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Posts Tagged ‘Housing Societies’

BBMP hopes to collect at least Rs. 800 cr. this year

Tuesday, September 1st, 2009

According to a revenue official, the last date to pay the first installment of property tax for the financial year 2009-10 ended on Sunday. From beginning of financial year to  August 30, Bruhat Bangalore Mahanagara Palike (BBMP) has collected approximately Rs. 380 crore as property tax from around 4.3 lakh residents of the city.

Last year, around 7.5 lakh property owners paid tax to the tune of Rs. 748 crore to the civic authority. The official said property owners had just two months’ time to pay the property tax under self-assessment scheme last year. This year however, they have been given abundant time and they can pay the tax, albeit with penalty, till October-end.

The official said that the civic authority hoped to collect at least Rs. 800 crore as property tax this year. BBMP targets for 1000 crore and to ensure 100 per cent payment, BBMP will use Geographical Information System, that enables to scrutinize the details such as built-up area, number of floors and usage of the property.

While four lakh owners filed their tax returns at various centers identified by the BBMP, more than 30,000 property owners chose to go online. The official also said that the BBMP had received a lot of complaints from property owners last year about the cumbersome procedure involved in filing the tax returns.

Tax Calendar
August 30- Last date for payment of property tax for full year or First half-year without penal interest.

November 30- Last date for payment of property tax for second half-year without penal interest.

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Posted in Bangalore | 1 Comment »

Good time for affordable home buyers

Saturday, August 1st, 2009

It is good time for home buyers, especially buyers looking for affordable home. The government has taken some positive step to boost realty sector. Tax holiday has been announced for ongoing infrastructure projects which were approved during 2007-08 and projects to be completed before 2012. Earlier, the provision was limited to only projects sanctioned before March 2007 and the project to be completed before March 2010.

The government has decided to reduce interest rate one per cent for one year on home loans less than Rs 10 lakhs for a house costing Rs 20 lakhs. The move is expected to boost realty sector and the realty sector is directly or indirectly support other sectors. This measure will have positive impact on economy.

The interest subsidy is aimed at mid-segment housing loan borrowers. One caveat is the cost of the house should not exceed Rs 20 lakhs. Also, the subsidy will be available only for one year. This interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. A number of developers have been considering getting into this segment. The move to extend by two years the tax exemption available to builders of smaller homes is also likely to persuade builders to reduce the cost of such homes. The minister has urged the developers to pass the tax benefits to customers.

Working of One per cent subsidy

The government has decided to reduce interest rate one per cent for home loan up to Rs 10 lakhs for house costing Rs 20 lakhs, for one year. This means, if you take home loan for 9 per cent and your loan amount is less than Rs 10 lakhs to buy a house costing Rs 20 lakhs, you are eligible for one per cent subsidy.

The Bank deducts one per cent interest from your loan and collects only 8 per cent interest on your home loan from 9 per cent. The one per cent interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. It means a one-time saving of Rs 7,596 for anyone who takes a Rs 10-lakh 20-year loan at an interest rate of nine percent, with the subsidy taking his effective interest rate down to eight percent.

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Posted in Bangalore | 2 Comments »

Changing Realty Market

Friday, July 31st, 2009

Realty sector is one of the fast developing sectors or industries. Till early 1990, apartment in the city were a rarity. It was believed that apartment is only a home fortunate for the rich and famous. Local residents would prefer independent house even if they are small.

Most of the city now dwells in high-rise or apartment building. During the peak years, anywhere between 3,500 and 4,000 apartment units were sold in the city every month. Now only language home buyers speak is BHK (Bedroom, Hall and Kitchen). Property or apartment comes in all varieties from 1-BHK to 5-BHK. The residential market in the city predominantly catered to the Rs 30 lakh to Rs 70 lakh market segment. There have been apartments in the city, which have been sold for Rs 17 crore.

