LAW BOOK

Yes, apart­ment dwellers can also com­mu­ni­cate with na­ture Be­fore buy­ing or sell­ing property, here’s what you should know about taxes

HT Estates - - HTESTATES - Ritu Ghai Homi Mistry, Niji Arora and Tarika Goel Su­nil Tyagi

With ver­ti­cal liv­ing on the rise and gar­dens be­com­ing a rare sight, to­day ter­race gar­dens are a per­fect way to spend time with na­ture in con­crete jun­gles. Some of the pop­u­lar ter­race gar­den plants are money plants, bam­boo, palms, tulip bulbs, hy­acinths, rose plants, orchids, laven­der, sun­flow­ers, petu­nias, pan­sies and bon­sai plants. Rhoeo, dracaena, spi­der grass, bam­boo grass, ferns, kale plant and aboli are equally in de­mand. Sea­sonal and peren­nial flow­ers like lilies, champa, mo­gra etc add a mag­i­cal fra­grance and cool el­e­ment to the en­vi­ron­ment.

One can also have herbs such as lemon­grass, aloe vera, brahmi, ash­wa­gandha (In­dian gin­seng), cit­ronella (that keeps bugs away) and tulsi plant for pos­i­tive en­ergy, medic­i­nal ben­n­efit and the spe­cial flavour.

Rekha Kr­is­han, who has an n in­her­ent in­stinct for gar­den­ning talks about the plea­surere of hav­ing a green abode in her er Hauz Khas res­i­dence. “Th­ese se months are ideal to plant seeds and watch the vi­brant blooms of petu­nias and im­pa­tiens brighten your green space. One can plant iceberg let­tuce, co­rian­der, pu­d­ina, lemon, lady’s fin­gers, toma­toes, cau­li­flower, egg­plant etc for a taste of home­grown fresh veg­gies,” she says.

How much money you want to spend on the gar­den de­pends on how you want to do it up. Save by us­ing the seeds from the pre­vi­ous year. Wa­ter­proof­ing and ef­fec­tive drainage so­lu­tions add to costs but make sure dam­age to the floors be­low is avoided.

Ace in­te­rior de­signer Payal Kapoor has a two-level ter­race gar­den at her res­i­dence in Saf­dar­jung En­claveEn­clave.

“Plan­ning is a must to cre­ate the per­fect open place. For a ter­race of 1,800 sq feet one can look at spends of about ₹ 5 lakh to ₹ 7.5 lakh. Place­ment of plants is im­por­tant and thorny plants like cy­cas palms, jade, cac­tus and as­para­gus need to be put in the south di­rec­tion. Phy­cus, ben­jam­ina, frangi­pani and sea­sonal plants can be grown in ar­eas of your ter­race get­ting direct sun­light. Plants which need shade and should be grown in cov­ered ar­eas are dracaena, money plants, mon­stera, di­ef­fen­bachia, palms, and philo­den­drons,” Kapoor says.

“Wa­ter bod­ies, if any,

should be planned in the north and east sideside. Branches of the tall plants can be used for hang­ing or­na­men­tal dec­o­ra­tions. En­sure you have an over­head frame of green net to pro­tect plants from the harsh sun. It’s best to have sloped floors to avoid wa­ter log­ging. One can also set up gaze­bos, ‘ jhoolas’, glass atri­ums and make seat­ing ar­range­ments in cor ners in a ter­race gar­den. Place a bird­watch and bowls of wa­ter for birds,” she

adds.

Buy­ing a property is one of the most im­por­tant and long- term in­vest­ment de­ci­sions taken by an in­di­vid­ual. In 2013, with an in­tent to track high value real es­tate trans­ac­tions, the gov­ern­ment in­tro­duced TDS (tax de­ducted at source) pro­vi­sions for a property buyer.

Hence, with ef­fect from June 1, 2013, a buyer of an im­mov­able property (other than ru­ral agri­cul­tural land) val­ued at ₹ 50 lakh or more is manda­to­rily re­quired to deduct TDS at the rate of 1% from the amount payable to a res­i­dent trans­feror. The TDS de­ducted would have to be de­posited with the gov­ern­ment trea­sury within the stip­u­lated time pe­riod.

It would be per­ti­nent to note that where the seller of property makes a loss or makes a tax-saving in­vest­ment to claim long-term cap­i­tal gain ex­emp­tion, he may not have to pay tax on the cap­i­tal gain. In such a case the seller would have to claim a re­fund in his re­turn of in­come for the tax de­ducted by the buyer.

We have dis­cussed be­low cer­tain key points the buyer needs to keep in mind while de­duct­ing tax on pur­chase of property:

he buyer is re­quired to deduct TDS at t he t i me of making the pay­ment. TDS has to be de­ducted on the sale con­sid­er­a­tion. The date of trans­fer of property is not rel­e­vant. Even in case of ad­vance pay­ments, or pay­ments by in­stal­ments, TDS would be re­quired to be de­ducted.

should be de­ducted on the con­sid­er­a­tion and not just the amount ex­ceed­ing ₹ 50 lakh. For ex­am­ple, if a property is sold at ₹ 80 lakh, TDS would be re­quired to be de­ducted on ₹ 80 lakh and not just ₹ 30 lakh.

