Archive for January 2017

Housing sector biggest beneficiary of demonetisation: Venkaiah Naidu

Taking a jibe on commentators who cast doubts on benefits to government from demonetisation, Naidu said this will lead to more people coming under the tax net.

Housing sector biggest beneficiary of demonetisation: Venkaiah NaiduVISAKHAPATNAM: Housing sector is the biggest beneficiary of demonetisation as interest rates have fallen, Union Minister M Venkaiah Naidu on Friday said and expressed hope that Finance Minister will announce more incentives for the sector in the Budget on February 1.

Taking a jibe on commentators who cast doubts on benefits to government from demonetisation as Rs 15 lakh crore have come back into the system, Naidu said this will lead to more people coming under the tax net.

“…every note has come back to the bank and note is followed by an address…whether it is white or black that will be known after its scrutiny,” the Minister for Urban Development, Housing and Urban Poverty Alleviation said at an investors’ meet here.

If tax net widens, the interest rates will come down, he added.

“I am happy because I am one of the largest beneficiary of this (demonetisation) because I head the housing ministry. My housing interest rates have come down considerable.

“I hope my friend Finance Minister Arun jaitley will do some more in the coming budget,” he said and added that boom in housing sector means pick up in sectors like cement, steel, and construction, leading increase in employment.

Jaitley is scheduled to present the Union Budget for 2017-18 financial year on February 1.

The government on November 8 last year had demonetised Rs 500/1000 notes, which constituted about 87 per cent of the currency in circulation.

With banks flushed with cash, the interest rates have fallen by up to one per cent.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

I-T sleuths take a shine to jewellers and builders

A New Delhi-based real estate developer who put Rs 25 crore into his account on December 30 has got a formal query from the income-tax department.

I-T sleuths take a shine to jewellers and buildersMUMBAI: After demonetisation, here comes the black money crackdown. A Mumbai-based jeweller who deposited `. 100 crore in his bank account in December was summoned by the income-tax department recently. He was asked to submit income-tax permanent account number (PAN) details of all who bought gold or jewellery from him since November 8, when demonetisation was announced.A New Delhi-based real estate developer who put Rs 25 crore into his account on December 30 has got a formal query from the income-tax department. The developer said the money was “cash on hand“ as reflected in his books of accounts. Tax officials are planning to scrutinise his books of accounts for the past few years.

Real estate developers, jewellers and sellers of luxury goods have come under the I-T department’s scanner as part of the exercise to unearth black money in the wake of demonetisation.Many are currently being summoned and are likely to be slapped with tax notices in the coming months, said tax officials and consultants aware of the matter.

The government will also pursue those who may have sought to launder money this year itself, rather than the two-three years it usually takes for the income-tax department to send notices.

A three-member committee comprising top income-tax officials has been formed to amend the rules so that notices for assessment year 2016-17 can be served in 2017 itself, said one of the people cited above.

“The focus is only on those accounts where Rs 1 crore or more has been deposited,“ the person said.“There are around 5,000 such cases, of which at least half would come in the tax net.“ Developers have allegedly sought to pass off black money as cash on hand. “Most real estate developers have large cash on hand but mainly this money is seldom with them as they tend to use it for various reasons,“ said a tax expert. “Many developers deposited large sums of money in banks and claimed this was cash on hand -in reality this was black money.“ The tax department is asking developers to show them their books and tally each cash expense for earlier years.

The key is speedy analysis of masses of data that has been collected in the past few months. “The income-tax department’s need of the hour is a result-oriented analysis of the large volume of demonetisation-related data collected from banks and financial institutions and matching with the taxpayer records so as to red-flag the tax evaders selectively,“ said Rakesh Nangia, managing partner, Nangia and Co, a tax advisory.“We can expect a legislative changedepartment instruction to deal with such cases in an effective and timely manner, ensuring that the impact is not diluted.“

Many jewellers are said to have split up one invoice into multiple ones as PAN details of buyers aren’t needed if a sale is below Rs 2 lakh. The tax department is see king details so that it can put together the pieces, according to the people cited above.

