WHAT IS RERA AND HOW WILL IT IMPACT THE REAL ESTATE INDUSTRY AND HOME BUYERS?

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The Real Estate (Regulation and Development) Act, 2016 (RERA), intends to protect the interests of home buyers and enhance transparency in the real estate sector. We examine how it will affect various stakeholders – from home buyers and builders, to brokers – and the provisions and penalties prescribed under the act

The Government of India enacted the Real Estate (Regulation and Development) Act 2016 on 26th March 2016 and all its provisions came into effect, from May 1, 2017.

 

What is the Real Estate Regulatory Act?

 

The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016. 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.

 

Why RERA?

 

For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act.

The RERA will give the Indian real estate industry its first regulator. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.

 

How will RERA impact home buyers

 

Some of the important compliances are:

  • Informing allottees about any minor addition or alteration.
  • Consent of 2/3rd allottees about any other addition or alteration.
  • No launch or advertisement before registration with RERA
  • Consent of 2/3rd allottees for transferring majority rights to 3rd party.
  • Sharing information project plan, layout, government approvals, land title status, sub-contractors.
  • Increased assertion on the timely completion of projects and delivery to the consumer.
  • An increase in the quality of construction due to a defect liability period of five years.
  • Formation of RWA within specified time or 3 months after majority of units have been sold.

The most positive aspect of this Act is that it provides a unified legal regime for the purchase of flats; apartments, etc., and seeks to standardise the practice across the country. Below are certain key highlights of the Act:

Establishment of the regulatory authority: The absence of a proper regulator (like the Securities Exchange Board of India for the capital markets) in the real estate sector, was long felt. The Act establishes Real Estate Regulatory Authority in each state and union territory. Its functions include protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system. To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay. Further, the Real Estate Appellate Authority (REAT) shall be the appropriate forum for appeals.

Compulsory registration: According to the central act, every real estate project (where the total area to be developed exceeds 500 sq mtrs or more than 8 apartments is proposed to be developed in any phase), must be registered with its respective state’s RERA. Existing projects where the completion certificate (CC) or occupancy certificate (OC) has not been issued, are also required to comply with the registration requirements under the Act. While applying for registration, promoters are required to provide detailed information on the project e.g. land status, details of the promoter, approvals, schedule of completion, etc. Only when registration is completed and other approvals (construction related) are in place, can the project be marketed.

Reserve account: One of the primary reasons for delay of projects was that funds collected from one project, would invariably be diverted to fund new, different projects. To prevent such a diversion, promoters are now required to park 70% of all project receivables into a separate reserve account. The proceeds of such account can only be used towards land and construction expenses and will be required to be certified by a professional.

Continual disclosures by promoters: After the implementation of the Act, home buyers will be able to monitor the progress of the projecton the RERA website since promoters will be required to make periodic submissions to the regulator regarding the progress of the project.

Title representation: Promoters are now required to make a positive warranty on his right title and interest on the land, which can be used later against him by the home buyer, should any title defect be discovered. Additionally, they are required to obtain insurance against the title and construction of the projects, proceeds of which shall go to the allottee upon execution of the agreement of sale.

Standardisation of sale agreement: The Act prescribes a standard model sale agreement to be entered into between promoters and homebuyers. Typically, promoters insert punitive clauses against home buyers which penalised them for any default while similar defaults by the promoter attracted negligible or no penalty. Such penal clauses could well be a thing of the past and home buyers can look forward to more balanced agreements in the future.

Penalty: To ensure that violation of the Act is not taken lightly, stiff monetary penalty (up to 10% of the project cost) and imprisonment has been prescribed against violators.

 

RERA definition of carpet area

 

The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get.

Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the size of their apartments, on the basis on carpet area (i.e., the area within four walls). This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.”

According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.

Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.”

 

Impact of RERA on real estate industry

 

  • Initial backlog.
  • Increased project cost.
  • Tight liquidity.
  • Rise in cost of capital.
  • Consolidation.
  • Increase in project launch time.

Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans, etc., needs to be prepared.

