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6 Documents to Check When Booking a Flat

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6 Documents to Check When Booking a Flat

When comparing properties we usually look at the location, price and possession date. These are no doubt important parameters for short-listing a piece of property. However, there are many more important things to check before you finalise a deal.

Legal documentation and clearances 

Ask for copies of all necessary permissions prior to making any financial commitment. Check the following documents and clearance certificates to avoid getting into any legal tangle in future:

1. Land record Title deed is the most important document as it gives details about ownership, rights, obligations and mortgages on the property. So it validates whether the land where the project is coming up has been registered and development rights transferred. Get a copy of it from the builder and cross-check the information with the land record office.

2. Construction clearances: A ‘certificate of commencement’ is mandatory to commence any construction of a property. The certificate is issued by the town planning and engineering department after the inspection of the basic foundation for a superstructure and building boundaries. This also means that the builder would have obtained the required licenses, sanctions and permissions for the map that are required before you can even start excavating.

3. Approved planning: It is good to run an additional check and verify that the building and layout plans have been approved and no byelaw applicable in the area has been broken. Make sure that the floor where you have booked your flat has been approved in the building plan.

The layout should be in accordance with the National Building Code of India (NBC). NBC is a comprehensive guideline, a code, for regulating the building construction activities across the country. Get this document verified with the local municipal authorities.

Also, some projects claim a ‘green status’. In that case it should be either certified by Indian Green Building Council or be rated by Green Buildings Rating System India (GRIHA), a TERI University initiative.

4. Land use certificate: It is illegal to have residential properties on a commercial or industrial zone. Apply to the urban development authority and check the certificate to ensure that the property you plan to purchase is in the residential zone. Sometimes the land will be in what is called a ‘converted zone’. Cities are expanding and often agricultural land is converted for non-residential usage by paying a fee to the government. In such case, check for the endorsement order given by the tehsildar/deputy commissioner of the zone that licenses residential construction on that land.

5. Master plan of the area: Often builders’ claim future infrastructural development of the area such as upcoming metro or highway near the project. Don’t believe everything blindly. Look at the area’s master planning to verify. These plans are easily available with the town planning department.

6. No objection certificates (NOCs): The builder should also be able to give you a copy of the urban land ceiling NOC (if applicable), an environment clearance NOC as well as NOCs from the electricity, water and lift authorities, if there is one.

Everybody has been shouting, cursing, writing about the The Big Billion Day Sale of Flipkart.

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By Tushar Shah

Flipkart does 600 crores sales on Big Billion Day. HDFC Bank should make some money !!

