Tag Archives: property buying

Registering a property could soon become easier

The government is planning to replace the Indian Stamp Act 1899 with a simpler law that will do away with a large number of provisions and fees.The finance ministry has already initiated a preliminary exercise to draft the new law and is hopeful of finalizing it by the end of the year. The draft will need to be discussed with State governments to elicit their views as well.

Under the Indian Registration Act, the purchase of a house should be registered with the office of the registrar or sub-registrar of the district within whose jurisdiction the property is situated. Registration of property helps trace the history of ownership of a property.At present, the documents are physically verified by different departments, making the process of registration a time-consuming one. The new legislation is expected to address the problems being faced in registration of properties. The proposed legislation is likely to recognize electronic stamping and electronic payment of stamp duties. At present electronic stamping and electronic payment of stamp duties facility is available as part of the e-governance initiative for companies that wish to file their papers online with the Registrar of Companies.

The government is also planning to rework the current structure of stamp duty fees and penalties. Duties charged in the smaller denominations could be replaced with specific amounts or be calculated as a percentage. It is to be noted that the Law Commission had taken up the issue of amending the Indian Stamp Act last year. It had suggested in its report that the required fee for any transaction or court fee should be paid by demand draft, cash, or postal order rather than through non-judicial stamp papers or special stamps.

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Buying a property or house to reduce the tax liability

It is best time to start your tax saving plan or planning your tax saving strategies as the financial year comes to an end. Buying a property or house can also be used to reduce the tax liability to a certain extent.

Under Section 24 of the Income Tax Act, interest paid up to Rs 1.5 lakhs per annum on a home loan can be set-off from salary or business income. In case there are co-owners to a property, each of them can claim tax benefits separately , in proportion to their share holding in the property.Co-owners can claim a deduction of up to Rs 1.5 lakhs per annum separately, on interest paid towards a self-occupied house, and also up to Rs 1 lakh per annum towards principal amount repaid.

Under Section 88 of the Income Tax Act, a home loan borrower can claim a deduction of up to Rs 1 lakh from his taxable income on repayment during the year along with specified savings instruments like provident fund. Under Section 24 of the Income Tax Act, the entire pre-EMI interest amount is allowed as a deduction equally over five years (20 percent of total interest paid per annum), starting from the year in which the construction is completed.

Source: The Economic Times

The Government may remove the mandatory three-year lock-in period for overseas investments

To boost FDI in real estate Govt may scrap 3-year lock-in

Delhi:To boost foreign direct investment (FDI) in real estate, the government may remove the mandatory three-year lock-in period for overseas investments in the sector.The department of industrial policy and promotion (DIPP) has proposed this move, with a draft cabinet note on the proposal being circulated for inter-ministerial consultations.

 

Lodha builders honored with Best Developer Involved in High-End Residential Properties

Mumbai: Lodha builders Pvt Ltd, Mumbai’s premium real estate developer, has been honoured with “Best Developer Involved in High-End Residential Properties” across India, by construction source india, which is unique in offering a holistic platform for the construction and building material industry. Construction source india had honored architects and builders for their contribution to various aspects of urban development.

 

The online building plans acceptance scheme started by PCMC

Pune: In order to speed up the working process in the administration the Pimpri Chinchwad Municipal Corporation (PCMC) has introduced the e-governance system. The introduction of e-governance system has facilitated online submission of property tax, submission of tenders, water tax and system for submission of octroi statements for a large number of industries. In addition to this, the online building plans acceptance scheme started by PCMC on a trial basis.

 

Bangalore Shifts into one BHK homes

Bangalore: Many developers in the city are looking at building— 1-BHK ranging between 500 sqft and 800 sqft with a price tag of around Rs 10 lakh to Rs 15 lakh. Electronic City, Whitefield, Marathahalli and Bannerghatta Road are the current hotspots for 1-BHK and studio apartments. Brigade Group, which just announced the launch of its value homes, says that 30% to 40% of the 10,000 units it’s expected to build would comprise 1-BHK units.

 

The new assembly complex will lead by example in the area of water conservation

Chennai: The Sewage Treatment Plant (STP) coming up inside the new Tamil Nadu Assembly complex in the Omandurar Government Estate on Anna Salai will help save about 2.5 lakh liters of water a day. The rainwater harvesting structures there will store 1.2 lakh liters while the STP, likely to come up on the Sivananda Salai side, will treat 2.5 lakh litres of water everyday.