With the advent of RERA, specialised forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, will be established for the resolution of disputes pertaining to home buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters. While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.

 

Which projects come under RERA

 

  • Commercial and residential projects including plotted development.
  • Projects measuring more than 500 sq mts or 8 units.
  • Projects without Completion Certificate, before commencement of the Act.
  • The project is only for the purpose of renovation / repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
  • Each phase is to be treated as standalone real estate project requiring fresh registration.

 

How can a builder be RERA compliant

 

  • Project registration.
  • Advertisement.
  • Withdrawal – POC method.
  • Website updation/ Disclosures.
  • Carpet area.
  • Alteration in project – approval of 2/3 allottees.
  • Project accounts – Audit.
  • 70% of the funds collected from allottees needs to be deposited in the project account. Withdrawals to cover construction and land cost.
  • Withdrawals to be in proportion to the percentage completion method.
  • Withdrawal to be certified by an engineer, architect, and CA.
  • Provision for RERA to freeze project bank accounts upon non-compliance.
  • Interest on delay will be same for customer and promoter.

 

What information does a builder need to provide under RERA

 

  • Number, type and carpet area of apartments.
  • Consent from affected allottees for any major addition or alteration.
  • Quarterly updating of RERA website with details such as unsold inventory and pending approvals.
  • Project completion time frame.
  • No false statements or commitments in advertisement.
  • No arbitrary cancellation of units by promoter.

 

How to register projects under RERA

 

  • Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan, specification, plan of development work, proposed facilities, Proforma allotment letter, agreement for sale and conveyance deed to be given when
  • Applying for project registration with RERA.
  • Mandatory registration of new and existing projects with RERA before launch.
  • Registration of agents/brokers with RERA.
  • Dispute resolution within 6 months at RERA and RERA appellate tribunals.
  • Separate registration of different phases of a single projects.
  • Developers to share details of projects launched in last 5 years with status and reason for delay with RERA.
  • Timely updating of RERA website.
  • Maximum 1 year extension in case of delay due to no fault of developer.
  • Annual audit of project accounts by a CA.
  • Conveyance deed for common area in favour of RWA.
  • Construction and land title insurance.
  • Project completion time period.

 

How will RERA impact insurance cost for construction and land title

 

  • Land and approval costs to be meted out of internal accruals as prelaunch concept may end. It may lead to a shift in equity financing from debt financing prevailing currently. The cost of capital may go up as developers may now have to fund the land and approval cost through equity.
  • With frequent delay in obtaining approvals, debt funding may not be an ideal route for developers. With entry in the sector made difficult, the sector may witness consolidation.
  • Strong financial and execution capability is required to launch a project. The development model/agreement may gain prominence.
  • The project launch time may increase since a lot of time will be involved in finalizing finer details before launching a project.
  • Details such as complete drawings, utilities layout, etc., needs to be finalized before project starts.

 

How will RERA impact real estate agents

 

Under the Real Estate (Regulation and Development) Act (RERA), real estate agents will need to register themselves, to be able to facilitate a transaction. The broker segment in India, is estimated to be a USD 4 billion industry, with an estimated 5,00,000 to 9,00,000 brokers. However, it has traditionally been unorganised and unregulated.

“It will bring a lot of accountability in the industry and the ones who believe in professional and transparent business, will reap all the benefits. Now, the agents will have a much larger and responsible role to perform, as they will have to disclose all the appropriate information to the customer and even help them chose a RERA-compliant developer,” says Sam Chopra, founder and chairman of RE/MAX India.

With RERA in force, brokers cannot promise any amenities or services that are not mentioned in the documents. Moreover, they will have to provide all information and documents to the home buyers, at the time of booking. Consequently, RERA is likely to filter out the inexperienced, unprofessional, fly-by-night operators, as brokers not following the guidelines will face hefty penalty or jail or both.

