PROPERTY TAXES WILL BE HIKED FROM 01-04-2016, SUBJECT TO THE LEGAL CLEARANCE IN BBMP LIMITS- HIKE BETWEEN 30% TO 40% ACTUALS BUT ON PAPER IT IS 20% AND 25%

Revision of property tax in Bangalore and its legal issues The Government has approved the revision of property taxes in BBMP limits after 7 long years and the hike is in the range 20% of residential buildings and 25% for commercial buildings. It is also discovered that over 2 lakh property owners are not paying … Continue reading PROPERTY TAXES WILL BE HIKED FROM 01-04-2016, SUBJECT TO THE LEGAL CLEARANCE IN BBMP LIMITS- HIKE BETWEEN 30% TO 40% ACTUALS BUT ON PAPER IT IS 20% AND 25%

The ISSUES the buyer may face to implement this TDS provisions – The rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.

Obtaining TAN number for complying with the provisions; Issuance of TDS certificate to the seller; Filing of TDS return quarterly and mention PAN of the seller; Taxes needs to be deposited within the specified time limit with the Government; and May be scrutinized by the TDS officer The rate of 1% may increase to 20% … Continue reading The ISSUES the buyer may face to implement this TDS provisions – The rate of 1% may increase to 20% if seller does not provide PAN due to overriding provision of section 206AA of ITA.

TDS ON THE SALE OF IMMOVABLE PROPERTIES – DETAILS IN A NUTSHELL

Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land) for value  Exceeding Rs.50 Lakh effective from 01-06-2013 The Finance Act 2013 had provided that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% … Continue reading TDS ON THE SALE OF IMMOVABLE PROPERTIES – DETAILS IN A NUTSHELL

TDS ON PROPERTY TRANSACTION FROM 01-06-2013

TAX DEDUCTED AT SOURCE (TDS) ON THE PROPERTY TRANSACTIONS ABOVE THE VALUE OF RS50 LAKHS IS EFFECTIVE FROM 01-06-2013, A NOTIFICATION TO THIS EFFECT IS PLACED BY THE INCOME TAX DEPARTMENT.  THIS NOTIFICATION IS NOT APPLICABLE TO AGRICULTURAL LANDS. ONLINE TDS PAYMENT IS AVAILABLE AND THOSE, WHO CANNOT ACCESS IT, CAN MAKE/DEPOSIT THE TAX IN … Continue reading TDS ON PROPERTY TRANSACTION FROM 01-06-2013

NOTICE TO OVER 1,75,000 INCOME TAX ASSESSEES WHO HAVE NOT FILED THEIR INCOME TAX RETURNS

THE INCOME TAX DEPARTMENT HAS IDENTIFIED 12 LAKH NON-FILERS AND HAVE STARTED THE EXAMINATION OF THE DATA AND HAS ISSUED 1,75,000 NOTICES AND MORE IS EXPECTED SOON. The Income Tax Department has also initiated a Data Warehouse and Business Intelligence (DW & BI) Project to develop an integrated platform for effective utilisation of information to … Continue reading NOTICE TO OVER 1,75,000 INCOME TAX ASSESSEES WHO HAVE NOT FILED THEIR INCOME TAX RETURNS

BUDGET – INTEREST BENEFIT FOR LOWER CATEGORY – TDS FOR HIGHER VALUE HOMES – SERVICE TAX ABATEMENT AT 70% FOR HIGH END APARTMENTS

First Home Buyer will get an additional benefit on Interest limit: There is an additional deduction available on interest repaid on a loan for a first time house purchase. The benefit has been increased by an additional Rs 1 lakh and this will be over and above the Rs 1.5 lakh limit already available,provided, if … Continue reading BUDGET – INTEREST BENEFIT FOR LOWER CATEGORY – TDS FOR HIGHER VALUE HOMES – SERVICE TAX ABATEMENT AT 70% FOR HIGH END APARTMENTS

