Long term capital gains not invested in appropriate schemes, liable to be taxed
Author: Mayur
Mayur is a real estate professional based in Navi Mumbai for the past 20 years. His expertise in real estate includes every sphere of the real estate sector from legal to Building Construction to Vastu to home interiors.
When it's not real estate, its either his fight against corruption or pulling focus (film making) with his NIKON D750 that keeps him busy.
With over 9 million views of his pictures on Google Maps and over 1.3 crore views of his contributions, he has been designated as a Master Photographer by Google.
He can be reached on 9987452642
Pujit Aggarwal of Orbit Corporation arrested for fraud
Realty firm Orbit’s MD, Pujit Aggarwal was arrested on Monday, 12th September, for a fraud and cheating case registered by a firm called Capri Global Capital. The firm, Capri Global Capital had booked 3 flats in Orbit’s Saki Naka project called Orbit Residency Park. The said project was mortgaged with Life Insurance Corporation in 2008 itself.According to the law, Pujit Aggarwal was supposed to put 2.5 crores paid by Capri Global Capital in an escrow account, but had used it himself instead.Meena’s husband (now deceased) Rajendra Jain had a room in Ramesh Bhavan, Irani chawl at Nana Chowk when Pujit approached the landlord Pradeep Goragandhi with a redevelopment proposal. Under the proposal, Rajendra Jain was supposed to get a flat in the Orbit heights project measuring 675 sqft carpet area in return for his acceptance of Pujit’s proposal. They entered into an agreement in 2004 and paid stamp duty and registration for it.But by 2010,Pujit told Meena Jain that the flat could not be allotted to her due to some problems and promised to allot another one instead. Meena Jain says that she was never given a copy of the registered agreement till date.Later she discovered that the said flat had…
Truth about 4 FSI in Gaothan Areas of Navi Mumbai
Recently, the Govt of Maharashtra gave a Green Signal to the proposal of 4 FSI in Gaothan Areas of Navi Mumbai. FSI is the amount of construction legally permitted on a plot of land. In Navi Mumbai, the current FSI is 1.5 (Max) for 99% of the areas. For the remaining 1% of tender plots, the FSI is just 1. So basically, if the Area of the plot is a 100 square meters, one is allowed to construct a building measuring 150 square meters of Built-Up area. This 150 square meters does not include areas like the lift, staircase, common passages, meter room, pump room, lift room etc. FSI is very very important in determining the strain, load and quality of life in a given area. The more the FSI, the more the population living in a given area, the more the crowd, the more the traffic, the more the stress on civic services like drainage, parking etc. But this FSI rule has been blatantly flouted in the Gaothan areas (areas in every node where the original inhabitants of Navi Mumbai illegally squatted on govt when their land was taken over by the Govt in 1970’s). Over a period of…
Joint owner not liable to pay Tax if no amount paid from his/her account for purchase of property
The Mumbai Income Tax Appellate Tribunal has ruled that Joint owners of properties by mere name cannot be held liable for Tax liabilities if the purchase of the property was not financed by him/her. Many people/couples purchase flats/properties in Joint names for convenience and security sake, but the money is paid entirely by one of the parties. The order was given in the case of a Medical Professional named Vandana Bulchandani. An Income tax officer had determined that Bulchandani had not disclosed Capital Gains via sale of property in Parel, Mumbai, worth 2.12 crores, which she jointly owned with her husband in the year 2008-2009. But Bulchandani claimed that the property purchase was financed entirely via money from her husbands account and that he had offset the capital gains against the loss in share trading. As per IT rules, short term capital gains can be offset against loss from share sales in the same financial year. The case was referred to the Tribunal and it ruled in favor of Bulchandani and her husband.
‘Builder’ couple cheats home buyers in Turbhe
Builder couple cheats flat buyers in Turbhe, Navi Mumbai and absconds with money
New rates for CIDCO transfer charges released
Cidco charges are compulsory for every property purchase/sale transaction in Navi Mumbai. Without it, no transaction is legally sound or complete Find out everything you need to know about CIDCO Transfer.
Banks face huge defaults as Real Estate sector faces meltdown
With sales refusing to pickup and the economy in dire straits, its no secret that the real estate sector is in a severe recession. Not only have new projects failed to find any takers, even the old ones are struggling to survive. That the builders are in a severe mess is evident by the ongoing public outcry, court cases, media coverage, street demonstrations etc..but the chain reaction has also started to hit the banks which have lent money to this sector. Recent figures of sales in the top eight cities shows that home sales increased only 6% in the past 1 year. Infact,the home sales in the largest real estate market of India,the NCR,fell by 10% from a year ago. New residential launches in Mumbai had dipped by 36%, In Bengaluru by 27% and in NCR by 20% in 2015. If this scary and precarious situation continues, it may well lead to defaults by the real estate companies, to whom banks have an exposure of 1/5 of their total assets. If the prices go down further, the banks will be left holding mortgages which are much more than the security that the banks are holding against these loans.If that happens, the…
Panvel builder arrested for cheating buyers
Panvel builder arrested for cheating buyers.Narendra Mehta and Raunak Mehta.
2200 builders refuse to pay VAT
Many builders have ignored the Govt deadline to register and pay VAT before the October 31,2012 deadline despite Supreme Court rap.About 5257 builders registered themselves to pay VAT for the sales between June 20,2006 to March 31,2010 with the Sales Tax Dept.However,approx 2200 builders from Pune have not paid VAT.Most have showed nil returns.Most builders ask buyers to pay up for their VAT liabilities but social activists say that VAT payment is the responsibility of the person registered with the sales tax dept.A public interest litigation has been filed to prevent builders from extorting VAT from buyers.It will come up for admission on March 8.Builders say that they are entitled to collect VAT from buyers as the sales tax dept has supported their stand of issuing a debit note to flat buyers for the same. This will be the second time that the dept will raid builders to recover VAT.Many thought that govt will reduce their tax liability hence they did not pay it,though they may have collected it from flat buyers. It is amazing,that after months of confusion and court battles the govt is yet to specify whether flat buyers are liable for VAT or not.Just one more proof…
Navi Mumbai real estate market collapses
Dire economic situation and rising inflation has taken a heavy toll on the Navi Mumbai real estate market in the past 2 months.The proof of this collapse has come from the registration figures in the registration dept and the amount of new proposals being subimtted in the NMMC and CIDCO town planning dept.Developers are struggling for cash and coming up with creative schemes like 80:20 scheme wherein the buyer pays only the 20% booking amount and the rest only after the project is completed,hence the buyers avoid paying the pre-emi interest to the bank.Most of the builders only make inquiries and only submit proposals but do not make further payments to obtain approvals.Developers have no money to pay the fungible FSI fee.Fungible FSI is the additional money the developer has to pay for enclosed balconies,flower bed area etc.Earlier the builders used to get these areas free but after manipulation was detected by most of them,the BMC smartened up and started charging money for the same.This slowdown is the most significant in the past 2 years.One only needs to visit the registration dept in Belapur to witness the complete collapse of the market.The effect of this collapse is primarily in the…
