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Old 20th January 2016, 12:29   #1801
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Originally Posted by maddy42 View Post
Your words was what i consoled my dad and mom with. Just either ask them to vacate or keep them for a while and hold their deposit. Its a 6 month deposit which we have.

Thanks a lot!
Maddy
IMNSHO, thats the nature of the game.

NOW - they have already ruined the house appearance. It can't get worse. Let them stay as long as they wish (upto a few years), and then ask them to leave. Asking them to leave now only brings forward more work esp in finding another decent tenant.
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Old 21st January 2016, 15:36   #1802
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Guys,

Need your inputs. I am in process of buying an apartment in Gurgaon in resale. The seller is an NRI.

Under the income tax laws section 195, I am entitled to deduct TDS. As per the law, if the seller is an Indian, the buyer should deduct 1% of total consideration value of the propertly, and 20.66% in case the seller is an NRI.

Now, the seller has provided me ID and address proofs of India only, and is saying that I should deduct only 1%.

I am little confused. Has anybody experience this kind of scenario? Please provide your suggestions/inputs.
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Old 21st January 2016, 18:59   #1803
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Guys,

Need your inputs. I am in process of buying an apartment in Gurgaon in resale. The seller is an NRI.

Under the income tax laws section 195, I am entitled to deduct TDS. As per the law, if the seller is an Indian, the buyer should deduct 1% of total consideration value of the propertly, and 20.66% in case the seller is an NRI.

Now, the seller has provided me ID and address proofs of India only, and is saying that I should deduct only 1%.

I am little confused. Has anybody experience this kind of scenario? Please provide your suggestions/inputs.
As per the law the onus is on the buyer to ascertain the proof of residency. If the owner is available in person to complete the transaction then you could probably claim that you had no clue on his residency. You could maybe even get a declaration from him that he is a resident indian etc. But I would rather be on the safer side than regret later. These days it is not easy to hide facts and if the IT dept realises that in any way you entered into a transaction knowingly, the can put a penalty against you. And given that the high tax @ 20%, the penalty will end up being very high as well. The seller in such as situation carries no risk at all and you along with the property you purchased could get attached if there is a recovery initiated. And given IT dept, this can happen even few years down the line.

The way around 20.66% withholding is to have the seller approach the IT dept and ask for a TDS certificate quoting this transaction. The IT dept will then assess his income and give him a lower % - maybe 2% or 1% or even 0% (given he has no income in india). And based on that Original certificate he provides you, you can withhold the TDS accordingly.
I was in the same situation as yours and i clearly told the seller that i would do the transaction only by the rule book - made no sense taking on the risk on his behalf.
If he is adamant - look for other properties. It is a buyers market and there are good deals out there.
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Old 21st January 2016, 19:12   #1804
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I will completely agree with Vista_qjd , you will need to withhold 20 % or whatever is prevailing - double check incase he can't give you Indian value PAN , it will be your liability & yes there are enough properties in Gurgaon available many at less than 50 % of peak rates.
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Old 22nd January 2016, 10:07   #1805
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Originally Posted by vista_qjd View Post
As per the law the onus is on the buyer to ascertain the proof of residency. If the owner is available in person to complete the transaction then you could probably claim that you had no clue on his residency. You could maybe even get a declaration from him that he is a resident indian etc. But I would rather be on the safer side than regret later. These days it is not easy to hide facts and if the IT dept realises that in any way you entered into a transaction knowingly, the can put a penalty against you. And given that the high tax @ 20%, the penalty will end up being very high as well. The seller in such as situation carries no risk at all and you along with the property you purchased could get attached if there is a recovery initiated. And given IT dept, this can happen even few years down the line.

The way around 20.66% withholding is to have the seller approach the IT dept and ask for a TDS certificate quoting this transaction. The IT dept will then assess his income and give him a lower % - maybe 2% or 1% or even 0% (given he has no income in india). And based on that Original certificate he provides you, you can withhold the TDS accordingly.
I was in the same situation as yours and i clearly told the seller that i would do the transaction only by the rule book - made no sense taking on the risk on his behalf.
If he is adamant - look for other properties. It is a buyers market and there are good deals out there.
Thanks a ton for your response.

The seller has providing me copy of his PAN card and copy of his bank account pass book which mentions Indian address. But, the bank account itself is a NRO account.

I will definitely consult a CA to double check, and then will talk to the seller.
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Old 26th January 2016, 02:03   #1806
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How is the real estate market in Hyderabad around Miyapur X roads, KPHB? I see lot of flats available but no reduction in per sqft price.
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Old 31st January 2016, 15:35   #1807
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Buyers beware not to get involved with any Lakebed properties.

A House Committee on Encroachment of Tanks/ Preservation in Bengaluru Urban and Rural District "Appeal" appears in all newspapers on 29-1-2016 appeals to all affected to submit their explanation in reply to Government Notice latest by February 29, 2016

http://www.kla.kar.nic.in/

http://www.kla.kar.nic.in/assembly/c...tract_tank.pdf
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Old 31st January 2016, 18:56   #1808
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Building up a place for myself and parents. This is a two floor house with terrace on third. I would like to reduce my carbon footprint. What would you guys suggest ?