“The tax department had started raising queries through their online platform and even in some cases where huge cash has been deposited, summons are being sent by director of income tax, intelligence and criminal investigation,“ said Paras Savla, partner, KPB & Associates, a tax consultancy. “We see tax notices may start coming in the next couple of months to those who have deposited large sums.“

While the spotlight is mostly on real estate developers and jewellers, transactions by luxury goods sellers and some doctors are also being examined. One of them is a south Mumbai luxury watch seller who deposited Rs 16 crore in his bank account in mid-December. Another is a Chennai plastic surgeon who deposited Rs 6 crore. The doctor, who’s been sent a query, had been disclosing Rs 2.5 lakh as annual income for the last 15 years.

“While many queries have been raised by tax department, focus will be on the big fish,“ according to one of the persons cited earlier.

“In the case of the doctor, the tax department now knows the real income and in future no tax evasion could be done,“ said a tax expert advising the physician. “But as of now the focus of tax department should be on people who may have evaded larger sums of money.“

 

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Demonetisation may compel government to provide stimulus: Ind-Ra

India Ratings estimates that GDP growth in the current fiscal will decline to 6.8 per cent from its earlier estimates of 7.8 per cent.

Demonetisation may compel government to provide stimulus: Ind-RaNEW DELHI: Finance Minister Arun Jaitley in his Budget on February 1 may have to provide stimulus to the economy reeling under the ‘Tsunami’ of demonetisation, India Ratings and Research said today.

Amidst an uncertain global scenario, the Fitch Group company said that the Indian economy was cruising well till the tsunami of de-legalisation of high denomination currency hit the country.

“…the major dilemma for the finance minister in the Union Budget FY18 is — will a fresh round of fiscal stimulus be required to offset some of the ill effects of the currency de-legalisation,” it said, in a report titled ‘De-legalisation Tsunami May Compel Government to Provide Stimulus in Union Budget FY18’.

India Ratings estimates that GDP growth in the current fiscal will decline to 6.8 per cent from its earlier estimates of 7.8 per cent and “based on the present situation, the adverse impact may flow into 2017-18 too”.

The sudden decision of demonetising Rs 500/1,000 notes and the “chaos created thereafter” due to the limited availability of new currency has caused significant disruption to the economy, it said.

The informal sector is not a standalone sector and has strong-weak linkages with the formal sector, depending on the nature of goods/services dealt in. Therefore, where business in the informal sector has come to a grinding halt or down by 30-40 per cent and beyond, it has resulted in either ‘nil’ or lower income generation, the agency said.

“Therefore, the ripple effect of de-legalisation is proving to be quite disruptive for the overall economic activity and employment,” India Ratings said.

It further said as the government embarks on preparing the budget, “the central question before it is – whether a fresh round of fiscal stimulus is required to offset some of the ill effects of currency de-legalisation”.

According to the agency, Indian public finances (central, state and local bodies) suffer from committed expenditure syndrome as a large part of current expenditure is inflexible and cannot be reduced/curtailed in the short-run.

“Therefore, the fiscal room for stepping up expenditure has to either come from higher revenue collection or higher fiscal deficit. With growth expected to fall not only in FY17 but also in FY18, the government is clearly staring at lower tax collection,” said India Ratings.

The headroom for the government to provide a stimulus either from the consumption side or investment side is quite limited and if a boost is to be provided then perhaps it will require compromising the fiscal deficit target and the fiscal consolidation process, it added.

India Ratings believes, the implications of the integration of the railway budget into the general budget will show an increase in capital expenditure.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Consolidation in realty sector to gain momentum post note ban: JLL

In the longer term, demonetisation move and the RERA would indeed transform the overall image of the Indian real estate sector, JLL India’s Shobhit Agarwal said.