 

How can brokers become RERA compliant

 

  1. Section 3: Promoter cannot advertise, book, sell or offer for sale, without registration with RERA.
  2. Section 9:
  1. Section 10:
  • No agent can sell a project not registered.
  • Maintain books and records.
  • Not be involved in unfair trade practices.
    • Make an incorrect statement – oral, written, visual.
    • Represent that services are of a particular standard.
    • Represent that the promoter or himself has approval or affiliation which such promoter or himself does not have.
    • Permit publication of advertisement in newspaper or otherwise of services not intended to be offered.
  • Agent needs to facilitate possession of all documents to the allottee at the time of booking.

 

When and how should you file a complaint under RERA?

 

Digbijoy Bhowmik, head of policy, RICS, explains, “Complaints can be filed under Section 31 of the Real Estate (Regulation and Development) Act, 2016, either with the Real Estate Regulatory Authority or the adjudicating officer. Such complaints may be against promoters, allottees and/or real estate agents. Most state government rules, made appurtenant to the RERA, have laid out the procedure and form, in which such applications can be made. In the case of Chandigarh UT or Uttar Pradesh, for instance, these are placed as Form ‘M’ or Form ‘N’ (common with most other states and union territories).”

A complaint under the RERA, is required to be in the form prescribed under the respective states’ rules. The complaint can be filed with respect to a project registered under RERA, within the prescribed time limit, for violation or contravention of provisions of the act or the rules or regulations framed under RERA.

“For cases pending before the NCDRC or other consumer fora, the complainants/ allottees can withdraw the case and approach the authority under the RERA. Other offences (except complaints under Section 12, 14, 18 and 19) can be filed before the RERA authority,” explains Ajay Monga, partner at SNG & Partners law firm.

 

Applicable penalties under RERA

 

Applicable sections Offences committed Applicable penalties
Section 9 (7)
  • Registration secured through misrepresentation or fraud
  • Breach of terms for which registration obtained
Revocation of Agent Registration Number
Section 62 Contravention of Section-9 & Section 10 Penalty of INR 10,000/-day during which the default continues extending up to 5% of cost of unit sold
Section 65 Contravention of orders of RERA authorities Penalty up to 5% of cost of unit sold
Section 66 Contravention of orders of Appellate tribunal Imprisonment for up to 1 year or with fine extend up to 10% of cost of unit sold

 

Benefits of RERA

 

Industry Developer Buyer Agents
  • Governance and transparency
  • Project efficiency and robust project delivery
  • Standardization and quality
  • Enhance confidence of investors
  • Attract higher investments and PE funding
  • Regulated Environment
  • Common and best practices
  • Increase efficiency
  • Consolidation of sector
  • Corporate branding
  • Higher investment
  • Increase in organised funding
  • Significant buyers protection
  • Quality products and timely delivery
  • Balanced agreements and treatment
  • Transparency – sale based on carpet area
  • Safety of money and transparency on utilisation
  • Consolidation of sector (due to mandatory state registration)
  • Increased transparency
  • Increased efficiency
  • Minimum litigation by adopting best practices

RESIDENTIAL PROJECTS 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

Email: prescon@prescon.in

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REAL ESTATE, CONSTRUCTION TOP EMPLOYMENT GENERATORS IN APRIL: REPORT

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The construction and real estate industries are generating employment demand for skilled workforce as the sectors are gearing up for growth following the government’s agenda of providing affordable housing to people, a report said.

While the overall talent demand was up by three per cent during April 2017, real estate posted a 7 % rise in talent demand and the construction sector saw a 6 % rise in demand, according to the latest RecruiteX, the recruitment index by TimesJobs.

“Our RecruiteX report reflects the growth of the Indian middle class and their rising purchasing power, which has converted the dream of owning a home into tangible demand for affordable housing. When coupled with Prime Minister Modi’s drive to create a business-friendly environment, drive real estate growth, and create jobs, the sector is on a hiring spree to take advantage of the next growth wave,” TimesJobs Business Head Ramathreya Krishnamurthi said.

While construction and real estate were the top hiring sectors during April 2017, logistics, petrochemicals, IT, telecom and BFSI also hired significantly during the month, it said.

