FAQs ON TAXATION ON SALE/SURRENDER OF TENANCY RIGHTS IN RESIDENTIAL BUILDINGS

Q-1. IS PAGDI OFFICIAL NOW?

ANS:- YES. THE MAHARASHTRA RENT CONTROL ACT,1999 HAS LEGALISED THE RECEIVING OF ANY

PAYMENT OF PAGDI.

Q-2. WAS IT LEGAL THEN IN 1960?

ANS:- AS PER BOMBAU RENT ACT, IT WAS ILLEGAL TO TAKE AS WELL AS PAY PAGDI.HOWEVER, AS

PER MAHARASHTRA RENT CONTROL ACT,1999,PAGDI HAS BECOME LEGAL.

Q-3. IF IT WAS NOT OFFICIAL THEN WHAT IS THE COST OF PURCHASING FOR THE TENANT?IS IT

NIL?(SINCE NO DOCUMENT CAN SUPPORT THE TRANSACTION OF PAGDI)

ANS:_ IF MONEY IS NOT PAID OFFICIALLY THEN COST OF ACQUISITION WILL BE TAKEN AS

NIL.HOWEVER, IN CASE SOME AMOUNT HAS BEEN PAID OFFICIALLY,THEN OFCOURSE,HE CAN CLAIM

THE COST OF ACQUISITION ALONG WITH INDEXATION.

Q-4. IS HE LIABLE FOR CAPITAL GAINS TAX AT ALL?

ANS:-AFTER 1994, THE AMOUNT RECEIVED ON SURRENDER OF TENDANCY IS SUBJECT TO CAPITAL

GAINS TAX DEPENDINGS UPON THE HOLDING PEROD.IF THE TENANCY PERIOD IS LESS THAN THREE

YEARS THEN THE CAPITAL GAINS SHALL BE SHORT TERM CAPITAL GAINS AND SHALL FORM A PART

OF THE TOTAL INCOME OF THE ASSESSEE.HOWEVER, IF THE TENANCY PERIOD IS MORE THAN THE

THREE YEARS THEN THE SAME SHALL BE TREATED AS LONG TERM CAPITAL GAINS AND SHALL FORM

A PART OF THE TOTAL INCOME THERETO SUBJECT TO DEDUCTIONS UNDER SECTION 54EC, 54F ect.

SECTION 54EC:-

THE ASSESSEE CAN INVEST AN AMOUNT UPTO RS.50 LAKHS IN NHAI/ RECL BONDS

WITHIN 6 MONTHS FROM DATE OF TRANSFER OF TENANCY RIGHTS.SUCH INVESTMENTS

AMOUNT(UPTO RS.50 LAKHS) CAN BE CLAIMED AS AN EXEMPTION UNDER SECTION 54EC OF THE IT

ACT, 1961. HOWEVER, THE INTEREST EARNED ON SUCH BONDS THEREAFTER, WHICH MAY RANGE

BETWEEN 6% p.a. to 7% p.a. IS TAXABLE.

ASSESSEE CAN INVEST IN PURCHASE OF A RESIDENTTIAL HOUSE PROPERTY WITHIN

ONE YEAR BEFORE OR TWO YEARS AFTER THE DATE OF TRANSFER OF TENANCY RIGHTS OR

CONTRUCT A RESIDENTIAL HOUSE PROPERTY WITHIN THREE YEARS FROM THE DATE OF SUCH

TRANSFER OF TENANCY RIGHTS OR HE CAN PURCHASE FROM A BUILDER, AN UNDER-

CONSTRUCTION PROPERTY BEFORE THE RECEIPOT OF THE OCCUPATION CERTIFICATE BY THE

BUILDER AND THE INDIVIDUAL MUST ALSO RECEIVE POSSESSION  OF THE SAME WITHIN THREE

YEARS.THE ASSESSEE MUST NOT OWN MORE THAN ONE RESIDENTIAL HOUSE OTHER THAN NEW

ASSET ON THE DATE OF TRANSFER.ALSO , THE ASSESSEE CANNOT, WITHIN A PERIOD OF THREE

YEARS AFTER THE DATE OF TRANFER, TRANSFER THE NEW RESIDENTIAL HOUSE PROPEERRY AND

CANT PURCHASE ANY OTHER RESIDENTIAL HOUDE PROPERTY FOR FURTHER PERIOD OF TWO YEARS

FROM THE DATE OF POSSESSION OF THE NEW HOUSE.