 

Consolidation in realty sector to gain momentum post note ban: JLLNEW DELHI: The real estate sector is likely to witness further consolidation as property sales and demand have been affected post demonetisation, according to realty consultant JLL India.

By 2021, the consultant expects that larger players would consolidate their positions even further while the number of smaller players would reduce considerably.

“The government’s demonetisation move is bound to lead to further consolidation in the overcrowded Indian real estate industry,” JLL India Managing Director – Capital Markets Shobhit Agarwal said in a report.

The demonetisation move has started affecting demand for developers who preferred unaccounted money, he said.

“Debt-laden developers, who have been gearing up for bigger cash crunch with the implementation of Real Estate (Regulation and Development) Bill or RERA, now have demonetisation to add to their woes,” Agarwal said.

In the longer term, he said the demonetisation move and the RERA would indeed transform the overall image of the Indian real estate sector.

“In the interim, however, the overcrowded Indian real estate industry is set to see consolidation activity pick up pace,” Agarwal said.

The three ways through which consolidation would be seen are: “Developers/landowners finding development/ marketing partners in large, reputable developers though the joint development or joint venture or development management model. “Smaller developers being absorbed by larger developers; Cash- starved developers monetising their land bank by selling it to cash-rich / opportunistic developers”.

The consultant cited various examples of consolidation in recent time such as Noida-based Lotus Greens tying up with both Tata Housing and Godrej Properties as well as Ace group partnering Godrej Properties for township project in Greater Noida.

“While the consolidation is undeniable, the pace of it will depend on the quantum of equity infusion by the larger PE investors and the strategy adopted by foreign developers who may enter,” JLL said.

CCI orders probe against DDA for abuse of dominant position

The detailed investigation has been ordered after finding that DDA prima facie violated competition norms.

CCI orders probe against DDA for abuse of dominant positionNEW DELHI: The Competition Commission has ordered a detailed probe against Delhi Development Authority (DDA) for allegedly abusing its dominant position related to a residential plot scheme that was launched way back in 1981.

The detailed investigation has been ordered after finding that DDA prima facie violated competition norms.

To assess the complaint, CCI considered `market for provision of services of development and sale of residential plots in the National Capital Territory of Delhi‘ as the relevant one. The regulator’s investi gation arm -Director General (DG) -would conduct the detailed probe into the matter.

DG would also probe the role of officialspersons, who at the time of such contravention, were in-charge of and responsible for the conduct of DDA ‘s business.

During the course of investigation, if the involvement of any other party is found then those those entities would also be probed.

The complaint pertained to Rohini Residential Plot Scheme, 1981, under which the plots were to be allotted over a period of five years.

Following a court case, the draw of lots under the scheme happened in March 2012 and the allotment letter was issued to the complainant’s wife in November 2014.

CCI noted that the time period of five years mentioned for phased allotment of plots as promised in the scheme’s brochure being extended to 33 years cannot be considered as reasonable.

In a 20-page order, issued this month, the regulator said DDA is a public body that is also a revenue-producing monopoly but compliance with competition law should not materially impede public bodies’ efficient exercise of their functions.

“However, public bodies need to ensure that their conduct is compliant with competition law. Effective competition in such markets can benefit the wider economy by encouraging greater productivity and innovation and preserving long term growth, while continuing to provide greater value for money to the taxpayer,“ CCI noted.

Ordering the probe, it also observed that “prima facie“ it appears that such was not the conduct of DDA.

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The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Gurgaon civic body to crack down on property tax defaulters

According to the civic body’s records, there are around 1,100 defaulters in domestic, commercial, industrial and institutional categories.

 

Gurgaon civic body to crack down on property tax defaulters

GURGAON: The MCG has decided to tighten the noose around property tax defaulters and recover dues by attaching their properties and imposing heavy penalties on them. According to the civic body’s records, there are around 1,100 defaulters in domestic, commercial, industrial and institutional categories.

