Personal finance Thursday

Birla Sun Life MF unveils Birla Sun Life Fixed Term Plan-Series CI; UBI partners Nokia, Obopay to launch mobile financial services; Diesel-powered Nissan Micra to hit Indian roads in December 2010

Birla Sun Life MF unveils Birla Sun Life Fixed Term Plan-Series CI

Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series CI, a close-ended growth scheme.

The scheme seeks to generate income by investing in a portfolio of fixed-income securities maturing on or before the duration of the scheme.

The exit load for the scheme is nil. The new issue opens on 25th November and closes on 26th November. The minimum investment amount is Rs5,000.

The scheme is benchmarked against CRISIL Short Term Bond Fund Index. The scheme shall be managed by Kaustubh Gupta.

UBI partners Nokia, Obopay to launch mobile financial services

State-run Union Bank of India has partnered with Nokia and global mobile payment solutions provider Obopay to launch 'Union Bank Money', a service that would provide access to financial services through mobile phones.
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The initiative is meant to empowering people and their businesses, the bank said in a press release.

"Once the roll-out of this service is complete in 12-18 months, Union Bank Money will provide mobile financial services to consumers in urban as well as rural areas," Union Bank of India, chairman and managing director, MV Nair said.

The release said that users could pay bills or top-up their own or families' prepaid SIM cards through the scheme and would also be able to do person-to-person (P2P) transfers, as well as use it at accepting merchant points to make payments for goods and services.

The scheme would allow users to withdraw money from the bank ATMs using their Union Bank Money ATM card across the country as well as through BC cashout (Registered Nokia stores), the release said .

Diesel-powered Nissan Micra to hit Indian roads in December 2010

Nissan Motor India Pvt Ltd has said that the diesel variant of Nissan Micra will hit Indian roads in December 2010. The nationwide sales for the diesel-powered Micra would start from 10th December. The diesel-powered Micra would come with fuel economy of 23.08 kmpl.

The diesel-powered Nissan Micra will be available in two variants of XV and XV (premium). Available with greige interiors, it will be introduced in a range of six colours. The Nissan Micra Diesel will be marketed and sold in India and subsequently will be exported to South Africa next year. The Micra diesel offers intelligent key plus immobilizer, a push-button engine start-stop system and electric foldable mirror.

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GMIAL achieves fin closure to operate Male Int’l airport

Hyderabad: GMR Male International Airport Pvt Ltd (GMIAL), a subsidiary of GMR Infrastructure Ltd (GIL), today said it has achieved financial closure for the project to modernise, expand and operate the Male International Airport, reports PTI.

The total cost of the project, estimated at $511 million, is being funded through a combination of debt and equity in the ratio of 70:30, the company said in a statement.

The debt component of $358 million has been tied up with Axis Bank Ltd, Singapore branch, which is acting as the sole underwriter and mandated lead arranger for the entire debt facility.

The debt has a door-to-door tenure of 12 years with ballooning repayment over seven years commencing from June 2015.

Axis Bank is also acting as a security trustee and facility agent whereas State Bank of India, Maldives branch is acting as account bank for the debt facility.

Meanwhile, the GMR-Maldives Airports Holdings Berhad (MAHB) consortium was awarded the contract in June for the Male Airport for a period of 25 years.

GMIAL is the special purpose vehicle formed in Maldives pursuant to the concession in which the stake of GIL and MAHB is 77% and 23% respectively.

The GMR-MAHB consortium proposed to pay $78 million as upfront fee, 1% of the total profit in the first year (until 2014) and 10% of the profit from 2015 to 2035. It also agreed to pay 15% of fuel trade revenues in the first four years and 27% from 2015 to 2035.

At an official ceremony held today at Hulhule Island, the aerodrome license was handed over by Ibrahim Saleem, chairman of Male Airports Company Ltd, to Kiran Kumar Grandhi, business chairman, airports, GMR Group in the presence of Maldivian president, Mahamod Nasheed and his cabinet ministers.

Starting from today, GMR and MAHB will operate the Male International Airport for 25 years.

Male International Airport is the gateway to the idyllic and enchanting Maldives and is one of the fastest growing airports in the region located on Hulhule Island in the south western tip of India.