IF THE ENTIRE SALES PROCEEDS. IS NOT INVESTED  INT THE NEW HOUSE PROPERTY, THEN THE

EXEMPTION UNDER SECTION 54F SHALL BE ALLOWED ON PRO-RATA BASIS AS UNDER.

AMOUNT OF INVESTMENTS X CAPITAL GAINS.

NET CONSIDERATION

IF THE ENTIRE AMOUNT OF SALES PROCEEDS IS NOT INVESTED IN THE PURCHASE OR

CONSTRUCTION OF THE RESIDENTIAL HOUSE PROPERTY BEFORE THE DUE DATE OF FILLING OF

RETURN OF INCOME UNDER SECTION 139(1), THEN THE AMOUNT OF CAPITAL GAIN OR THE NET

CONSIDERATION AS THE CASE MAY BE, IS REQUIRED TO BE DEPOSITED IN AN ACCOUNT UNDER

CAPITAL GAINS ACCOUNT SCHEME.-

accommodationtimes.com

5 Easy Ways to Update a Room

You don't need to contract a decorator (or burn up all available resources) to give a room a speedy

redesign with loads of effect. So whether you're getting prepared to offer, have recently moved in or

feel like a smaller than normal redesign, these five tips will have you appreciating the room you had

always wanted in a matter of seconds.

Change Your Fabrics 

Supplant your blinds, re-cover your toss pads, purchase another floor covering, Any one of these

simple fixes can have a huge effect; however each of the three will totally change the whole room!

What's more, on the off chance that its a room you're burnt out on, same principles apply: Replace

the duvet spread, re-cover the headboard, and hurl a couple of new pads on the bed.

Spruce Up With Paint 

Whether you handle a whole room, or possibly a stress divider or two, another layer of paint is most

likely the simplest approach to change a room. From light and splendid to dull and emotional, paint

can totally adjust the inclination.

Re-Organize A Bookshelf 

Bookshelves are astounding do they keep your books composed, as well as serve as extraordinary

central pieces. Attempt shading coding your books or organizing them in stacks rather than next to

each other. Uproot a whole column of books and supplant them with surrounded family

photographs or splendid stress pieces. Here and there all a room needs is a shift in contemplating it.

Overhaul Your Art 

Overhauling the craftsmanship on your dividers is an extraordinary approach to showcase the family

ability. Outline your little girl's portrayals from secondary school (nobody will know its not a genuine

Picasso) or your child's first finger painting. On the other hand snatch a clear canvas and paint it a

splendid shading to hang in the kitchen (you don't need to be a Fine Art graduate to include some

fundamental pops of shading!). Furthermore, the best piece of this methodology is once you've

purchased the casings, the workmanship can be turned during the time at no additional expense.

Include An Accent 

Is your restroom feeling exhausting or your family room issuing you the yawns? Pick brilliant, vivid

wallpaper and include a stress divider! Paint stripes in your lounge area, or purchase a light fixture

for your front lobby. Including an amazing stress is a fun approach to give the room some identity

without a complete upgrade (of the room OR your financial balance).

What are pre-approved loans and why you might need them

Getting your finances in order before taking the real estate plunge is something all of us dread. We know that a fair chunk of our lives’ savings are going to be pumped into that one property which is going to be our home for the foreseeable future and in some cases maybe even for generations to come.  Since this is quite literally a life changing decision and there are a lot of stakes involved its best to sort your finances out before going out into the market and looking out for your dream home.

This is where pre-approved loans come into the picture to give you a really big helping hand. Pre-approved loans are nothing but in-principal approvals received from the banks after they check your financial track record. The banks will factor in things such as your net-worth, your income, your ability to pay the Equated Monthly Installment (EMI), if you have any ongoing EMIs, your credit history etc before sanctioning the pre-approved loan. This loan comes with an expiration date and in most cases it is six months. Pre-approved loans are usually divided into two types — unsecured and secured. While unsecured pre-approved loans are for personal loans, the latter could be used as car and home loans.

A pre-approved home loan gives a property seeker an exact idea about his financial capacity. Rather than looking for endless properties one can do a focused search once he knows the exact budget he can afford with the help of a pre-approved home loan and his savings.

