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Union Budget 2012-13 and RE

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Union Budget 2012-13 and RE

Last updated: December 27 2012
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  • #11

    #11

    Re : Union Budget 2012-13 and RE

    Under-constro flats to get expensive

    The impact of budget on RE -

    > The buyers will have to pay more as ST has been increased by 20%, from 10 to 12%, which would mean under-constro projects will become more expensive,

    > The loan for houses upto INR 25L will continue to enjoy 1% rebate in interest for another year.

    * PS:- There is nothing new for builders, no IT exemption which they demanded, no subsidy in loans either.

    So, ready possession flats : No change in situation,
    Under-constro : Pay more.
    If you are happy, you are successful.

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    • #12

      #12

      Re : Union Budget 2012-13 and RE

      1 % rebate in interest is applicable for 25L or for 15L?

      Comment

      • #13

        #13

        Re : Union Budget 2012-13 and RE

        Originally posted by Ek Aashiyana View Post
        1 % rebate in interest is applicable for 25L or for 15L?
        It applicable for House/ Flats of 25 L having Loan up to 15 L.
        its not too usable because in this case we have to pay 10L as DP.

        Comment

        • #14

          #14

          Re : Union Budget 2012-13 and RE

          service tax 2.575% on agreement value...

          Need clarification,
          Now is there any changes in above service tax rate?


          Thanks,

          Comment

          • #15

            #15

            Re : Union Budget 2012-13 and RE

            TDS for Sale and Purchase of immovable property

            Originally posted by rangakhush View Post
            "The government plans tax deduction at source on transfer of immovable property (other than agricultural land) above a specified threshold" FM said.

            Which means Sale and Purchase of immovable property will be subjected to TDS requirement and buyer will have to withold tax (TDS) from the purchase price. Who is covered under this ( whether individuals are also covered or only businesses are covered) is yet not know, we will know it tomorrow .........
            Any further information on this?

            Comment

            • #16

              #16

              Re : Union Budget 2012-13 and RE

              Sale of urban property gets a rude shock

              Originally posted by itsvin View Post
              Any further information on this?

              The budget has come down heavily on property transactions in urban areas.

              The Finance Bill 2012 aims to tighten the noose on the sale of immovable property of over Rs 50 lakh by imposing 1 per cent withholding tax on the buyer. The reasoning behind the levy of this tax is to improve tax compliance and ensure that no property transaction is left out of the tax net.

              The explanatory memorandum to the bill says that on transfer of immovable property by a non-resident, tax is required to be deducted at source by the transferee. However, there is no such requirement on transfer of immovable property by a resident except in the case of compulsory acquisition of certain immovable properties.

              "In order to collect tax at the earliest point of time and also to have a reporting mechanism of transactions in the real estate sector, it is proposed to insert a new provision to provide that every transferee, at the time of making payment or crediting any sum by way of consideration for transfer of immovable property (other than agricultural land) shall deduct tax at the rate of 1 per cent of such sum". This sum paid for the transfer of property should exceed Rs 50 lakh in urban areas and Rs 20 lakh in others".

              Sale of urban property gets a rude shock - Yahoo! India Finance

              Comment

              • #17

                #17

                Re : Union Budget 2012-13 and RE

                Originally posted by mohit007 View Post
                service tax 2.575% on agreement value...

                Need clarification,
                Now is there any changes in above service tax rate?


                Thanks,
                yes...earlier servaice tax rate was 10% and with education cess.. final service tax rate was 10.3%.... builder can only chage S.tax on 25% of value... so they were charging.... 2.575% (25% of 10.3%)... .now service tax rate is 12% and with cess.. final rate is 12.36%... so 3.09% will be charged by builders from next financial year.

                .5% extra payment... means approx Rs. 510 extra/lakh....hope this is cleared now

                so if you buy house of 30 lakh... so you are now paying 15K approx extra as service tax

                Comment

                • #18

                  #18

                  Re : Union Budget 2012-13 and RE

                  The increase in service tax will not only add to burden of buyers directly but also indirectly. As builder will have to pay extra on the services procured by him, which ultimately will be passed on to us buyers. Also is there any increase in the excise duty? if yes than further rise

                  Comment

                  • #19

                    #19

                    Re : Union Budget 2012-13 and RE

                    Budget 2012-13

                    Every year the budget brings its share of joy and tears. This budget is no different. The Union Govt is forced to balance coalition concerns,demands from various sectors and to find ways to generate more cash flow to keep up with ever increasing demands for resources. Mind you it is a mind boggling task. Government must be credited for what they have managed.Rail fares had to go up and you know what happened finally. Price increases are a part of life and has to be a big factor in individual planning. Petrol in 1981 was Rs 5 now all know it has gone up to 70 and will go further. increase of minimum 14 times. Similarly all prices have gone through the roof.
                    Our financial planning has to take inflation into account,longevity of life,tax implications while retiring. Young private company employees must start saving right from the first salary they get.
                    Budget 2012-13 has not been helpful to RE as such;
                    increase in excise duty to 12% will increase cost of inputs like cement,steel etc
                    increase in service tax from 10 to 12 % will push the cost of flats and will impact on flat buyers.

                    Flat sellers have got big doosra by this new step.While government anticipates reduction in black money but it is big nuisance for you and me if we sell a flat.
                    Rate is 1% of sales value: Limit being sales value of more than50 lakhs for urban area and 20 lakhs for rural areas
                    You cannot register unless you provide proof of remitting TDS.
                    probably this affects only secondary sales and not direct purchase from builders.Complications like of seller wanting to invest sales proceeds in Long ter capital bonds like NHAI,REC etc will have additional hassles of accounting for this 1% TDS because buyer will have to still reduce TDS when you really may be entitled to avoid any tax by investing in appropriate Govt Bonds.

                    Steps like passing the Regulatory act are still awaited.Making RE a proper industry is still long due. Unless these steps are taken RE will run in this fashion and people will suffer.Unorganized flow of funds becomes a source of funding for parties and number of big personalities interested in RE make it difficult for Government to organize this sector. It is the hen which lays golden eggs and many are happy that it remains unregulated though right noises will be made from time to time by various parties.

                    Comment

                    • #20

                      #20

                      Re : Union Budget 2012-13 and RE

                      This "coming heavy on RE transaction" etc etc , any impact is visible on RE sector ?

                      Comment

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