buyer should de­posit the amount de­ducted into the gov­ern­ment trea­sury within a pe­riod of seven days from the end of the month in which the de­duc­tion was made. De­lay in de­duct­ing/ de­posit­ing tax would at­tract in­ter­est as un­der: In­ter­est at the rate of 1% per month from the date the tax was de­ductible till the date the tax was de­ducted. In­ter­est at the rate of 1.5% per month from the date the tax was de­ducted till the date of pay­ment. A de­duc­tor of tax is re­quired to manda­to­rily ob­tain a Tax De­duc­tion Ac­count Num­ber (TAN). How­ever, in the case of pur­chase of property, the buyer is not re­quired to ob­tain a TAN. I had en­tered into a lease for a term of five years, over six months ago. Due to cer­tain un­avoid­able cir­cum­stances, the lessor and I were un­able to get the lease deed reg­is­tered. Now we want to get the same reg­is­tered. How should we pro­ceed?

–Vinod Ba­jaj As per the In­dian Reg­is­tra­tion Act, 1908, a lease deed of lease term ex­ceed­ing 11 months has to be com­pul­so­rily reg­is­tered within a pe­riod of four months from date of ex­e­cu­tion. How­ever, in ex­cep­tional cases if the de­lay was due to un­avoid­able cir­cum­stances, an ad­di­tional pe­riod of up to a max­i­mum of four months may be granted by the regis­trar, on pay­ment of the pre­scribed fine. You should file an ap­pli­ca­tion re­lated to the same with the sub-regis­trar’s of­fice within whose ju­ris­dic­tion this property is lo­cated. I booked a flat in a project by a re­puted builder in Noida. The builder has been telling the flat own­ers that since the com­ple­tion cer­tifi­cate has not been is­sued, pos­ses­sion can­not be handed over. Re­cently, we got to know that the com­ple­tion cer­tifi­cate has been re­ceived, what rem­edy do we have?

–Hitesh Me­hta The builder is re­quired to hand over pos­ses­sion and ex­e­cute con­veyance deeds in favour of al­lot­tees once the con­struc­tion is com­plete and the rel­e­vant ap­provals in­clud­ing com­ple- The buyer is re­quired to quote his or her Per­ma­nent Ac­count Num­ber (PAN) and the seller’s PAN. In case PAN of the seller is not avail­able, min­i­mum TDS at the rate of 20% is re­quired to be de­ducted.

buyer of the property (de­duc­tor of tax) has to fur­nish in­for­ma­tion on­line on the trans­ac­tion on the TIN web­site, ie in Form 26QB. The in­for­ma­tion has to be trans­mit­ted elec­tron­i­cally and not man­u­ally.

is im­por­tant to en­sure that the PAN of the buyer and seller are cor­rectly men­tioned in the form. There is no on­line mech­a­nism for sub­se­quent rec­ti­fi­ca­tion. In case of any er­ror while fil­ing the form, the buyer will have to ap­proach the As­sess­ing Of­fi­cer or CPC-TDS for rec­ti­fi­ca­tion of er­rors. w

there are more than one buyer or seller, Form 26QB has to be fur­nished for each of them. The tax with­hold­ing pro­vi­sions would ap­ply for the fol­low­ing cases as well:

Where the cost paid by each buyer is less than ₹ 50 lakh,but the over­all trans­fer amount is tion/oc­cu­pa­tion cer­tifi­cate is re­ceived from the author­ity. You may ap­proach the con­sumer fo­rum. I wish to book a res­i­den­tial plot in Sec­tor 77 in Farid­abad in a newly an­nounced scheme by the author­ity. I have been told that since I al­ready own a plot in Farid­abad, I can­not book a sec­ond plot. Please con­firm.

– Subhash Go­dara From your ques­tion it is not clear whether you bought the plot through a scheme by Haryana Ur­ban De­vel­op­ment Author­ity (HUDA) or through re­sale. As per the scheme of HUDA, gen­er­ally, any in­di­vid­ual who has ever been al­lot­ted a plot of land di­rectly by HUDA in Ur­ban Es­tate Farid­abad is not en­ti­tled to ap­ply for plots. How­ever, those who have ac­quired a res­i­den­tial plot in HUDA area through pur­chase from open mar­ket or through re-al­lot­ment or those who own group hous­ing flat or any kind of nonHUDA res­i­den­tial property in Ur­ban Es­tate Farid­abad can ap­ply for al­lot­ment as per this scheme. ₹ 50 lakh or more, Where the cost re­ceived by each seller is less than ₹ 50 lakh, but the over­all amount is ₹ 50 lakh or more.

suc­cess­fully pro­vid­ing de­tails of the trans­ac­tion, the de­duc­tor can: Ei­ther make the pay­ment on­line (through e-tax pay­ment op­tion) im­me­di­ately ; Or make the pay­ment (net-bank­ing ac­count) by vis­it­ing any of the au­tho­rised bank branches.

the tax is de­posited and Form 26QB is filled, the buyer is re­quired to is­sue Form 16B (ie the TDS cer­tifi­cate) to the seller of the property. Form 16B can be down­loaded from the web­site of Cen­tral­ized Pro­cess­ing Cell of TDS (CPC-TDS) www.td­scpc. gov.in.

It would be worth­while to note that fail­ure to com­ply with the with­hold­ing pro­vi­sions would at­tract in­ter­est and penalty for the buyer.

IMAGESBAZAAR

IS­TOCK

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