Archive for the ‘Tax’ Category.

Real Estate Investors Are On Cold Feet For The Two Upcoming Regulatory Changes

Real estate investors are dreading about marginal capitalization that has turned up in budget combined with Real Estate Regulatory Act (RERA), which would seek a marked up tax level. All investors’ unease this moment while they are thinking that their investments in existing real estate companies, to be precise on projects skeptically impacted for couple of real estate regulatory rules. For investors (private equity and strategic) are renegotiating their on hand agreements.
It’s expected that the think capitalization brought in the budget combined with RERA would check with increased tax and other legal accountabilities starting from April, 2017.
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This thin capitalization won’t be in favor of companies to claim tax deduction for interest paid on foreign balance due above 30% of their EBITDA (earnings before interest, tax, depreciation and amortization). This movement is anticipated to shock real estate and infrastructure industry which have been carrying huge dollop of debt in international market at project level or in their SPVs. Central government is likely to classify investments through non-convertible debentures (NCDs) and the dividend remunerated on that too as debts.
Thin capitalization model would be implemented to all companies working in India starting April 2017, side by side the Base Erosion and Profit Shifting (BEPS) agenda, a global agreement with 15 action points to ensure tax avoidance by multinationals. Moreover, India has already accepted a few of these rules.
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The fear is also that under RERA investors might own a permanent tag of developer and may have to face stringent penalties for any defiance of rules by the realty or infrastructure projects they finance. Any project observation duty under the RERA lies on the promoter. And the term has a broad classification to envelop; it includes the developer, the landlord and private equity or strategic investor, if they straightaway invest in the project. Many private equity as well as strategic investors, who have invested in real estate, mainly at the development stage, are renegotiating their agreements, with the developers anticipating the legal consequences and penalty charges once the new real estate regulations gets completely in action.

– By SD Group Kolkata, Booking going on for upper class luxury lakeside flats in Madhyamgram. Sky-rising residential towers with modern amenities.

Is Selling Property To Real Estate Company A Profitable Deal?

Cracking a real estate deal has never been a breeze. Now at least you have some online property portals that offer free property listing. If your property is listed online then chances are high that your property will be noticed by the willing buyers. Real estate market has changed productively throughout the preceding years. After the money-ban real estate sale has drastically dropped in the metros. If you are considering selling your property, have a thought of selling it to a real estate investor. Speaking about the property listing, this is the safest way of selling property under the guidance of professional real estate agents.

Why choose a real estate company?
Property buying and selling portals have become a huge success among the property seekers. Even reputed builders like us are found listed under property portals which belong to other major real estate companies. Here, people will find other new properties of other prime construction companies. As a result you will get a comparative price idea of same ranged properties. For example if search for ‘2 BHK flats in VIP road’- you get many options including us along with a comparative property value, features and amenities. These companies also showcase other real estate units- commercial, land and resale market.
                                                                                                                     Offers and features of Real Estate Company

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Can-do payment options– All these real estate investing companies offer various payment methods to comfort the sellers such as- licensed funds, cash, pre-scheduled cash payments, or perhaps they may even ratify the on hand mortgage wholly. With multiple options available, sellers may find solutions that suit their needs.

Dealing with verified properties– Make sure the company deals with verified and true properties and showcase the exact features of the listed real estate units. Do your homework about the company reputation and transparency in transaction.

Your real estate agent– Many of such portals offer free property listing. Thus for selling, posting property is sufficient to attract buyers. Seller’s contact details don’t get shared unless seller’s affirmation. These companies keep good rapport with banks and other financial organizations to help buyers to serve their financial requisite.

With all significance you should be aware of the company profile whether the company is certified by government, also check if the company is registered by any local regulatory authority. Seek the professional guidance from the company which has years of experience and gets you the best property as per your property requisite. There are plenty of users who post fake properties in these sites. Thus, before choosing any property, consult with the site expert over and again. Don’t sign anything until you understand the terms and conditions thoroughly, given by the company. Keep account the profiles of such companies and their policies and contact the ones you come across right to get you an appropriate deal. Because, it’s important the real estate company clearly disclose the purpose of buying or advertising your property to the realty market.

