Archive for the ‘Apartment Buying’ Category
Wednesday, July 22nd, 2009
The Karnataka State Pollution Control Board (KSPCB) will not give Consent For Operation (CFO) to the apartment that does not show the source of drinking water supply. The builders cannot hand over the flats to buyers unless he gets CFO from KSPCB.
For apartment buyers, dream home is turning to be elusive or indefinite. The homes are built and payments have been made but flats will be handover only when builder gets CFO from pollution control board.
Prevailing Norms
- According to prevailing norms, at the time of construction builder has to get Consent For Establishment (CFE) form KSPCB if the structure is more than 5,000 sq.ft in area.
- If the building is more than 20,000 sq.ft in area, the builder has to obtain CFO and environment clearance after completing the structure.
- If there are more than 25 apartment complex, a builder should establish their own sewage treatment plant, garbage disposal system and source of drinking water to apartments.
KSPCB’s norms do not permit the builders to drill bore wells to draw water for these apartments and builder will not get CFO till they show the source of drinking water for these apartments.The builder had applied for BWSSB water supply but Bangalore Water Supply and Sewerage Board (BWSSB) will supply drinking water to these apartments only in 2012 after the completion of Cauvery Stage IV Phase II and if there is sufficient water to supply.
Some of the builders have completed their projects according to prevailing norms. But KSPCB has denied CFO to the builders and builders cannot handover the flats to buyers. KSPCB and builder will have to sit to explore the possibilities of supplying drinking water to get CFO and handover the flats to buyers.
Links to Refer:
Pollution norms stall home dream
Tags: Apartment, apartment buy-sell, Apartment India, Bangalore, bwssb, Housing, indian real estate, kspcb, property, Real Estate India, Tips
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Friday, June 26th, 2009
Global slowdown had led all industries to look towards government for help and packages to regain the market situation. Real estate sector is one of the industries which look Union Budget with hopes and expectation. Real estate industry expects some tax concession and packages to boost the industry.
Developers and builders expect reintroduction of section 80-IB (10) of income tax Act. The section was lapsed on March 31, 2007. If the provision reintroduced, builders will be encouraged to build small sized apartments. As per this section there was exemption from income tax on profit made by developers in constructing houses of less than 1000 sqft in Mumbai and Delhi, and less than 1500 sqft in other cities.
There is huge demand for small sized apartment. There is urgent need to boost the industry by restoring fiscal concession or restoration of section 80-IB (10). Developers and builders feel this measure will encourage builders towards construction of small sized housing or apartment and lowering the price of small residential units.
Stable government has played vital role in getting hopes and confidence of property buyers, investors and Realtors. Industry experts feel government is on right track by considering the hiking of income-tax exemption available for interest payment on home loans. Home buyers and investors expect the government will increase the income tax exemption slab for interest payment on home loans from Rs 1.5 lakh to Rs 3 lakh. The Budget should free the rental income yielded by commercial premises from service tax.
Every industry is expecting government for help and stimulus packages to regain the market situation and come out from the current situation. Real estate sector looks union budget as an opportunity where government will offer packages to boost the industry.
Tags: Apartment, Apartment India, Bangalore, Bangalore East, budget, Buying, Housing, Housing Developement, Housing India, Housing Societies, indian real estate, market trend, property, Real Estate India, recession
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Monday, June 22nd, 2009
Stamp duty on General Power of Attorney (GPA) based documents has been reduced by state government to 6 per cent. An ordinance promulgated on June 4, Stamp duty for GPA-based document was reduced along with cut down in stamp duty for first sale of apartments.
Union government has asked state government to reduce stamp duty to bring uniformity across the country. The buyers will have to pay stamp duty 6 per cent and 10 per cent cess on stamp duty and depending on the place of transaction additional duty on stamp duty and a surcharge will be imposed. A stamp duty of 6.72 to 6.78 per cent will be levied on transaction which includes surcharge, additional duty and infrastructure cess.
Reduction on stamp duty for GPA-executed sales deed will benefit to property buyers in urban area when comparing with rural area property buyers. Normally transaction of GPA-executed sales deed is found in urban areas such as Bangalore, Mangalore, Mysore and other urban areas. In urban areas GPA executed sales deed could amount 5 per cent of total transaction and it is around 1 per cent in rural areas.
If the transaction is in corporation limit, surcharge and additional duty of 2 per cent on stamp duty will be levied on transaction and the transaction in gram panchayat limit such transaction will levy 3 per cent on stamp duty.
