Cut to: Duty (aka Deadly)!
If you are a short term investor in real estate, you are not in an enviable position. After paying the so called entry loads such as stamp duty, registration fees, interest and the additional charges that a conventional builder charges, you may just be left with returns that make the entire enterprise worthless.
~ As per the last declaration (May 7, 2005), the new rule in the stamp duty says you must pay the stamp duty. But if you sell within three years, the new buyer need only pay the difference in the ready reckoner values over the years.
~ Many builders charge the buyers or sellers a charge or a transfer fee ranging from one per cent of the transaction value to Rs 100 or more per square foot as transfer fees, if you sell the property within a short span while the society is not formed.
Special appearance: Wealth tax (aka Worrisome)!
If you own more than one residential and one commercial property, you will need to pay wealth tax.
The wealth tax is one per cent of the total wealth above Rs 15 lakh (Rs 1.5 million). Only one house is exempted under the wealth tax, which could be of any value.
If you claim depreciation on a commercial property that you are using, wealth tax will not apply to your second commercial property.
If you are looking to lease your property, perhaps your second or third property, you may have to pay wealth tax subject to the above-mentioned conditions.
Read tips from tax guru Subhash Lakhotia on Wealth Tax!
Other comments
We are a Recruiting Manpower Consultancy established in 2005. It is registered as a Partnership firm. We have also registered Service Tax Number for the same.
Our partnership Business had yeilded result only by 2006, Whereafter we have paid all the service Taxes on Time.
One of the Partner has been in the same Business since 1994 and have had a Private Limited Company, which was dissolved in 2002. Again in 2003 has started another proprietorship Firm
Our Firm has been associated with a Chartered Accountant since 1994. He use to handle
All the tax matters, and has also helped in getting our Service Tax Numbers, Our Partnership Deed and also getting the same registered. Being associated and well known
to us we had trusted him totally and all our Tax papers were kept in his Office, we have never cross checked whether he had filed our Yearly Income Tax returns. We had been well in advance to his office to sign the paper to submit our Income tax returns before the Due Date for the year2005-2006 and had given him his payment in advance by cheque, and we revisited him again well in advance for to sign the paper to submit our Income tax returns before the Due Date for the year2006-2007 and had given him his payment in advance by cheque.
Professionally he should have atleast informed us that the Income Tax return for the previous year was not done, but he did not bother to inform nor did he refuse to take the payment for the following year.
We got to know about the Income tax returns not filed only when one of our client wanted to have our details for empanelment and we asked him to give us the copy of the tax return.
This year we are in big trouble as he is unable to file the returns for 2007-2008 and our new C.A says ethically he cannot do anything before we help him with previous records.
Our Income has crossed over Rs. 10 lakhs for 2007-2008.
Request you to advice us what do we do in such a case, and how can we being honest , law abiding citizens file Returns of our Income. Also would like to know if there is any governing body wherein we can put forth our case against the C.A who is actually in fault and has cheated us and put us in this akward situation and fight against the unjust done to us.
Posted by on 04 Nov, 2008 at 09:06 PM
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