Bangalore Overview

The town has truly transformed into a vibrant bustling city. Bangalore has spread way beyond Kempe Gowda’s original boundary, yet vestiges of Bangalore’s past life as handloom Mecca remains in neighbourhoods like Chikpet and Balepet. It was enough to have road space that allowed a horse-drawn jutka to pass through. City Institutions developed; the City market and Victoria Hospital were established. With the creation of Bangalore Civil and Military Station in 1809 came the ‘Cantonment’ and a whole new era.

The Garden City emerged, and alongside the tanks, now called lakes, were given their due space in the city’s urban geography. The towns equipped with schools, hospitals, clubs and parade ground that were part of civilian life at the time, along with the Bungalows brought a distinctive character to the city. If the city had Lalbagh, the cantonment had Cubbon Park. In the new extensions of Malleswaram and Basavangudi urban planning was applied for the first time. The Cantonment co-existed with the City right up to 1949, when the two municipalities unified under the Bangalore City Corporation.

Layout

The development of new Layouts started with JAYANAGAR in 1974. The Bangalore Development Authority (BDA) established in 1976, provided the impetus and a whole new phase of “PLOTTED” residential development took place, with the BDA Layout becoming part of city parlance along with the ubiquitous “Cross” and “Main” like in no other city in India. Through the 1980s, as Indiranagar, then Koramangala drew in more residents, “BDA Layout” became shorthand for desirable residential area. Designated areas for civic amenities, especially the parks and the BDA complexes, enhanced the levels of convenience.

The Outer Ring Road was initially conceived as part of an Outline Development Plan some 30 years ago. The BDA took up the execution, but the road finally was completed only in 2002, after several litigations had stymied the progress. In fact, the layouts adjacent to the Road, Banashankari, J P Nagar, BTM and HSR in the Southern belt, and HRBR, OMBR and East of NGEF on the North-East curve, took shape well before the road was completed. These became the domain of the middle-class, where the ‘stakeholder’ through the local resident’s Association got a role in the management of the locality. In 1998, the BDA in association with city-based NGOs implemented the integrated Urban Environment Improvement Project (IUEIP) in the HRBR-East of NGEF stretch that focuses on solid waste management and Management of Open Spaces, development of a detailed Geographic Information Systems (GIS) and framework for community management of civic services

The south and east arc of the Outer Ring Road also links up with the IT Corridor with easy access to Electronics City and Whitefield. Another offshoot is Sarjapur Road, a sector where international schools have put down roots alongside IT Companies, exhibiting the most recent and alongside IT companies, exhibiting the most recent and dynamic avatar of Bangalore – the globalised information age city. Private developers were quick to spot the potential in this area and have created some architectural landmarks that take residential buildings to new heights.
 

+ Click to View

Invest Early and invest wise

Today the young yuppie working couples with handsome salaries are taking to real estate investment in a highway. For the younger age group, convenience is a lifestyle issue. So the gyms, day care facilities, buses all are taken care of within large housing complex. Today, the young working couples in their early and mid-twenties are actively investing in real estate. Younger, more financially fit families are looking at upgrades and moving into larger homes.

Cheap and easy availability of housing finance is also increasingly being attributes to this new trend. The EMIs vary depending on the loan amount and repayment term. For instance, an EMI for a loan of Rs, 1,00,000 at an interest rate of 7.5% for a tenure of 5 years would be Rs. 2004, 10 years Rs. 1187, 15 years Rs. 927 and 20 years Rs 806. In fact, a recent study shows that almost 80% of the young people have taken 15-20 year housing loans are pre-paying them within 5-6 years as increased prosperity means larges homes.

Several financiers offer free property insurance. In any case, even if you were to take insurance the premium charges are far lesser at a younger age. At the age of 30 for a 15 year term and an assured sum of Rs. 15 Lakh, you would have to pay a yearly premium of Rs. 76,000 whereas if you were 40, the premium would have been Rs. 82000.

Tax Benefits

Arguably the most important factor that drives youngsters towards investment in real estate is the tax benefits that accrue.
Self-lease is where the employer leases the house belonging to the employee and it is allotted to employee as rent-free accommodation, to claim the benefit of enhanced deduction towards interest on loan borrowed for construction or purchase.

However, in such cases, perquisite value of rent-free accommodation is taxed in the hands of the employee. In case of working couples, both of them individually can claim the benefit of deduction of interest under section 24 provided the house is in the joint name of the couple and the interest is taken in the joint name and repayment is also made by both of them. On similar lines, they can enjoy even rebate under section 88 towards principal payment.

In any case, it makes a world of sense to invest in real estate early.

Any property purchased has to necessarily be registered. The sale deed and sale agreement should be registered at the office of the registrar or sub registrar of the district or sub district within whose jurisdiction the house is situated. Registration is done after the parties i.e. the buyer and seller have executed the documents related to purchase and sale.

Timeframe and penalty

The registration process should be in compliance with the provisions of the Indian Registration Act, 1908. As per the Act, a sale agreement should be registered with the Sub-Registrar of Assurances within four months from the date of execution of the document. In case due to unavoidable circumstances this is not done within the prescribed time limit of four months, the document has to be registered with an application to the Sub-Registrar of Assurances within a further period of four months. Along with the application, a penalty needs to be paid as per prescribed scales.

Penalty for delay in registration

After the grace period of four months, the document can be registered under any circumstances.