Now, there is a new residential market emerging — affordable homes and nano homes. Housing units costing between Rs 10 lakh to Rs 25 lakh fall into the affordable home bracket, and housing units costing between Rs 4 lakh to Rs 10 lakh are in the nano home market. The demand for housing has increased tremendously in recent time. Professionals in field of teaching, medicine and youngster in IT sector invest in realty for long term benefits.

One could probably attribute this fact to the growth in the number of developers in the city. From just having a handful of developers, who were mostly landowners in 1980s, today Bangalore has over 300 developers of all hues.

A Confident project in the Rs 12 lakh to Rs 17 lakh bracket launched two weeks ago on Sarjapur Road is said to have received 1,500 calls on the day of the launch, and 50 bookings in three days.

Links to Refer:

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Posted in Apartment Buying | No Comments »

Real Estate Looks Union Budget With Expectation

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.

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BBMP Control Room For Civic Issues

Wednesday, June 24th, 2009

Bangalore citizen can call BBMP to register complaints and civic disputes 24/7. BBMP has setup Control room which consists of a wireless network which is spread over the entire BBMP. It covers the entire eight zones under BBMP jurisdiction.

About 650 officials have been provided with wireless sets by which they can communicate with the control room and with other officers in their respective zones. Some officers above a certain rank have also been provided with mobile sets connected to their vehicles. The focus is on the response time that the field officers take to address public grievances.

The control room has established a 24/7 grievance redressal system for the public. Citizen can call 22660000 and register their complaints on day to day civic issues.

Reference:

www.deccanchronicle.com

www.hindu.com

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Large Cooperative Housing societies in India have to pay Service Tax

Wednesday, May 20th, 2009

Service Tax for Cooperative Housing societies

Service tax charge is charged on service provided by Cooperative Housing Society (CHS). In rules of service tax department, if a cooperative society crosses the collection of four lakh rupees from its members, service tax is warranted on taxable services. Total Service tax would be 12.24 % (service tax is 12% and 2% education tax on the top of it). Therefore collection of less than four lakh rupees per annum by a society does not warrant any service.

Service Department rule says, cooperative housing societies (CHS) can be taxed under the group of ‘Club of Association Services’ as included in u/s 65 (105) of the Finance Act, 1994 effective from June 16, 2005. ‘Club’ or ‘Association’ is classified u/s 65 (25a) of the Finance Act (No.2), 1994 as revised by the Finance Act, 2005.

The description mentioned above is quite extensive and envelops almost any individual or body of individuals providing service to the members of its society, amenities or returns for a payment or any other amount comes under. It is under these stipulations that the department levies tax on cooperative housing societies as service tax. Thus, since June 16, 2005, it is mandatory for cooperative societies to pay service tax.

For a cooperative society, service tax will have to be paid prior to 5th of every month. However, for March, the last month of the year, payment has to be done by 31st March. It must be noted that on the sum accumulated by the society together with transfer fees, donations, transfer charges, repairs and maintenance contributions, 12.24% will be gathered and the same needs to be deposited in the banks endorsed by the service tax department. The proceeds considering service tax have to be filed twice a year. For the period from April first to September thirtieth, the returns need to be filed on or before October twenty-fifth. For the second half of the year, the returns need to be filed on or before March thirty first.

In case of delayed payment, interest has to be paid at the rate of 13% per annum. The service tax department can exercise the power to impose fine as per the terms of Section 76 for non-payment or short payment of service tax and Section 77 for not filing return.

CENVAT credit is offered to cooperative societies in respect to service tax, which comprises all payments made by the society on which the society has paid the service tax, for instance, telephone bills, security charges, etc. Subsequently, all payments done on or after June 16, 2005, are entitled for CENVAT credit.

Interesting Links to follow:

http://answers.yahoo.com/question/index?qid=20070710225606AAWXEz5
http://www.dnaindia.com/report.asp?NewsID=1008540

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Posted in Housing India | 2 Comments »