Reference:
Stamp duty cut on sale deed executed by GPA
Knowledge-Articles for residents of apartment
Tags: Apartment, apartment buy-sell, Apartment India, Bangalore, bbmp, Buying, Housing, indian real estate, market trend, property, Property Registration, Real Estate India, Stamp duty
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Friday, June 19th, 2009
Real estate market in India has seen decline in property price for several month which attracted home buyers and investors towards real estate industry. In last few months there was a rise in demand for property and market trend favored buyers by cut down in registration cost, lowering rate of interest for home loans, builders offering property at attractive price.
That is stage is over and now property buyers can see rise in price of property. For builders liquidity position has eased, the cash flows have improved and they have cleared off existing inventories. The rise in property price depends on market trend and builders. If there is more demand for property, builders will increase the price of property. When checking the market trend and builders history, there was no increase in price for last 15-18 months. Builders had lowered prices when they were in trouble, now there is a good possibility of rise in price.
Builders regained confidence and enthusiasm that stable government will lead to improvement in economic condition. Builders can raise fund either by loans or through equity or QIP. The housing companies have seen growth pick up from the end of February. The growth for LIC housing Finance is mostly from retail finance.
In short, people cannot expect a further fall in property price. Builders will raise property price depending or market trend and demand for property. Buyers can get best from current market price where banks offer loans at affordable rates.
Reference:
The Hindu Business Line
Tags: Apartment, apartment prices, Bangalore, Buying, Home Loans, Housing, Housing Developement, indian real estate, market, market trend, property, Real Estate India, recession, rising prices, tax, Tips
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Monday, June 15th, 2009
The Stamp and Registration Department will catch up and implement e-stamp project for registration of property. From this August onwards, you will not have to stand in long queue at sub registrar’s office or in bank to purchase stamp papers.
E-stamping is computer based application which enables you to pay for stamp duty using electronic device. It is safe, secure and easy process of paying stamp duty when comparing to traditional stamp duty payment. In short, “e-Stamp” means an electronically generated impression on paper to denote the payment of Stamp duty, by Central Record Keeping Agency or ASC.
At present government has authorized national banks to sell stamp paper and these bank will continue issuing stamp paper but not under e-stamping system. Government will take decision on whether to with draw the service or not depending on success of e-stamp paper. The system was launched with association of Stock Holding Corporation of India Ltd (SHCIL).
In future, payment of stamp duty will be collected by Authorized collection Centre (ACC) or Authorized Stamping Center (ASC). The ASC official will feed details of transaction after collecting stamp duty and will generate a stamp duty paid certificate. This will not take more than five minutes. The revenue department has framed separate rule under Karnataka Stamp Act for implementing e-stamping system The Karnataka Stamp (Payment of Duty by Means of e-stamping) Rules, 2009.
E-stamp certificate is temper proof with security features such as 2-dimensional barcode, watermark and micro-digiting. The agents have to register with SCHIL and need equipments such as computer with internet, printer and other related infrastructure. Agents could be post office, banks or charted accountant and they will get 0.15% from SCHIL on each transaction. E-stamping was launched by the state government in 2008 with a pilot at Gandhinagar sub-registrar office which spread to other four SR offices.
Applicants for e-stamp duty need to pay ASC official for stamp duty and they will feed the details or information provided by applicant and downloads the e-certificate. The print out of same is taken and sign with date and official seal. Non-washable permanent black ink is to be used by official to sign. Applicant can go to sub-registrar office with the certificate.
Links to Refer
Tags: Bangalore, bbmp, Buying, e stamping, e-stamp, Housing, indian real estate, property, Property Registration, Real Estate India, Stamp duty, Tips
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Monday, June 8th, 2009
Income tax department is keeping track on property transaction to trap tax dues. The trap is set for those who under valued the property to escape the Income Tax net. It is found that there was large revenue pilferage even from small-value property transactions too.
The small value properties are under valued during registration for escaping from income tax net. Income tax department has asked sub-registrar to submit the details of property transaction starting from Rs 5 lakh. This is to examine the sales deed that shows the price of property and compare the guidance value. If there is difference between guidance value and price in sales deed, the same is brought under Income Tax net.