Before registration, the final sale deed is prepared on stamp paper of appropriate value, which will be the prevailing rates of stamp duty in the respective states. This set of documents should be executed by the seller and the buyer. Irrespective of the value shown in the documents, the Sub-Registrar will determine the market value of the property and amount of stamp duty payable.

Once registered, the seller cannot resell the same property to someone else. Registration helps trace the ownership and history of change of ownership of a property. Moreover, the sale and transfer of a registered property is much easier and safer as is in the interest of a buyer to have the documents registered in his name. Or else, the documents will not be admissible as evidence in any transaction, subject to certain exceptions.

Deed of Confirmation

In case a sale agreement has not been registered, the buyer should prepare and execute a deed of confirmation. To the deed of confirmation, the original documents that could not be registered should be attached. Thereafter, he should register the deed of confirmation to which the original documents have been attached at the office of the Sub-Registrar of Assurances.

Process of Registration

A buyer should visit the Sub-Registrar’s office along with the seller and two witnesses. The documents to be registered should be presented in original at the office of the Sub-Registrar. Also take a few extra copies of the documents. Attach two extra two bank ledger papers at the end of original document for endorsement purposes by the Sub-Registrar.

At the time of submission of documents, you should ensure:

1. The documents should state the names of the parties – Buyer and Seller along with their full addresses.
2. These details should be clearly filled in:
   • House No.
   • Date of construction of the building
   • Area of the house (built up, Carpet, Floor, Super Area)
   • Ward No.
   • Name of Road/Locality
   • No. Of Floors
   • Surrounding properties
3. These documents should be attached:
   • Copy of building Plan Showing the house property
   • NOC under the Income Tax Act (if applicable)
   • NOC from the Society (In case the house comes under a Society)
   • Allotment letter (if any)
   • Photographs of the buyer
4. A buyer should also pay these amounts in addition to the stamp duty:
   •  Applicable Registration Fee (it depends on the total consideration subject         to some minimum limits)
   • Copying Fees
   • Charges for grant of certified copies
   • File Charges

After submission of all the documents including the sale deed/agreement to sell, along with other documents referred to, at the office of the Sub-Registrar or registrar of Assurances, and on payment of prescribed registration fees, the registering office will issue a receipt to the buyer. The buyer and the seller should be present before the registering officer along with their respective witnesses in order to admit the execution of the documents. A buyer can authorize his representative to execute the documents. The seller must be present and transfer the title by signing the transfer deeds and all appropriate documents. Instead of being present himself, a buyer or seller may appoint a power of attorney to represent them and admit the execution of documents. These representatives should be holding valid and proper Power of Attorney.

The buyer should preserve the receipt issued by the Registering Office. The timeframe for registering the documents varies from State to State. The time period may vary from one month to one year. After a prescribed period, a buyer can co0llect the registered documents personally or through a duly authorized agent, after production of the original receipt from the registrar’s office. Once the documents are registered, the buyer can apply for an extract of registration of document from the office of the Sub-Registrar of Assurance. This is also called Index II. Once this is done, the buyer may get the house property transferred in the municipal records and at other places as applicable

If the buyer has taken a housing loan to buy the property, then usually the financing bank or housing finance company will keep the original documents as a security for repayment of the loan. The buyer can apply to the Registering Officer for a certified copy of the documents in such cases.

Choosing a housing loan is a complicated process. All borrowers want to minimize the costs of borrowing. So before finalizing a housing loan, you should analyze the conditions subject to which the loan is being offered. Many of the conditions have an impact on the total cost of the loan.

With keen competition in the housing loan market, banks are coming out with new and innovative products. In this scenario, choosing one that comes at the lowest cost becomes difficult. In addition to the interest rates, many other costs and benefits should be analyzed. Although individually these may look insignificant, cumulatively they have a substantial impact. A borrower should seek all details from the bank. A borrower can negotiate on most of these charges depending on the loan amount, tenure and his credibility.

Charges and fees levied

Processing Fees: It is payable at the time of filing of the loan application. This is non-refundable and is charged to cover the costs of determining the loan eligibility of the potential borrower. It varies from 0.5 to one percent of the loan applied for.

File Charges: These are charges for preparing the documentation. Some banks and HFCs charge this fee.

Legal Charges: These pertain to the legal evaluation of the house documents. Some banks charge this separately.

Commitment Charges: These charges are payable if the loan is not utilized within a specified period of time after sanction.

Administrative Fee: This is payable on the acceptance of offer i.e. once the loan has been sanctioned. The amount is the same as processing fees – 0.5 to one percent of the loan sanctioned. Some companies charge both processing and administrative fees together.

Commencement of EMI: In some cases, EMI starts from the month of final disbursement of loan. In other cases it starts from the month following that. Depending on the cash flow position of the borrower, a decision on this behalf should be taken by him. The timing of commencement of EMIs has an impact on the total interest cost to be paid by the borrower over the period of loan.

Change of mode of interest: In case you want to switch over from a floating rate to a fixed rate (because the interest rates are excepted to come down) you will have to pay a penalty amount to the lender.

Insurance: Some banks insist that the house should also be adequately insured or the borrower should take a life insurance policy where the sum assured is at least equal to the loan amount. Some offer free insurance to the borrower or the house.

Switchover charges: In case of borrower decides to switch over from one bank to another, because the other is offering better terms, a penalty is charged. However, if the loan is repaid out of one’s own funds, these charges may not be payable.

