FAQ's   

Whether the undisclosed income represented by flat/land and machinery, shares, etc., acquired prior to 1.4.1987 is required to be closed at the market value as on 1.4.1987 ?  

No. The value should be as on the date of acquisition of the asset.  

Will there be a time limit under the VDIS, 1997 scheme for the declarant to credit the declared income in the books of accounts and inform the assessing officer ?  

There is no time limit under VDIS, 1997 scheme for crediting the same declared vide section 64.  

In the case of sale of immovable property, if the purchaser declares the ‘black’ portion under the scheme, what will be the position of the seller ? Will the department proceed against him (seller)?  

No.  

If the property is sold subsequently, what will be the cost of acquisition?  

Cost of the acquisition as declared before the Income tax authorities and increased by the amount disclosed under the    scheme in respect of the asset.  

If, as a result of the declaration of the actual value of the property, it exceeds the limit laid down in Chapter XX-C, whether any proceedings will be initiated by appropriate authority ?  

Once the Appropriate Authority issues NOC u/s 269UL (1), his jurisdiction over that transaction ceases. The appropriate authority cannot initiate any further proceedings.  
Source: Circular no. 754, Central Board of Direct Taxes.

The guidance values fixed for land in Bangalore and other urban areas, for registration purpose, would be revised within three months, said the Revenue Minister Ramesh C. Jigajinagi, in the Legislative Assembly on 9 September ’97.

Real Estate Glossary   

Common areas: Areas used for access and maintenance like lobbies, staircases, lift wells, ducts for electrical and air-conditioning, lifts and generator machine rooms.  

Plinth area/Built-up area: Area measured externally of the building. Includes walls and balconies, but excludes common areas.  

Super built-up area: Plinth area + proportionate share of common areas. Common areas are divided and charged in proportion to the size of the apartment.  

Carpet area: Area of usable rooms at any floor level. Plinth area minus area occupied by walls.  


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BUILDING MAINTENANCE CHARGES 


Monthly sum collected from apartment owners. For residential projects this varies from 50ps./sft/month to 1 Re/sft/month. For commercial projects rates range from 75ps./sft/month to Rs 2.50/sft/month. Centrally air-conditioned buildings attract additional charges of up to Rs 2—2.50/sft/month, which is still cheaper than installing one’s own air-conditioner. The smaller the building, higher the maintenance charges. Also the larger the common area and facilities offered, higher the maintenance charges.  

The money thus collected is transferred to the Owners’ Association account. Expenses such as salaries of security staff, landscaping, maintenance of lobbies, lifts, generators and other common amenities are met with this money.  

In a few buildings, a deposit (sinking fund), is collected in addition to the maintenance charges to meet major maintenance expenses (repair of generators, lifts).  

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Poor maintenance causes building collapse   21 SEPT  Many owners’ associations balk at building maintenance charges. This problem was brought into focus when Poonam Chambers, a well-known 20-year old building in Worli, Mumbai, collapsed recently due to poor maintenance (saline water had corroded the steel in the columns and slabs), overloading on the roof and severe tampering with the columns by ignorant occupants.  

A study commissioned by HUDCO arrived at the conclusion that the cost of repairing a building after 20 years will be what it cost to construct it !