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Before booking for a flat, understand What you need to do

What factors do you look for, while comparing properties? Without any doubt, the property’s location, price and possession, will be the first and foremost parameters one might consider for his/her short listing. However, apart from these primary ones, a few more things are necessary to check before finalizing upon a deal.

Let us now find out those legal documents one must ask for, before making any kind of financial commitment. Asking and checking for the copies of the following necessary permissions and clearance certificates, will avoid you from being stuck into any judicial tangle in future.

Title Deed:

  the ownership rights, obligations and mortgages (if any) on the property. Therefore, this document is a validation of whether the property land is registered, and its development rights transferred. You can obtain a copy for this from your builder and get the same verified from the land record office.

Certificate of the Project’s Commencement:

This document is necessary to mark beginning of the property’s construction. Post the analysis of the construction’s foundation and inspection of its boundaries, one can get this clearance certificate issued from town planning and engineering department. This is also a good indication of the builder obtaining the required licenses and permissions for the map. Even before you actually start digging up, you must have all these things sanctioned.

Verify of the plan’s approval:

It is advantageous to verify for the approval of the building and layout plan. This is like running an additional check to ensure that the plan does not violate or break any by law applicable in the construction area. In addition, you should also make sure the floor area, where your flat is booked, approved well in the building plan.

The design plan must be in accordance with the NBC guidelines. NBC, or National Building Code of India, is a code to understand the regulation of building’s construction activities throughout the country. One must get this checked with the local municipal authorities.

Some construction projects also claim for a green stature. In this, either of the Indian Green Building Council, or GRIHA should certify of the project. GRIHA is Green Buildings Rating System India, which is a TERI University’s initiative. These certifications focus on a rating a building, based on energy, water and waste management. GRIHA stands as the most popular rating system available in India right now, also having standardized norms.

Certificate for Land Use:

Having residential property in a commercial or an industrial zone is illegal. Therefore, ensure that the property you purchase lies in the residential zone, by applying to the urban development authority and check the certificate for the same. With the expanding cities, you may often find agricultural land converting to non-residential purpose by paying some fees to the government. During such situations, check for the endorsement order from the zonal deputy commissioner (or tahsildar). This order is a license for residential construction on the land.

Master Plan:

Many a times, you will find builders claiming future infrastructural development planned in the area, such as a highway or an upcoming metro. Before believing everything blindfolded, you must look at the area’s master planning personally for verification. You can very easily find such plans available with the town planning department.

Check for the NOCs:

Wherever applicable, ask for a No Objection Certificate of your urban land ceiling from your builder. You may also check the NOC for environmental clearance, as well as from the electricity and water authorities, if present.

Take the Expert Opinion

To verify whether or not, your project has clean and transparent paper work, a very simple and convenient way is to check if the same has loan approvals from the financial institutions. Banks have quite tough rules for lending, due to which they do all the important due diligence before clearing the loans. This may not be always error-free. There were many cases in past where the builder had the support from bank, still the project landed in to financial troubles.

Therefore, it is always on your advantage to get some professional help. If required, you may even seek for a paid opinion from an advocate specializing in property transactions, and even get your document verification done.

Once you are sure of the above-mentioned documents to be in their proper place and done with the verification, you may proceed with making your final decision without much anxiousness or worrying around. To decide these kinds of real estate investments need to be part of your portfolio or not, you need to have a financial plan mapped with all your financial goals.  If you are looking out to create a financial plan for yourself, then you may want to check our financial planning process.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in

Online Pan Verification At Traces Website

CPC (TDS) has introduced the convenience of online facility of PAN Verification on TRACES. With this feature, we will be able to validate the PANs with confidence for the purpose of recording and reporting your transactions in the TDS statements correctly.  
To avail the facility, it is requested to Login to TRACES and navigate to “Dashboard” to locate “PAN Verification” in the Quick Links menu. The functionality to download Consolidated TAN – PAN File has also been provided that includes all the PANs attached with the respective TANs. 




