Amendment Of Public Premises (Eviction of Unauthorized Occupants) Act, 1971- Illegal Occupants Are Back To The Wall

The union cabinet has given its nod for the amendment in Section 2 and Section 3 of the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 (PPE Act, 1971), by inserting definition of ‘residential accommodation occupation’ in a new clause in section 2 of the Act and inserting provisions relating to eviction from ‘residential accommodation occupation’ in a new sub-section 3B below sub-section 3A of Section 3 of the Act.

The cabinet presided by PM Modi has finally given approval for the amendment of this act as it will enable the Estate officer to apply synopsis proceedings for ejecting unauthorized occupants from housing estates allotted for a fixed tenure or for a limited time period he/she holds office on the basis of an order of allotment on license basis, as non-vacation of such residences leads to unavailability of houses to new occupant.

Henceforth, the Estate Officer can make such inquest as he presumes advisable in the facts of the case and don’t have to proceed from the lengthy procedure of the sections 4, 5 and 7 of the Act. Estate officer even can make an order for the eviction of such occupants, following the procedure straightaway as proposed in the revised addition. In case that person abstains or unable to uphold his order of dispossession, Estate officer holds the power to evict them directly from the premises and take away the possession forcefully (if necessary).

This amendment will make this entire process of uprooting unauthorized occupancy more swift. Through this course of action the union government can expel unauthorized inhabitants from government housing estates across the country smoothly. Currently, government officials and staffs are in queue to have designated residential apartments as government is dealing with unavailability of residential units due to a bulk of unethical incumbency. With this revised law, government can easily increase the vacation volume of government housing estates and benefit the people standing in the line for possession. Employees and staffs of the Central Government offices will be entitled for the General Pool Residential Accommodation (GPRA).

LNN(Liyans News Network)- Visit our  online property portal in Kolkata for Buying/Selling/Renting real estate items across the country.

CREDAI seeks dissolution of stamp duty on landed properties after GST implementation

CREDAI has appealed the state governments to abrogate stamp duty on landed property to dispose of multi-point taxation after the GST approach. In an official statement CREDAI affirms that GST will be a major player in Indian economy as it assimilates central and state tax paying into an absolute tax system for the entire country. CREDAI urges state government to downplay the double taxation of realty by treating land nil rated GST regime.

GST benefits both the state and industry as it waives multiple taxation at the state and centre level and the related other indirect surges. Real estate sector come under 12% slab of GST, which was only a chip of the tax burden, whereas for all other sectors GST is being considered as their indirect tax liability. Real estate sector is at odds as state government levied stamp duty on immovable properties will be operating even after GST implementation.

Stamp duty adds on 5-8 per cent excess taxability on the total valuation of the immovable property. The duty is to be paid on each transaction and is levied by the state governments on circle rates or guideline values of possessions which are at random determined and far in overindulgence of the value at which transactions turns up. Except abatement for land is permissible, cost to the end purchaser would mount. The National Real Estate Development Council (NAREDCO) revealed that 12% GST on construction process meant for relieving the buyers, which would encourage the sale volume in the coming days.

Welcoming the GST roll out West Bengal RERA expert Mr. Mahesh Somani said, “GST takes in more than 16 major taxes and brings together under a single bind. It will levy a simplified tax policy to the consumers. Indian realty is the contributor of 5% GDP revenue of the country and is considered the second-largest employment title-holder.”

Residential property sale in Kolkata will definitely gain from the GST implementation as market report says that prices of luxury properties are likely to drop by up to 5% in this FY. Yes, the sector is expecting more sale volume this year than the previous one,” added Mr. Somani.

12 Lac More Affordable Housing In FY 18- PMAY

Under Pradhan Mantri Awas Yojana (urban) scheme, 1.49 lac affordable houses have been delivered in FY 2016-17. Updated report says that now government aims to construct as many as 12 lac economical housing estate to meet the ambitious project ‘Housing for All by 2022’ within 2017-18.

As per the sources union government  targets development of 6 lac houses in 2018-19, 26 lac in 2019-20, 30 lac in 2020-21 and 29.80 lac in 2021-22. Sources also revealed that delay in land acquisition is one of the main reasons behind the sloth progress of this enormous flagship scheme of the central government of India.

The recent updates on PMAY declares that, the proposal for 18.76 lac buildings have been approved, and funding for construction of 13.06 lac units has been issued. However, for delay in land acquisition, only 1.49 lakh projects have been completed under PMAY (Urban) in 2016-17.