There are several drawbacks to going through the traditional home loan route when you purchase a property. The biggest problem is the processing time. Pre-approved home loans are processed much more quickly than the non pre-approved variety. There is a processing fee involved which may not be returned to you in case you don’t avail it before its use by date. You can avoid heartbreak with pre-approved home loans in a scenario where you have zeroed in on a property but have to wait for the loan to be sanctioned. In some cases the seller might not want to wait out the loan sanctioning period and could sell it to someone who can beat you to the punch as far as money is concerned.  There is also the possibility that the bank might reject your loan application which just spells bad news for you and your family property wise.

There is also great negotiating power that comes with having a pre-approved loan. When you are dealing with a developer or a seller nothing speaks volumes for your intent to purchase a property than having money readily available with you. Pre-approved loans give you that power over the developer. In some cases they could also be better than the loans offered by the developers.

One thing to keep in mind with pre-approved loans is that the ultimate decision for releasing the loan amount rests with the bank. The property you have chosen might not meet the criteria set by the bank for approval. In this case the bank might actually not give the final seal of approval.

Source:IndiaProperty

Mumbai Reinvestment Factors

With demand for housing and new project development picking up, real estate prices in Mumbai have grown at close to 5% in 2014. The sector is likely to grow at an accelerated pace in the near future, making investment in property increasingly lucrative. Entering the market at the right time could yield high returns for the smart investor. However, there are other key considerations an investor has to make before the final decision to invest. Foremost among these is location.

An overwhelming majority of Mumbai’s new projects have come up in the Mumbai Suburban district, indicating a trend of decentralisation away from the traditional economic centre in the Mumbai island city. This demographic shift was visible in the 2011 Census, where the population in the island city witnessed a 7.6% drop, while the population in Mumbai Suburban increased by 8.2%. The central business district has also gradually moved northward from the traditional centre of Nariman Point to Lower Parel and Bandra Kurla Complex. As a consequence of this, Lower Parel’s prices have more than quadrupled over the last seven years, and grown 17% in 1Q14 alone.

In order to further narrow down on the ideal locality for investment, investors need to make several other considerations based on their budget, risk appetite, and investment period. A key factor that determines the optimal location of investment is the existing and planned infrastructure in the locality. For instance, upcoming developments in the Navi Mumbai region such as the Navi Mumbai International Airport and the Mumbai Trans Harbour Link are likely to positively impact prices. Already, the locality recorded a price growth of 21% in 1Q14. The expansion of the Metro and Monorail projects, which will increase connectivity between the city and the suburbs, is also likely to push up prices in the suburbs.

As with all investments, it is essential for real estate investments to be made with a complete understanding of the individual’s specific requirements and current market information. A comprehensive due diligence of the project and the developer is essential before any purchase is made. Only then will the investor be able to minimise risk and maximise reward.

source: housing.com

Wonderful Decor Ideas For A Cool House

Herb Garden In Your Kitchen

If we’ve learnt anything from binge-watching Masterchef, it’s the difference between a soufflé and a mousse; and that fresh produce from your own little herb garden is always the best! Apart from ensuring that your kitchen will always smell nice and inviting, a small herb garden has an obvious functional use as well. Several leaves that are usually used to garnish Indian food come from tiny plants that can be easily grown in your home, like Curry Leaves (kadipatta), Mint, Coriander; as well as other popular ones like Parsley and Basil.

2. HolidayTime Everyday!

What do you think of when you read the word ‘hammock’? That’s right – rest, relaxation and complete abandon. While a hammock may not be much fun to sleep on for 8 hours every night, it can definitely be turned into a couch, or an aerial sofa. With the right kind of cushioning and cloth, you can sleepily swing away on it after a long day at work.

3. How To Get Your Kids To Love You

Every child goes through a phase of being fascinated by tree-houses and secret club houses. They can have both, in this extremely cool tree-house room! The space underneath the elevated bed area can double-up as a study nook or storage area. So really, this is beneficial to everybody.

4. Sleep With The Fish

Not an ominous death threat, but a brilliant décor idea. Aquariums are now increasingly being used as integral parts of home décor rather than just solitary fish cages. You could use a long acrylic aquarium as a room separator, or like in the picture, make it a part of your bedroom’s décor. There are a few renowned companies in India that make customised acrylic aquariums for residences; most notably, Mad Over Fish.

5. Dine and Play

Having to sacrifice on fun things for your house because of lack of space? This is a great idea not just for Pool, but most other table games as well. While buying a ready-made ‘fusion table’ could set you back significantly, getting one made by your local carpenter is always an option. Be forewarned, you will always be entertaining friends if you have this in your house.

