April 2018 Vol 02
Confused? Soon, software will calculate your Property Tax
You will be soon able to compute your flats’ property tax online. The Brihanmumbai Municipal Corporation (BMC) is developing software, which will help the homebuyers to compute their property tax at the click of a button. Currently, there is no mechanism that tells flat owners about how their tax is calculated, unless the society starts billing them. In many cases, if a builder or a few flat owners fail to pay the property tax on time, the society is sealed. The software will help the society identify individual defaulters.
Last month, the BMC asked the state department’s stamp duty and registration department to collate the data from the civic body’s property tax department. The state is also developing a data base and software collating all registered properties and kmapping them them on Geographical Information System (GIS). The data will be updated by the civic body with new registered properties. This alongwith the new software will help the civic body know new property owners and recover taxes, if any.
CRZ draft rules cut buffer, boost builders
A draft on coastal development rules issued by the Centre on Wednesday has proposed a significant relaxation of the buffer zone along the seaboard within which construction is regulated. If implemented, the easing of norms will have immense implications for Greater Mumbai. The notification from the Union ministry of environment, forest and climate change suggests reducing the coastal regulation zone (CRZ)—an area measured from the high tide line on the landward side—to 50 metres from the existing 100. In case of regions close to a bay or creek, the protection may apply to a much narrower slice of land.
The draft, if approved, will enable constructions closer to coastlines. However, within the CRZ, more classifications have been introduced to delineate environmentally sensitive areas such as reefs, mangroves and nesting sites. The coast near Backbay, Marine Drive, Girgaum and Shivaji Park have been officially declared as “bay’’ areas in anticipation of the relaxed rules. Developers with plots in the Andheri-Oshiwara belt and those in Ghatkopar-Vikhroli in the eastern suburbs too will benefit.
Have you deducted TDS on the rent paid?
Tenants have to deduct TDS if the rent exceeds a certain limit. Who should deduct tax: Individuals and HUFs who are not required to get their financials audited and are paying rent of more than Rs.50,000 per month have to deduct 5% of the rent paid in a financial year as tax. When to deduct tax: Tax is to be deducted in March, the last month of the financial year. But if the property is being vacated before the end of the financial year, tax is to be deducted in the last month of the tenancy. The last date for March compliance without interest or penalty is 30 April.
TDS deposit deadline and form to fill: You have to pay tax online via Form 26QC which is a challan-cumpayment form within 30 days from the end of the month in which the tax is deducted. For instance, if tax is deducted in March, the last day to deposit the tax and file 26QC will be 30 April 2018. How to deposit the tax: The first step is to fill Form 26QC, available at www.tin-NSDL.com. You will have to furnish details such as your and the landlord’s PAN, email ID and phone number; address of the property, the amount of tax deducted, etc. There are options for filling multiple PAN in case the property is owned by several people or is leased by multiple tenants. Multiple Form 26QC will have to be filed if there are multiple landlords.
What if you don’t comply? : 1) You may be liable to pay interest at the rate of 1% per month, if there is delay in deducting the tax. The penalty is 1.5% per month, if the tax has been deducted but there is delay in depositing it. 2) Delay in filing of Form 26QC may invite a late fee of ₹200 per day. For delay in issuing Form 16C, the penalty is Rs.100 per day. 3) If Form 26QC is not filed before the one year from the due date, a penalty ranging from Rs.10,000 to Rs.1 lakh could be levied on you.
Consultants act as partners of growth for developers
Role of Consultants: Consultants offer a fresh new perspective and expertise in a stagnant real estate market with deep comparative market analysis, local listings and intelligent marketing insights into the local markets to increase the saleability of properties. They know how to break entry barriers that prevent a good sale.
With RERA coming in, playing the role of the consultants does not end with the customer giving a cheque; the customer has to be hand-held through the entire buying process to add value as consultants. Builders and consultants have a symbiotic relationship. The developers need assistance in selling their properties to an established client base while consultant get access to prestigious new projects they can market to diversify their portfolio.
Source: Mid-Day, Friday 20 April 2018
To create more space for jobs in city, FSI for offices doubled
Incentives for redevelopment of private buildings and doubling the buildable area for commercial space are among the key features of Mumbai’s new Development Plan, which will replace the 1991 DP. Jointly addressing a press conference at Mantralaya on Wednesday, urban development secretary Nitin Kareer, municipal commissioner Ajoy Mehta and housing secretary Sanjay Kumar said the objective underlying the DP is to create eight million jobs in the new knowledge economy and 10 lakh affordable homes under the Pradhan Mantri Awaas Yojana in a metropolis struggling to cope with the demands of population growth.
Builders constructing commercial offices anywhere in the city will now get a floor space index of 5 compared to existing 2.5. FSI is the ratio of builtup area to the size of the plot. With barely any vacant land left for construction, planners are also banking on redevelopment to do the trick. In the island city, floor space index (FSI) of 3 will now be allowed for private residential societies and not just for redevelopment of old and dilapidated cessed buildings. Residential FSI in suburbs will however remain at 2.5. This comes in the wake of long years of discussion among planners on ways to “repopulate” the island city where census 2011 showed a 7-8% drop in population.
Maharashtra leads in RERA implementation, says report
As Real Estate (Regulation and Development) Act completes a year of operation on May 1, Maharashtra has come out to be the frontrunner in the implementation of all four stages of the Act, according to a white paper released by Knight Frank India, a London-based global property consultancy firm. The state is among three in the country, including Madhya Pradesh and Punjab, to have a permanent real estate regulatory authority, among 28 states and seven union territories where the RERA is applicable. Jammu and Kashmir is the only state where the act is not applicable. In the 25 other states, the regulator is merely an interim body, the research report revealed.
Maharashtra has not only notified RERA rules in the state but has also established a permanent real estate authority headed by an IAS officer, set up an online portal to file online complaints, and registrations of real estate projects, and a Real Estate Appellate Tribunal to hear appeals. It is the only state to have set up a Conciliation Forum as an alternative and cheaper dispute resolution platform where developers and home buyers can mutually resolve disputes out of court, the report said. According to the computed data, MahaRERA has registered over 15,998 real estate projects and received 2,379 complaints of which 1,137 have been resolved. The authority has fined 1,716 developers, of which 410 were levied fines up to Rs 50,000 while 1,045 had to cough up to Rs one lakh. The paper revealed that out of 28 states, only 20 had notified the rules and/or set up a real estate authority, permanent or interim. West Bengal, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura are yet to do it.
Property records to be certified anywhere in state
Citizens may soon be allowed to get their property e-records certified at any sub registrar’s office in the state. “We have proposed that any of our 500 sub-registrar offices should be allowed to certify the downloaded history of property documents, irrespective of the property’s location,” said Anil Kawade, state inspector general of registration and stamps. The property history documents can be downloaded via e-search option on the IGR website. Meanwhile, the department of registration and stamps has started implementing reduced stamp duty of Rs 1,000 for affordable housing projects. Kawade said, “We have been
registering properties under the affordable housing according to new state government norms. We will eventually make a separate category for such registrations to get a clear picture of registrations under PMAY (Prime Minister Awas Yojana) scheme.”
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