Everybody has been shouting, cursing, writing about the The Big Billion Day Sale of Flipkart.
So let me add some more bullshit on this Also after a 5 day weekend its anyways tough to focus on markets right away
I believe a lot of us have HDFC Bank Credit Cards. Every now and then you see cash back offers/discounts and so on to make you spend via the credit cards.
For the last few years they also have a 3 month payment holiday on retail transactions specifically over-lapping the festival/spending season.
Even Parag Parikh a seasoned investor wants to spend in this season. A nice article by him – This season is wasteful ( but fun)
This article by Livemint gives a good de-jargonizes the Payment Holiday Concept– Link
As a loyal HDFC Bank customer i have been using this facility to get an ego trip by redeeming some gifts and money from the bank.
How do i and other customers make money ?
-> Make all my purchases through credit card instead of netbanking.
-> Load up on a lot of redeemable reward points.
-> Keep a Fixed Deposit for the amount payable for 1-3 months.
-> Make the payment on time.
-> Redeem the reward points for some good gifts. ( If only they would add better things in the rewards catalogue )
How does the Bank make money ?
-> Customer makes a lot of purchases online with the discounts/cash back by the bank and even with Festival sales.
-> Customer forgets the payment.
-> Customer does not have a cash flow to make payments. Makes minimum payments.
-> Customer has no idea the interest rate is 3.25% per month.
-> Customer has some EMI payments which are not under the scheme.
There could be more in the terms and conditions – A older link to the terms
As we all know Flipkart loses money – Flipkart 2013 loss at 281 crores but HDFC Bank has a better chance of making profits if people use their credit card.
All the ecommerce companies are working on the same thought process that we Indians are a sucker for Discounts. We love to bargain and get an ego trip 🙂. I have never seen a day when there is no sale on the ecommerce sites. At least the normal retailers keep sales only in festivals, end of season.
I am also an Indian and a sucker for discount buying. So i go to Croma check the laptop, come home and order it on flipkart/amazon or even the product website. ( i recently did so for an Intel Laptop for more than a 10-15% lower price online).
A lot of investors keep doing the same stuff in markets. Keep looking for discounts just by price and not by real value or risk. A stock down from 100 to 50 is cheaper than one which has gone from 100 to 150 irrespective of what the company is . This i believe is a good way to lose money ( Aur kitna ghirega strategy)
Now how does Flipkart lose money and HDFC Bank make money ?
-> A good customer like me can make some money in the holiday period but the Annual Interest Rate for FDs is 8-9%.
-> HDFC Bank charges a nice 39% per annum , plus the late fee , plus compounding and so on.
-> Also i believe HDFC Bank makes some money from the vendors as payments or not instant but over weeks/months ( if you have the time do some work on it )
So even HDFC does not mind me skimming some of that money but all it needs is a few customers to forget or miss the payment.
Also they would love the flipkart/amazon/snapdeals to have such 600 crore days as HDFC Bank has a 20-25% market share in credit cards. Every such sale increases HDFC Banks chances of making money.
People can write all shit about how Venture Capitalists / P-E Funds and other people funding this ecommerce websites are stupid, bla bla. I believe its good for all us end users.
Some of us would learn how to spend a lot of money on bullshit and help grow the economy or will learn how to value things.
Bottomline –
I love #HDFC Bank for giving me discounts/cash backs/ payment holidays.
I love #flipkart, #amazon, #Myntra, #Jabong, #snapdeal and every ecommerce website giving discounts and dropping my stuff home nicely packed with no extra charge.
I love the #VCs.#P-Es, #Angels who fund these e-commerce companies and hope they also make a lot of money in at least a few of them so they keep doing some bullshit consistently

Types of activities performed by business organizations

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Types of activities performed by business organizations

The forms of business entities can be classified according to the type of ownership of the business entity.

1. Proprietorship Firm
2. Partnership Firm
3. Company 
4. LLP

Business entities can also be grouped by the type of business activities they perform:

1. Service Entities
2. Merchandising Entities,
3. Manufacturing Entities.

Any of these activities can be performed by companies using any of the four forms of business organizations.

• Service Entities perform services for a fee. This group includes accounting firms, law firms, and dry cleaning establishments. The early chapters of this text describe accounting for service companies.

• Merchandising Entities purchase goods that are ready for sale and then sell them to customers. Merchandising companies include auto dealerships, clothing stores, and supermarkets.

• Manufacturing Entities buy materials, convert them into products, and then sell the products to other entities or to the final consumers. Manufacturing Entities include steel mills, auto manufacturers, and clothing manufacturers.

All of these entities prepare “financial statements” as the final end product of their accounting process. These financial statements provide relevant financial information both to people those inside the entities —management—and to those outside the entities—creditors, stockholders, and other interested parties.

Cost Inflation Index Upto 2014-15

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What is Cost Inflation Index:

The cost of inflation index has been notified by the Central Government year wise, commencing from the financial year 1981-82, having regard to seventy-five percent of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year by notification in the Official Gazette specify. The cost of acquisition/improvement will, thus, be indexed with reference the rate of applicable for the relevant year.

Financial Year                                                                      Cost Inflation index(CII)
2014-15
1024
2013-14
939
2012-13
852
2011-12
785
2010-11
711
2009-10
632
2008-09
582
2007-08
551
2006-07
519
2005-06
497
2004-05
480
2003-04
463
2002-03
447
2001-02
426
2000-01
406
1999-2000
389
1998-99
351
1997-98
331
1996-97
305
1995-96
281
1994-95
259
1993-94
244
1992-93
223
1991-92
199
1990-91
182
1989-90
172
1988-89
161
1987-88
150
1986-87
140
1985-86
133
1984-85
125
1983-84
116
1982-83
109
1981-82
100

 

I-T to look into credit history, loan repayment pattern of taxpayers

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To recover maximum tax arrears with the optimum use of manpower, the income-tax department has decided to look into the credit history and loan repayment pattern of taxpayers and prioritise cases for recovery of past dues based on a defaulter’s ability to pay.