Prepayment charges: Some banks levy prepayment penalty in case the loan is repaid before the full term or certain agreed minimum period. This is done because it disturbs their cash flow and income estimates. The amount varies from one to five percent of the outstanding amount of loan. Some banks do waive off these charges. The charges are payable on the balance amount outstanding.

TAX BENEFITS ON HOME LOANS

Tax benefits on housing loans are available on both the principal and interest repayments.

Principal repayments: A borrower may avail of a tax rebate under Section 88 of the Income Tax Act on a percentage of the principal repaid during a year, up to the maximum extent of Rs. 20,000. The amount of rebate depends on the income of the borrower.

· Salary income tax rebate as percentage of principal repaid
· Up to Rs. 1,00,000 – 30 percent
· Between Rs. 1,00,000 and Rs. 1,50,000 – 20 percent
· Between Rs. 1,50,000 and Rs, 5,00,000 – 15 percent
· Over Rs, 5,00,000 – Nil

Interest repayments: Interest repayments on housing loans are allowed as deductions from the annual value of a residential property. Annual value is used to determine the income an individual is expected to receive from a residential property and is the greater of
a) The actual rent received for a property
b) The notional rent expected from a property as determined by its municipal rateable value, fair market rent, and other factors.
However, the annual value of one self-occupied property per individual is considered to be nil.

The amount of allowable deduction depends on whether the property is self-occupied, rented, or vacant, and for what purpose the loan has been availed.

Self-Occupied Property: Interest payable up to Rs. 1,50,000 per annum on loans taken for construction or purchase of a property for self-occupation is allowed as a tax exemption, if the house has been constructed on or after April 1, 1999. Prior to this date, the maximum exemption is limited to Rs. 30,000. If the loan has been taken for repair or reconstruction of a property the exemption is also limited to Rs. 30,000 Since the annual value is nil, these deductions cause a negative value or loss under the head ‘Income from house Property’, which may be set off against incomes from other residential properties or against other heads of income such as Salary or Business income.

Rented Property: If a property is rented, the greater of the actual rent received and notional rent as determined by the authorities is considered as the annual value of the property. The entire interest amount payable on money borrowed to build/buy/repair a property is allowed as deduction from annual value to arrive at the net income from the residential property.

Vacant Property: The annual value of a vacant property is the notional rent as fixed by the authorities. Interest payable on loan for construction/acquisition/repair/reconstruction may be deducted from the net annual value as outlined for rented properties above.

Vacant property away from city of work: If a person bought a house for the purpose of self-occupation but has been unable to live in it, having been posted away from the city on work, then that property may be considered as self occupied provided he owns only that one property. The property should be vacant and no rent or any other benefit should be derived from it.

Multiple properties: If a person owns multiple properties, more than one of which is self occupied, he may choose any one property to be designated as self-occupied, and the others will be deemed to be rented and notional rent will be treated as the annual value of these properties. The deductions in respect of interest on housing loans will be as outlines above for self-occupied and rented properties respectively.

Some points to be noted

For multiple ownership, where the shares of owners can be determined, the income from a residential property will be proportionally allocated to each owner and concession for self-occupation will be available to each owner.

If a loan is taken for an under-construction property, the interest payable before the final completion of the property can be claimed as deduction only after completion of the property by aggregating this interest and setting it off in five equal installments over five successive financial years starting from the year in which the property is completed.

HOUSING FINANCE CURRENT SCENARIO

Customers currently planning to take a home loan could do well to go in for a fixed rate as the bias today is towards higher interest rates. Those who are looking to swap and existing floating rate loan with a fixed one, an important determinant of whether to swap or not should be based on their long-term expectation of interest rates and also the cost of swapping taking into account the outstanding tenure of the loan, the amount outstanding and the likely extent of interest rate increase.

For Ex: if one expects rates to rise may be for the next one year, but then decline gradually over the next several years, a floating rate product may be preferable. If one decides to convert to a fixed rate, then the costs of conversion could entail a conversion fee of 1-2 per cent of the outstanding loan amount. If one decides to change the lender instead to convert to a fixed rate, then they are most likely to pay a foreclosure penalty of 2 per cent of the outstanding amount as well as 0.5 – 1 per cent of the new loan amount as processing and administrative charges to the new lender. One has to incur all these costs, and then conversion to a fixed rate may not make financial sense.

Again a fixed rate loan is generally priced higher as compared to a floating rate product. This holds true in the current environment where the fixed rate loan is at a higher interest rate as compared to a floating rate loan. The difference is currently about once percentage point. So if the customer expects that interest rates are likely to move up, but only to the extent of this differential, then they should ideally be indifferent between the two types of loans.

When a customer is indecisive about whether to go in for a fixed rate or floating, guide and educate the customer and lay out the options before and leave the final decision to the customer, which is based on his needs and requirements and ability to take risks.

Capital Gains arise when a residential property is sold for a value higher than the cost of purchase or construction. There are two categories of capital gains. Short-term capital gains arise if a house is sold within 36 months from date of purchase. If a house is sold after 36 months from date of purchase or construction, the surplus will be taxed as long-term capital gains.

The distinction between short-term and long-term capital gains is important, as the rates of tax are different. Short-term capital gains is added to other heads of income like salary, income for business or profession, and other incomes like interest etc. and taxed at the relevant slab rate. In the case of long-term capital gains, the tax is a flat rate of 20 percent on the capital gains amount, plus applicable surcharge.