Business managers, consultants, hospitality, logistics and BFSI professionals reported significant rise in demand, it added.

The report said, among key locations, while Bengaluru and Pune posted the maximum rise in demand, Ahmedabad and Indore were the top hiring among the non-metros.

When it comes to states, Maharashtra (excluding Mumbai and Pune) posted a five per cent rise in demand, it said.

Hiring gained momentum for experienced professionals while it dropped for freshers, it said.

Candidates having over 20 years of experience posted the highest rise in talent demand in April 2017, it added.

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

Source: MAGICBRICKS.COM

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

Phone: 91-22-25985951-55

Email: prescon@prescon.in

GST IMPACT: BUYERS MAY HOME IN ON READY-TO-MOVE-IN PROPERTIES

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Even as estate developers are busy preparing and fine-tuning their systems to align with the new tax regime, builders and brokers are expecting real estate sales to remain sluggish for some time as consumers are seeking more clarity on exact tax obligation on their transactions.

Over the past few days, builders and broker’s offices have been receiving queries from existing and prospective customers on how would resale of an under-construction apartment by an investor be treated under GST. Also, consumers want to know if any reimbursement or future payment adjustments are possible from developer’s input tax credit.

“Customers will be in a discovery mode for a while, trying to analyse and follow a secure investment pattern for themselves. And we are talking about an industry which is just about to recover from the side effects of demonetization,” said Prakkash G Rohiira, Director, Karma Realtors. “Allowing homebuyers to be induced into a wait-and watch mode would alter the performance of the industry.”

Realtors reckon that ready-to-move in properties would be preferred by homebuyers now as that segment remains out of the GST ambit. However, such properties are likely to cost a bit more now as these properties won’t get any benefit of input tax credit.

“While developers might still get some benefits for projects that are in nascent stage, they will have to bear the tax burden for ready-to-move in projects since they are kept out of the GST ambit,” said Surendra Hiranandani, CMD, House of Hiranandani.

According to Hiranandani, while the intent is to streamline the tax administration and bring more businesses in the tax net, it is unlikely that GST will have any impact on property prices. He believes that the current rate of 12% on under-construction projects might marginally bring down prices in the affordable segment owing to the input tax credits, but it is unlikely that similar impact will be felt in mid-priced or premium developments.

Last week, the government had notified the goods & services tax rate (GST) for construction of real estate at 18% as against the 12% announced earlier. However, with this rate, the government has also allowed deduction of land value equivalent to one-third of total amount charged by the developer, making effective tax rate same as 12%. According to experts, this revised rate is expected to be tax-neutral as the GST obligation for the property buyer would remain the same.

More clarity is expected to emerge once the GST gets implemented and the government clears its stand on the abatement available for the land cost for calculating service tax on under construction projects. For premium projects where land cost forms around half the total expenditure in cities like Mumbai, apartment prices are likely to rise.

Kailash Babar, Economic Times, Mumbai

LUXURIOUS 3 BHK FLATS THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

Source: MAGICBRICKS.COM

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

Phone: 91-22-25985951-55

Email: prescon@prescon.in

CHEQUE ENCASHED BY BUILDER AFTER I-T RETURN DEADLINE? YOU CAN STILL CLAIM TAX EXEMPTION, SAYS TRIBUNAL

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In a relief to many flat buyers, the Income-tax Appellate Tribunal recently held that if a cheque is encashed by the builder after the deadline for filing income-tax return, it will not debar the taxpayer from claiming I-T exemption available on reinvestment of long term capital gains (LTCGs) in RESIDENTIAL PROPERTY.

Tax experts say this does not apply to post-dated cheques. Builders typically ask for post-dated cheques, if a flat is booked during the construction stage.

If a taxpayer makes a profit on sale of a residential house s/he has held for two years (the 2017-18 budget has reduced the holding period from the earlier three years), it is treated as an LTCG, which is taxable at 20% with an adjustment for inflation, referred to as indexation benefits.