Earlier high value transactions were being scanned by Income Tax Sleuths. Sub-registrars were directed to furnish the details of high value property transaction to track down binami registrations. Until realty boom went bust, investing in immovable property was the best option to invest undisclosed income. The income tax has setup the trap to track those who invested property in binami registration and those who under valued their property to escape from income tax net.
Link to Refer
Times of India
Tags: Apartment, Apartment India, Bangalore, income tax, indian real estate, online tax, Property Registration
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Saturday, June 6th, 2009
Capital gain tax is not new for investors in real estate. Capital gain tax is tax you pay for capital gain you made by transferring capital. Capital gain is gain or profit derived from sale of capital investment such as property, shares, mutual fund, debentures etc. If you sell the property or capital investment for price more than what you bought is called capital gain and if the transfer is made for price less than purchase price is called capital loss.
Re-investment on residential property is best way to avoid capital gain tax. You can avoid paying capital tax if you re-invest the capital gain in any residential property which is either ready to occupy, construction in progress or purchasing any plot for construction of new house.
If you are re-investing capital gain for new house which is ready to occupy, you must invest within one year or two years after transfer. If you re-invest capital gain for purchase of residential property within specified time you can claim full exemption. If you are re-investing capital gain for buying plot to construct a new house, construction must be completed within three years from date of transfer.
Investors are attracted to real estate with lower rate of interest on home loans and cut down in stamp duty for registration of property. Now you can avoid capital gain tax on your capital gain by re-investing on your dream property.
Tags: capital, capital gain tax, capital gains, exemption, property, Property Registration, tax
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Thursday, June 4th, 2009
Residents of new areas is facing problem of property registration by merging of some urban local bodies with City Corporation by BBMP . As per rule when urban local bodies are elevated with city status, fresh Khatas to properties in CTC/TMC/ village panchayats should be issued by City Corporation. This is for proof or endorsement that the properties have been transferred to corporation limits.
However, merging of eight CMCs, one TMC and village panchayat with City Corporation seems not in smooth for property registration. Residents in new areas are facing problem for property registration as sub registrar insists BBMP must issue an endorsement stating that property comes under their jurisdiction for transfer or registration of property but BBMP has not streamlined khata of CMCs. This directly or indirectly leads to come down of property registration in new areas.
According to guidelines of state revenue department on registration of property or transfer of property, property owner must submit the endorsement or new khata extract along with other documents for registration. The endorsement will state that property belongs to jurisdiction of BBMP but BBMP is going slow in issue of new khata. Inspector general of registration and commissioner of stamps clarifies that though department has come out to help residents of new areas BBMP has not shown any co-operation till now.
BBMP states that new khata cannot be issued without verification of existing khata. If the khata is issued without any verification it will be like legalizing illegal or encroached property by putting seal of approval. They also states that if any discrepancy comes fingers will first point to BBMP.
In short, residents of new areas cannot register or transfer property unless they get endorsement from BBMP or BBMP issues fresh khata. Residents in new areas are upset with BBMP process and procedure.
Tags: Bangalore, bbmp, khata, property, Property Registration
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Monday, June 1st, 2009
Previous deadline for collecting property tax for current block period (2008-09) was Saturday May 30. Revised date for current block period is June 30 without 2% penal interest. The revision will also be incorporated into online tax calculator on civic agency’s website starting on June 1, 2009. Interest for late payment of first half year will continue. BBMP said, there was significant tax collection as the previous deadline was last Saturday May 31, 2009.
Tax counter for new block period (2009-10) will open on July 1 and last date for paying tax for whole year on first half year without 2% penal interest will be on August 30. As per revised tax calendar, last date to avail rebate for tax paid in full will be on July 30. Property owners get one more time as previous deadline for property tax 2008-09 was moved to June 30.
Important Links to follow:
Tags: Bangalore, bbmp, online tax, property, property tax, Tax calendar
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Friday, May 29th, 2009
BBMP (Bruhat Bangalore Mahanagara Palike) has proposed government to extend deadline for property tax for one month. If proposal is accepted property owners can pay property tax with rebate on or before July 31st. If this proposal is accepted property owner gets one more month relief in paying tax and paying tax without rebate will move one month further to August 31st. BBMP clarifies that there was high demand from property owners that they will not be able to make heavy payment on due date. The payment of second installment will continue to be November 30. The forms can be obtained from help centers. The BBMP is also planning to make them available online.
Tags: Apartment India, Bangalore, bbmp, indian real estate, property tax
Posted in Apartment Buying | 1 Comment »