Capital losses can be set off against other heads of income, except long-term capital losses that can be set off only against long-term capital gains.

COMPUTING CAPITAL GAINS

Capital gains is computed by deducting from the amount of sale consideration the following:

• Cost of acquisition of the property, including cost of any improvements made or any capital expenditure for modifications and/or renovation that is permanent in nature.
• Adjustment factor for indexation, and
• Costs or expenses relating to the sale of the property e.g. brokerage, commission etc.

INDEXATION

Indexation is a deduction allowed to adjust for inflation during the period of property ownership. Indexation helps to tax real profits and not inflationary profits. The government publishes the annual cost inflation index every year for the current year 2004-05 the index is 480 (base year 1981-82 – 100)

The indexed cost if calculated by multiplying the asset cost with the index of the year of sale and dividing the result with the index of the year of purchase or construction

The Income Tax Act has two situations where capital gains tax on sale of residential property need not be paid

Sometimes, people borrow money from relatives to finance the purchase of a house. While doing so, one must keep in mind the provisions of the Income Tax Act.

It should be ensured that the name of the family member (in whose name the property is to be bought) is clearly mentioned in the agreement to sell or sale deed. The legal ownership is based on the name in which the property is finally registered. If the property is purchased jointly then the percentage of each co-owner should also be clearly mentioned in the agreement.

Further, it should also be ensured that the person in whose name the property is being purchased should have sufficient funds. This is essential to avoid problems from the Income Tax Department. It is advisable to avoid taking a gift from the spouse. Moreover, a wife should not receive a gift of money to buy property from the husband, father-in-law or mother-in-law.

A few years ago gift tax was abolished. So there is no gift tax on a gift of either a house or funds for the purchase of a house. However, income earned from such gifts is taxed in a different mode. One must keep in mind the provisions relating to clubbing of income before deciding on funding options within the family.

One should keep in mind the recent amendments in the Income Tax Act. Accordingly, under Section 2(24) of the Income Tax Act, the definition of income has been expanded to include any sum received as gift in excess of Rs. 25000 from unrelated persons. As per the amendment, any sum of money in excess of this limit, received by a person in cash or by Cheque or draft or any other mode of credit would be charged to tax, if it is received otherwise than by way of consideration for goods or services. The clause is effective for amounts received after September 1, 2004. Accordingly gifts received by an individual or HUF on/after September 1, 2004 from persons other than specified relatives will be considered as income under section 2(24) (xiii) of the Act.

Under section 64 of the Income Tax Act, clubbing provisions have been incorporated. The section is intended to prevent evasion of tax by diversion of income by camouflaging the transactions and disguising them as transfers, which is not the case in the real sense of the word.

As per the provisions of Section 64 of the Income Tax Act in computing the total income of any individual, all such incomes as arises directly or indirectly from assets transferred without adequate consideration will be included.

Where an asset is transferred by an individual, directly or indirectly, without adequate consideration, to a person or to an association of persons fro the immediate or deferred

Where an asset is transferred by an individual, directly or indirectly, without adequate consideration, to a person or to an association of persons for the immediate or deferred benefit of children or wife, then the income arising from the transferred assets is included in the total income of the transferor to the extent of such benefit

Similarly, where an asset is transferred by an individual, directly or indirectly without adequate consideration, to a person or to an association of persons for the immediate or deferred benefit of his/her spouse, then the income arising from the transferred assets is included in the total income of the transferor to the extent of such benefit.

In case an individual makes a cash gift to his wife, who in turn purchases a house with the gifted money then the individual will not be treated as fictional owner of the property. Taxable income of wife from the property is includible in the income of the individual in case she uses the house for her own residential purposes.

If a person transfers a house without consideration to his/her spouse or to his/her minor child, then the transferor is deemed to be the owner of the house and taxed accordingly. If a person transfers a house without consideration to his son’s wife or child, then the transferor will not be deemed to be the owner of the house. Income earned from the house will be included in the income of the transferor. The transferee will be treated as the owner of the house and the income computed in her hands is included in the income of the transferor.

The Bangalore City Corporation has introduced a special scheme to streamline sanctioning of building plans. The procedure is applicable only for single unit residential buildings comprising ground floor, and ground and first floors (including basement).

A Plan will be sanctioned within 15 days of the application provided all the documents and drawings are found to be in correct order and submitted in the required format duly signed by the person concerned.

Procedures that have to be followed by applicants:

An application form with all the necessary documents should be submitted to the Assistant Executive Engineer (AEE) in charge of the area where the building is going to come up.

Licensed fees and other specified fees should be paid through DD at the jurisdictional AEE’s office. Property tax and charges towards issue of Katha must be paid at the office of Assistant Revenue Officer if the BCC.

The details of the fees must be entered in the acknowledgement form and endorsed while receiving the acknowledgement. The acknowledgement is issued with the seal of the office receiving the application

The acknowledgement will indicate the date on which the site will be inspected by the BCC authorities to process sanction of the building plan. It will also indicate the date by which the plan will be ready for issue.

On the date indicated or thereafter the applicant can receive the sanctioned plan from the office of the AEE concerned. One can also opt to receive it by registered post. Rs. 100 will be charged extra for this service

The office of the AEE will advise the applicant to revise the plan if it is not in order. In case the application for sanction of building is rejected either because of inadequate or incorrect information, or for various other reasons, the fees paid (except license fees) will be refunded through registered post.

