1 Mortgage Cost

Monthly
a Expense
BUY
Loan 31900000
Sr. No Charge Monthly 1 year Over 30 years

1 EMI
₹ 258,752.47 ₹ 3,105,029.61 ₹ 93,150,888.28

2 Property Tax ₹ 12,500.00 ₹ 150,000.00 ₹ 4,500,000.00

Society
3 ₹ 10,000.00 ₹ 120,000.00 ₹ 3,600,000.00
Charge

Repairs &
4 ₹ 25,000.00 ₹ 300,000.00 ₹ 9,000,000.00
Maintenance

Total
₹ 306,252.47 ₹ 3,675,029.61 ₹ 110,250,888.28
expense

Lump Sum

Down
1 ###
Payment

2 Stamp Duty ₹ 200,000.00

Registration
3 fee 1% ₹ 40,000.00

4 Misc ₹ 500,000.00

b Monthly Expense
RENT
Sr.No Charge Monthly 1 year Over 30 years

1 Rent ₹ 200,000.00 ₹ 2,400,000.00 ₹ 72,000,000.00

Society
2 ₹ 10,000.00 ₹ 120,000.00 ₹ 3,600,000.00
charges
 3
Total
Expense
210000 2520000 75600000

a-b 96252.467447 1155029.60937 34650888.2810815

Flat Cost
Stamp Duty 5%
Registration fee 1%
Misc
PV
r
n
Future Value of Flat after
30 years
Stamp Duty 5%
Registration fee 1%
Property Tax per annum
Society Charges
Brokerage
Realizable Value of Flat
including Charges

The above example is well illustrated through the table

Sale Consideration
Cost of purchase
Net Gain (without indexation)
Indexed Cost of purchase

(CII for the year 2018-19 / CII for the year 2012-13) * C

Net Gain (With Indexation)

4
Particulars
Repairs and General
maintenance
Property Tax
Addition expence on EMI
Assumption
Total Principal +
Interest/ 360= 2 Monthly installment is 258752.47 amd outstanding principle after fiv
68852382.31/360
Total principal and
interest taken from A B C
exhibit 1

Present Value Interest Rate

₹ 31,900,000.00 9%
A B C
3 Year Beginning Amount Annual Instalment
4 1 ₹ 31,900,000.00 ₹ 3,105,029.61
5 2 ₹ 31,665,970.39 ₹ 3,105,029.61
6 3 ₹ 31,410,878.12 ₹ 3,105,029.61
7 4 ₹ 31,132,827.54 ₹ 3,105,029.61
8 5 ₹ 30,829,752.41 ₹ 3,105,029.61
9 6 ₹ 30,499,400.51 ₹ 3,105,029.61
10 7 ₹ 30,139,316.95 ₹ 3,105,029.61
11 8 ₹ 29,746,825.87 ₹ 3,105,029.61
12 9 ₹ 29,319,010.59 ₹ 3,105,029.61
13 10 ₹ 28,852,691.93 ₹ 3,105,029.61
14 11 ₹ 28,344,404.59 ₹ 3,105,029.61
15 12 ₹ 27,790,371.40 ₹ 3,105,029.61
16 13 ₹ 27,186,475.21 ₹ 3,105,029.61
17 14 ₹ 26,528,228.37 ₹ 3,105,029.61
18 15 ₹ 25,810,739.32 ₹ 3,105,029.61
19 16 ₹ 25,028,676.25 ₹ 3,105,029.61
20 17 ₹ 24,176,227.50 ₹ 3,105,029.61
21 18 ₹ 23,247,058.37 ₹ 3,105,029.61
22 19 ₹ 22,234,264.01 ₹ 3,105,029.61
23 20 ₹ 21,130,318.16 ₹ 3,105,029.61
24 21 ₹ 19,927,017.18 ₹ 3,105,029.61
22 ₹ 18,615,419.12 ₹ 3,105,029.61
Assumption 23 ₹ 17,185,777.23 ₹ 3,105,029.61
24 ₹ 15,627,467.58 ₹ 3,105,029.61
Rent remains constant
25 ₹ 13,928,910.05 ₹ 3,105,029.61
Society charges remain 26 ₹ 12,077,482.34 ₹ 3,105,029.61
constant. 27 ₹ 10,059,426.14 ₹ 3,105,029.61
28 ₹ 7,859,744.89 ₹ 3,105,029.61
 29 ₹ 5,462,092.32 ₹ 3,105,029.61
30 ₹ 2,848,651.02 ₹ 3,105,029.61

₹ 40,000,000.00
₹ 2,000,000.00
₹ 400,000.00
₹ 500,000.00
₹ 42,900,000.00
7.7
30
₹ 370,280,712.10
₹ 18,514,035.61
₹ 3,702,807.12
₹ 4,500,000.00
₹ 3,600,000.00
₹ 500,000.00
₹ 401,097,554.83

mple is well illustrated through the table below:

₹ 401,097,554.83
₹ 42,900,000.00
hout indexation) ₹ 358,197,554.83
42900000*280/200 ₹ 60,060,000.00

ar 2018-19 / CII for the year 2012-13) * Cost of Purchase

h Indexation) ₹ 341,037,554.83

Monthly Annual

₹ 25,000.00 ₹ 300,000.00
₹ 12,500.00 ₹ 150,000.00
₹ 58,752.47 ₹ 705,029.61
₹ 96,252.47 ₹ 1,155,029.61
.47 amd outstanding principle after five years is Rs. 3,04,99,400.51

