to electronically verify the returns
Option 1: e-Verification using e-Filing OTP (only available if Total Income is less than or equal to Rupees 5 Lakhs and Refund or Tax payable upto 100 Rupees.
Option 2: e-Verification using NetBanking login
Option 3: e-Verification using Aadhaar OTP validation.
Option 4: e-Verification using Bank ATM (SBI)
Option 5: e-Verification using Bank Account Number (PNB)
Option 6: e-Verification using Demat Account

Note: No Further actions required by the taxpayer post e-Verifying the Return

Upload of Income Tax Form (Other than Income Tax Returns) by Tax Professional

Steps to e-file Audit Form(CA):
1) The taxpayer (Client) has to add a particular CA for upload of particular audit form. Post which, the CA has to login into his account and download required Audit Form. After updating, the CA has to upload the Audit form using CA login.

Add CA functionality:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with efiling user credential.
3) Navigate to “My Account” –> “Add CA” –> Enter “Membership Number”, “Name of the CA”, select “Form Name” ,“Assessment Year” –> click “Submit” to add CA.

E-file Audit Form:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with CA credential.
3) Navigate to “e-File” –> “Upload Form”
4) Enter “PAN/TAN” of the Taxpayer, “PAN of the CA”, Form Name, “Assessment Year”, Filing Type, “Attach the XML” , “Attach Signature File” and click on submit.

A request will be sent to Taxpayer of such upload done by the CA. The taxpayer can view the same under “Work List” option after login with taxpayer’s login credentials.

Approve Audit Form:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with user Credential.
3) Navigate to “Worklist” –> “For your Action” –> “Click on “Click Here” for view Uploaded Form Details
4) Click on “View Form” –> select “Approve/Reject” –> enter “Rejection comment” –> click on “Submit”

Once assesse approves the audit form it will be considered for processing. In case of rejection, CA has to upload the audit form again after making necessary changes.

Submit Online Form:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with e-Filing User credential.
3) Navigate to “e-file” –> “Prepare submit Online Form (Other than ITR)” –> Select the “Form Name” and “Assessment Year”
4) Click on “Continue” to proceed further.

Stay digitalised and connected. Happy Tax Saving Month.

Snippets On Home Loan Tax Benefits!

Must know things about home loan tax benefits!

Home loan tax benefit classes 🙂

Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner.
In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits. Which means, to claim tax on property, the person should be both co-borrower and co-owner.
The tax benefit is shared by each joint owner in proportion to his share in the home loan. It’s important to establish the share for each co-borrower to claim tax benefits.
The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits.

If You Work for a company –

Submit your home loan interest certificate to your employer for him to adjust tax deductions at source accordingly. This document contains information on your ownership share, borrower details and EMI payments split into interest and principal.

If You Are Self-employed and a Freelancer –

You don’t have to submit these documents anywhere, not even to the I-T Department. You’ll need them to calculate your advance tax liability for every quarter. You must keep them safely to answer queries that may arise from the I-T Department and for your own records.

If you have another property along with your self-occupied house, and if you let-out that property, you can claim tax deduction for the entire interest amount on the let-out home’s loan. So, the income from that property is calculated from deducting the property tax, standard tax deduction (30%), interest on the let-out property home loan from the annual rental value of the let-out property.

For the first time home buyers, the government provides up to Rs 50,000 tax benefit on loan up to Rs 35 lakh taken for residential house.

There are more tax planning benefits by different investment opportunities. Explore and take expert’s advice for the best decision and for saving more.