The road cutting permission may also be obtained at the time of sanctioning of plan. An application has to be filed separately for this along with the road cutting charges. The application for road cutting permission can also be filed later when the house is nearing completion, and when the service lines for water supply and sewerage, electricity connection etc, are about to be installed.

DOCUMENTS TO BE SUBMITTED ALONG WITH APPLICATION FOR PLAN SANCTION

OBTAINING A BUILDING LICENSE

If you want to put up a building or make some alterations to an existing building, you need to obtain a building license from a competent authority. The authority to be approached will depend on the location of the Property. It could be the Bangalore City Corporation or the City municipal Council. To obtain the building license, you need to make out an application in writing with the plan, all documents, and specified information.

Here is a list of the documents and information you need to furnish:

Title Deed/Possession Certificate: A copy of the title deed or possession certificate of the property, issued by the Bangalore Development Authority (BDA) if the site is a part of the development scheme formed by the BDA, or a part of a private layout.

Property card and latest assessment book extract: A copy of the property card along with the sketch issued by the Department of Survey and Settlement, land records (city survey) and latest assessment book extract issued by the BCC

Tax receipt: The receipt for having paid up-to-date property tax to the BCC must be enclosed.

Previously sanctioned Plan: An attested copy of the previously sanctioned plan is to be enclosed if the application is for addition/alteration/modification to an existing building

Key Plan: A key plan drawn to a scale of not less than 1:10, 000 showing boundary locations of the site with respect to neighbourhood landmarks.

Site Plan: A site plan drawn to a scale of 1:500 for sites of area up to one hectare and 1:100 for sites of area that is more than one hectare should be enclosed.

Building Plan: Building Plan drawn to a scale of not more than 1:100 showing floor plans, sizes of the rooms, ramps, thickness of the walls, ventilation, and other building specifications.

Supervision certificate: a certificate in a specific form undertaking the supervision of the work by a registered architect, engineer, or supervisor should be attached.

APARTMENTS

Though apartments have become very popular, there are certain restrictions on sanctions. The village panchayat is permitted to sanction the construction of the buildings with ground and first floor. The City Municipal Councils may approve the building of ground and three floors, likewise the Bangalore City Corporation, has also some restrictions and beyond certain limits, Town Planning authority has to approve the construction. High rise building need no objection certificate from Airport authorities, Fire Force, Telecom Department, BESCOM, BWSSB. One should also ensure that apartments are constructed as per the approved plans with prescribed setbacks and FAR.

Many builders have tie-up arrangement with financial institutions, which approve the projects after verifying the title of the owner and approved plans. It would be easy to avail of housing finance for purchase of such approved projects. The financial institutions will verify only repaying capacity of the borrower as they have already scrutinized the title and other related documents.

DOCUMENTS REQUIRED TO PURCHASE FLATS ARE AS FOLLOWS:

1. Parent Deed/Origin of Property
2. Document to trace the title of property for the minimum period 43 years
3. Flow of Title (In case of Revenue Property)
       a. Death Certificate
       b. Family Tree
       c. Partition Deed
       d. RTC records
       e. Conversion Order / Conversion charges paid receipt
       f. Relevant mutation records
       g. I.H.C
       h. Other relevant documents
4. Clearance certificate (In case of high rise building) from the below mentioned departments:
       a. Fire Force
       b. Airport Authority
       c. BWSSB
       d. BESCOM
       e. Telecom Department
5. Khata Certificate
6. E.C for the relevant period till date
7. Khata Extract
8. Latest tax paid receipt
9. Sanctioned building plan from the competent authority
10. Commencement certificate
11. Completion certificate
12. Survey map/Village map / Tipny extract / Akar Bandh / Phodi Extract
13. Nil Tenancy certificate
14. Nil acquisition certificate from the competent authority
15. Endorsement from Tahsildar confirming that there is no case pending under Sec.79(a) and (b) of KLR Act.
16. I.L & R.R extracts.
17. If there is any execution of Power of Attorney, the validity of Power of attorney to be verified.
18. In case of Joint Development agreement, the copy of J Development agreement
19. In case of any Partnership firm/Company coming into picture, below mentioned documents are required:
        A. In case of Partnership firm
        a. Partnership Deed
        b. Acknowledgement of registration of firm
        c. Authorisation letter

    B. In case of Private Limited Company
    a. Memorandum and articles of Association
    b. Certificate of Incorporation
    c. Relevant Resolutions

In addition to the above:

1. Copy of sale agreement is required
2. Specification of building to be verified i.e. the difference between, Carpet
area, Super built up area and Floor area Ratio
3. Agreement to sell should contain clauses fair to both parties
4. Sale deed to be executed should contain undivided share of he land, building, details of flat, car parking and common amenities

The document required for purchase of an apartment differs from that of the independent house. The requirement of documents may vary depending upon the nature of the property. It is always advisable to seek the help of an experienced advocate before booking an apartment.

Paying property taxes was a cumbersome task for Bangaloreans as the system was plagued with confusion. To make things easier, the Bangalore City Corporation (BCC) had rolled out a transparent, simple and hassle free system of paying property taxes through voluntary disclosure in the year 2000. This year, the BCC has made paying tax easier. It has opened citizen service centers where you can pay tax through cash or Cheque and get a receipt on the spot.

