MLM / Chain Money
Odisha court directs auction of chit fund firm properties

The court in Cuttack asked the concerned officials of the state government to confiscate and sell the seized properties of the chit fund company

 

A court in Odisha on Monday directed the state government to sell the attached properties of chit fund firm Safex Infra India through public auction and distribute the sale proceeds among the depositors equitably.
 
The court in Cuttack asked the concerned officials of the state government to confiscate and sell the seized properties of the chit fund company.
 
In its order, the court told the government to confiscate about 14 acres of land and bank deposits over Rs.5 lakh and distribute them among the depositors.
 
The company was operating from Berhampur in Ganjam district.
 
The Economic Offences Wing (EOW) of the Crime Branch in January this year sought permission from the finance department for liquidation of the assets of Safex Infra for refund of money to duped investors as per the provisions of the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011.
 
The Crime Branch raided offices of the chit fund company in Berhampur, Chhatrapur and Bhubaneswar in 2012 following allegations by depositors that the firm had cheated them of around Rs.10 crore on the promise of high returns.
 
Police then arrested six company officials for allegedly cheating people in the state.
 

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SC suspends HC order for details of withdrawn criminal cases
The Supreme Court Monday put on hold the Allahabad High Court order asking the Uttar Pradesh government to disclose in how many criminal cases it has withdrawn prosecution against an accused even though the trial is pending against them.
 
A vacation bench of Justice A.K. Sikri and Justice Uday Umesh Lalit put on hold the high court order and issued notice to Ram Naresh Yadav (not the Madhya Pradesh governor) and another person.
 
The high court order came during the hearing on Yadav's plea that either the case against him for breach of trust as ordered by the state government be withdrawn or the trial expedited. 
 
The apex court observed that the high court order "may be to send message to subordinate court not to accept the withdrawal of prosecution report (by the state) routinely". Uttar Pradesh's Advocate General Vijay Bahadur Singh assailed the high court order that said in a large number of cases decisions are being taken in a "rampant discreet manner and the cases are being withdrawn against a particular class of persons throughout the state".
 
The court also agreed that "digging" all the cases of past two years where the government had withdrawn prosecution was a "mammoth" task as Singh argued that the high court had passed an order when there were no pleadings before it to that effect. 
 
The advocate general, assisted by Ravi P. Mehrotra and S. A. Murtaza, told the apex court that the high court took an "interesting" stand and "made an incorrect observation that cases against a class of persons were being withdrawn under Section 321 of Cr.PC when the same was not even pleaded in the petition before it" by Yadav. 
 
As per Section 321 of the Criminal Procedure Code in respect of Uttar Pradesh, "the public prosecutor or assistant public prosecutor on the written permission of the state government to that effect, with the consent of the court at any time before the judgment is pronounced, withdraw from the prosecution of any person either generally or in respect of any one or more of the offences for which he is tried". 
 
While dealing with Yadav's petition, the high court had said that the decision to withdraw the case showed "a clear cut prima facie partisan stand in the favour of the accused and that too taking into confidence the complainant".
 
The high court had directed the Uttar Pradesh government to file an affidavit placing on record "as to in how many matters, in the past two years, such decisions have been taken and what are the consideration on which such decisions have been taken". 

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COMMENTS

manoharlalsharma

2 years ago

SC suspends HC order for details of withdrawn criminal cases/ it it acknowledge cases which r admitted and capt aside (MARITLESS)r to be eliminated than it's O.K 4 A Common man./ A Case of GROSS CONCPIRACY to grab benefits from additional F.S.I./ 2.5 being awarded as redevelopment plan of the society. Epic started since 1996 with the taking over possession of the residential flat by respective individuals from developers.

Honorable Shree Devendra Dhadvnis ;
(A) Assassination of democracy by abetting basic membership of 316 out of 454 and then ruling by a minority MC with poor maintenance under following dictates & without proper elections till date.
(1) ‘BONDING TO VOTE ONLY FOR N.C.P.’
(2) Priority to admit only to ‘MAHARASRIANS’’ as members and
(3) Instituted for extort cash premium in the name of ‘DADAR BHAJIPALA VYAPARI MITRA MANDLE’S’ recommendation letter to favor membership of Society. (Attached-A/page-1)

