RIGHT TIME FOR NRIS TO INVEST IN PROPERTY

With renewed transparency and accountability in the real estate market, investing in Tricity realty could prove good value for money for NRIs. The market sentiment too is upbeat with lucrative property rates, attractive finance schemes from banks and offers and discounts from developers.

As the festive season begins, real estate developers in the Tricity region have high hopes from the Non-Resident Indian (NRI) investors to bring a boom in the market and put it back on the fast track. Their aspirations and expectations rise from the fact that most NRIs visit India around this time of the year. The realtors expect that with improving infrastructure, low property prices, cut in stamp duty by Punjab government and economic and political stability, its an ideal time for NRIs to put their money in Tricity real estate.

In earlier years, the opaque nature of the realty business, with its lack of information and no due diligence, did not inspire much confidence in the Punjabi diaspora. However, with some of the key policy changes in the past one year, like the Real Estate Regulation Act (RERA), demonetisation, the Goods and Services Tax (GST), NRIs will now be more confident in making an investment decision. Also, to simplify the purchasing processes, several rules and regulations have been amended. In addition, lenient FEMA policies and relaxation of laws by the RBI regarding property buying by NRIs, are likely to boost their participation.

"With tight regulations, greater transparency, more affordability and enhanced price stability, NRIs will find interesting investment opportunities in areas like Zirakpur and Mohali, as long as they have a long-term view and are discerning about which project to invest in," says Col Inderjit Kumar, Head, Sales and Marketing, JLPL.

Credits : www.freepik.com/

In the past also, NRIs have invested a sizeable amount in real estate, and their participation brought about strength in the market. Ramesh Sharma, a real estate agent, shares, "With almost no option within Chandigarh, Panchkula and Mohali to buy property, periphery areas surrounding Zirakpur, Patiala Road, New Chandigarh and Mohali are preferred by NRIs, especially from Punjab--who seek higher security, greener surroundings, luxurious lifestyle and proximity to educational, health and recreational set-ups. Villas, apartments and penthouses are what they eye at. Though, the market has been somewhat slow till last year, the real estate scenario is expected to take a high stride starting with the festive season."

Raman Singla, GM, SBP Group, says, "Punjabis form a major part of NRIs. With the starting of international flights from Mohali, NRIs are now keen on buying property in Chandigarh periphery as their travel would be easy. Property is at a decent pricing right now, compared to the past years. NRIs go by the brand value of the project, showing interest mostly in projects approved by the government."

Umang Jindal, Director, Homeland Heights, says, "There are several factors that make Mohali and surrounding areas an attractive hotspot for NRI buyers. Prominent amongst them is well developed infrastructure, easy access to the airport, and presence of premier health institutes and entertainment centres. Also, these areas are strategically located adjoining Chandigarh and have direct connectivity to Delhi, most areas of Punjab and even the hills of Himachal Pradesh."

NRIs are also aware that residential inventory has piled up and they are currently very well-placed to find good bargains in these markets, as most developers are offering discounts and other attractive schemes. However, once the economy begins to grow, housing demand is again going to rise and it will lead to price escalation. So, for NRIs who are waiting on the edge, this is the right time to invest. Once the primary residence is secured, with surplus funds they can also invest in rental income-generating apartments or commercial properties as well. However, they should we wary of projects by unknown developers who have no existing track record. NRIs should strictly follow a check-list of points to verify, such as the RERA registration of developer, his track record and brand visibility, the soundness of the identified location in terms of civic and social infrastructure and amenities in the project.

RESIDENTIAL PROJECTS WAGHBIL THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

 

Source: CONTENT.MAGICBRICKS.COM

THE GIST OF GST

Post GST's implementation on July 1, there have been a few apprehensions that end-consumers are currently harbouring. The quintessential question therefore is: how severely would you be affected by GST in your real estate dealings? We seek some answers...

There is a lot of confusion in the minds of the home-buyers and developers about the implementation of GST that came into effect from July 1, 2017. People are not sure whether they would be benefited by the new tax system or would have to shell out more money. We bring some clarity with regards to this.