For this, the department would consult the Credit Information Bureau of India (Cibil) that assigns credit scores and maintains details of loans taken by individuals, partnerships and corporations, along with their PAN. Sources said tax officials would be able to get an idea of the assets and the financial health of an assessee against which a tax arrears recovery demand has to be pursued vigourously.

The I-T department which claims a massive Rs 6.74 lakh crore in arrears to be recovered is able to pursue cases accounting for only a small part of it every year due to appeals pending in various courts, inadequate assets to recover from defaulters and due to non-traceability of assessees. For FY15, it has set a target of recovering about Rs 42,000 crore of arrears, about 6% of the R7.4 lakh crore the government wants to collect this year by way of corporation tax, personal income tax and wealth tax, 15% more than what it raised last fiscal.

However, I-T will vigourously pursue recovery of arrears from defaulting partnerships and large corporations even via attaching the assets of partners and directors. In the case of individual taxpayers who have expired, it intends to reach out to their legal heirs, said a field officer, who asked not to be named.

The tax authority wants to cut down the quantum of arrears to be recovered and would consider writing off smaller demands.

http://www.financialexpress.com/news/it-to-look-into-credit-history-loan-repayment-pattern-of-taxpayers/1290155

Work From Home – Cyber Crime Scams: Are you a Victim

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The Work From Home concept is very attractive for most people, as the advertisements offer huge sums of money for a few hours of simple work. But would you really be paid well for doing nothing much! If it is too good to be true, then it probably is not true!

The modus operandi is usually attractive advertisements on websites, public places and social media. The application procedure involves filling up a form with all your details and you have to purchase a welcome kit. If you refer more people then you get paid a percentage for each reference that materializes, so basically you make other people also fall prey to the scam.

The scope of work is mostly like:
– Envelope stuffing (mailing programs)
– Assembly work
– Gifting programs
– Email processing
– Rebate processing
– Repackaging
– Payment processing
– Jobs that ask for money to hire you
– Businesses that don’t have an evident product or service.

If you are a victim of a work from home scam, then cyber laws has recourse for you.If the scammers use your personal data to make fake profiles and commit any crimes, then they are liable under Section 66-D for Cyber Personation, which is punishable with imprisonment upto 3 years and a fine.

The scammers are liable for Identity Theft under Section 66-C if they use your password or any other unique identification feature.

The scammers are liable under Section 43 of the Information Technology Act makes unauthorized access an offence, and Section 43 A makes a Company liable for breach of privacy and confidentiality by payment of compensation to the victim for failure to protect data.

The data that you provide to the scammers is priceless. Along with your personal information they have your credit card data too and misuse the same. When you purchase the welcome kit you may not be directed to a safe payment portal. This renders you vulnerable credit card frauds. And your personal data is sold to marketing companies without your consent.

A leading case of this type of scam was when the Cyber Crime Cell of Crime Branch, C.I.D., Mumbai Police arrested a person by name Sripathi Guruprasanna Raj, aged 52 years old, who is the Chairman and Managing Director of Sohonet India Private Ltd., a company based in Chennai. Many complainants based in Mumbai had complained to the Cyber Crime Investigation Cell, that the said company has duped them each for Rs. 4,000/- and Rs. 6,000/- by promising them with monthly income of Rs. 15,000/-.

Cyber Crime Cell of Crime Branch, C.I.D., Mumbai Police have arrested a person by name Sripathi Guruprasanna Raj, aged 52 yrs who is the Chairman and Managing Director of Sohonet India Private Ltd., a company based in Chennai. Many complainants based in Mumbai had complained to the Cyber Crime Investigation Cell, that the said company has duped them each for Rs. 4,000/- and Rs. 6,000/- by promising them with monthly income of Rs. 15,000/-. The company had through its website having URL http://www.sohonetindia.com and through various attractive advertisements in the news papers as well as by holding seminars in five star hotels, in various metropolitan cities like Mumbai, Delhi, Kolkata, Bangalore etc. had lured the various computer literate people with attractive schemes named Instant Treasure Pack (ITP) and Green Channel The company then asked the interested people to register with their company for which they charged the registration fees of Rs. 4,000/- which was later increased to Rs. 6,000/-. The company CMD, Mr. Raj promised the people so registered that they would be provided with the data conversion job which would enable them to earn Rs. 15,000/- per month. The company then collected huge amount from the gullible computer users. Some of the users were provided with the job work whereas others were not even provided the job work (data conversion job) assured to them. The users who worked hard and completed the assignments did not receive any payment for the same, and when they tried getting in touch with the company, they received no response.