But, if a component of LTCG is reinvested in another house in India within two years of the sale of the original house, the taxpayer can claim a tax exemption under section 54 of the I-T Act. Consequently, the taxable component of LTCGs is reduced to the extent of the reinvestment, which results in a lower tax outgo. In case the amount is not reinvested by the due date of filing I-T return, the taxpayer has to deposit it in a separate bank account under the capital gain account scheme.

The ITAT heard the case of Akansha Ranju Pilani who had earned Rs 1.6 crore on sale of property on August 2, 2011. He purchased another residential property on July 26, 2012 for Rs 2.75 crore and claimed tax exemption. While he had issued several cheques for the purchase price to the builder on the date of the agreement, cheques for Rs 62.21 lakh were encashed by the builder after the expiry of the date for filing the I-T return.

The I-T officer held that as the unutilised amount of Rs 62.21 lakh was not deposited in a separate bank account, to this extent the tax exemption claimed by Pilani should be disallowed. The taxpayer that “once cheques have been issued, his liability is fulfilled and it constitutes utilisation of the sale proceeds of the old house.”

He pointed out that the cheques were issued to the builder on July 26, 2012, prior to the due date of filing the I-T return, which fell on August 31. The ITAT thus decided in favour of the taxpayer.

“This decision relies on a tenet set by the Supreme Court that the date of payment in case of a cheque is its date of delivery. On encashment by the recipient the payment is complete, but it relates back to the date of handing over of the cheque (or delivery date),” explains Gautam Nayak, tax partner, CNK & Associates.

However, Nayak sounds a word of caution. “If post-dated cheques have been given to the builder, then the taxpayer should ensure that the unutilised sum is deposited with a separate bank account before the due date of filing the I-T return. In such cases, the date of delivery will be the date mentioned on the cheque.”

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

Source: MAGICBRICKS.COM

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

Phone: 91-22-25985951-55

Email: prescon@prescon.in

REAL ESTATE, CONSTRUCTION TOP EMPLOYMENT GENERATORS IN APRIL: REPORT

cropped-208168_178984118815993_5694824_n.jpg

The construction and real estate industries are generating employment demand for skilled workforce as the sectors are gearing up for growth following the government’s agenda of providing affordable housing to people, a report said.

While the overall talent demand was up by three per cent during April 2017, real estate posted a 7 % rise in talent demand and the construction sector saw a 6 % rise in demand, according to the latest RecruiteX, the recruitment index by TimesJobs.

“Our RecruiteX report reflects the growth of the Indian middle class and their rising purchasing power, which has converted the dream of owning a home into tangible demand for affordable housing. When coupled with Prime Minister Modi’s drive to create a business-friendly environment, drive real estate growth, and create jobs, the sector is on a hiring spree to take advantage of the next growth wave,” TimesJobs Business Head Ramathreya Krishnamurthi said.

While construction and real estate were the top hiring sectors during April 2017, logistics, petrochemicals, IT, telecom and BFSI also hired significantly during the month, it said.

Business managers, consultants, hospitality, logistics and BFSI professionals reported significant rise in demand, it added.

The report said, among key locations, while Bengaluru and Pune posted the maximum rise in demand, Ahmedabad and Indore were the top hiring among the non-metros.

When it comes to states, Maharashtra (excluding Mumbai and Pune) posted a five per cent rise in demand, it said.

Hiring gained momentum for experienced professionals while it dropped for freshers, it said.

Candidates having over 20 years of experience posted the highest rise in talent demand in April 2017, it added.

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

Source: MAGICBRICKS.COM

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

Phone: 91-22-25985951-55

Email: prescon@prescon.in

THESE ARE THE PROPERTY TRANSACTIONS FOR WHICH PAN CARD IS A MUST

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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

Email: prescon@prescon.in

SOON, TRAVEL BETWEEN BORIVLI AND THANE IN 10 MI-NUTES USING UNDERGROUND SGNP TUNNEL

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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

Source: HINDUSTANTIMES.COM

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

Phone: 91-22-25985951-55

Email: prescon@prescon.in