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Indian Stock Market News and Views.

How much tax can you save in real estate investments?

| Filed under Economy

The first preference of investment for a majority of us is real estate. Right from buying properties for residential and commercial uses or for renting it out or for buying a farm house or lands in urban and rural areas investing in real estate has always been an exciting proportion.

However real estate investments can attack income tax and tax on capital gains when sold and hence it calls for a thorough planning to save such taxes.

Residential property

When buying a house for self-occupation

If you have only one residential property and occupy it too then you are not liable to pay tax on its notional value of the rent. However, the tax implications could be different if you own more than one residential property and occupy it too. In such a case you will be required to pay taxes on your other residential properties which are calculated on the basis of reasonable rent.

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What is ASBA?

| Filed under Economy

SEBI introduced a new payment option ASBA (Application Supported by Blocked Amount) as an additional payment mechanism for the benefits of certain investors applied in IPO (Initial Public Offers). This option would be available to retail investors only. It is also an exclusively available payment option for the investors applying in right issue of shares, which means the additional shares offered to existing share holders of a listed company based on preference. According to the investors who experienced this new trend application, it is definitely a 100% success from SEBI’s new application. With this payment option the application money remains in the investors account until the shares are released. So no money is goes out from the investors account.

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