“The real estate sector is currently burdened with indirect taxes on multiple counts such as service tax, Value Added Tax (VAT), stamp duty, registration charges, etc. People were confused and weren't aware w.r.t which taxes were going to be subsumedto be continued under the GST regime. However, with various initiatives undertaken by the government, it is now made abundantly clear that stamp duty and registration charges shall continue and Service TaxVAT would be subsumed in the GST regime and replaced with CGST + SGST (of specific state). With the increase in the indirect tax rate on construction services (read: 12 per cent), the government has issued a press release cautioning developers against resorting to extraction of additional GST on account of the increased tax rate without due regard to GST credits,“ says Amit Kumar Sarkar, partner and head indirect tax, BDO India.

BENEFITS OF GST:

The biggest game-changer under GST is the introduction of the Input Tax Credit (ITC), whereby credits of input taxes paid at each stage of production or service delivery, can be availed in the succeeding stages of value addition.Anuj Puri, chairman ANAROCK Property Consultants Pvt Ltd explains, “To ensure that manufacturers, developers and service providers pass on the benefit to the final customer, the government has included an anti-profiteering clause in the GST bill under section 171 of the GST law.This clause clearly states that it is mandatory to pass on the benefit of the tax reduction (due to the input tax credits) to the final customer.“

SOME IMPORTANT BENEFITS OF GST ARE:

It would help eliminate the cascading tax structure; It would ease compliances; It will create a uniform tax rate and structure; It would help in reducing additional tax burdens (on consumers).

GST MISCONCEPTION AND FACTS:

While there has been a lot of speculation doing the rounds when it comes to GST, Samir Jasuja, founder and CEO, PropEquity clarifies and says, “Let's clear the misconceptions one by one:

Myth 1: Property prices will rise with GST getting applicable on each construction-related material and service:

FACT: Property prices will not rise. The developers can take the input tax credits for the materials used for construction and the services paid. The government has asked the developers to pass on the benefits of the lower tax under the GST regime to the buyers as well, which in turn, will marginally reduce property prices. The government has also passed the anti-profiteering rule, which would prevent any increase in property prices.

Myth 2: EMIs on property buying will shoot up due to GST:

FACT: No, EMIs on property may remain the same or marginally reduce as the overall property price is expected to drop.

Myth 3: Resale property will also get costlier:

FACT: No, it will not get costlier. The impact of GST on resale proper ties is likely to be less.

Myth 4: No input credit will be allowed if you purchase an office.

FACT: The input tax cred it will be allowed for an office space if the purchase is made before the property gets the Completion Certificate (CC) or prior to the first occupancy.“

Shubika Bilkha, business head, Real Estate Management Institute explains, “GST has been levied on the renting of residential proper ties and an 18 per cent tax will be applicable for leasing commercial properties. Experts have clarified that the threshold limit for the applicability of GST has been increased from Rs 10 lakh to Rs 20 lakh. Hence, some of the landlords that came within the purview of the service tax regime may not be included under the tax net of GST.“

INDIA VERSUS THE REST:

Experts point out that a uniform tax structure in markets such as Indonesia, Thailand, among others, has been a catalyst to increase investments. It is important to remember that when buyers purchase properties, they focus on the value, their individual needsrequirements and potential appreciation of the asset, over taxation slabs. Bilkha shares how, “With the introduction of RERA and GST, the real estate sector is metamorphosing into a transparen nt, tightly controlled and regulated industry. All these measures will, in the long run, create stable businesses, as well as contribute towards reducing the trust deficit between the consumers and the developers.“

HOW WOULD GST BRING IN HOLISTIC GROWTH IN THE REALTY MARKET?

The reduced cost of construc tion will bring in more liquidity for the developer; The developers can take the in put tax credit for raw materials like cement and steel. This would bring down the total amount paid in taxes and avoid double taxation on the same product; Free flow of credits will further boost the margin of the develop er; GST will reduce inflated taxes and bring in more transparency and help in improving trust among the buyers.

GST PERKS FOR THE HOME-BUYERS:

Possible reduction of property prices with additional credits flowing to the developers; A variety of products would be available from other states, as the GST regime promotes inter state procurements.

