Category: flats in kolkata

GST Is Not That Simple At It Was Labelled

It seems that Good & Services Tax (GST) has whipped out enraged mass. GST goes beyond protracted rhetoric. GST was said likely to combine multiple taxability into a single one. Those multiple taxability includes- central taxes such as service tax and excise duties, and state taxes, such as octroi, entry tax, VAT and so on. GST will dematerialize 17-18 individual tax paying into a specific one. GST is the biggest tax reform till present date and came after 15 years of deliberation.
The entire commodity market looks spaced out with GST roll out. Shop-keepers are unsure regarding the flash price of the pre-GST stocks. The old MRP includes VAT which can’t be sold on new GST rates. Fresh lots are likely to have revised MRP from the manufacturers’ end, which will increase commodity prices considerably. It’s being said that after demonetization GST hits the market in a foul way.

Citing the example of real estate, GST will lead to a reduction in property price and gold. Ready-to-move properties won’t attract GST. Under construction properties will be under 12% tax slab and maintenance cost of the co-operative housing society will witness 18% tax net. People, willing to buy flats in Kolkata and other metro cities in India will be on the profit-making side while investing in ready-to-move apartments or budget apartments in the major locations. A realtor can claim input credit as many as 167items and reduce the cost of the construction. Post GST property prices will decrease by Rs 400-500 per sq ft.

Naturally, homebuyers will consider ready-to-move in properties are the profitable choice of investment, as these are kept out of GST purview. Simultaneously developers will utilize this market sentiment to get rid of their on-hand inventories. But for medium-priced and premium class luxury projects GST will have a diverse impact. Nevertheless, government has approved deduction of land value equivalent to one-third of the total amount charged by a developer. According to the market experts for GST property price will be marginally slashed and tax liabilities for owning property to the end-users will be just about the same.

–LNN (Liyans News Network)

Bigger Floor Area Under PMAY (Rural)

Within the timeline of 2015-17 FY government has pulled off 25-30 per cent of the scheduled target for rural housing for landless and the underprivileged population. The rural housing development will be pursued under the flagship of Pradhan Mantri Awas Yojna (Gramin). According to central’s order states have to meet the deadline of 2022 for providing homes to the needy people. In a bid to push the construction process of affordable housing, government is now likely to approve more floor area ratio (FAR) to builders instead of receptacle lean-to.

In exchange builders will be given lands in one portion of the city for the development of high-end projects. There is also a statement in the proposal, where it’s stated that for affordable housing development builders will be allotted other locations and the private developers will be provided the land as well from the governmental end as well. In its draft policy for public-private partnership (PPP) for the PMAY scheme the Ministry of Housing and Urban Poverty Alleviation (MHUPA) has put in these options in the public sphere of influence. MHUPA also proposed policies to sanction building affordable houses in private land. Allottees will be identified by the public authorities, as they will be eligible to avail government interest subsidies. With the handing over of the respective housing units private developers will be free from all their asked responsibilities.

The draft policy says, “Taxation benefits under Section 80-IBA of the I-T Act can also be made available to the developer, subject to fulfilment of other pre-requisites. “ Under these circumstances, the private developer shall recuperate the cost directly from the allottee either in the form of a lump-sum payment at the time of transfer of the housing unit or in EMI. The developer will also recover part of the cost through governmental subsidy and other incentives. Just as the policy says, “The private players’ role will end as soon as it hands over the completed dwelling units and the residents’ association will manage day-to-day affairs.”

As per the revived proposition model private developers shall provide land. Government authorities will subsidize stamp duty charges and other charges for internal and external developments other than the additional FAR. To attract more private investors in affordable housing development government has provided single window clearance service to incentivize the private developers.

–LNN (Liyans News Network) – In Kolkata we offer you many luxury budget flats in Rajarhat and New Town area. Available 1/2/3 bhk lifestyle apartments for sale. Choose the right property with the best market expert. Interested people contact us now.

An Agreement To Be Signed Between EFPO And HUDCO Regarding Housing Subsidy Under PMAY

Retirement fund body Employees’ Provident Fund Organisation (EPFO) will sign on treaty with the Housing and Urban Development Corp (HUDCO) to empower members of its housing scheme to avail subsidy and interest allowance under the Pradhan Mantri Awas Yojana. 

EPFO lets on its subscribers from societies for withdrawing up to 90% of their EPF accumulation for home purchase. As a part of goverment’s ambitious project ‘housing for all by 2022’ the EPFO has signed a Memorandum of Understanding (MoU) with HUDCO on June 22, 2017 as per the official source. The released statement also confirmed that the MoU will be ink pact in the presence of Labour Minister Bandaru Dattatreya and Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu. This agreement is related to coverage of EPSO subscribers under PMAY by offering them several benefits including cheaper loans for home purchasing purpose.

