The country has a large market of house owners who are in the process of moving up the ladder from smaller to bigger houses in consonance with larger incomes and higher lifestyles. LICHFL would allow an existing individual loan to be transferred to a new consumer while sanctioning a fresh loan for a new larger apartment.
SBI Home Finance has doubled the upper limit for loans to individuals to Rs 50 lakh. The move is part of SBI homes corporate plan to shift their loan portfolio towards individual borrowers who at present account for 71% of its entire loan portfolio. The new loan structure has vaulted SBI Home Finance as a viable housing finance alternative to the high income category.
The Corporation Bank Homes Ltd, the housing finance arm of Corporation Bank, will be starting its operations at Bangalore shortly.
Q. Are any conditions required to be fulfilled if repatriation of sale proceeds
is desired ?
A. Applications for repatriation of sale proceeds are considered provided the
sale takes place after three years from the date of final purchase deed or from
the date of payment of final installment of consideration amount whichever
is later.
Q. What is the procedure for seeking such repatriation ?
A. Applications for necessary permission for remittance of sale proceeds should
be made in form IPI B to the Central Office of Reserve Bank at Mumbai within 90
days of the sale of the property.
Q. Can foreign citizens of Indian origin acquire or dispose off residential
property by way of gift ?
A. Yes. Reserve Bank has granted general permission to foreign citizens of
Indian origin to acquire or dispose off properties up to two houses by way
of gift from or to a relative who may be an Indian citizen or a person of
Indian origin whether resident in India or not, provided gift tax has been paid.
(Commercial Properties: continued in next issue)
Such applications are approved by Reserve Bank provided it is established with a documentary evidence that the original payment towards the application / Earnest Money was made from the NRE account of the concerned NRI or by direct remittance from abroad to the Housing Board.
Authorised dealers should ensure at the time of allowing credit to NRE account that the account holder continues to be non-resident. The amount of interest, if any, paid with the refund may also be credited to NRE Account.
Property tax computation
Monthly rental value (MRV) = Built area of property X rate per sft per month.
Annual rental value (ARV) = MRV X 10 months (the KMC Act allows a 16.66% deduction on the annual value of the building).
Property tax = ARV X 20% (for residential buildings) or ARV X 25% (for non-residential buildings).
Annual Property Tax payable = Property tax X 34% cess (Library cess 6%, Beggary cess 3%, Education cess 10%, and Health cess 15%).
ANNUAL RENTAL VALUE FOR ASSESSMENT OF PROPERTY TAX IN BANGALORE CITY Unit: Per sft per month
| Zone A1 | Zone A | Zone B | Zone C | Zone D | |
| R.C.C. with granite / marble flooring | 2-50 | 2-00 | 1-80 | 1-60 | 1-50 |
| R.C.C. with mosaic flooring | 2-00 | 1-50 | 1-30 | 1-20 | 1-00 |
| R.C.C. with cement flooring | 1-50 | 1-20 | 1-00 | 0-80 | 0-60 |
| Tiled / sheet roof | 0-80 | 0-70 | 0-60 | 0-50 | 0-40 |
Thatched houses / huts-Total property tax: Rs 50/- per sq. per annum with the minimum property tax of Rs 50/- per such house
| Shops / commercial complexes, offices, banks | 12-50 | 8-00 | 6-00 | 4-00 | 3-00 |
Industrial buildings have been classified as :
a) Large scale industries Rs 4-00;
b) Medium scale industriesRs 3-00;
c) Small scale industriesRs 2-00