SERVICE TAX ON APARTMENTS AND CONSTRUCTION SERVICES-ABATEMENT 75%

SERVICE TAX ON APARTMENTS AND CONSTRUCTION SERVICES Construction services – 25% taxable Abatement of 75%. Service provided with respect to Construction of complex, building, civil structure and part thereof , intended for sale , wholly or partially Except those where entire consideration is received after issuance of completion certificate by the competent authority. This is subject … Continue reading SERVICE TAX ON APARTMENTS AND CONSTRUCTION SERVICES-ABATEMENT 75%

PROPERTY REGISTRATION CHARGES AT BANGALORE

THE STAMP DUTY IS 5.6% ON THE GUIDANCE VALUE OR THE MARKET VALUE OR THE CONSIDERATION SHOWN IN THE DOCUMENT- WHICHEVER IS HIGHER. IT IS APPLICABLE FOR BBMP LIMITS PROPERTY. THE REGISTRATION FEE IS 1% ON THE GUIDANCE VALUE OR THE MARKET VALUE OR THE CONSIDERATION SHOWN IN THE DOCUMENT- WHICHEVER IS HIGHER. IT IS APPLICABLE … Continue reading PROPERTY REGISTRATION CHARGES AT BANGALORE

HOME LOANS AND RBI DIRECTIVES – TAX EVASION BY THE BUYERS IS UNDER SCRUTINY

RBI HAS DIRECTED ALL THE BANKS NOT TO OVER VALUE THE PROPERTIES WHICH INCLUDES STAMP DUTY, REGISTRATION FEE, SERVICE TAX, VAT AND OTHER ADDITIONS, WHILE PROCESSING THE HOME LOANS, AS THE REGULATOR RECEIVED COMPLAINTS OF SUCH DISCREPANCIES BY SOME OF THE BANKS. THE INCOME TAX DEPARTMENT IS EXAMINING THE HOME LOANS APPLICATIONS AND SANCTIONS AS … Continue reading HOME LOANS AND RBI DIRECTIVES – TAX EVASION BY THE BUYERS IS UNDER SCRUTINY

DOCUMENTS REQUIRED TO SCRUTINISE AGRICULTURAL LAND OR REVENUE LANDS OR REVENUE SITES/PROPERTIES

THE FOLLOWING DOCUMENTS MIGHT BE REQUIRED for  the  EXAMINATION. 1). MOTHER DEED. 2). SALE DEED/PARTITION DEED/WILL/GIFT DEED/RELEASE DEED/RELINQUISHMENT DEED/COURT DECREE/ANY OTHER RELEVANT DOCUMENTS. 3). RTC FROM THE BEGINNING. 4). MUTATION. 5).RR/SAGUVALI CHIT/GRANT CERTIFICATE/LAND TRIBUNAL ORDER/RRT ORDERS,IF ANY( FULL FILE) 6). ILR/PHODI/HUDBUST. 7). ATLAS. 8). AKARBANDH  & TIPPANY 9). RR BALABAGADA NAKALU. 10). SURVEY SKETCH. 11). … Continue reading DOCUMENTS REQUIRED TO SCRUTINISE AGRICULTURAL LAND OR REVENUE LANDS OR REVENUE SITES/PROPERTIES

SERVICE TAX

SERVICE TAX SLABS AND PAYMENT DUE DATES 1   In case of Individuals or Proprietary Concerns and Partnership Firm, service tax is to be paid on a quarterly basis. The due date for payment of service tax is the 5th of the month immediately following the respective quarter (in case of e-payment, by 6th of the month immediately following the respective quarter). For this purpose, quarters are: April … Continue reading SERVICE TAX

OPPORTUNITY FOR FRAUDS, CHEATS, TAX EVADERS, CORRUPT AND TAINTED OFFICIALS AND POLITICIANS AND DESH DROHEES TO DECLARE THEIR ILLEGAL WEALTH & MONEY STASHED AWAY ABROAD!!!!!!! BY ALL, EXCEPT CRIMINALS AND TERRORISTS