TDS Rates Chart for F.Y. 2014-15 A.Y. 2015-16

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Every deductor need to deduct TDS as prescribed in Income Tax Act (not more than that and not lower than that). No doubt, there is no penalty to deduct more or wrongly deduction of TDS. However, deductor will issue TDS certificate (Form 16/Form 16A) as per actual deduction. The payee should claim the refund as per TDS certificate whether is wrongly deduction or higher deduction as the case may be.However, TDS can be adjusted against any other payment made or credited if TDS has been wrongly deducted from a payment on which there is no liability to deduct TDS. However, the penalty for non-deposit of TDS will be imposed by Income Tax Department. So TDS rates plays very important part for payer and payee to get easily and timely income tax refund.

Section Payment Nature Payment in excess of TDS Rate  TDS Rate 
for Individiual for Others
194A Interest from a Banking Company 10000 10% 10%
194A Interest other than from a Banking Co. 5000 10% 10%
194C Contractors (including Advertising & Sub-Contractor) 30000 (per payment) or 75000 p.a. 1% 2%
194C Transport Contractors (Providing PAN and enganged in the business of plying, hiring or leasing of goods carriages Nil Nil Nil
194D Insurance Commission 20000 10% 10%
194H Commission or Brokerage 5000 10% 10%
194I Rend of Land & Building 180000 10% 10%
194I Rent of Plant & Machinery and Other Equipments 180000 2% 2%
194IA Transfer of Immovable Property other than Agriculture Land 5000000 1% 1%
194J Payment for Professional Services, Technical Services & Royalty 30000 10% 10%
194J(1)(ba) Payment to Directors any remuneration or fees or commission by whatever named called if the same is not covered u/s 192 – 10% 10%

Financial Statement Analysis & Interpretation – [Part –I]

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Financial Statement Analysis & Interpretation – [Part –I]

Financial Statement Includes:

  1. Trading & Profit & Loss Account; which gives the result of year’s working.
  2. Profit & Loss Appropriation Account; which gives details about the disposal of the retained earning.
  3. Balance Sheet; which gives the financial position of the undertaking as on the accounting date.

“The most important function of financial statements is to serve those who control and direct the business and may be answered the questions, how efficiently the capital of the business is being utilized, how well credit standards are being observed, and whether the financial condition is being improved.”
The Meaning of Analysis and Interpretation
The financial statements are of much interest to number of groups of persons. Apart from the management there are other interested parties like shareholders, debenture holders, potential investors, bankers, trade creditors and legislature.
**Interpret means to put the meaning of a statement into simple terms for the benefit of a person.
** Analysis comprise resolving the statements by breaking them into simpler statements by a process or rearranging, regrouping and the calculation of ratios, interpretation is the mental process of understanding the terms of such statements and forming opinions or inferences about the financial health, profitability, efficiency and such other aspects of the understanding.
Objectives of Analysis and Interpretation
–          To evaluate the financial health of the understanding.
–          To evaluate the earning performance of the undertaking.
–          To evaluate the ability of the undertaking to pay interest, amortized debt and other outside liability.
–          To evaluate the solvency of the undertaking. By the understating of solvency of the undertaking above points can be well understand.
–  Whether current assts are sufficient to pay off the current liabilities.
–  Proportion of liquid assets (cash and book debts) to current assets.
–  Whether the debenture holders are secured by a floating charge of the currents assets.
–  Future growth of undertaking and earning.
Example: Bankers who provide short term working capital loan and medium term credit they generally look into the following matter:
–          The purpose of loan.
–          The manner in which the borrower proposes to repay the loan.
–          The capacity of company to repay as evaluated by trends of profits.
–          Banker’s position in the event of forced liquidation.
–          The quality of management.
–          History of accounts in the history.
Types of Analysis:

  1. Trend Analysis: which is made by analyzing the financial statements over a period of years. This indicates of such variable, as sales cost of production profits, assets and liabilities. For this it is better to prepare financial statements horizontally.
  2. Structural Analysis: which is made by analysis of single set of financial statements as are prepared on a particular date. Under this analysis relationship between different accounting variables is studied as for example, the ratio of net profit on sales or the ratio of current assets over current liabilities.