2 BHK SPACIOUS APARTMENTS IN THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

 

Source: EPAPERBETA.TIMESOFINDIA.COM

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in 

A guide to choosing great colours for your home

Here’s how home owners can choose the right wall colours for their homes, based on their personalities and the ambience they want to create

According to therapists, colours tend to have a psychological and physical impact on us. For example, certain colours can raise blood pressure, increase metabolism or even cause eye strain, while other colours have a healing effect and can balance energy levels.

Red

Red symbolises love, passion and courage. It is a colour that exudes warmth and draws attention. It has a great emotional impact, making it ideal for the living room.

Orange

Orange is the colour of knowledge, loyalty and generosity. It reflects a healthy social environment and revitalises the mind and body.

Yellow

If living room lacks a strong source of natural light. Use yellow, to give the room a bright look. Yellow is one of the most widely-used colours in the world and is ideal for small-sized homes in cities. It exudes warmth, inspiration and joy. Besides sunlight and spirituality, yellow is also associated with wealth, as it is the colour of gold.

Green

Green represents freshness and abundance. Its soothing quality characterises the power of nature. The colour is proven to have a therapeutic effect and is suitable for rooms that focus on wellbeing and rest.

Blue

blue represents tranquillity, comfort and serenity. It is the colour of the sky and sea and has a cooling and soothing effect in rooms. It is ideal for bathrooms, because it is associated with water. When used in bedrooms, it induces sleep by calming the mind. A shade of Mediterranean blue, helps to blur the room’s boundaries thereby, making it look bigger than its actual size.

Purple

Purple represents sensuality, passion, royalty, luxury and depth of feeling.

Pink

Pink is an emotional colour and connotes sensitivity and a caring nature. Hence, it is ideal for bedrooms, as it gives a peaceful touch and makes it look lively.

Black and white

White is associated with purity and elegance, while black is associated with negativity and power. If you are not happy with a plain white wall, then, you can opt for different shades of white. You can choose a white shade with a pink tone, blue tone or green tone. This makes the room appear bigger and vibrant. Black can be used to add contrast, to a room that has light-coloured walls.

While painting a room, do not use more than three colours for any space, including neutrals. All that is required is a little planning, to find a colour that best suits your room. After all, you want the right mood in a room, as it impacts not just your own feelings, but also that of everyone who enters it.

Tips on painting a large room

· Bright colours add a positive vibe and make the surrounding more energetic. Younger children, in particular, tend to favour bright colours like yellow, orange and red.

· Warm colours can make a large room seem cosier, while small bedrooms can be made to appear larger, with cooler shades.

· Metallic finishes, such as gold, bronze, glitter or pearl red, silver and blue, add a bold look. Non-metallic finishes, which are minimalistic, along with geometric or trendy patterns, exude elegance and give a subtle, artistic feel to a space.

· Living rooms painted in a triadic scheme (for example, using three distinctly different colours like blue, yellow and red), tend to be very vibrant and energetic and depict youthfulness and freshness.

Painting a small room? Remember this

· Yellow, pink and lavender, are ideal for small-sized bedrooms.

· Light yellows, with green and peach or pink accents, and blue and sea green shades, are light yet, bright colours. These colours are a great way to beat the summer heat, while maintaining a cosy feel.

· You can also paint one wall in a small bedroom with a darker shade, to differentiate it from the other walls in the room. The darker wall will seem to recede, creating an illusion of space.

· You can also paint the walls using stripes of alternating but similar colours. These stripes can be vertical or horizontal and three to five inches wide.

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in 

Capital gains can be invested more than once for new house

Mumbai

The Income-Tax Appellate Tribunal (ITAT) has held that a taxpayer can invest capital gains for the second or third time towards the same 'new' house property. Tax benefits cannot be denied on this ground, provided the cost of the new house is within capital gains that have arisen to the taxpayer.

ITAT also held that as the new property was under construction, it cannot be counted towards the number of houses already owned by the taxpayer.