The system has come as a respite for residents who have found it user-friendly and among the best that exists in municipalities. The voluntary disclosure scheme enables residents to calculate the tax on their own, going by the rates prescribed by the BCC.

The BCC has introduced a booklet about the scheme that gives details on calculating tax, the nitty gritties, and frequently answered question. For, the purpose of collecting tax on the self-assessment scheme (SA) basis, the city is divided into 16 property zones based on the market values. The rate of tax for land and buildings is fixed accordingly.

How it works

As per the Karnataka Municipal Corporation Act, the basis of calculating tax under the SAS is Annual Ratable Value (ARV. Here, the tax is payable is calculated on the basis of the rent received by the property owner annually and the parameters include location, cost of construction at current market rates, status of occupation, status of use, and depreciation. Probable gross rent of a property is taken into account and 20 percent of the amount is calculated for domestic buildings and 25 percent for commercial establishments as tax.

If you are already RR ………

If you are an existing property tax payer on RR module you can pay your property tax at the following offices in which the citizen service centers are located:

• BCC Head Office: N R Square, Phone: 22975500
• Office of the Deputy Commissioner (West), Bashyam Park, Malleshwaram, Phone: 22975600
• Office of the Deputy Commissioner (South), 9th Cross, 9th Main, Jayanagar 2nd Block, Phone: 22975700
• Office of the Deputy Commissioner (East), Public Utility Building, M G Road, Phone:22975800
• Offices of all Assistant Revenue Officers.

The citizen centers are open on all days except Sundays and national holidays between 10:30 am to 5:30 pm

If you are not on RR ……

You can get acquainted with the RR structure through the booklet provided by the BCC. The booklets are available at all the citizen service centers and the divisional offices of the BCC.

1. What is BMRDA

BMRDA is an Act to provide for the establishment of an authority for the purpose of planning, co-ordinating and supervising the proper and orderly development of the areas within the Bangalore Metropolitan Region and to provide for matters connected therewith.

2. What are the Powers and Functions of BMRDA?

1. To carry out a survey of the Bangalore Metropolitan Region and prepare reports on the surveys so carried out.
2. To prepare a structure plan for the development of the Bangalore Metropolitan Region.
3. To cause to be carried out such work as are contemplated in the structure plan.
4. To formulate as many schemes as are necessary for implementing the structure plan of the Bangalore Metropolitan Region.
5. To secure and co-ordinate execution of the town planning scheme and the development of the Bangalore Metropolitan Region in accordance with the said schemes.
6. To raise finance for any project or scheme for the development of the Bangalore Metropolitan Region and to extend assistance to total authorities in the Region for the execution of such project or scheme.
7. To do such others acts and things as may be entrusted by the Government or as may be necessary for, or incidental or conductive to, any matters, which are necessary for furtherance of the objects for which, the Authority is constituted.
8. To entrust to any local authority the work of execution of any development plan or town planning scheme.
9. To Co-ordinate the activities of the Bangalore Development Authority, the Corporation of the city of Bangalore, the Bangalore Water Supply and Sewerage Board, the Karnataka Slum Clearance Board, the Karnataka Electricity Board, the Karnataka Industrial Areas Development Board, the Karnataka State Road Transport Corporation and such other bodies as are connected with development activities in the Bangalore Metropolitan Region.

1. Notwithstanding anything contained in any law for the time being in force, except with the previous permissions of the Authority. No authority or person shall undertake any development within the Bangalore Metropolitan Region of the types as the Authority may from time to time specify, by notification published in the official Gazette.
2. No local authority shall grant permission for any development referred to in sub-section (1), within the Bangalore Metropolitan Region, unless the Authority has granted permission for such development.
3. Any authority or person desiring to undertake development referred to in sub-section (1) shall apply in writing to the Authority for permission to undertake such development.
4. The Authority shall, after making such inquiry as it deems necessary grant such permission without any conditions or with such conditions as it may deem fit to impose or refuse to grant such permissions.
5. Any authority or person aggrieved by the decision of the Authority under sub-section (4) may, within thirty days from the date of the decision appeal against such decision to the State Government, whose decision thereon shall be final: Provide that, where the aggrieved authority submitting such appeal is under the administrative control of the Central Government, the appeal shall be decided by the State Government, after consultation with the Central Government.
6. In case any person or authority does any thing contrary to the decision given under sub-section (4) as modified in sub-section (5) the Authority shall have power to pull down, demolish or remove any development undertaken contrary to such decision and recover the cost of such pulling down, demolition or removal from the person or authority concerned.

Your developer will overwhelm you with dreamoffers, colourful literature, attractive prices and incredible incentives. With persuasive charm he will convince you that buying his plot is the bargain of your lifetime, a chance not to be missed. But be on your guard, Make absolutely sure that your developer has the approval of the appropriate authorites. Unapproved Layouts could cause you problems. You could land in difficulties with the Authorities as your layout does not fulfill legal requirements of the Land Revenue Act, the Land Reforms Act, The Town and Country Planning Act and BMRDA Act. You will also be liable to pay various statutory fees and levies, which have not been paid by the developer. Unauthorised layouts are often without basic amenities and do not conform to Town planning requirements. They may lack proper roads and open spaces, which should be about 50% of the total area, as, stipulated by the law. Such layouts will prove to be inconvenient in the long run and have little resale value.

