Monthly Archives: June 2009

All Co-Borrowers Can Get Tax Benefit

In case husband and wife have separate source of income, they can apply for home loan together. Tax benefit is available for both and applying home loan jointly enables you to get maximum amount. Under Income Tax Act, tax benefits are available on home loan principal amount and interest paid. If there are two or more co-borrowers, all co-borrowers can enjoy the tax benefit.

To get tax benefit you need to be co-owner and co-borrower. You cannot get tax benefit if you are only co-borrower and not co-owner of the property. The maximum deduction for an individual is up to Rs 1.5 lakhs. While arriving at the share of the loan, repayment of each co-borrower or spouse will be taken into account.

In case of one co-borrower does not have any income can enter in an agreement with spouse. The agreement should state that entire repayment is met from one owner or borrower’s income. This would ensure that the main applicant will have 100% beneficial home ownership and avail all tax benefit applicable to single owner or borrower.

Repayment can be done from a joint bank account or husband and wife can share EMI. Both have to issue specified number of cheques towards the loan repayment. Copy of borrowers’ certificate is needed for each borrower to claim their respective tax relief. A co-borrower should enter into a simple agreement with the spouse on stamp paper of Rs 100. The agreement must contain share of the ownership along with home loan availed by the couple. Each borrower must have a copy of principal amount paid and interest paid certificate issued from bank to claim tax benefit.


Integrated Housing Complex for Industrial workers

Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) gave go ahead for the development of integrated housing complex for industrial workers. The scheme to be funded under Economic Stimulus Package announced in the budget 2009-10 by the state government.

The scheme is announced for housing for industrial workers at IMT Rohtak, IMT Faridabad, Kundli, Rai and Barhi. The state government will allot Rs 30 crore in three equal installments of Rs 10 crore each. HSIIDC reports, the draft project report of the project is under finalization. The first installment for the project will be released immediately to the corporation. The project would be completed in 18 months.

The industrial estates with entrepreneurs either of fully operational or in production industrial projects would be eligible for this scheme. If there is application exceeding the number of dwelling units, allotment will done on draw of lots. Under the industrial housing scheme, dormitory units having covered area of 114.30 sq mtrs and dwelling units covering 29.14 sq mtrs would be constructed. The dormitory units would be allotted as one unit for 12 persons to the existing industrial units. An industrial unit could apply for a maximum of four dormitory units. Individual dwelling units would also be allotted to the existing unit in the industrial estate.

The allotment would be made on a deferred payment scheme wherein the applicant would pay ten per cent with the application, 15 per cent after allotment and balance 75 per cent in five equated half-yearly installments carrying nominal interest. The application exceeding the number of dwelling units, allotment will be done on draw of lots.

BPLR down by 50 bps for State Bank of India

SBI had reduced its Benchmark Prime Lending Rate by 75 points in January 1, 2009 and SBI had reduced deposit rate by 25 points across all maturities to bring down cost of funds. SBI cuts its BPLR rate by 50 basis points effective from June 29, 2009.

SBI rate cut comes within a fortnight of Finance Minister Pranab Mukherjee asking state-owned banks to soften rates. Other lenders will soon follow SBI and borrowers will get car loans, home loans and other loans for cheaper rate.

SBI has recently reduced its deposit rate by 25 points. The rate of deposit for 1000 days tenure was reduced from 7.75 to 7.50 per cent, for deposit 2 years or less than 1000 days the rate was cut from 7.50 to 7.25 per cent. The rate for deposit from 1 year to less than 2 years was reduced from 7.25 to 7 per cent and the deposit for tenure of 181 days and less than one year the rate is 6.25 against 6.50 per cent.

The new rate for BPLR will be 11.75 per cent against current rate of 12.25 per cent. This will be effective from June 29, 2009.


Opportunity To File Revised Returns For Property Tax 2008-09

Deadline for property tax payers for filing property tax 2008-09 is on June 30. It is mandatory for all tax payers to pay property tax irrespective of whether or not they hold khata. Property Index Number (PID) can be known from BBMP website. If you have made mistake in calculating your property tax 2008-09, you can file your return now.

You can file your revised return at BBMP help center and get the acknowledgment of the same. BBMP tax calculator will enable you to calculate your property tax and interest payable for delayed payment. Second installment of property tax 2008-09 can be filed without fine or penalty up to June 30.

To avail the services from BBMP, tax payers have to make prompt payment and furnish the details of tax paid. Therefore ensure prompt payment to enjoy the benefit or services offered by BBMP to its citizen.

All help centers of BBMP will work from 9:30 Am to 12:30 Pm and 3:30 Pm to 7:00 Pm on all working days

June 30 last date for property tax 2008-09

Pay your property tax in time and avoid penalty or fine. June 30 is the last date for paying property tax 2008-09. Property owners can avoid paying penalty or fine on property tax if paid on or before June 30.

If property owners had made any default in first installment for property tax 2008-09, property owners will have to pay 2% interest per month. This is right time to file your return if you have wrong amount. Property owners who made wrong payment can file their return without any penalty or charges on or before June 30.

You can see property owners in Bangalore rushing to pay their property tax 2008-09 in June. If the property owners make any default, BBMP will charge penalty of double the property tax or issue distress warrant to attach movable property in the house towards property tax.

Property owners can make payment of property tax 2009-10 from July 1. July 30 is deadline for availing rebate for tax paid in full for 2009-10. August 30 will be last date for paying property tax 2009-10 without fine or penalty.

Pay Your Property Tax or Pay Double

Water Supply and Sewerage Can Be Disconnected For Whole Apartments If Your Neighbor Defaults

Madras court says metrowater is vested with statutory right to cutoff water for whole apartment complex if the owner makes default. Two apartment owners in Cosmo Tower made default to pay arrears of water and sewerage connection  tax and charges. Chennai metrowater’s gave notice to association if the owner in apartment fails to pay arrears, water supply and sewerage connection will be disconnected for a whole of apartment.

Association of Cosmo Tower, a residential in T-Nagar Chennai, filed a petition seeking forebear the disconnection of water supply and sewerage connection due to default made by two flat owners. Justice N Paul Vasanthakumar by dismissing the writ petition filed by association stating that metrowater’s has statutory right to cut off water supply to the whole complex.

Association says it has 30 members and two flat owners are not considered as owners as they were using their flat for commercial purpose against the byelaws of the association. However two owners said the association itself had disconnected water supply to the flats of two owners. One of them had paid dues to board but Metrowater said it can disconnect the water supply if any one of them makes default.

Metrowater says association could pay arrears and recover the same from the flat owner. On the disconnection of water supply by association to two owners of the flat, court says association is not entitle to disconnect the water supply to its owner.


Your water supply can be snapped if apartment neighbor defaults

20,000 Houses for Urban Poor in the City

Ahmedabad Municipal  Corporation (AMC) is building up to 20,000 houses for economically weaker sections (ECSs). The urban poor residing in slums and chawls will be soon moving to neat house. AMC is developing these houses at 29 locations in the city at an estimated cost of Rs 350 crore.

AMC is building up to 20,000 houses from loan of Rs 120 crore from Central bank of India. The project is a part of Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The project provides affordable homes for urban poor. AMC will build 32,640 homes which include Ahmedabad Urban Development Authority (AUDA) areas with facilities like drainage, water supply and other basic infrastructures.

Actual price for a house is around Rs 2.55 lakh which includes tender premium and price escalations. The beneficiary will have to pay only Rs 66,900 per house and one can pay Rs 20 to 30 per day for an EMI of 20 years. These houses are monolithic structures which don’t need walls to be plastered.


AMC houses at Rs 66,000 for urban poor