The fall in the value of rupee, pegged against the US dollar, has been a major topic of discussion over the last few days. Te implications for the Indian economy and possible remedies are a hotly debated topic in policy circles However certain segments of the Indian real estate market may gain significantly as a result of the depreciation of the Rupee and the resulting capital flow curbs placed by the RBI.

Owing to the depreciating rupee, the realty sector in India has witnessed increased interest of NRIs. And added to this another shot in the arm for the sector has come from the latest Liberalized Remittance Scheme (LRS) regulation that has recently come from the central bank.

In order to restrict the outflow of Capital, the Reserve Bank of India (RBI) has restricted buying of properties under the LRS scheme. Under this ruling, the limit for remittances has also been curtailed to $75,000 from $200000 for a fiscal year. As opined   by the report in Livemint, the RBI ruling is envisioned to benefit the premium and luxury real estate sector in India.. Owing to the diversion of investments from abroad towards local regions, demand for such segment of properties is expected to surge in India for the near future.

This turn of events gives a promising outlook to the further growth and expansion of the luxury real estate sector  in Inida. 

In a recent Supreme Court hearing,RWA of DLF Park Place submitted that it is willing to withdraw the case concerning the launch of The Crest project from the Punjab and Haryana high court if the Competition Appellate Tribunal (COMPAT) hears the case. The apex court has allowed the RWA members to withdraw their writ petition in the high court. Further proceedings in the high court shall remain stayed, directed the SC, "however, that will not prevent the RWA from requesting the high court to withdraw the writ petition".

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CREDITS : Times of India.

 As per the Notification No 39 dated 31st May’ 2013 under Income Tax Act, Government has introduced applicability of TDS (withholding tax) w.e.f. 1st June, 2013. Under the Act, Section 194-IA, the purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to deposit withholding tax at the rate of 1% from the consideration payable (excluding IFMS) on or after June 1st  2013. Suggested guideline for customers is explained as under;

Ø  Customer to remit 99% of the invoiced amount directly to the builder's designated account as installment payment and withhold 1% of invoiced amount.;

Ø  Customer to log on to NSDL-TIN website  (www.tin-nsdl.com);

Ø  Withholding Tax is to be deposited by filling up challan-cum-statement Form No. 26QB .  

Ø  Customer to remit the withholding tax amount electronically into State Bank of India or any authorized bank. For list of authorized banks, please refer: https://onlineservices.tin.nsdl.com/etaxnew/Authorizedbanks.html

Ø  On receipt of payment confirmation, a nine digit alpha numeric Acknowledgment number would be generated, confirming the remittance of withholding tax & receipt thereof;

Ø  On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is a proof of payment being made.

Ø  For more details; linked is the e-Tutorial explaining detailed procedure for depositing online withholding tax;

Ø  PAN details should be obtained from the builder in question for the specific project.

Please note that the responsibility for depositing the withholding tax remains with the customer and in case of any delay in deposit, the interest implication shall be borne by the customer.

In case you have remitted any payment on or after 1st June’ 13 without deducting the withholding tax, you must separately deposited 1% of the invoiced amount as withholding tax by filling up challan-cum-statement Form No. 26QB immediately (towards the installment already paid) and furnish us the proof of the same. However, non-payment of the withholding tax & not furnishing the proof shall be treated as a default.



 





 

The Delhi Government has lifted the ban on property transactions done through General Power of Attorney. These transactions will now be considered legal but will not be considered as transfer of title for mutation purposes.

Following a Supreme Court order on property transactions, Delhi government in April last year had put a stop on property transactions through GPA.

The Supreme Court had on October 12, 2011 ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.

The current revenue department circular however clearly states the following : 'transfer of property through general power of attorney and special power of attorney (SPA) by any registered property owner will be allowed in favour of ''their spouse, son, daughter, brother, sister or any other relative or person of his trust to manage his property or empowering him to execute any further deed of transfer including conveyance, sale and gift deed''.'

This should give an enormous boost to the property market as the GPA system was a conveinient mode for transfer of properties  where the title was not clear.

Ansal Group is soon launching a new luxury residential group housing project “AMANTRE” in Sector-88A on Dwarka Expressway, Gurgaon.

The project is spread around 10.10 Acres of land consisting of around 550 luxury apartments of 3 Bhk and 3Bhk+SQ. Check out details here:

http://www.propertybeats.com/ansal-88A.html

Emaar MGF presents one of the most spectacular developments in Gurgaon -DOWNTOWN.  To be  developed along the lines of Emaar Downtown Dubai the project will be a super luxury 50 acre development with a 7-Star Hotel, 7-Star Branded Residences, Ultra Luxury Retail Malls and state of the art Commercial Office Space. Located at the gateway to Gurgaon on M.G.Road - on the Delhi Border (with all required infrastructure already in place) the project is located at a place which is already the most prominent address in Gurgaon.  

Capital Tower I (a 360,000 sq.ft Commercial Tower) is part of the launch of Phase-I of the project. 

For more details please visit: www.emaardowntown.com.