The authorities to approve layouts are:

1. The Bangalore Metropolitan Region Development Authority (BMRDA)-for Bangalore Urban and Rural Districts and Malur Taluk of Kolar District excluding the areas covered by BDA, BIAAPA and other LPA’s.
2. The Bangalore International Airport Area Planning Authority (BIAAPA)-for its local planning area, which includes the area of, proposed new airport and its environs.
3. The Ramanagaram-Channapatna Urban Development Authority (RCUDA)-for Ramanagaram-Channapatna local planning area.
4. Nelamangala Local Planning Authority –For Nelamangala Town & its environs.
5. Magadi Local Planning Authority-For Magadi Town & Its environs.
6. Kanakapura Local Planning Authority-LPA of Kanakapura.
7. Anekal Local Planning Authority-LPA of Anekal.
8. Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA).
   For more Information, contact the concerned Authorities or officers of BMRDA on 2263479 or 2263528 fax:2263431.

4. Directions by the Authority.

1. The Authority may, in order to carry out the development plans and schemes formulated under section 9 or any town planning scheme may issue direction to the Bangalore Development Authority, Bangalore Water Supply and Sewerage Board, Karnataka Power Transmission Corporation and such other bodies as are connected with developmental activities in the Bangalore Metropolitan Region. The directions issued by the Bangalore Development Authority under section 53 of the Bangalore Development Authority Act 1976 (Karnataka Act 12 to 1976).
2. Notwithstanding anything contained in any other law for the time being in force, every such direction shall be compiled with y the body to whom it is issued. On failure, it shall be competent for the Authority to take necessary action to carry out directions issued under sub-section (1) and recover expenses, if any, incurred therefore from the body concerned.
3. Any dispute which arises between the Authority and the Boards or other bodies referred to in sub-section (1) in respect of the directions issued to them shall be determined by the State Government whose decision shall be final.

5. Penalty for breach of the provisions of the Act.

Whoever contravenes any of the provisions of this Act or of any rule, regulation, or byelaw or scheme made or sanctioned thereunder shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to ten thousand rupees or with both and in the case of continuing contravention, with additional imprisonment for a term which may extend to one month or with fine which may extend to five hundred rupees or with both for each day after the first during which the contravention continues.

6. Offences by companies.

1. If the person committing an offence under this act is a company, every person who at the time the offence was committed was in charge of and responsible to the company for the conduct of its business as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly; Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company director, manager, secretary or other officer shall be liable to be proceeded against and punished accordingly.

7. Act to over-ride other laws.

The provision of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

......................................................................................................................................... Back to Top

Fees & Levies
Government of Karnataka has approved the collection
Of following Fees & Levies.

FEE FOR APPROVAL OF LAYOUT PLAN

1.RESIDENTIAL      Rs.10/- Per Square Meter.
2.INDUSTRIAL        Rs.10/- Per Square Meter.
3.COMMERCIAL     Rs.20/- Per Square Meter.
4.OTHERS               Rs.5/- Per Square Meter.

FEE FOR APPROVAL OF BUILDING PLAN

1.RESIDENTIAL      Rs.2/- Per Square Meter.
2.INDUSTRIAL        Rs.2/- Per Square Meter.
3.COMMERCIAL     Rs.5/- Per Square Meter.
4.OTHERS               Rs.1/- Per Square Meter.

Local Planning Areas

Feng Shui is both an Art and a Science. In Fengshui emphasis is given to the five elements viz., water, wood, fire, earth and metal. In any home these elements exist and the art of assigning and aligning the layout and creating a balance is the basic focus in Fengshui.

Feng Shui and Vaasthu are generating lot of curiosity and interest in the minds of a common man; with this we have scores of people offering suggestion and remedies on the basis of books or self learning on either Vaasthu or Fengshui.

The situation has reached such alarming levels that we have “single window” services like “Vaasthu, Gemology, astrology, Numerology all packed together and the person who is looking for some advise to align his home in accordance with Vaasthu or Fengshui lands up completely confused from people who offer such remedies and in the end when things don’t look too prospective after following some general advise the whole Art and Science of Vaasthu and Fengshui gets branded as non functional.

One has to view Vaasthu or Fengshui as a tool to harmonise and align our place of dwelling and the basic requirements would be positioning of doors, windows, furniture, cots and stove. Apart from this the levels of the land, ventilation, and water source have to be in order so right place, the approach and the tuning is the essential requirement of a good practitioner and unless this is done, one cannot experience any positive changes.

Releasing Positive Energy

Fengshui considers the home as a holistic environment whereas real estate apprising views a home or property in monetary terms, and changes are made to improve its market value. Fengshui searches for ways to enhance the flow of Chi and release energy blockages that may manifest in corresponding life areas. Though seemingly very different disciplines, Fengshui can help maintain the optimum value of real estate holding or even increase its worth. With proper adaption of feng shui in housing schemes. It could be well utilized in town planning too. Singapore which has been modeled on the basis of the Fengshui texts known as the Secrets of the 5 dragons which speaks about the water resources, mountains and movement of vehicular traffic contributing to the overall prosperity of the country is a classic example of excellent town planning and design.

Buildings are dynamic entities that can either nurture transform your life or undermine and weaken it. When the life-enriching energy of Chi flows through your dwelling, you are supported in your quest for a prosperous and fulfilling life.