According to the official statement EPFO won’t be directly involved in the construction process of the buildings for its subscribers, rather than it will be working as a catalyst so that the members can easily come into the purchase process. The labour ministry proposed to simplify the homebuying for at least 10 lakh subscribers in the next two years by allowing them to use 90 per cent of EPF accumulations for down payments purpose of their home purchase and use their accounts for repaying of home loans.

Earlier on during April 2017, EPFO released its notification in the public domain and media where they introduced the amended version of EPF scheme. It approved the subscribers for making their down payments for buying home and payment of EMI through the EPF account. The withdrawal scheme will be brought into the line with the Urban Development Ministry (programmes) and other organizations because the Union government is also giving subsidy of 1.5 lac to the socio-economically weaker section. All these benefits will be merged together to make affordable housing sector an attractive stratum of investment. EPFO has also launched Aadhar seeding application for the optimization of the reach of EPF benefits. In the collaboration with (CSC) Common Service Centers and CDAC EPFO has developed this Aadhaar seeding. EPFO has decided not to collect Administrative charges towards EDLI contributions.

According to the EPFO notification of March 2017 the new rate of PF contribution will be as follows-

  EPF EPS EDLI EPF 

Admin charges

 Total
Employer 3.67% 8.33% 0.05% 0.65% 13.15%
Employee 12% 0% 0% 0% 12%

Elderly people who are willing to move into metro cities like Kolkata, rather than choosing a rental apartment to reside, go for low budget flats in Kolkata on the purchase of which you can avail all these major competences along with the goverment’s assurance. Utilize this optimum benefits to buy property in Kolkata and other major cities of the country.

–LNN (Liyans News Network)

Soaring Demands For Compact Houses In Chennai- Affordable Housing Strikes Again

Riding on the central government’s incentives and great home loan EMI discount affordable housing sector is sitting on the top of the demand list. Low-budget project development in city area and outskirts has been keeping developers active in one after the other project deliverance which leads to a shortcoming in new projects, especially the high-end ones. The number of budget housing units launched in and something like Chennai developed 102 housing estates in the first four months of 2016 to 124 in the same period this year.
Cushman & Wakefield market study: According to the market study report of property consultant Cushman & Wakefield, barring the last quarter Chennai and its outer edge areas has found that the number of affordable housing units launched had over and over again increased in 2016. The study also revealed that 124 mid-level units (2 BHK) and 748 premium units (3-4 BHK) were launched in the duration of the first four months of 2017, but no new projects (3000-4000 sq ft area) have been announced in the HIG segment.

What CREDAI says: CREDAI (Tamil Nadu Chapter) points towards government subsidies which is the reason behind increasing market demand of affordable housing apartments. As per the Confederation of Real Estate Developers Associations of India (CREDAI) Tamil Nadu Chapter, 20% members who used to see the luxury housing sector currently after the affordable housing sector as 65% of market demand has been coming from budget flats only. Affordable houses that meet certain parameters are eligible for benefits under the Pradhan Mantri Awas Yojana (PMAY). Budget apartments with an area of 700 square feet in the suburbs are priced between `20 lakh and `50 lakh depending on the location.

“Presently all the metro cities and other big business areas in realty are dealing with unsold inventories. Developers are busy in clearing their back-logs through tempting offers and discounts. Affordable housing is the only sector that is continuously performing under the liquidity crunch in present market. Low-budget flats in Kolkata are single-handedly contributing 30-35% sale despite this flat market,-said West Bengal RERA and realty expert Mr. Mahesh Somani.

–LNN (Liyans News Network)

RERA Might Alter Existing Real Estate Agreements Connecting Land Owners, Builders & Investors

The recent CARE ratings highlight that the implementation of Real Estate (Regulation and Development) Act, 2016 is likely to push modification in realty agreements between various parties including land owners, realty developers and financial investors.
These swift changes will be there to bring all those clause of agreements under RERA purview. Besides, the rating agency hopes that the banks, HCFs and financial organization will have a pivotal role in funding real estate sector accompanied by developers preferring to launch the projects are at advance completion mode in particular not the project under construction.
Facts we come to know from this report of CARE are–

There is a chance of rise in the payback time for the financial institutions for several projects.

The average internal rate of return (IRR) may also witness an increase with the funds received from consumer advances being due towards project completion first and reimbursement being minored.

The cost of the project will go up (includes- hike in funding cost and registration charge), which will be eventually passed on to the consumers.
Suring the last couple of months new project development remained stagnant and is expected to continue like this for at least a quarter. Right now, the fear of being penalized pushing the developers to finish their on-hand projects within the given timeframe. Realty in markets in the states of Uttar Pradesh, Haryana and Gujarat are found safeguarding their on-hand projects from the ambit of RERA, for they have diluted central real estate rule in their notified regimes.
Small-scale developers with higher dependence on advance booking amounts from customers possibly will find it hard to run their business under the new law. The larger developers will be on the ruling position with pecuniary backing received from leading financial organizations.

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