In Zone 1, the total number of defaulters from all categories is 450 and they owe around Rs 90 crore to MCG. Of these, 250 defaulters from the commercial category owe Rs 52.29 crore, 100 from the institutional category are yet to pay Rs 19.4 crore and 100 from the industrial category owe Rs 18.4 crore to the civic body.

A property tax department official told TOI that the MCG had started sending notices to the identified defaulters in the city, asking them to pay tax on time, failing which their properties would be attached and a penalty would be imposed on them. “Once the property is attached, the sale and purchase of the property is restricted till the property tax dues are paid by the owner,” he said. Zone 2 has 450 defaulters, who owe Rs 308 crore to the MCG as property tax. In Zone 3, the number of defaulters from all categories is 230, and they owe 173 crore to MCG. There are very few defaulters in the domestic category. Those defaulting over Rs 1 lakh as property tax would face action.

A meeting was held at the MCG office under the chairmanship of new commissioner V Umashankar to address the issues related to property tax. The commissioner ordered the property tax department officials to prepare a list of all defaulters and serve property attachment notices to them. There are defaulters who have never paid property tax or have been failing to pay tax for past seven-eight years. The property of such defaulters will remain attached till the dues are not cleared. Officials said they would seal buildings of those who failed to submit the tax within the stipulated time after receiving multiple notices. “Our field employees are keeping a close tab on the property tax received and defaulters who have not responded to notices,” said another MCG official.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

NGT seek reply from govt on plea against exemption to realty projects

A bench headed by NGT Chairperson Justice Jawad Rahim issued notices to the ministries of Environment and Forests (MoEF) and tagged the matter along with a bunch of similar pleas being heard by different bench.

NGT seek reply from govt on plea against exemption to realty projectsNEW DELHI: An environment activist’s plea seeking quashing of a recent Environment Ministry notification exempting real estate projects from obtaining prior environmental clearance has prompted the National Green Tribunal to seek a reply from the government.

A bench headed by NGT Chairperson Justice Jawad Rahim issued notices to the ministries of Environment and Forests (MoEF) and tagged the matter along with a bunch of similar pleas being heard by different bench.

This is the fourth plea in NGT challenging the December 9 notification issued by MoEF.

MoEF, in an amendment notification published on December 9, 2016, had exempted building and construction projects of all sizes from the process of environment impact assessment (EIA) and prior environmental clearance (EC) before beginning construction.

For smaller projects (less than 20,000 sq metres), it even has a “self-declaration” clause which ensures issuance of permission from urban local bodies. However, for larger projects of more than 20,000 sq m size, the EC and building permission will be given by urban local bodies simultaneously in an “integrated format”.

The plea filed by environmentalist R Sreedhar said the Expert Committee, constituted to consider objections and suggestions on the December 9 notification, summarised the objections received into seven categories.

However, the recommendations of the Committee do not cover any of the issues related to these seven categories and the panel was “grossly wrong” in coming into the conclusion for justifying the notification, the plea said.

“It is submitted that it is very disconcerting to see that only less than a thousand people of this country of 1.25 billion could respond to the call for objections and suggestions under the draft notification dated April 29,2016.

“On an issue as important as this is for every citizen, particularly because of the premise of “Housing for All” is being used, it should definitely have been a cause of concern of the Committee. The Committee has clearly overlooked the need for effective participation of the communities concerned and has assumed that they reflect the entire range of ‘stakeholders’,” the plea said.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Smart elevators in the offing

Manual door elevators, which once formed a major part of the elevator market in India, are on decline, thanks to the growing awareness among customer and end-users, about safety and energy-efficiency.

Smart elevators in the offingNEW DELHI: The growing need to reduce carbon footprint and increasing acceptability of the green building concept is pushing the elevator manufacturing companies such as Otis India, Kone India, Schindler India and Hitachi to come up with smart and energy-efficient elevators.

Manual door elevators, which once formed a major part of the elevator market in India, are on decline, thanks to the growing awareness among customer and end-users, about safety and energy-efficiency. Its place is being taken by the smart elevators.