Residential prices have started to look up in all markets

Hyderabad:According to the report, NCR and Mumbai have seen values climb up with the return of investors and an end users interest in the realty market in the third quarter ending September 2009.However, prices in cities in south India have stabilized, with the exception of Bangalore, which is still witnessing a slight correction.Rental and capital values in third quarter witnessed minimal correction in Hyderabad as price points inched closer to buyer expectations.

AP plans Integrated townships plan to tide over the shortage of affordable housing

Hyderabad: The Andhra Pradesh government has devised a model `integrated townships plan’ to tide over the shortage of affordable housing in the state. According to state housing minister, a recent survey had indicated that nearly 1.76 lakh houses are needed to be built for urban people in the state.  State housing minister C Shilpa Mohan Reddy said that the biggest barriers to realtors in providing affordable housing were skyrocketing of prices of land and raw materials, and over-taxing of housing that accounts for almost one-third of the cost.

At a one-day seminar on ‘Housing For All’ organised by the Confederation of Indian Industry (CII) Reddy said that as part of this plan the state government was in the process of allotting 100 acres of land in each of the municipal corporations, 50 acres in each of the municipalities, and 10 acres in each mandal.
Apart from this, the state government is constructing 26,000 flats in and around Hyderabad and 50,000 flats across the state under its own `Rajiv Swagruha scheme’.The state government had also taken up a massive housing scheme for those living below the poverty line (BPL) under the `Indiramma Program‘. About 81 lakh houses have been sanctioned in rural and urban areas for BPL families, of which about 27 lakh houses have already been completed.

The biggest barriers to realtors providing affordable housing were skyrocketing of prices of land and raw materials, and over-taxing of housing. If taxing of housing is made more rational and transparent, and levied through a single-window, then it will help the developers a great deal in providing affordable housing.

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AP plans integrated townships to provide affordable housing

A draft new law on the much-awaited real estate regulator

The government has unveiled a draft new law on the much-awaited real estate regulator.The draft bill makes it mandatory for builders to register their projects with the regulator before marketing them.The biggest relief would be that a property buyer would know exactly what he is buying. The draft bill also makes it mandatory for the builder not to accept any advance from home buyer before a sale agreement is put in place.

According to the draft, a builder will have to register a project with the regulator before he can market the properties.The builder will have to submit a documentary proof of land ownership and the mandatory licences to the regulator for registration.This process will ensure the legitimacy and the viability of the project, ending the current practice of realty firms launching projects without land ownership or mandatory approvals.

The builders will have to submit a bank guarantee of 5% of the total cost of the project, which will be encashed by the regulator in the event of the builder not completing the project in time or violating any other condition agreed upon at the beginning.

Reference

Buying home to get safer, new real estate bill mooted

Property transaction in post office

From next month, property buyers can pay their registration fee and stamp duty in near by post office. Karnataka Stamps and Registration Department is considering to launch the facility in post office and public sector banks across the state for property registrations. On a pilot basis, the department is planning to launch the facility in 75 post offices in Bangalore by next month.

A public sector undertaking, Stock Holding Corporation of India Limited (SHCIL) would be in charge of keeping a centralized record of all e-stamping documents. The department in association with SHCIL, is implementing e-stamping to put an end to illegal benami registrations and for plugging revenue leaks.

The postal department wants to charge Rs 10 as fee from for e-stamping denominations up to Rs 100, and Rs 15 for e-stamping denominations above Rs 100. The post offices have expressed interest and are waiting for a final approval.

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Banks refuse to process loan applications without Khata

Banks and financial institutes refuse to process home loan for borrowers without Khata certificate. The government has stopped issuing new khatas. Even changing the khata from seller to buyer is not being done, citing administrative issues.

After a long impasse over registration of properties, which has now been solved, the vexed khata issue is hindering the home loan process and has left property buyers in the lurch. To facilitate sale of properties in former urban local bodies around the city, the government on August 14 suggested alternative documents for registration — copies of khata and assessment extracts issued by CMCs, TMC or village panchayats under whose jurisdiction the buildings/land belonged.

According to the inspector general of registration and commissioner of stamps, K R Niranjan, the government communication has been sent to all sub-registrars but not the banks.

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Buyers in new areas not getting home loans