Japanese behemoth Sumitomo, Indian partner Krishna foray into real estate space with JV worth USD 2 billion

Japanese behemoth Sumitomo, Indian partner Krishna foray into real estate space with JV worth USD 2 billion

The 18 million sq ft integrated township to come up in Gurgaon in phases

Close on the heels of The Trump Organization launching its project in Delhi-NCR’s Gurgaon, a Tokyo-based Japanese conglomerate Sumitomo Corporation, on Thursday announced its joint venture worth USD 2 billion with Indian partner Krishna Group for an Continue reading “Japanese behemoth Sumitomo, Indian partner Krishna foray into real estate space with JV worth USD 2 billion”

New launches in real estate sector would be muted in 2018: Anarock

New launches in real estate sector would be muted in 2018: Anarock

Looks like real estate blues aren’t going away any time soon. Anarock’s latest report shows a significant decline in new launches and absorption in 2017. An Ambit report too highlights an 8 percent fall in residential sales over 2014 to 2017. Will weak consumer Continue reading “New launches in real estate sector would be muted in 2018: Anarock”

Real estate emerging the favoured vault of the unscrupulous

Real estate emerging the favoured vault of the unscrupulous

Govt. employees on ACB’s radar are found to have parked ill-gotten money in realty projects

Amass wealth misusing official position and invest in real estate to escape attention. All that one needs is the unflinching support of trusted aides, family members or even a Continue reading “Real estate emerging the favoured vault of the unscrupulous”

Local, State levies on real estate, petroleum may continue under GST

Local, State levies on real estate, petroleum may continue under GST

Initial discussions on including realty under GST have started

Local and State level levies on real estate and petroleum products could continue even after these sectors are included in the Goods and Services Tax.

Under the proposal being discussed, property tax is likely to continue although other cesses may be subsumed under GST, once the sector is brought within the ambit of Continue reading “Local, State levies on real estate, petroleum may continue under GST”

Budget Blues: Infrastructure status for Real Estate could have saved the day

Budget Blues: Infrastructure status for Real Estate could have saved the day

Infrastructure status to the real estate sector would have been a major structural reform that could have boosted the GDP, increased employment opportunities, lowered the cost of home development and purchase, and led to rapid growth of the sector.

The Finance Minister’s fifth union budget on 1st February 2018 was probably one of the most closely-followed events for the Indian business community. Not only was it the final budget before the 2019 Continue reading “Budget Blues: Infrastructure status for Real Estate could have saved the day”

Over 400 real estate projects registered on Haryana’s RERA website likely to be launched next week

Over 400 real estate projects registered on Haryana’s RERA website likely to be launched next week

Under RERA complaints have to be resolved within 60 days and a regulation finalising the timeline would be issued soon

As many as 400 real estate projects have been registered, around 120 complaints by homebuyers filed manually and over 20 builders sent notices by Haryana’s RERA authorities, say official sources, adding they expect that the Continue reading “Over 400 real estate projects registered on Haryana’s RERA website likely to be launched next week”

Stamp Duty Act revamp on the cards

Stamp Duty Act revamp on the cards

NEW DELHI: India is looking to revamp the Stamp Duty Act to bring about uniformity in rates for taxation of financial securities on a destination-based principle.

The department of economic affairs in the finance ministry has already held one round of discussion with states where it made a presentation on the proposed regime. Also on the table is the Continue reading “Stamp Duty Act revamp on the cards”

Budget 2018: How Jaitley’s circle rate move will impact real estate deals

Budget 2018: How Jaitley’s circle rate move will impact real estate deals

If a property’s sale value is up to 5 per cent below its circle rate, the buyer and seller won’t need to pay additional tax

Property buyers and sellers in metros, especially in upmarket localities, won’t need to pay additional tax if the difference between the agreement and stamp duty values of the property is less than 5 per cent. The finance minister has proposed this relief in Budget 2018.At present, if the sale price of a property is lower than the circle rate, the difference is added to the buyer’s income and taxed as ‘income from other source’. Even the seller needs to calculate his capital gains on the basis of the circle rate which means a higher tax payment. Circle rates are state governments’ benchmark or reference property prices on which they calculate the stamp duty payable. They are also known as ‘ready reckoner’ or ‘collector rates’.For example, according to the present practice, if a property being sold is valued at Rs 10 million, but the circle rate is Rs 10.05 million, the buyer has to pay tax on Rs 500,000 based on his slab rate. An individual in the 30 per cent tax bracket pays Rs 150,000 in tax. The difference is considered as a ‘profit’ for the buyer under section 56(2) of the Income-tax Act. However, according to the Budget proposal, he will not need to pay any tax in case the variation is up to 5 per cent.A seller needs to calculate his capital gains on the basis of the price considered for stamp duty under section 50C.

Now, the seller’s tax liability will be slightly lower. If the gains at present were, say, Rs 798,120. It would come down by Rs 100,000 (see table).But what if the difference between the property value and the circle rate is more than 5 per cent? In this case, the buyer and seller will not get the proposed tax benefit. “It has to be either 5 per cent or lower. Else, it will follow the current taxation system,” says Naveen Wadhwa, general manager, Taxmann.com. The changes are also made only for the income-tax purpose. “If the circle rates are higher, buyers would still need to pay stamp duty based on the benchmark prices in their respective states,” says Wadhwa.Experts say that such a difference is usually seen in the upmarket localities in metros. “In suburbs, mostly, the circle rates are closer to actual property prices, and in Tier-II cities they are much lower,” says Pankaj Kapoor, MD of real estate consultancy Liases Foras.The proposal will essentially benefit buyers and sellers in areas where property prices have seen a much higher correction in the past two-three years. “If you look at Gurgain in Delhi-NCR, prices in some localities are still below the government’s benchmark rates, despite the state government lowering the circle rates in the past two years. But the regulations are such that buyers and sellers need to pay the tax out of their pocket on the difference,” says Ashutosh Limaye, head of research, JLL India. He further adds, in some cases, two properties situated next to each other might sell at different prices, even as the circle rates is the same for both. The government now recognises such disparity.During his Budget speech, Finance Minister Arun Jaitley had said: “Sometimes, this variation can occur in respect of different properties in the same area because of a variety of factors, including the shape of the plot and location.”

Land release case: Gurgaon realtors push for license on contentious land, Haryana govt turns to AG

Land release case: Gurgaon realtors push for license on contentious land, Haryana govt turns to AG

Real-estate developers are mounting pressure for grant of licenses and approvals in Sectors 58 to 63 and Sectors 65 to 67 of Gurgaon, forcing the Haryana government to seek an advice from the advocate general since the land parcels in these sectors are subject of Continue reading “Land release case: Gurgaon realtors push for license on contentious land, Haryana govt turns to AG”