[shankar.balan]

Originally Posted by green_ninja

Here is a link to a detailed article:

Short answer to your question is there is no capital gains tax if the agri land is located in a rural area. What qualifies as agri land and rural/urban etc are well explained in the article.

There is no certificate or documentation needed to prove the land is in a rural area. As long as you can reasonably establish the area is rural if at all your IT Returns are audited and the question arises.

Please help clarify, suppose someone who sells such agri-land is very aged and does not have any sources of income and hence is not an Income Tax Assessee and therefore is not even required to file returns, then how will the financial proceeds of such a sale impact such a person’s status, assuming for example that such a sale is worth say Rs 25-30 lacs?

[StepUP!]

I am looking for 3/4 BHK flat at Baner Balewadi area in Pune for quite some time now. My requirements are:

1. Ready to move or very near to possession
2. Minimum carpet 1400 sq ft
3. Reputed builder, good layout, construction quality and fittings
4. Spaced out flats, no cramming
5. No standalone buildings, no local builders
6. No south facing flats, Vaastu compliant

To my dismay, there are no options meeting my requirements. I checked out few projects like Rahul Arcus, Pride Platinum, Supreme Estia, 24K, Kalpataru Jade but none of them are good enough for me to sign above the dotted line.

Any suggestions from members here are much appreciated.

[green_ninja]

Originally Posted by shankar.balan

Please help clarify, suppose someone who sells such agri-land is very aged and does not have any sources of income and hence is not an Income Tax Assessee and therefore is not even required to file returns, then how will the financial proceeds of such a sale impact such a person’s status, assuming for example that such a sale is worth say Rs 25-30 lacs?

Disclaimer: I'm not qualified to provide this advise. Please consult a qualified tax professional.

I believe, if the land is in an urban and capital gains tax is applicable, the individual can claim exemption under Section 54B. He/She may need to file ITR for that particular year in which the land is sold.

[GKR9900]

Originally Posted by ninjatalli

Did you get this changed/removed? I used to work in that industry nearly 15 years ago; back then there was no such clause with any of the operators (and back then there were 8+ of them active in the country, including the younger Ambani's telecom firm). In fact, every telecom operator had a crisis team to manage rogue landlords who would not allow access (or want to remove the tower infra) to the tower infra setup unless the rent was renegotiated or some other issue resolved. Intrigued to know if R/Jio is able to bully its way on this aspect with landlords.

Discussions are still going on with both sides expressing their concern regarding the clause. Planning to renegotiate it to a termination clause if the agreement terms are breeched.

[shankar.balan]

Originally Posted by green_ninja

Disclaimer: I'm not qualified to provide this advise. Please consult a qualified tax professional.

I believe, if the land is in an urban and capital gains tax is applicable, the individual can claim exemption under Section 54B. He/She may need to file ITR for that particular year in which the land is sold.

Thanks for clarifying. Won’t there be some ‘threshold limit’ which an aged person needs to cross, before this kicks in?

[green_ninja]

Originally Posted by shankar.balan

Thanks for clarifying. Won’t there be some ‘threshold limit’ which an aged person needs to cross, before this kicks in?

Since PAN/AADHAR is mandatory for all real estate transactions these days any sale above 10 lakhs (not sure about this limit) is automatically reported to IT.

Also, any bank transaction above 10 lakhs is automatically reported to RBI by the bank and IIRC the IT Dept sends out a notice to non-filers if the year end balance is more than 2 lakhs(or is it 2.5?) in SB Acct.

So either way, any proceeds around 25-30 lakhs would be reported somewhere unless it is in cash.

[vijaykr]

While I'm not a CA or tax professional by any means, it's probably best to file an IT return for the FY when the land sale transaction is completed.

As others have mentioned, PAN is usually required for sale deed registration. Also assuming the transaction happens by cheque/bank deposit and since bank account is linked to PAN, it is easy enough to IT dept to know about the land sale and possibly proceeds received as well.

Even the seller is a super senior citizen (over 80 years) and there is no capital gains tax due, best to file a zero amount tax return which would help in closing the loop with respect to the sale and applicable tax. This is what I would do in such a situation.

Obviously it does make sense to consult a CA on required / best course of action from a compliance perspective.

[thanixravindran]

Originally Posted by shankar.balan

Thanks for clarifying. Won’t there be some ‘threshold limit’ which an aged person needs to cross, before this kicks in?

Not sure what is the threshold limit you are referring. Is it capital gains limit for taxation? For capital assets like this indexation benefit is available. Once capital gains is established (sale price - indexed purchase price), it needs to be disclosed and tax paid if section 54 related investment is not planned, then tax to be paid at specified rate (LTCG is 20% flat I guess for real estate).

Originally Posted by green_ninja

Since PAN/AADHAR is mandatory for all real estate transactions these days any sale above 10 lakhs (not sure about this limit) is automatically reported to IT.

Also, any bank transaction above 10 lakhs is automatically reported to RBI by the bank and IIRC the IT Dept sends out a notice to non-filers if the year end balance is more than 2 lakhs(or is it 2.5?) in SB Acct.

So either way, any proceeds around 25-30 lakhs would be reported somewhere unless it is in cash.