_ By SD Group Kolkata

Do You Know How GST Will Impact The Realty Sector In India?

With the freshness of monsoons in India GST is likely to come into action in Indian economy around end of the April this financial year. Having said that, GST has become one of the longest spoken about tax reforms, that has already been approved by both of the houses of parliament. Now, market is eagerly waiting GST to be finally implemented. Already three states have given stamp of approval and other will go after. Now speaking about its impact on real estate experts have come with some diversified opinions. Here we will try to solve the riddle a bit. But for that we need to have a clear idea about applicable, existing taxes on residential real estate.

Service Tax– If you are a potential buyer and you want to buy flats in Kolkata this year then must be aware of these basic taxing terms. While investing in an under construction property, developer will ask for service tax from you. This tax was out of transactions till 2010. But now government has already defined the importance of service tax. To make it uncomplicated government has given abatement of 3/4th of cost of unit as land and raw materials for construction and only 1/4th of the cost of unit is calculated as service. For this reason at the moment most homebuyers are paying 3.75% of cost of unit as service tax (1/4th of 15%).

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VAT (Value added tax)-Again for under-construction properties you will have to pay additional VAT in states like – Karnataka, Haryana and Maharashtra. Yet there many states who don’t charge VAT. For calculating exact VAT percentage and not use composition scheme, developers will have to uphold proper accounts of purchased construction materials and VAT paid by them for the same to acquire key in credits which is weighty and makes it tough for buyers to identify with.

Stamp Duty– Stamp duty has been charged by the state governments. Thus, it’s a variable tax amount depending on state that has been charged for registration of sale agreement for realty transactions. While we’re on the subject in case you are purchasing a ready to move-in property directly from developer after he has obtained completion certificate from authority, you don’t need to pay service tax and VAT, and so saving 3.75% to 9% of property cost depending on state where you are purchasing your property.

GST will impact these three taxes and how that’s the subject we are discussing about. Service Tax and Vat will be replace by central GST and stamp duty will unchanged as it falls under state’s financial jurisdiction.
It’s not that easy to predict GST impact on real estate. We are more likely to believe that post GST implementation the price of under- construction residential units will be going to have a hike. It will blow up persistently flat realty sale eminently. People belong to real estate industry need to straight away engage with government to play down this impact by expounding position on works agreement, composition scheme and already paid service tax and VAT by developers on under developed property.

– By SD Group Kolkata

Home-Buying Dream Can Be Fulfilled With Slashed Interest Rate

Nation has become habituated with spasmodic decision and announcement of PM Modi. This time when addressed the fellow countrymen on New Year’s eve he assured middle income group people of the country with putting out some exiting new year gift for potential home buyers in particular. No one could ever expected that home loan interest rates will be deducted in such great extent that people will actually accumulate some positive home buying sentiment which would also onset market sloth and benefit people from this stratum with unbelievable frills. People in Kolkata who are willing to invest in reasonably price properties; this is the ideal time when you can shape up your dream by purchasing budget flats in Ultadanga.

Here is an immediate guide about what all you need to know about this latest addition in the ‘Pradhan Mantri Awas Yojana’ and how it can do good to from your asset purchase.

The actual plan
Pradhan Mantri Awas Yojna had been declared by Prime Minister Modi on 25th June of the FY 2015. This scheme comprises ‘Housing for all’ within the accounting year 2022. It was being conjectured that the country is going to have 2 crore+ budget flats in the extended parts of metros and other big cities. People from suburb will get chance to satisfy their on-hold home-buying requirements.
As a part of this scheme people from lower income group (LIG) or from the socio economically weaker section would be allotted subsidy of Rs. 1 lakh- 2.30 lakh. People could also have a subsidy on the rate of the interest of up to 6.5% or a loan of Rs. 6 lakhs which Prime Minister’s housing scheme is also for the people belonging to EWS, LIG, females or first time home buyers. This interest discount would subsist for 15 years.