Various provisions of the Income-Tax (I-T) Act grant a tax benefit, where long-term capital gains (LTCGs) arising out of a sale of certain assets are invested in acquiring a new house property. To the extent of investment in the new property, the taxable component of LTCGs is reduced, which results in lower I-T outgo. But if the taxpayer owns more than one house, other than the 'new' residential property, on the date of transfer of the original assets, the I-T benefit is not available.

It is not uncommon for taxpayers to sell more than one asset to buy a larger accommodation or to purchase one in a relatively more tony area. ITAT Delhi bench's decision early this month will support I-T deduction claims of taxpayers.

"ITAT has rightly held that the new house was not complete, so it could not be regarded as a house already 'owned' by the taxpayer. Also, there is no bar on claim on exemption of more than one capital gain in respect of investment in one house, which ITAT upheld. The only aspect taxpayers need to keep in mind is meeting timelines for acquisition of the new house," said Gautam Nayak, tax partner at CNK & Associates.

This case decided by ITAT relates to section 54F, which provides for I-T deduction where LTCGs arising from sale of non-residential property are invested to acquire a new house property. Tax experts said the same tenet will apply to section 54 too, which covers investment of LTCGs arising from sale of a residential property in another house property. LTCGs arise where property held for more than three years is sold for a profit.

Mohinder Kumar Jain, whose case was heard by ITAT, had sold five properties and invested the LTCGs, for construction of a house at Mehendi Farm. He claimed a deduction of Rs 1.59 crore under section 54F in his I-T returns for 2010-11.

The I-T official disputed this claim and said a deduction of Rs 47.84 lakh had been claimed earlier by Jain under section 54F for construction of the same house at Mehendi Farm. This claim had been allowed by the I-T authorities for 2008-09. The I-T official contended that on the date of sale of these five properties, Jain owned more than one residential house (at Vasant Vihar and the property under construction). Thus, he denied the I-T benefit that was sought by the taxpayer. When the dispute reached ITAT, it decided in favour of the taxpayer.

Lubna Kably, Economic Times, Mumbai

RESIDENTIAL PROJECTS WAGHBIL THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in 

FIVE HOME DECOR IDEAS THAT WON'T COST YOU A THING

You don't need to spend a fortune on making your home look in the same class as the houses you see on TV appears. There are huge amounts of shabby and simple approaches to transform the insides of your home into a masterpiece.

When you choose that your home needs some interior rebuilding, you may quickly consider how costly and debilitating it will get. In any case, think about what, you don't have to take seven days off and re-try the entire house starting with no outside help.

Indeed, we at Quikr trust that anybody can turn into a specialist in taking advantage of those plain white dividers or that unremarkable looking room.

All You Need Is A Little Color

It's an ideal opportunity to take out those extra paint jars from capacity. Because the dividers are as of now painted does not imply that you can't make your rooms much more delightful.

Utilize the paints to do up the sides of your bureau drawers, the vase that is feeling the loss of its sparkle, and possibly paint a few plates and hang them up on the divider to give your front room that aesthetic look.

Broken, And Still A Thing Of Beauty

Rather than discarding broken furniture, family unit things, and gems, breath life into them back utilizing these astute hacks.

• Broken bassinets can be utilized as imaginative tables for kids. Basically take off one side of the bunk, paint the "table best", and introduce a couple of racks for provisions.
• who at any point thought smashed ceramics and vases had to be discarded? Include some gold or silver shading to pitch and utilize this blend to stick them back together.
• Before you hurl that broken hoop into the junk, think about all the stunning ways that small dull piece can add to your home decor. Stick a magnet behind the knickknack and utilize it as ostentatious ice chest bling!
• Nobody needs a split photograph outline lying around in the house, however don't discard it! Tie or stick two or three strings between the edge and transform it into a kitsch stud holder. This is an unquestionably simple approach to look chic.

Old Toys Are Now Showpieces

No more grumblings about venturing on stray Lego pieces and old toys jumbling storage rooms. This is the niftiest method for transforming your insides into something that your neighbors won't quit discussing.

The hands of little lego figures are the perfect size to hold little links set up. Paste these adorable minimal smaller than normal figures to the sides of an examination table or a TV stand, and wonder about how little things can have any kind of effect in the way your home looks.