Registration department is instructed to report any transactions of 30L and above on Immovable property to IT department under PMLA.

10L limit you mentioned is cumulative cash deposit in a year that banks have to report.

Also Cumulative FD above 10L is to be reported to IT department against a PAN. I guess it applies to mutual funds or equities as well.

I am not aware of savings bank balance requirement for reporting by banks though.

But now anyway every transaction and balance is reported and available in AIS.

[selva2306]

I have been considering investing in real estate and have this dilemma between two options.
Option 1: Residential land/plot in Coimbatore that you can use to build house 10 years later, OR
Option 2: Villa in Bangalore (obviously outskirts, i.e. areas surrounding Sarjapur Road) that you can use and enjoy in the immediate future.


Would welcome your thoughts.

[sunilch]

Originally Posted by selva2306

I have been considering investing in real estate and have this dilemma between two options.
Option 1: Residential land/plot in Coimbatore that you can use to build house 10 years later, OR
Option 2: Villa in Bangalore (obviously outskirts, i.e. areas surrounding Sarjapur Road) that you can use and enjoy in the immediate future.


Would welcome your thoughts.

Answer to your question in in the options in your post itself. What is exactly your priority right now?

Immediate gratification or long term potential (along with respective risk)? What exactly do you want today if you had to choose one pie piece only?

[am1m]

Originally Posted by selva2306

I have been considering investing in real estate and have this dilemma between two options.

Both have their potential upsides and risks.

A vacant plot needs to be checked and maintained. Can you go and check on it periodically, fence it, get someone to keep an eye on it? Encroachment is always an issue.

Villas in Bangalore are already at astronomical rates, even on the outskirts. Will the value increase further? (Real, at-sale value- not paper, notional value.) Will it beat other forms of investment, especially taking into consideration the costs and effort of maintenance, time, etc.?

These are the questions you need to ask and calculate, and then make the decision.

Ultimately, if you are going to live on the property yourself eventually, or if you have children to leave the property to, then either makes sense. Since land is a great investment...but mainly for the next generation that inherits it!

[.sushilkumar]

I recently spotted an AD in TOI and was wondering if anyone have any experience with them. They are autonomous body under Ministry of urban development and are a govt organisation. Visited the society in Mohali / Delhi and prices being offered are super competitive compared to other builders.

Construction quality appears to be good and flats are pretty spacious. Society is fully developed with families living already. Any pros & cons buying a flat with govt organisation.

https://cgewho.in/index.html

PS: - I have already booked the flat by visiting them. Have bought this as end user not investment .Just looking for do & don't dealing with a govt organisation

[warrioraks]

Originally Posted by selva2306

I have been considering investing in real estate and have this dilemma between two options.
Option 1: Residential land/plot in Coimbatore that you can use to build house 10 years later, OR
Option 2: Villa in Bangalore (obviously outskirts, i.e. areas surrounding Sarjapur Road) that you can use and enjoy in the immediate future.

Since you mentioned investing, what is your time horizon?
Even from a budget standpoint, the two options would be vastly different. Villa will cost around 2 crore minimum whereas a plot could be had for less than a crore easily.

There a lot of unknowns about your profile and needs here so let me throw in a third option for you - Take a villa on rent in Bangalore and enjoy it immediately and buy a plot in Coimbatore as an investment.

[androdev]

Originally Posted by selva2306

I have been considering investing in real estate and have this dilemma between two options.
Option 1: Residential land/plot in Coimbatore that you can use to build house 10 years later, OR
Option 2: Villa in Bangalore (obviously outskirts, i.e. areas surrounding Sarjapur Road) that you can use and enjoy in the immediate future.


Would welcome your thoughts.

First priority should be to invest in a good self-occupied house - the quality of life improves, there are a lot of intangible benefits and this qualifies as investing in real estate. Even thought it's financially better to own two small flats/houses, I would opt for a bigger self-occupied flat/house. When I feel the self-occupied house/flat is sufficient for my needs and I have funds in invest in an additional property, I would try to avoid properties that have already been "milked" by the builders - such as apartments and villas. They are good for self-occupied use and for rental income but don't offer great capital appreciation compared to other real estate assets such as a commercial land in the outskirts.

Some salaried people want to force themselves into an EMI (home loan) as they lack the discipline to save without such an EMI - this is a very valid consideration and to them it makes sense to buy apartments/villas for which home loans are easily available plus one doesn't have to worry about legal aspects and encroachment risks. Statistically speaking, forcing oneself into a home loan EMI is the most successful strategy for salaried folks even though on paper SIP into stock market gives much better returns.

If you have no plans for a self-occupied usage, it's best to buy several "affordable" properties that are easy to sell instead of a single expensive posh property.

[audioholic]

From the past few weeks I have been trying to list an apartment for rent. I have tried the usual websites like Magicbricks, Nobroker, 99acres and there is just nothing to list an ad and not get spammed by literally hundreds of calls and prompts just to subscribe for a paid category of listing and fake leads all over the place.

Hence, while I am not in a hurry to rent the place, is there really a place where I can list rental classifieds even if it involves a small sum of money rather than a few thousands?