D E F

No of Installment Present value

Interest Factor Annual Instalment
in a Yr
(PVIFA r,n)
30 10.273654043022 ₹ 3,105,029.61 ₹ 258,752.47
D E F
Prenciple
Interest remaining balance
Repayment
₹ 2,871,000.00 ₹ 234,029.61 ₹ 31,665,970.39
₹ 2,849,937.34 ₹ 255,092.27 ₹ 31,410,878.12
₹ 2,826,979.03 ₹ 278,050.58 ₹ 31,132,827.54
₹ 2,801,954.48 ₹ 303,075.13 ₹ 30,829,752.41
₹ 2,774,677.72 ₹ 330,351.89 ₹ 30,499,400.51
₹ 2,744,946.05 ₹ 360,083.56 ₹ 30,139,316.95
₹ 2,712,538.53 ₹ 392,491.08 ₹ 29,746,825.87
₹ 2,677,214.33 ₹ 427,815.28 ₹ 29,319,010.59
₹ 2,638,710.95 ₹ 466,318.66 ₹ 28,852,691.93
₹ 2,596,742.27 ₹ 508,287.34 ₹ 28,344,404.59
₹ 2,550,996.41 ₹ 554,033.20 ₹ 27,790,371.40
₹ 2,501,133.43 ₹ 603,896.18 ₹ 27,186,475.21
₹ 2,446,782.77 ₹ 658,246.84 ₹ 26,528,228.37
₹ 2,387,540.55 ₹ 717,489.06 ₹ 25,810,739.32
₹ 2,322,966.54 ₹ 782,063.07 ₹ 25,028,676.25
₹ 2,252,580.86 ₹ 852,448.75 ₹ 24,176,227.50
₹ 2,175,860.47 ₹ 929,169.13 ₹ 23,247,058.37
₹ 2,092,235.25 ₹ 1,012,794.36 ₹ 22,234,264.01
₹ 2,001,083.76 ₹ 1,103,945.85 ₹ 21,130,318.16
₹ 1,901,728.63 ₹ 1,203,300.97 ₹ 19,927,017.18
₹ 1,793,431.55 ₹ 1,311,598.06 ₹ 18,615,419.12
₹ 1,675,387.72 ₹ 1,429,641.89 ₹ 17,185,777.23
₹ 1,546,719.95 ₹ 1,558,309.66 ₹ 15,627,467.58
₹ 1,406,472.08 ₹ 1,698,557.53 ₹ 13,928,910.05
₹ 1,253,601.90 ₹ 1,851,427.71 ₹ 12,077,482.34
₹ 1,086,973.41 ₹ 2,018,056.20 ₹ 10,059,426.14
₹ 905,348.35 ₹ 2,199,681.26 ₹ 7,859,744.89
₹ 707,377.04 ₹ 2,397,652.57 ₹ 5,462,092.32
₹ 491,588.31 ₹ 2,613,441.30 ₹ 2,848,651.02
₹ 256,378.59 ₹ 2,848,651.02 ₹ 0.00
B.Net gain or loss wrt. Rent expense if property is to be sold after 20 years, again including opportunity cost.

Flat Value ###

Buy

Sr. No. Charge Price Time period Total Comment

1 Down Payment (20%) ₹ 8,000,000.00 1 -₹ 8,000,000.00
2 Finance 80% at 10.25%
Total Principals
+ Total interest
taken from
Total Amount Payable ### 1 -₹ 93,150,888.28 exhibit 1
One time
3 Stamp Duty 5% ₹ 2,000,000.00 1 -₹ 2,000,000.00
amount
One time
4 Registration fee 1% ₹ 400,000.00 1 -₹ 400,000.00
amount
5 Property Tax per annum ₹ 4,500,000.00 30 -₹ 4,500,000.00 For 30 years
6 Society Charges ₹ 3,600,000.00 360 -₹ 3,600,000.00 For 30 years
One time
7 Brokerage ₹ 500,000.00 1 -₹ 500,000.00
amount
Please see
8 Tax rebate 1
note.
Future Value of
1.25 million at
7%
9 flat sale ### 1 ### appreciation
Long term
capital gains
tax if sold after
LTCG tax 20% ### 1 -₹ 74,056,142.42 20 years
Total ###
minus Cash Outflow

plus Cash Inflow

Note:
Tax saved on Rs 200000
is 30% 60000
Tax saved on Rs 150000
is 30% 45000

Total 105000

Tax rebate for the first 18 1.05*18=18.9

years. lakh
Tax rebate for 19th year 45000+51322
96322
45000+18863
Tax rebate for 20th year 63863

total tax rebate=

63863+96322+1890000 2050185
 Flat Value ₹ 40,000,000.00
37,02,80,71
2
Stamp Duty 5% ₹ 2,000,000.00
Registration fee 1% ₹ 400,000.00
Misc ₹ 500,000.00
PV ₹ 42,900,000.00
r 7.7
n 30
Future Value of Flat
₹ 370,280,712.10
after 30 years
Stamp Duty 5% ₹ 18,514,035.61
Registration fee 1% ₹ 3,702,807.12
Property Tax per annum ₹ 4,500,000.00
Society Charges ₹ 3,600,000.00
Brokerage ₹ 500,000.00
Future Value of Flat
₹ 401,097,554.83
including Charges