GOT ILLEGAL WEALTH, MONEY AND ASSETS - DO NOT WORRY - THE GOVERNMENT MAY GIVE YOU A BREATHER - BRING IN  AND EARN AND ENJOY !!!!!!!!!!!!!!!!!!!!!!!!!!! VOLUNTARY DISCLOSURE SCHEME TO BRING BACK THE BLACK MONEY @!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  The government is seriously considering the option of a voluntary disclosure scheme” for bringing back unaccounted money kept in banks abroad. … Continue reading OPPORTUNITY FOR FRAUDS, CHEATS, TAX EVADERS, CORRUPT AND TAINTED OFFICIALS AND POLITICIANS AND DESH DROHEES TO DECLARE THEIR ILLEGAL WEALTH & MONEY STASHED AWAY ABROAD!!!!!!! BY ALL, EXCEPT CRIMINALS AND TERRORISTS

MISCONCEPTION ABOUT THE MARKET PRICE AND GUIDANCE VALUE

THE SELLERS ARE IN GREAT MOOD HOPING THAT THE PRICES OF THE PROPERTIES HAVE GONE UP WITH THE REVISION OF GUIDANCE VALUE.  THIS IS A MISCONCEPTION. IN REALITY, THERE WILL NOT BE GOOD DEMAND FOR THE PROPERTIES DUE TO THE REVISION AND INCREASE. THE REASONS ARE: THE SELLERS HAVE TO PAY ADDITIONAL STAMP DUTY AND … Continue reading MISCONCEPTION ABOUT THE MARKET PRICE AND GUIDANCE VALUE

WELCOME- PLEASE SHARE YOUR IDEAS, VIEWS AND OPINIONS ON COMMON SUBJECTS AND ISSUES WITH OTHER READERS ON OUR FORUM

WE INVITE ALL OUR FRIENDS TO SHARE THEIR IDEAS, VIEWS, OPINIONS AND EXPERIENCES WITH OTHERS THROUGH OUR FORUM BY SENDING ARTICLES FOR PUBLICATION ON THE FOLLOWING SUBJECTS: ENVIRONMENT SOCIETY GOVERNANCE BUSINESS PROPERTY INCOME TAX, WEALTH TAX, GIFT TAX, VAT, SERVICE TAX, BBMP TAX, STAMP DUTY, REGISTRATION FEE, PROFESSION TAX AND OTHER ALLIED SUBJECTS LEGAL ISSUES … Continue reading WELCOME- PLEASE SHARE YOUR IDEAS, VIEWS AND OPINIONS ON COMMON SUBJECTS AND ISSUES WITH OTHER READERS ON OUR FORUM

B KATHA OR B FORM IN BBMP LIMITS

THE BBMP IS ISSUING` B` FORMS OR( B) KATHA AS IS GENERALLY CALLED IS JUST A FORM CREATED UNDER THE 2008, TAXATION RULE, WHICH WILL NOT CONFER ANY RIGHT, TITLE AND INTEREST ON THE HOLDER.  AN ENTRY IN THE REGISTER OF TAXES WILL BE MADE UPON PAYMENT OF TAXES AND THIS FORM IS ISSUED. THIS … Continue reading B KATHA OR B FORM IN BBMP LIMITS

FAIR MARKET VALUE OF PROPERTIES- UNDER VALUATION WILL BE TAXED UNDER SECTION 56 OF INCOME TAX ACT

FAIR MARKET VALUE OF PROPERTIES FROM 01-10-2009 Effective 1/10/2009, difference of over Rs. 50,000 between fair market value and purchase value of immovable property will be taxed as income from other sources in the hand of the buyer if buyer is an individual or HUF. Property is as defined in Section 56 and includes immovable property,  jewellery, … Continue reading FAIR MARKET VALUE OF PROPERTIES- UNDER VALUATION WILL BE TAXED UNDER SECTION 56 OF INCOME TAX ACT