I am thinking solar water heater and a panel for lighting/fan. A proper rain harvesting system. Any other suggestions ?
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Old 31st January 2016, 19:09   #1809
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I would like to reduce my carbon footprint. What would you guys suggest ?
Congratulations and good luck! Have a look at options for natural cooling, allowing the hot air to get out, planting vegetation/trees to enable this etc. I am yet to take the plunge and the recent rains in chennai put me off a bit! Which city are you building in btw?
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Old 31st January 2016, 20:41   #1810
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Building up a place for myself and parents. This is a two floor house with terrace on third. I would like to reduce my carbon footprint. What would you guys suggest ?

I am thinking solar water heater and a panel for lighting/fan. A proper rain harvesting system. Any other suggestions ?
I cant google it at the moment but in rural north India they make insulated water tanks these days using jugaad insulation. That ensures you have cooler than normal water in summers and warmer than normal in winters.

Google is giving me links like this:
http://www.prefabportacabin.com/wate...insulation.php is the closest I can find.

Solar lighting is not so obviously efficient for individual homes. Solar at home requires batteries for storage which reduces the savings and increases environment impact. May i suggest reducing AC load instead?

What about the following - keep high ceilings (think 15 feet or higher) and plan for natural ventilation. Think of all old colonial buildings!
You will save much over time in air conditioning. I'm not an architect or a structural engineer but I found such buildings to be cooler than regular houses with 10 ft roof height.
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Old 31st January 2016, 21:46   #1811
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Default Re: The Property / Real Estate Thread

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Originally Posted by vinay kamath View Post
Buyers beware not to get involved with any Lakebed properties.

A House Committee on Encroachment of Tanks/ Preservation in Bengaluru Urban and Rural District "Appeal" appears in all newspapers on 29-1-2016 appeals to all affected to submit their explanation in reply to Government Notice latest by February 29, 2016
Shows how lazy our legislators are when they advertise an "Appeal" to ask encroachers themselves to approach the Tahsildar to find out if their property is "genuine" or not. The advertisement refers readers to the Karnataka Legislative Assembly website which gives zero information on the location of the encroachments. All this despite stating in the advertisement that all such properties have been identified.

The biggest culprit in Bangalore who has encroached the most tanks, lakes and river beds is the BDA and some of these layouts were made many decades ago. Wonder if this committee will want to open that can of worms.

@vinay kamath: Your note of caution is very valid. I too had mentioned many months ago to stay away from any property abutting a water body as these surveys are being done on the basis of ancient documents and there is a fair chance that the water body was once a lot bigger than what it is now.
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Old 2nd February 2016, 13:03   #1812
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I am planning to purchase land for investment purpose. Total payout will be around 30+ lakhs. The site owner initially wanted the amount over and above government registered value in cash (i.e. black). I did not want to convert my white (tax paid salary income) into black. It later becomes perpetual and I will be part of the black money cycle, which I do not want to. I told the seller that I will pay only in white (i.e. by cheque) which he has agreed as of now. My questions are:

I pay the seller in white (no cash all cheque deal) and register at market value thereby paying higher stamp duty for registration and at later time (say after 10 years) I try to sell the site. If the future buyer wants to pay me in cash and register at the then guidance value, will I face any issues for selling at lower than what I purchased? How will be the LTCG calculated then?

Am I doing the right thing legally and practically?
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Old 2nd February 2016, 13:43   #1813
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How is the real estate market in Hyderabad around Miyapur X roads, KPHB? I see lot of flats available but no reduction in per sqft price.
Don't know much about the place myself, but my father is in the process of buying an apartment in a complex called Hemadurga Towers. He is buying at a rate of ~3,700 /sft. Hope this helps. Unfortunately, I cannot tell you anything about the price trend and outlook.
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Old 2nd February 2016, 20:20   #1814
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Default Re: The Property / Real Estate Thread

Quote:
Originally Posted by vinay kamath View Post
Buyers beware not to get involved with any Lakebed properties.

A House Committee on Encroachment of Tanks/ Preservation in Bengaluru Urban and Rural District "Appeal" appears in all newspapers on 29-1-2016 appeals to all affected to submit their explanation in reply to Government Notice latest by February 29, 2016

http://www.kla.kar.nic.in/

http://www.kla.kar.nic.in/assembly/c...tract_tank.pdf
Hi, one of my family relative planning to invest in a sobha dream acres apartment near varthur (panathur road). Do you find any reason he should be worried ?

Thanks,
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Old 2nd February 2016, 20:51   #1815
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Originally Posted by AltoLXI View Post
I pay the seller in white (no cash all cheque deal) and register at market value thereby paying higher stamp duty for registration and at later time (say after 10 years) I try to sell the site. If the future buyer wants to pay me in cash and register at the then guidance value, will I face any issues for selling at lower than what I purchased? How will be the LTCG calculated then?

Am I doing the right thing legally and practically?
If you do not want to be part of black money cycle when you are buying a plot, why become part of it when selling?
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