TDS on Property Sale to Catch BlackMoney

The Government of India just a while ago introduced the new Finance Bill in the Parliament where it Orders all the authorities across India to deduct Income Tax at source for the following property transactions.

The Bill States As Follows,

194LAA. (1)Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon.

(2) No deduction under sub-section (1) shall be made where consideration paid or payable for the transfer of an immovable property is less than fifty lakh rupees in case such immovable property is situated in a specified area, or is less than twenty lakh rupees in case such immovable property is situated in any area other than the specified area.

(3) Where the consideration paid or payable for the transfer of an immovable property is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of transfer of such immovable property, the value so adopted or assessed or assessable shall, for the purposes of sub-section (1) or sub-section (2), be deemed to be the consideration paid or payable for the transfer of such immovable property.

(4) Notwithstanding anything contained in any other law for the time being in force, where any document required to be registered under the provisions of clause (a) to clause (e) of sub-section (1) or sub-section (1A) of section 17 of the Indian Registration Act, 1908, purports to transfer, assign, limit or extinguish the right, title or interest of any person to or in any immovable property and in respect of which tax is required to be deducted under sub-section (1), no registering officer shall register any such document, unless the transferee furnishes the proof of deduction of income-tax in accordance with the provisions of this section and payment of sum so deducted to the credit of the Central Government in the prescribed form.

(5) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Explanation. - For the purposes of this section,-
(a) “agricultural land” means agricultural land in India, not being land situated in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2;
(b) “immovable property” means any land (other than agricultural land) or any building or part of a building;

(c) “specified area” shall mean an area comprising-
(i) Greater Mumbai urban agglomeration;
(ii) Delhi urban agglomeration;
(iii) Kolkata urban agglomeration;
(iv) Chennai urban agglomeration
(v) Hyderabad urban agglomeration;
(vi) Bangaluru urban agglomeration;
(vii) Ahmedabad urban agglomeration;
(viii) District of Faridabad;
(ix) District of Gurgaon;
(x) District of Gautam Budh Nagar;
(xi) District of Ghaziabad;
(xii) District of Gandhinagar; and
(xiii) City of Secunderabad;

Puravankara's Purva Seasons in Bengaluru

Puravankara Projects launches Purva Seasons in Bangalore.

Puravankara Projects, one of the leading real estate companies of the country, has launched Rs 700 crore, city centre super-luxury project Purva Seasons in Bengaluru. This property institutes the idea of 24+ hours Lifestyle.

With its inviting landscape and prime location, these 2 and 3 BHK apartments ranging from 1392 square feet to 1980 square feet are the epitome of luxury, comfort and convenience. The project development totals a 1.08 million square feet and has 660 units.

Purva Seasons with its well-planned and aesthetically designed apartments is undeniably an elite setting in the heart of the city. The project offers a state-of-the art building with world-class specifications. The amenities include a very large one of its kind clubhouse, swimming pool, outdoor sport facilities amongst others for a modern living, in a neighborhood that lets the homebuyer experience an enriching lifestyle.

Wait for the Pricing and Other Details.

Top 10 Builders of Bangalore

Here are the Top 10 Developers of Bangalore / Bengaluru. Descending Order of Market Share.

Prestige Group
Sobha Developers
Puravankara
Brigade Group
Adarsh Developers
Mantri Developers
Shriram Properties
SJR Group
Mahaveer Reddy
Concorde Group

DLF Worth just 50% of its Vaulation - Veritas

DLF known for its controversial IPO where small investors were looted is facing irk from professional Investment Research firm based out of Canada and very well known for its unbiased and bold SELL Reports due to bad management practices.

Veritas does not believe in the the disclosed book equity and asset base of the Company. DLF via its dealings with DLF Assets Ltd, from FY07 to FY11, the Company inflated sales by at least INR 11,236 Cr and its profit before tax (PBT) by INR 7,233 Cr. DLF has undertaken questionable related party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL.

Fake Promises of DLF Management:
JV with Hilton has ended and Silverlink Resorts is up for sale
build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal)
build a mega convention center in the NCR region (exited in 2009)
None of the above have materialized.

Veritas finally concludes the report with a best case valuation of DLF is worth INR 100/share - less than half its current stock price of INR 226.9.

Ministry of Corporate Affairs Orders Inquiry: The MCA has ordered an inquiry to Audit the Books of Accounts of DLF after it has received complaints from Investors.