Tools of Financial Analysis:

  1. Comparative Balance Sheet and Income Statements
  2. Common Size Percentage: it is used for big balance sheet when it is very difficult to understand the figures. Generally Income Statement is converted into % statement on some common base. Sales figures assumed 100 and other figures are analyzed on % of sales. In case of balance sheet total of assets and liabilities considered as 100 and all other figures are expressed as % of total.
  3. Trend Ratios
  4. Ratio Analysis:

(i)           Balance Sheet Ratio:
(a)  Current Ratio or Working Capital Ratio
(b)  Liquid Ratio or Acid Test Ratio
(c)   Proprietary Ratio
(d)  Assets Proprietorship Ratio.
(ii)          Profit & Loss Statement Ratio
(a)  Gross Profit Ratio
(b)  Operating Ratio
(c)   Expenses Ratio
(d)  Net Profit Ratio
(e)  Stock Turnover Ratio
(iii)        Balance Sheet and Profit & Loss Statement Ratio
(a)  Return on total resources
(b)  Return on Own Funds
(c)   Turnover of Fixed Assets
(d)  Turnover of Debenture
(e)  Earning Per Share

How to Deposit Advance Tax

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How to Deposit Advance Tax

The procedure to deposit advance tax is similar to income tax. Advance tax is itself a income tax. We call it advance tax as we deposit it advance before due date of income tax. So the procedure is the same as income tax. You can deposit advance tax offline or online.

Offline Procedure to Deposit Advance Tax

You have to fill up challan No.280 and deposit advance tax installment along with Challan No.280 in any authorized bank branch.

You should write your name in full, complete address, permanent account number, assessment year, assessing officer’s ward or circle where the assesse is assessed or assessable and the amount of tax and surcharge, if any, separately and properly.

Online Procedure to Deposit Advance Tax

All asesseess may deposit advance tax electronically. There are no restrictions for any assesse for depositing online advance tax. But for some assesse online deposit of advance tax is mandatory like companies, assesses whose accounts audited u/s 44AB.

You can deposit advance tax online by internet banking.You can deposit advance tax throught your own account or you can use another bank account. But you have to fill challan no. 280 online clearly by stating your own name, address, PAN and other details properly.

Date of Payment/Relisation of Advance Tax

Date of payment of tax is important not only for the purpose of reckoning the payment towards the relevant advance tax installment, but also for the purpose of computing interest for delay, if any. If the payment is made by a cheque along with the challan into the Government treasury or the bankers authorized to collect Government receipts, and if the cheque is not dishonored later, it shall be deemed that payment has been made on the date the cheque was so tendered.

Advance Tax Payment Due Dates – Last Dates to Deposit Advance Tax 

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Advance Tax Installment Due Dates for F.Y.2014-15 (A.Y.2015-16)

Advance tax has to paid by the assessee on the following dates specified by the Income Tax act. The delay in the payment of advance tax attracts penalty.

1 st Installment of Advance tax –15 June 2014

For non-company assessees – NIL
For Company assessees – 15% of advance Tax

2 nd Installment of Advance Tax — 15th September 2014

For non-company assessees – 30% of advance Tax
For Company assessees – 30% of advance Tax

3rd Installment of Advance Tax 15th December 2014

For non-company assessees – 30% of advance Tax
For Company assessees – 30% of advance Tax

4 th Installment of Advance Tax –15th March 2015

For non-company assessees – 40% of advance Tax
For Company assessees – 25% of advance Tax

Last Payment — 31st March 2015

Tax on capital gains or any income earned after 15th March.

Important Points for Advance Tax Payment

In the case of salary Income the tax is deducted by the employer. So TDS is also treated as prepaid taxes. So salaried person pay advance tax but in the shape of TDS. So the Salaried person need to pay tax, if the tax is less than TDS. But if the TDS is less than actual Tax then they are also liable to pay advance tax.

But TDS should be deposited latest by 31st March of the financial year. If on the due dates is Sunday or any holiday then the assesee can deposit the advance tax on next working day. It will treated as advance tax and no penal interest will be charged.

Latest amendment for Advance Tax Payment
Senior citizens (Over 60 Years) need not to pay advance tax if not having any business income. (w.e.f.1-4-2012).

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