A smart elevator is a connected elevator capable of communicating with passengers, building manager’s service staff and other building systems to improve the passenger experience and elevator performance, especially through improved elevator maintenance.

Amit Gossain, MD, KONE India says, “One of the emerging trends in the industry is collaborating on opportunities to enhance connectivity through the use of Internet of Things (IoT) products – services and technologies that employ digital technologies to better connect with customers and with elevator, escalator and moving walkway equipment.”

Sebi Joseph, President, Otis India too thinks the next developments in elevator technology leverage digitalization.

The acceptability by the real estate developers has been a major factor in bringing the change. “Real estate developers are increasingly adopting gearless and machine-room-less (MRL) elevators over the traditional elevators which require machine room on top of the building. This offers them more flexibility to design the building, and ensures an overall saving in cost and time,” says Antony Parokaran, CEO, Schindler India.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

East Delhi Municipal Corporation to seal over 3,500 properties

Experts say that a big reason for EDMC’s financial woes is poor tax collection. The properties would be sealed, penalties and interests recovered and then desealed.

East Delhi Municipal Corporation to seal over 3500 propertiesNEW DELHI: East Delhi Municipal Corporation on Monday started a drive to recover conversion charges and seal commercial properties that haven’t paid their dues.

In Shahdara (North) zone alone, 3,750 such properties have been identified. “Sealing notices have been already sent to 1,350 establishments and notices for the rest are being prepared. The building department is ready to seal these properties and the deputy commissioner has approved orders for 400 of them already. Action will be initiated subject to the availability of police force,” said a senior east corporation official.

East corporation has a fund deficit, which is why it’s finding it difficult to even pay salaries to its employees. The north corporation isn’t doing any better, but it has recommended the dropping of conversion charges keeping in mind the forthcoming civic polls.

Experts say that a big reason for EDMC’s financial woes is poor tax collection. The properties would be sealed, penalties and interests recovered and then desealed. “All those who want their shops and outlets to be saved from sealing should pay the dues with interest,” the official added.

The buildings department has also started a survey to identify other commercial hubs. Properties that haven’t been registered would be taxed 10 times higher. Leader of the House Sanjay Jain said, “The SC had in 2007 ordered establishments on 2,130 stretches notified as commercial/mixed-use must pay conversion charges. These cases must be of the defaulters.”

Standing committee chairman Jeetender Chaudhary told TOI that the civic body was trying to come up with a way to give traders respite from conversion charges.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Noida homebuyers hold rally, to boycott polls

Raising the slogan ‘NoHouseNoVote’, over 400 protesters participated in the rally which started from Noida Stadium at 11am.

Noida homebuyers hold rally, to boycott pollsNOIDA: A motorcycle rally was organised by members of Noida Extension Flat Owners’ Welfare Association (Nefowa) in the city on Sunday to call for boycott of upcoming assembly polls. Raising the slogan ‘NoHouseNoVote’, over 400 protesters participated in the rally which started from Noida Stadium at 11am. The rally culminated at Noida Extension at 4pm.

“We started from Sector 18, and crossed Sector 16A, Golf Course. After crossing various sectors, we finally reached Noida Extension. We have urged all the homebuyers to cast their votes using NOTA. Roughly 10,000 buyers from Noida-Greater Noida would opt for NOTA,” Abhishek Kumar, president, Nefowa, said.

Insisting that the home buyers have been struggling to claim possession of their flats since 2009, Indrish Gupta, co-founder, Nefowa added, “We have approached all the political parties, and so far no one has come forward to support the cause of homebuyers. Eventually, we have been compelled to call for a poll boycott.”

“We have been running the #NoHouseNoVote campaign for several months. This is our major conclusive campaign before the UP polls. The message is simple – as the politicians do not pay heed to the buyers’ need, wewill not cast our votes,” Shweta Bharti, general secretary, Nefowa added.

Traffic snarls were caused momentarily at various crossings as the bikers moved in tandem. The rally ended at 4 pm.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

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