 How does it help:  
· Reporting of correct data has been made mandatory by CPC (TDS). Reporting of invalid PANsresults into Short Deduction defaults in processed TDS statements.
· Helps in generating correct TDS Certificates for the deductees.
· The taxpayer is able to avail correct TDS Credits in time.
 
Additional Functionalities available: 
 
To correct an invalid PAN reported earlier, a C5 correction Statement is required to be filed. In addition, the PANs can also be corrected using our Online Correction facility. To avail the facility, it is requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu.  
 
PAN Correction steps through Online Correction:  
· Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in “Name as per changed PAN”.
· Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the “Action Status”. Please note that there is only one opportunity for a Valid to Valid PAN correction.
· All the corrected rows can be viewed by clicking on “Show Edited Rows” on the screen.
· Click on “Submit for Processing”, which will prompt to digitally sign the submission.
(Source Traces Mail)

ITR 1 or ITR 2 which return should be filed for salaried tax payer for AY 2013-14, ITR 1 or ITR 2

Whether all salaried class taxpayers can choose ITR-1 for filing income tax returns?
After the amendment of Rule 12 of income-tax rules there is lot of confusion for salaried employees whether they file ITR 1 ot ITR 2? AS per the new rules all salaried class taxpayers can't choose ITR-1 for filing tax returns from assessment year 2013-14 onwards. They can choose ITR-1 only if they are claiming exemption under sec. 10 (E.g. HRA, Conveyance allowance etc) upto Rs 5,000 or less. So, if taxpayer is claiming any exemption under sec. 10 which exceeds Rs. 5,000, they cannot file return of income in ITR-1 (As per amended Rule 12 of income-tax rules), they have to file ITR 2
Many profession have a opinion that salaried employee having exempted allowance still can file ITR-1
Tags: ITR 1 or ITR 2

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Amendments to Income Tax Rules 1962

Here is the list of amendments to income tax rules 1962 in a summarized way. You can find here all the amendments to income tax rules. We will update summarized the amendment in income tax act.
Income-tax (Sixth Amdt) Rules, 2012 inserted rule 10AB prescribing other method for determining arm’s length price.
Income-tax (Seventh Amdt) - Rules, 2012 provided new return forms ITR-5 and ITR-6 for A.Y. 2012-13.
Income-tax (Eight Amdt) - Rules, 2012 provided new return forms ITR-7 for A.Y. 2012-13.
Income-tax (Ninth Amdt)- Rules, 2012 substituted rule 40BA and Form 29C relating to alternate minimum tax by persons other than company.
Income-tax (Tenth Amdt) -Rules, 2012 inserted rules 10F to 10T and 44GA, introducing advance pricing agreement scheme in relation to arm’s length price.
Income-tax (Eleventh Amdt) - Rules, 2012 inserted rules 31ACB and 37Jand Forms 26A and 27BA, relating to CA’s certificate u/s 201(1) First proviso and u/s 206C (6A) first proviso.
Income-tax (Twelfth Amdt) - Rules, 2012 inserted rule 21AB (particulars to be contained in a certificate to be obtained by a non-resident) and Forms 10FA and 10FB (for obtaining certificate of residence) in relation to sections 90 and 90A.
Income-tax (Thirteenth Amdt)- Rules, 2012 amended rule 17C prescribing debt instruments issued by any infrastructure finance company as eligible mode of investment by charitable or religious institutions.
Income-tax (Fourteenth Amdt) - Rules, 2012 inserted rule 112F specifying cases in which notice for assessment/reassessment shall not
 27C, 27D and 27Q are issued for proceeding six assessment years, as a result of a search u/s 132 or a requisition u/s 132A.
Income-tax (Fifteenth Amdt) - Rules, 2012 amended rules 11U and 11UA, relating to valuation of unquoted equity shares.
Income-tax (First Amdt) - Rules, 2013 inserted rule 17CA and form 10BC relating to electoral trusts.
Income-tax (Second Amdt)- Rules, 2013 amended rules 31A, 31AA, 31ACD and 37J and forms 15G, 15H, 16, 16A, 24Q, 26B, 26Q, relating to TDS/TCS.

This Article has been written by CMA Samir Biswal. He Can be reached at biswalsamir@rocketmail.com
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