6. DIY Forest

If you have an undying passion for DIY projects, you will love this one (or you can just buy it online if you have the money)! While it may look like a very complicated undertaking, this is basically a bulb at the end of a wire, surrounded by artfully arranged, painted tree branches. Also, the same principle can be used to make table lamps, lamp shades, and so on; using branches, twigs, leaves, what have you. The end result is bound to be gorgeous!

8. The Cupboard Under The Stairs

If you do have a staircase in your house, and don’t have the responsibility of housing an 11-year old orphan wizard under it; then you must make the most of this opportunity for storage. While you can have open shelves for things like books, curios, flowers, etc., closed sliding drawers can be used if you want to hide away your clothes, toiletries, towels, and so on.

While some are functional and others purely for aesthetics, all of these décor ideas are bound to be head-turners! So if you love a good DIY project (or have the dough to buy these online!), give them a try!

Selecting The Best Real Estate Builder

What comes to your mind when you plan to buy a residential property? Generally, you gather information about the location, project, specification and amenities, the necessary documents and their legalities. But, have you ever wondered how important it is to select the right builder. Did you ever compare two builders to finaliseor zero-in the best one.

Buidlers and Developers play a very vital role in the real estate industry. There are reputed as well as small time builders who construct various projects with basic and unique amenities in an effort to lure the potential home buyers. In such cases, the buyers get confused which builder to choose. It may happen that you choose a less experienced developer and land in unfortunate consequences. As buying a home is a major investment, you have to take utmost care while choosing the perfect builder.

Given below are few pointers which you can keep in mind while selecting a builder:

• A comprehensive check on the background and reputation of the builder is the first step. It can be done by consulting people and friends who have taken their services in the recent past. Check out the previous projects the builder has constructed.
• You can get the list of projects completed by the builder and do a check on it. This will also give you a fair idea about the construction style.
• If possible, you can even visit a sample flat constructed by the builder. If the flat is furnished, check out the quality of the paint, carpeting and cabinetry. Check the size of the room and their placements.
• Today, a lot of builders do not complete their project at the give time. To check on this you can contact any occupants of the previous projects; this will help you know about the project, the time taken for construction, quality of construction, etc.
• Get information about all the facilities and amenities offered by the builder. Also, keep an eye on the hidden charges.
• Ask for the layout plan of the project where you are planning to invest. Ensure that it has all the necessary documents and approval by all the concerned authorities. Another important factor to look at is the home loan factor, whether it is approved by all reputed banks. Check with the bank on the loan availability of your project.
• Ensure that the builder has obtained completion certification and occupancy certificate. Both these documents are mandatory, as it is a proof of compliance with all local municipal regulations.
• Last but not the least; do keep on updating yourself on the standards of the construction industry. In doubt, you can consult with an industry source or an expert.

Lease Agreement Or License Agreement - What Should I Opt For?

1.   Major Differences:

There are several crucial differences between a lease and license agreement.

a)   Under license agreements, the legal ownership and the possession of the property remain with the licensor.  Under a lease agreement, the tenant generally has exclusive possession to the property. In other words, a license does not create any interest or control on the premises in favor of the licensee.

b)   A licensee cannot give the premises on rent to a third party under any circumstances. On the other hand, a tenant can sub-let the premises to a third party, unless the rental agreement says otherwise.

c)   A license agreement is easier to terminate than a rent agreement. License agreements are terminable, whereas lease agreements are generally not.

d)   The amount payable towards stamp duty is more for a lease agreement as compared to a leave and license agreement. But for a duration of more than three years, the stamp duty payable is the same for both.

e)   In case of a lease agreement, if the agreement is for a period of less than 12 months, it does not have to be registered. However, a lease agreement for 12 months and beyond has to be compulsorily registered. In many states, a license agreement does not have to be registered.

 2.   What do you recommend I should enter into? A Lease Agreement or a License Agreement?

Let us take the example of a person who wants to occupy a property in a shopping mall. In this situation, it is advisable to enter into a lease agreement than a leave and license agreement, because you will then have an interest in the property. In other words, you will have more control over the property.

It is a common practice among owners of shopping complexes and malls to give out parts of the property on leave and license basis, so that they can have more control over their property.

If the rental amount and the license fee that you have to pay is the same (like you have mentioned in your question), it is better to enter into a rental agreement with the owner of the shopping complex. In some States like Maharashtra, you will also receive the protection of the Maharashtra Rent Control Act, which is a tenant-friendly legislation. 

Source:PropertyBeat