Let us remember the basic fact that be it Vaasthu or Fengshui, it can only harmonise your place of work or dwelling and for sure improve the quality of life. Most often this is mistaken to be a remedy for changing destiny of something, which can control birth and death. If only Vaasthu or Fengshui could offer immunity to those laws of Nature than all of us would live for eternity. Vaasthu or Fengshui is an excellent tool to enhance our skills and ability of think better work better and it is impossible to locate a 100 percent Vasthu perfect or Fengshui perfect dwelling.

The traditional method for an ideal home was to achieve the famous Chinese Green dragon-white Tiger design concept. This was nothing but achieving levels around the house by having the back higher than the front, left of the house higher than the right. It was also known as the armchair design, which was said to protect the house in the middle from nature’s fury and make the house stable and strong.

In modern city life, it would be difficult to achieve such levels around our home and we have no control on the shape and dimension of the neighbouring homes and buildings. In case you wish to adapt this method and you realize that the back wall of the house is shorter with regard to the front, you could go about planting trees or even use lights mounted on poles which illuminate and throw light upwards.

A house is much more than a physical structure of wood, concrete, shingles and siding. It reflects who you are and who you hope to be. Economics defines market value, as the most probable price a property will bring on the open market. On a practical level, you are concerned with protecting your home as an investment. You paint, repair, re-roof, and work hard to preserve its value. When it comes time to sell, you want to receive the highest possible price. What really constitutes value in your property? Could it be the flow of Chi (movement of energy in Chinese is termed as CHI) a home with an abundance of positive flowing chi attracts people and potential buyers like a magnet. This vitality is what constitutes the greatest value in real estate. Viewing homes through the eyes of both a real estate appraiser and a Feng shui practitioner, I have consistently seen a relationship between value and good feng shui. Homes that have good chi are homes that often command the highest price in the neighbourhood. Those with a certain stagnant blocked energy are the homes that sit on the market the longest, often selling for less than the asking price.

Value Addition

In countries like Taiwan and Malaysia, Fengshui services are quite often adapted to assess the property before putting it up for sale to ensure a value addition to the prospective buyers. Countries like USA and Canada have adapted Feng Shui to enhance the value of the real estate and the buyers prefer a property approved by a Fengshui consultant. The appraisal institute of Canada has included Fengshui services in its scope of work to enable property valuers and appraisers to offer a single window service. The institute says, “Modern day home builders, decorators, restaurateurs and such mighty international corporations as the Chase Manhattan Bank, Citibank, and Morgan Guaranty Trust in Hong Kong and Taiwan are not above calling on experts in this science for help. One could follow certain basic guidelines for Fengshui and value:

1. Explore the neighbourhood and see if the property I having a harmonious design and it should have a sense of beauty with its surroundings. Check for High-tension wires, environmental pollution, and sewage drains etc.
2. The first impression is usually determined by the front door; it could either welcome you or drive you away. Remember all opportunities enter through the main door and the door should exude a feeling of pride
3. How does the house feel or smell? Is the space light and airy or dark and heavy?
4. Is your house located at a cul-de-sac? This would block the flow of Chi and has no outlet.
5. Look for T-junctions cross road locations
6. Walk around the house and inspect the foundation. This will be the foundation of your life experiences. Ensure it is strong and solid with no cracks. From Fengshui perspective symmetrical shapes are best and avoid houses with many offsets and angles which indicate fragmentation
7. A house with a detached Garage is considered best as it enables Chi to circulate freely and swirl around the house
8. Check the ceiling for watermarks and ensure windows are in plenty
9. Look out for bathrooms and kitchens in the center of the house, which is considered inauspicious.

One could enhance the Fengshui for better value or harmony by following certain simple guidelines. In case you have a home or feel like buying a building even if it is violating certain basic guidelines mentioned above, one could adapt and bring about certain changes through Fengshui although it may not be total solution offering perfect harmony and balance. Nevertheless such homes do show a remarkable change when corrected through Fengshui.

......................................................................................................................................... Back to Top

Road Factor

The other important factor is the road. Road is said to conduct “CHI” energy through environment and traffic patterns, which could affect the nature of the surroundings. Living close to highways and busy roads are not considered good as they have heavy vehicular movement and the CHI travels fast. Both is Vaasthu and in Fengshui buildings located at the end of the road or at a T-junction are considered extremely bad, as the energy putting up a nice green hedge of healthy plants would act as a shield. Other alternatives would be relocating the door or putting up porch and the most common method would be to put up mirrors.

Building situated close to flyovers also cause immense inconvenience to the occupants. It is said that the ill effect of flyovers is more for those who live at the eye level of the flyover or underneath it. If the flyover is bending and appearing to cut through the building it is considered very harmful and one could think of using dark glasses on the windowpanes, which would shield the home from the harmful sharp bends. If your home is situated beneath a overpowering and a very simple suggestion would be to put up lights on the four corners of the house focused towards the under surface of the flyover to symbolically lift the flyover. Nevertheless this is not a good home, as the residents would feel oppressed and drained.

Fengshui is not just organizing the interiors or putting up enhancers in place, it is more about practicalities and adjusting ourselves to the environment and surroundings. To live in a place which could be transformed and made supportive to the occupants is the key to good Fengshui.

Buildings are dynamic entities that can either nurture or transform your life or undermine and weaken it. When the life-enriching energy of Chi flows through your dwelling, you are supported in your quest for a prosperous and fulfilling life.