Speaking about the ambitious project of center, our West Bengal RERA expert Mr. Mahesh Somani said, “As we all know that Pradhan Mantri Awas Yojana (Urban) had been launched in June, 2015 with an objective of delivering dwelling for the economically weaker section of the society by 2022. Under which some of the best-selling low budget flats in Kolkata have been delivered in the extended location of the city. Yet, a large number of projects have been found at under-developed stage. Hopefully these will be completed by the scheduled time span.”

A progressive approach in real estate sector has come perked up with this affordable housing sector. This is the only sector that holds strong and matured selling position even after major market catastrophe.  Central government has come up with some major developments in the realty sector in order to reform the major revenue-collecting sector such as- the Real Estate Regulation Act (RERA), liberalized FDI rules, Real Estate Investment Trusts (REITs), Benami Transaction Prohibition Act and lastly the Goods and Services Tax (GST). Amidst which RERA and GST are expected to be the real game-changers in the coming days. All these positive moves will rejuvenate Indian realty market and lure foreign investment as well.

-LNN (Liyans News Network)

Kolkata IT Department Catches On 300 Benami Properties

According to the sources of the IT department, Kolkata Income Tax (IT) department summarized a property list of 300 of such properties, which have been typecast as Benami Properties.

The IT department of Kolkata has also revealed that the acquisition of such properties in the city and prosecution of the owners are verisimilar. The department also informed that they would come up with another analysis of the properties belonging to the owners, specifically those from West Bengal state jurisdiction. Once the investigation ends, it will be followed by raids as per the departmental sources.

Analysis says that most of these properties are from south Kolkata. Out of which 300 of such properties have been already identified. A special wing of the IT department is looking into this sector is named as ‘Benami Properties Unit’ (BPU).

According to the Benami Transactions (Prohibition) Amended Act, 2016, government agencies have the authority to seize the properties and take the Benamidaar to the courts. The Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from 1st November, 2016 after 28 years of its first attestation. The act couldn’t be operative as it has certain deep-rooted glitch. A person, found guilty of frisking of benami transaction by the court, will be punishable with scrupulous custody for a term not less than a year but which may extend to 7 years and shall also be accountable to fine which may extend to 25% of the valuation of the property in standard market.

-LNN (Liyans News Network)

GST Rarely Will Add Any Further Strain For The Homebuyers

Real estate has been brought under 12% tax slab of GST ambit, which holds kind of poker-face impact for the homebuyers according to the market experts. There will be hardly any additional tax disbursement and cost from the GST preface.

Indirect taxes levied on the real estate selling are- excise duty, value added tax (VAT) and service tax totaling 9-11 per cent. Stamp duty is the only tax which varies from state to state. Apart from the stamp duty, all other taxes will be included in GST under the new TAX that will also allow input tax credit for the builders.   Realty sector is still unsure about the abatement of the land cost.

The current effective tax rate for realty sector is in the range of 9-11%, barring the stamp duty. The proposed rate of GST shouldn’t exceed 12%, as it would inflate the price of property further & Input credit to realty sector. This should impel the people to come within the tax net and facilitate condensing the cash element in the economy.

It’s being said that that buyers of under-construction properties will be the net outcome of savings on currently unoccupied key taxes and the percentage increase in GST rates over the existing tax rates. At present developers pay for the input taxes like- excise duty and central sales tax on construction materials. These taxes are not allowed to be outweighed against indirect taxes collected from the customers.

As per the existing tax regime, key taxes, like excise duty, central sales tax and octroi on acquirement of input materials, are paid by the developer at first and then passed on to the consumer. On the other hand, under the new tax regime, promoters would be able to get credit for input taxes paid, which would bring the cost of the construction on lower note. Also the contract between builder and suppliers will be brought under GST purview. It remains to be seen whether allotments such as parking and chosen location charges will also be measured to enforce GST.

Rajeev Talwar, chairman of realty developers’ body National Real Estate Development Council (NAREDCO) stated, “This will be anti-inflationary and won’t lead to any increase in prices for homebuyers and there won’t be any additional burden on customers.”

Mr. Mahesh Somani, honorable RERA expert of West Bengal Chapter, said, “Potential homebuyers of Bengal are more concerned of RERA implementation than GST roll out.  First thing first people who have found ideal residential properties in their preferred location through any leading property portal in Kolkata are eagerly waiting for the state to submit their draft RERA rules. RERA will bring back accountability and clarity in entire realty practice.  GST implementation won’t increase the current real estate market price as it’s a long time now that the market has been going through the slump. Under this circumstance, property price hike will flatten then sales graph even worse. I’m sure government wouldn’t want to harp the GDP of the country.”

 

-LNN (Liyans News Network)