You can likewise utilize old, exhausted tennis balls as improvised key or envelope holders. Set them up in advantageous places all through your home.

all the more appalling looking wires, not any more tangled links, and not any more lost keys.

Utilize Leftover Wrapping Paper For A Fancy Look

An excessive number of remaining present wrapper comes in the house after Christmas? Transform that old-looking bookshelf into something intriguing by fixing it with blessing wrap. A couple of minutes' work and now the insides of your room have been lifted.

My Pleasure.

Blessing wrap can likewise be utilized as placemats, particularly for extraordinary events like gatherings or easygoing meals. Blend and match the blessing wrap placemats with your cutlery to liven up the feasting table.

A Wall Of Fame

In vogue cowpoke caps and those ever-sharp Michael Jackson ones need to be purchased each time you see them in light of the fact that, obviously, all the cool children have a pack. In any case, the pitiful truth is, we wind up hoarding these cool-looking, yet scarcely utilized accomplices to assemble tidy in organizers.

In this way, here's the way you can at long last put each one of those caps to great utilize: energize hall dividers by hanging these up. Hotshot every one of those fedoras and trilbies by hanging them on nails or individual snares.

You can likewise spruce up your divider by transforming it into a stroll down the world of fond memories utilizing photos without the casings. You can mastermind them in any shape you'd like or simply have a ton of fun making a strange photograph arrangement.

Glad Thinking Back!

Tidying up and updating your insides gets less demanding and less expensive with these hacks. Is it accurate to say that you are prepared to go past these thoughts? At that point come look at the different home decorations and different administrations that will most likely prove to be useful.

RESIDENTIAL PROJECTS WAGHBIL THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in 

FITCH RATINGS SEES 'NEUTRAL' IMPACT OF GST ON REALTY SECTOR

Ratings agency Fitch Ratings expects the impact of implementation of Goods & Services Tax on real estate sector to be neutral.

Property developers will be subject to a final effective Goods & Services Tax rate of 12% on property sales, because the tax authorities will assume that land costs consist of one third of the sales price for which the 18% GST rate will not apply.

This will still be 7.5% points higher than the former 4.5% effective sales tax. However developer's ability to claim input tax credits will also increase with the imposition of GST, because input credits can now be claimed against steel and cement, which are key raw materials.

"The impact of GST on property prices will not be significant if developers pass on these benefits to customers – we expect home prices to rise by no more than 1%-2% if the benefit of lower costs is passed on. The higher end of that range would apply to developers which cater to higher-income customer segments, where land prices are higher and profit margins wider," Fitch Ratings said in its report.

0Fitch expects the impact of GST on property sales also to be limited because the tax will only apply to sales made after 1 July 2017, whereas most large homebuilder’s FYE18 (March 2018) revenue and cash flows will stem mainly from sales made before that.

Furthermore, sales contracted after 1 July off new projects should not be affected because developers should be able to reflect the impact of GST in new construction contracts. However, sales contracted after 1 July from existing projects – i.e. where construction is underway – may have to reflect the full 7.5% price increase stemming from GST, because renegotiating existing construction contracts with contractors may prove to be challenging.

The ratings agency believes that property sales will weaken for one to two quarters as a result, but we expect sales to normalise beyond that time frame. Over the medium term, developers may be encouraged to pass on the cost benefits to customers to comply with the anti-profiteering clause introduced in the Central Goods and Services Tax of 2017.

It expects that developers may also choose to pass on cost benefits to customers to try and limit a prolonged slowdown in property sales, in an industry where demand/supply fundamentals are already weak.

Among rated companies, Indiabulls Real Estate Limited (IBREL, B+/Stable) has some headroom in its rating to weather a longer-than-expected weakening in sales, and this is reflected in Stable Outlook. Lodha Developers (B/Negative) has limited rating headroom because of leverage which is already high, and this is captured in our Negative Outlook, Fitch added.

RESIDENTIAL PROJECTS WAGHBIL THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 - 55

 

Source: CONTENT.MAGICBRICKS.COM

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

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

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

Prescon Realtors & Infrastructures Private Limited

   

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi

Thane West - 400601

Phone: 91-22-25985951-55

Email: prescon@prescon.in