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Now the new scheme
On this New Year’s Eve Prime Minister declared the subsidy on interest rate would be increased so that mass scale of people can fulfill their asset purchase. The new scheme is much about taking steady and effective steps on providing decided numbers of affordable housing within 2022. As per the new plan, all LIG/ EWS and MIG people would be benefited with a newly deducted interest rate. People looking for loan up to Rs.9 lakhs would obtain a subsidy of 4% while those seeking a loan of up to Rs.12 lakhs can have 3% slashed interest rate. Discounting this fact, people living in countryside would get 3% financial backing on loan amount of Rs.2 lakhs which they can make use of house reconstruction or extension.

People who are eligible to enjoy this rebate
Now under this scheme people who are eligible to apply for the loan are based on this critera-
• Applicant should either be a woman or belong to SC, ST or EWS group for the earlier scheme.
• None of the family members had taken a home loan; members including husband, wife and unmarried children
• Income should be under Rs.3 lakhs per annum and Rs. 6 lakhs per annum for EWS and LIG respectively
• For the new scheme for MIG groups, the income should be under Rs.18 lakhs per annum.
• The age of the applicant should be between 21 years and 55 years.
Effect of this scheme
The Pradhan Mantri Awas Yojana has been influential in running with its affordable housing goal currently. This interest rebate would reduce the EMI by around 40%. Following this scheme, the Equated Monthly Installment would bring in to Rs.7100 which would be not as much of even a month’s rent out. Whereas the previous scheme was only for the people belonging to the LIG and EWS, this new scheme would profit people of suburb with budget limitation to have their owned property in the extended parts of big cities.

– By SD Group Kolkata. For buying luxury flats near Kolkata airport please visit our ongoing project SD Aqua-View. We have a whole lot to offer along with your luxury property purchase. Invest now in this lakeside residential towers of your dream.

Budget Plan 2017: Will History Rehash Itself In a Post-Spending Market Fall?

Kolkata: On the off chance that past information is anything to pass by, then odds of a securities exchange revision quickly after the Budget is very high. In the couple of weeks taking after 19 prior Budget declarations, since 2001 — which likewise incorporate four interval Budgets — the records and additionally the more extensive market had changed force.

Indian markets have increased 9.3% from the lows of December 2016 and 5.5% since January 1, 2017. The pattern appears to have been more grounded under the present NDA government. The market surged in the keep running up to the 2015 Budget, however fell from that point. The invert occurred after the 2016 Budget, the market which has been falling till then rose.

Will it be distinctive this time? Not at all like the case in the previous two years, dealers have almost no desires from the current year’s Budget — dividing two noteworthy occasions: Demonetisation and the UP races.

The ascent in stock costs in the most recent one month is somewhat because of extensive organizations declaring superior to anything expected quarterly numbers in spite of the money crunch brought about by the demonetisation declaration as opposed to any genuine desires from the Budget.

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Moreover, vulnerabilities and hypotheses over the result of the UP surveys, which starts from February 11, are keeping merchants on the edge. “UP races will control the opinions more than the Budget. In the event that the result is supportive of the BJP, it will be sure; and if not, markets will take it adversely,” said Vikas Khemani, CEO, Edelweiss Securities.

“The market has risen a considerable amount. In the event that the Budget tosses some positive news, then the Nifty can go up by a most extreme 100 focuses. In any case, anything negative could trigger a 300-point adjustment. In any case, that could well be a chance to purchase,” said Srikanth Chouhan, senior specialized investigators at Kotak Securities.

Among the feelings of trepidation and trust from the Budget are conceivable measures to gather more capital pick up duty from value exchanges and bringing down of corporate assessment rates. The proposed spends for segments like homestead and foundation alongside the administration’s treatment of the financial shortage number are the prime full scale markers that would be followed.

By SD Group– We offer best pads for you in Kolkata. We don’t ensure your servant however. On the off chance that you supposing to buy flats in Kolkata you can utilize our contact subtle elements to have an acceptable property venture session.