(B) As per allotment letter ‘CIDCO ; MM ; MKTG ; / 505 dated 21/12/1992’ addressed as Shri Ganesh Co-Operative Housing Society, and C/O Postal address as Dadar vegetable Merchants Mitra Mandle, Krantisingh Nana patil Mandle, DADAR ,Bombay-28 becomes immediate after getting Occupancy latter from CIDCO addressee becomes by law of the society (Attached-B/ Pages 2)
(C) We would like to bring your notice as Administrative lapses or Nexus between CIDCO & Promoters about a PIL/474/1996 filled by one of the contestant for challenged primary membership of the society based on letter issued from the State Government No-1093-3112-14C dated 6th /February/1993 to the registrars to Register only five societies as to provide residential facility for shifting members of A.P.M.C. and being reply filled by CIDCO to Mumbai HC dated ; 19/November/1996 as Exhibit-E page No-5, and Page No-6, as detailed list of allotted plots to APMC admits at No-6 as Shri Ganesh Co-Operative Housing Society a question to said allotment of 1992 as a ‘General Category’ plot how can be implanted as APMC in the year 1993? (Attached Extracted-C/2 Pages)



(D) Evan after having fully acknowledge CIDCO do not corrected itself and replied following two contradictory R.T.I. replies. (A) Dated 03/11/2009 No. CIDCO/M(TS/EO (I)/496 &
(B) Dated 30/10/2013 No. CIDCO/EMS/RTI/Gen/2013/1151

(Read as R.T.I. reply - The transfer of ‘RIGHT IN THE CAPITAL PROPERTY’ is freed from A.P.M.C. category and no need to be the member of A.P.M.C., only to bring N.O.C. from the concerned housing Society Committee , but category of the plot is not changed.)

(E) The story do not stop here the story further goes to Joint Registrars/CBD in the year of 1999 on the basis of audit report found enormous discrepancies order issued to appointment of an Administrator and society committee approaches to turn down the order to then Co-Operative minister (Babashaheb Kepekarjee) then again we admitted WP-4481/2001 at HC/Mumbai and on the basis of the order State Authorities issued a final order No. RVA 2702/CR-208/15-C, Date-25/08/2003) but abusing State Authorities society committee filled a afresh meritless WP-8508/2003 as to get order ‘STAY’ and acclaims , the society as to granted of a stay from HC but business of issuing of SOCIETY NO OBJACTION is going on is a clear COURT CONTEMPT.

(F) Masterminded by only one of society Promoter staked and attitude like LAND-LORD and stays in the Society itself with controlling as Chairperson and detecting to the Managing Committee as bonded labor and society made like a labor-camp.

We therefore (316 families) requesting your urgent intervention in to the serious matter as it intend to restrain the ‘State Government Authorities’ to Audit & Investigate and to continue uninterrupted Malpractices since 1996 till-date.

Bought a home? Great! But don’t forget to deduct TDS
The celebration that follows a home purchase of over Rs50 lakh could turn into a nightmare if you forgot to deduct or deposit the TDS with the I-T department within specified time-frame
 
Buying a house is everyone’s dream. In India, in particular, one generally ends up investing all past savings as well as a substantial portion of future earnings when a new home is bought. This is particularly true in large cities like Mumbai where even a one bed room flat could cost more than a crore. The celebration that follows a home purchase could turn into a nightmare if you don’t take care of a small section of the Income-tax Act (ITA)!
 
Without getting into the controversy over whether the section 194IA should be there in the Income-Tax Act or not, let us look at how the section operates and how the common man (because he is the only one who is seriously affected by this) can ensure that he is not on the wrong side of the law. Section 194IA is part of the various TDS sections that cast a huge responsibility on tax deductors. I have always maintained that a tax deductor is doing social service. He is collecting taxes on behalf of the government.
 
Coming to the issue of TDS, first the basics:
  1. The section applies to any person buying an immovable property in India. Such a person can be an individual or a company of a trust or a partnership firm or any other entity.
  2. The buyer can be a non resident or a resident (for tax purposes) in India
  3. The seller has to be a Resident. It may be noted that if the seller is a non-resident, then in any case, the buyer was always expected to deduct tax at source as per section 195 of the ITA.
  4. The section applies only when the sale consideration is Rs50 lakh or more.
  5. The buyer has to deduct tax @1% of the purchase price. This is to be done at the time of credit to the account of the seller or at the time of actual payment whichever is earlier
  6. The tax deducted has to be paid to the government of India within seven days from the end of the month in which it is deducted.
  7. While deducting tax, the service tax element, if any, that is charged by the builder/developer is not to be taken into consideration. For example, if the builder/developer sends a demand notice for say, Rs1 lakh plus service tax Rs3,122 (don’t ask me how that is calculated!) then, the buyer has to deduct tax @1% from Rs1 lakh and not Rs103,122.

How to pay the TDS?

