The Development Plan for the city has been passed in the BMC. The resolution will now be sent to the state government with 266 amendments proposed by various political party leaders and over 2,000 civic planning panel recommendations. An official from the DP department of the BMC said that 265 amendments were originally proposed by the corporators, but an additional one pertaining to the controversial choice of site for a metro car shed in Aarey Milk Colony was added to it.
Govt moves to check benami, Aadhaar to be made must for property deals
In a move meant to curb benami transactions and the use of black money in real estate deals, the government is planning to make Aadhaar-based authentication mandatory at the time of registration of documents such as agreement for sale, power of attorney and will among others. The government has also firmed up plans to enable electronic registration of properties, for which Aadhaar-based authentication will be a prerequisite.
Don’t ignore paying tax on rental income from foreign property
Many high net worth individuals who own houses abroad have in recent times been questioned by income tax officials for not having paid tax on the “deemed rental income” from those properties. It, therefore, becomes important for owners of foreign properties to understand the concept of deemed rental income and their tax liability on it.
For tax purposes, one house (in India or abroad) is treated as self-occupied. The owner has to pay tax on rental income on the other house (or houses). If the other house is not rented out, he has to arrive at a deemed or notional rental income and pay tax on it. “A person resident in India is liable to pay tax in India on his global income. Hence, rental income from house property — let out or on deemed basis — situated abroad is taxable in India. The income tax law does not make any distinction between house properties situated in India or abroad for computing income from house property.
Source: Business Standard, Friday 4 August 2017
Should you bank on Real Estate?
Is real estate an ideal investment asset class when compared to gold, equities, MFs, etc? We tell you why, despite its erratic performance, it is still a prized asset. Apart from advantages like Capital appreciation, Leverage and High Control; other advantage real estate is it’s the only asset class after gold that has been risk-free; Back of the envelope calculation, of the last three decades, suggests that real estate has outperformed all other asset classes; Real estate has the additional advantage of impressive rental returns; It’s the only asset class that can be either consumed for self-use or earned for recurring returns in turns of Returns, Tax Savings, Financial Freedom and Portfolio diversification.
Banks to shut out Builders without RERA listing
Builders who have been thinking of ways to beat the new Real Estate Regulation Act are fast running out of time as banks, in consultation with the Reserve Bank of India, have decided not to extend loans to those projects which have not been registered under RERA. “We have to look for some security mechanism, and since RERA is designed to weed out fly-by-night operators, we have decided not to extend credit to projects not registered with it,“ said a bank official who did not wish to be identified. “Adhering to the regulations will safeguard our interests, it’s better to be safe now than regret later.“
Banks have also sought additional collateral, including on personal properties of promoters, as guarantees while disbursing loans to a few real estate developers. “We are very apprehensive because even if we disburse loans as prescribed under the law, the way it is designed, it does not protect our credit. If a loan turns bad, customers will be refunded but there’s no inherent protection for us under the law,“ said a PSU bank official. “So, we are being extremely careful about lending to the sector.“
Assembly approval for 3% stamp duty on gift deeds
The legislative assembly has passed an amendment in the law to increase the stamp duty on gift deeds to 3% of the market value of a property. The stamp duty on a gift deed stands at Rs 500 today. Through the amendment to the Maharashtra Stamp Duty Act, the assembly also approved an increase of 1 percentage point in the stamp duty on conveyance deeds in rural and peri-urban areas. The Mumbai Metropolitan Region consists of cities, peri-urban areas and rural areas, and stands to be affected by the amendment.
Prime time to invest
With reduced property rates and easy availability of home loans, it is a favourable time for end users to invest in property, say realty experts. However, looking at the current scenario, many will be capable of fulfilling this dream. Experts are of the opinion that the period is favourable for actual property buyers. Another factor in buyers’ favour is the Real Estate Regulation Act (RERA) which has brought the much-needed transparency in the real estate sector.
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