Monthly Archives: April 2017



An individual’s Permanent Account Number, is compulsory for certain transactions involving immovable property. Here’s a look at cases where it is required and the consequences of not providing this document

With rapid computerisation, an individual’s PAN (Permanent Account Number) has become an important document, for many financial and non-financial transactions. It is equally important for buying or selling properties or leasing it out.

For purchase of property

When you buy an immovable property, other than an agricultural land, for a value that exceeds Rs 50 lakhs from a person who is a resident of India, you have to deduct tax at the rate of 1%, at the time of payment to the seller or builder.

Generally, for the purpose of depositing TDS (tax deducted at source), you need to have a TAN (tax deduction account number). However, as this requirement to deduct tax on immovable property purchase is applicable to all tax payers, the law exempts individual tax payers from having a TAN. Instead, you need to have a valid PAN, to deposit the TDS and comply with the law. This is applicable, even in cases where you do not have any taxable income and are therefore, not required to file any income tax returns (ITR).
Moreover, as per the present law, the seller in such case, should furnish you with his valid PAN. If the seller fails to do so, you are required to deduct tax at the rate of 20%, instead of the prescribed 1%.

For getting credit for TDS, with respect to rental income

The law requires a person paying any rent for an immovable property (whether land, residential house, commercial property or even factory premises), to deduct tax at source at the rate of 10% from the rent, in case the amount of rent exceeds Rs 1.80 lakhs in a year.

In case the landlord does not provide his PAN, the tenant has to deduct tax at the rate of 20% on the rent. Moreover, in case the PAN is not provided, the landlord will not get credit for the TDS. So, a landlord who does not furnish his PAN, will face a double whammy – while the tax will be deducted at 20% instead of 10%, the landlord will not even get the credit for the 20% TDS.

Additionally, the failure of a person to intimate his valid PAN to the deductor, as required by law, can attract a penalty of Rs 10,000.

For receiving income without deduction of tax at source

The tax laws allow you to enjoy rental income, without tax deduction at source, by furnishing Form No 15G if you are below the age of 60, and by furnishing Form No 15H if you are a senior citizen. Forms 15 G and 15H are treated as invalid, if a valid PAN is not mentioned on the form. Consequently, the payer of income, shall deduct tax at a higher rate of 20% on the rent.

As per the existing law, you can make an application to your TDS officer, for issuing a certificate to you that entitles you to receive the rent without TDS or TDS at a lower rate than the prescribed 10%. However, this form shall also be treated as invalid, if you do not mention your correct PAN.

The law also requires you to quote the PAN of the buyer and seller, for any transaction in immovable property, where the value exceeds Rs 5 lakhs. The registrar who registers the document, is required to ensure that the Permanent Account Numbers are mentioned on the documents relating to the sale and purchase of the immovable property.

So, the registrar can refuse to register the document for sale/purchase, if the PAN is not furnished. However, you can submit Form No 60 with the address proof, like ration card, passport, driving licence, etc., in case you do not have a PAN.

3 BHK FLATS IN GHODBUNDER ROAD, THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55





Soon, Mumbai residents will be able to travel between Borivli and Thane in 10 minutes owing to an 11-km underground tunnel passing through the Sanjay Gandhi National Park (SGNP). The state wildlife board recently gave the Maharashtra State Road Development Corporation (MSRDC) permission to carry out an on-ground survey at the national park.

This development assumes significance as the Rs2,000 crore project requires several envi-ronment clearances. Environmentalists have opposed the project, saying would affect the ecological balance of the area.

“We got permission for a topographic survey, which our consultants have started. After we receive a few other permissions, we will start our geo-technical survey to study the strata. Following this, we will prepare a detailed project report ,” said a senior MSRDC official.

Proposed in August 2015, the six-lane tunnel will connect Tikuji-ni-Wadi in Thane and Ekta Nagar on the Western Express Highway in Borivli. Currently, the 23-km distance between Thane and Borivli — via Ghodbunder Road — takes almost an hour or even more, if there is a traffic jam. Around 70,000 cars travel across Ghodbunder Road daily.

Thane and Borivli are separated by a chain of hills, most of which are part of SGNP. Signifi-cantly, SGNP’s reserved forest is under threat owing to encroachments. In March last year, the high court ordered the demolition of these encroachments.

3 BHK FLATS IN GHODBUNDER ROAD, THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55


201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55




Though the real estate industry was disappointed by the RBI’s decision to leave its benchmark lending rate unchanged at 6.25%, on April 6, 2017, for the third policy review in a row, the sector has welcomed its decision to allow banks to invest in REITs and InvITs

Welcoming the RBI’s decision to allow banks to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), realty sector experts said this move will give the much-needed boost to the industry by bringing in liquidity.

Banks are allowed to invest in equity-linked mutual funds, venture capital funds (VCFs) and equities to the extent of 20 per cent of their Net Owned Fund (NOF). “This is a landmark decision. It will allow greater institutional participation in the real estate sector. Banks will now have route to investment into real estate, in turn, helping the liquidity within the sector,” said Anshul Jain, Cushman & Wakefield managing director, India. The Securities and Exchange Board of India (SEBI) put in place regulations for REITs and InvITs and requested the RBI to allow banks to participate in these schemes.

“This move has shown the faith RBI and SEBI has in real estate investment foreseeing positive and secured returns, in the mid to long term, on account of steady economic growth. So, it can be viewed as a sign of maturity and a step towards institutionalisation of real estate in India,” he added.

NAREDCO chairman, and DLF CEO, Rajeev Talwar said, “This step has the potential to usher-in large number of REITs’ listings in India, by offering a safe asset class to invest in and also provide competition to foreign institutions. For banks, it offers an additional important asset class for investing.” Talwar noted that for commercial real estate companies, once REITs pick up, it will bring liquidity, and free up capital that will help lower overall costs. “We now look forward to detailed norms and guidelines for banks’ investment in REITs, by May end,” he added.

REITs and InvITs can be a good source of liquidity for the real estate sector

FICCI President Pankaj Patel said the decision is encouraging and should offer a good source of liquidity for real estate companies. “We look forward to detailed guidelines on this subject by the RBI as well as further instructions and final guidelines with regards to merchant discount rates for debit card transactions,” Patel added.

Surendra Hiranandani, chairman and MD of the House of Hiranandani, said that with the banks investing in the Trusts, there will be higher liquidity in the system, which will help the cost of capital for developers in the commercial segment to decrease in the future. He said the decision to hike the reverse repo rate by 25 bps to 6 per cent, will control the liquidity surplus in the system.

Angel Broking’s senior equity research analyst-banking, Siddharth Purohit said “Though further clarity is sought on the mechanism in which this shall be adopted, it can still be sentimentally positive for listed realty and infrastructure players.”

2 BHK SPACIOUS FLATS IN WAGHBIL, THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55


201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55