  1. Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  2. You will get various options. Select the following:
  3. The system will open the Form 26QB on your computer. 
  4. Fill up the form given there. Be careful that you don’t make mistakes because if you try to edit it later, many of the fields have to be filled up all over again.
  5. At the top of the form, you are asked whether the tax is “(0020) Income-tax on Companies (Corporation Tax)” or “(0021) Income-tax (other than Companies)”. Generally, the 2nd option has to be selected.
  6. There are various fields that have to be filled up including details of the buyer, seller and the property. Most of the answers will remain same everytime you are paying the TDS from future instalments paid to the builder. So, it would be very helpful if you keep the screenshots saved in your computer. That would be save a lot of time next time you are filling up the same form and also, it will ensure that you keep the data same every time.
  7. At the end of the form, you will be asked:
    Mode of Payment :
    e-payment immediately (through net banking facility) or 
    e-tax payment on subsequent date (e-payment of taxes by visiting any of the Bank branches)
    Depending on your convenience, you can select the option. If you select the second option, you can make a e-payment subsequently also instead of going physically to a bank.
  8. If you decide to make a payment subsequently (2nd option) then save the Acknowledgement that gets generated. Here, please note that while the e-form seems to suggest that you can pay the tax at a bank physically, in the Rules, it is mentioned that only e-payment can be made. It would therefore be advisable to make e-payment of the tax through net banking.
  9. Based on the acknowledgement, pay the tax to the bank – either physically or electronically
Having paid the tax to the Government, your next duty is to issue a TDS certificate to the seller. This has to be in Form 16B. The said TDS certificate is to be issued to the seller within 15 days from the due date for payment of tax. Thus, for example, if the tax is deducted on 10 May 2015, the due date for payment of TDS to the government is 7 June 2015. And the due date for issuing the TDS certificate is 22 June, 2015. 
 

How to generate Form 16B?

  1. Go to www.incometaxindiaefiling.gov.in (which is the site through which you would you’re your tax return electronically). You will need your login details (the username is always your PAN). After logging in, view your Form 26AS.
  2. In the Form 26AS, in Part F, the system will give details of the TDS paid. An acknowledgement number will also be given there. Note down that number.
  3. Go to https://www.tdscpc.gov.in/app/tap/download16b.xhtml
  4. This is the website called TRACES. This also needs a separate login name and password. You will have to first create the login ID.
  5. Fill the AY, the Acknowledgement Number and PAN of the seller.
  6. Once you click “Proceed” it will generate a request for form 16B
  7.  After a couple of days, please log in again on the same TRACES site and check in the Downloads section. Generally, within a day or two, the system will generate the TDS certificate and it will appear there in the Download section.
  8. Please remember that there is a time limit for issuing the TDS certificate to the seller. So, check regularly whether the certificate has been generated and once it is, please download it immediately, print it, sign it and send it to the seller with a covering letter. Please keep proof of the receipt of the certificate by the seller in your file.
In case of all other TDS sections, the deductor also needs to file quarterly e-TDS statements (or returns). Fortunately, in case of section 194IA, this requirement is done away with. So, if you have paid the tax and issued the TDS certificate, you have done your duty. Nothing further remains to be done. If there are delays in payment of tax or in issuing the TDS certificate, then it is possible that you will get notices subsequently, for penalty for the defaults. You have no choice but to make those payments. Who said social service is not taxing?
 
(Ameet N Patel is a chartered accountant. Mr Patel, a rank holder at the Inter and Final CA examinations, is the ex-president of the Bombay Chartered Accountants' Society (BCAS), a voluntary body of Chartered Accountants with more than 8,000 members. Mr Patel has co-authored two publications published by the BCAS.)
 

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COMMENTS

vswami

6 months ago

@ Manish Verma
OFFHAND

To instantly correct the readers' impression, wish to point out that there are any number of Posts / independent viewpoints, precisely covering the same doubts/areas of relevance, shared, repeatedly so, on popular websites; for instance, of 'Citizen- matters' and 'Praja.in'. To save self from any further hassle, may suggest to seek and take assistance of any well-informed pro-activists, or duly equipped professional adviser infield practice, who is believed to have been keen on and kept himself updated, so as to enlighten in proper light and render useful assistance.
courtesy

Manish Verma

6 months ago

I had bought a an under construction property greater than 60L. I had taken a loan of 50L from SBI. Builder had given two agreement 1.Construction Agreement and 2. Sale Agreement.
Sale agreement is of around 45L . Should I need to pay TDS for 50L or 60L or I do not have to pay anything...

I googled it but was not able to find anything which clear it.

Can you please help me.

Nikhil

8 months ago

I have purchased a flat in Thane.Our builder himself has paid the TDS and has given me the receipt.
Do i require 26qb form to be filled or builder would be having some system.
Kindly guide me for the above mentioned query.
Thanks in advance

RS

10 months ago

What happens if buyer is not aware of this and didn't deduct the Tax and make full payment to builder. Can buyer request builder to deposit the Tax on his behalf?
Or buyer will ask for refund from builder to the amount equivalent to TDS and then deposit the same?

What are buyer options in this scenario?

RS

10 months ago

What happens if buyer is not aware of this and didn't deduct the Tax and make full payment to builder. Can buyer request builder to deposit the Tax on his behalf? Or buyer will ask for refund from builder of amount equivalent to TDS pending and then deposit TDS? What are buyer options in this scenario?

Alok Kumar

1 year ago

What happens if buyer is not aware of this and didn't deduct the Tax and make full payment to builder. Can buyer request builder to deposit the Tax on his behalf? What are buyer options in this scenario

vswami

2 years ago

An Add-on (well-meaning AND - intended): With no intent to necessarily contradict anyone else’s viewpoints- call it information or advise, or by any other name, - should so wish and care to, the concerned ones having vested interests, may usefully look up the detailed analytical study of the implications of section 194 IA, and the not-so-obvious lacunae – HERE
http://taxguru.in/income-tax/section-194... And
http://taxguru.in/income-tax/section-194...
See more at: http://taxguru.in/income-tax/law-and-vs-...#sthash.rhHeSymg.dpuf
As may be noted, those are not simply confined to what one believes to be clearly borne out by the section; more so, the impression likely to be carried away with on a superficial reading of that section; particularly, without reading and understanding the entire scheme of things as embodied also in the other closely related-, inter-connected provisions of the Act and the rules.
NOTE: Enough , more than Enough, for the timbeing; Feedback input herein, as volunteered out of sheer compassion and empathy,ends here.

Deepak Suryawanshi

2 years ago

what r the benefits available to the seller under this tds process.. can he claim any refund??

REPLY

Ameet Patel

In Reply to Deepak Suryawanshi 2 years ago

Please see my reply to Pratik Mehta.

vswami

2 years ago

OFFHAND
The learned CA, in canvassing his 'advise',- as indicated in/implied from the picture alongside, -seems to have had in mind a 'house' exclusively and independently built / to be owned. Be that as it may, if it were a 'flat' or 'apartment', there could be different considerations coming into play.
Anyone truly curious or frightfully itching to know more, and do some intelligent 'thinking' but independently, for own enlightenment, may usefully look up the published write-ups in public domain (accessible through Google search), pinpointing the not-so-obvious lacunae in section 194 IA.
Any possible view, to counter, if well- and sound- reasoned, is welcome (-invitation to do so has been pending for long) to be shared.

REPLY

Ameet Patel

In Reply to vswami 2 years ago

Sorry to disappoint you but I had no intention of giving any advice in the article. The article is supposed to be for information. In any case, whether you are constructing an "exclusive house" or buying a flat in an under construction (or even ready made) building, the same section would apply and the same process will have to be followed.

Pratik Mehta null

2 years ago

very nice article, but it would be more helpful if the same is written on the sellers side also as to what they should do once the tds is deducted and what steps they need to take in concluding the deal

REPLY

Ameet Patel

In Reply to Pratik Mehta null 2 years ago

Thanks for your suggestion. Will keep that in mind next time. For the seller, the TDS is like any other TDS. The seller will need to compute his total income for the year (which would include the capital gains from the sale of the house) and then compute the total tax liability on his total income. From that, he can reduce the total TDS. The balance has to be paid by him by way of advance tax. Please note that the TDS is only 1% whereas the actual tax liability could be much higher. Hope this helps

Pratik Mehta null

In Reply to Ameet Patel 2 years ago

thank you for the reply really appreciate it.
does one need a c.a. to file the return or any individual can also do it.

Ameet Patel

In Reply to Pratik Mehta null 2 years ago

That's a matter of one's choice and capabilities. Based on my experience, I feel that the tax computation and tax return forms should not be prepared / filled up someone who does not know the tax law. I am not trying to solicit more work but just conveying a genuine belief. The repurcussion of even the smallest of mistakes is very severe. So, one should not take a chance with one's tax matters. However, there are two views about this. There are many websites that provide tax return filing service at a nominal rate. The tax department's site also provides a utility that can be freely downloaded. If you have the time, patience and skill to do this on your own, go ahead :-)

R Balakrishnan

2 years ago

Split the deal in to pieces less than 50 lakh- Joint buying by family members- Like the builders used to have houses of <1000 sq feet . This will also be applicable on buying land- Even if under P/A.
Thanks to Moneylife for highlighting this vexing issue.

REPLY

vswami

In Reply to R Balakrishnan 2 years ago

Comment is seen to be incomplete;will you mind, for sake of clarity, to finish !

Ameet Patel

In Reply to R Balakrishnan 2 years ago

Is it as simple as that? How does the family member prove that he/she had the funds to buy his/her share? I would never advise anyone to split the transaction merely to avoid the TDS liability.

Ameet Patel

In Reply to R Balakrishnan 2 years ago

Is it as simple as that? How does the family member prove that he/she had the funds to buy his/her share? I would never advise anyone to split the transaction merely to avoid the TDS liability.

Mihir Ved

2 years ago

Superb article.

Thanks

Aditya G

2 years ago

Good stuff!

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