The traffic at the Male Airport in the year 2009 stood at 2.6 million passengers with traffic growth in first half of 2010 clocking over 20% on YoY basis.

With Male, the GMR Group has four operational airports. The others being Delhi, Hyderabad and Istanbul.

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Home Truths: Payment of stamp duty and registration

Payment of stamp duty on the purchase of property is a must under the law and there is no avoiding making this payment. Registration, however, is not compulsory, says Vimal Punmiya, a leading property expert

A stamp duty amnesty scheme is under the consideration of the government of Maharashtra and should be announced some time soon, according to Vimal Punmiya, one of the country's leading property experts. Mr Punmiya, who was addressing a seminar on co-operative housing rules, hosted by Moneylife Foundation recently, encouraged people to prepare to take advantage of the scheme and save on otherwise huge penalties for non-payment of stamp duty.

He explained that stamp duty and registration of properties is one of the most vital and complicated issues in everyone's life. Yet, a large section of people were not properly informed about the rules and the process of paying stamp duty or registration. Mr Punmiya pointed out that under the Maharashtra Co-operative Societies Act, registration is not compulsory, but payment of stamp duty is a must.

Here are some of the other aspects on stamp duty and registration that Mr Punmiya dealt with.

When is stamp duty to be paid?
Stamp duty is usually paid at the time of signing of the documents and they are subsequently registered. In case stamp duty is not paid on the day the agreement is formalised, it can be paid on the next working day. However, if the stamp duty is not paid on the next day, the person would have to go for adjudication on a payment of Rs100 and then pay the stamp duty.

Penalty for non-payment of stamp duty
Earlier, the government had the power to slap a penalty up to 10 times the amount of the stamp duty, but that provision has been lifted. Now, an interest of 2% per month is charged on the stamp duty not paid and this cannot be more than 200% of the stamp duty amount due. Under an amnesty scheme the penalty is waived and a token amount is charged instead.

How is stamp duty charged?
If a property was purchased before 4 July 1980, the stamp duty is applicable on the agreement value and not on the market value. For properties purchased after 4 July 1980, the stamp duty is charged on the market value of the property as listed in the ready reckoner of rates published during the relevant period.

Types of agreements
An agreement of sale is executed when a person pays money and takes possession immediately, whereas an agreement for sale is made when a buyer agrees to purchase something and to pay the money within a specified period. Up to 9 December 1985, whatever agreements for sale executed were not liable for stamp duty. However, whenever the landlord or builder conveys the property to the society stamp duty will be applicable. Under agreements of sale, where a buyer has taken possession right away, the buyer is required to pay stamp duty from the beginning. 
 
Stamp duty on exchanged/inherited property
In case of exchange of property, where two transactions take place, stamp duty is applicable on only one property that has a higher value. A property received through inheritance by legal heir/relative is charged a stamp duty on just Rs200. 
 
Stamp duty on property received as gift
If a property is given to relatives as a gift, stamp duty on such property is charged at 2% of the value. Stamp duty is different for properties being rented out, on lease and license, or lease.

Registration of property
Registration of societies is not compulsory. The registration fee is 1% on the market value or Rs30, 000, whichever is lower. However, a bank loan usually is not granted until the society is registered.
 
After buying a property and paying the stamp duty applicable, the buyer can register the purchase within four months of the agreement. Registrations done after this period, that is in the fifth month, are charged a penalty of 2 ½ times the registration fee; in the sixth month the penalty would be five times the registration fee; in the eighth month the penalty would be ten times the registration fee; but in the ninth month there is no penalty.

In general, buyers and sellers should go for registration. However, in case a property was purchased a long time back and the seller is not available, or is not ready to come forward for the registration, the purchaser has right to register the property by making a declaration. 

Pictures of the event.

 

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COMMENTS

Rahul

1 year ago

We gave our land for development , instead of taking cash we decided to keep 1000 Sqft Flat , now society has been registered but its been 5 years we have neither Registered nor paid stamp duty of our Flat Due to Financial problem ..
We ourself live in this flat and paying maintainance and property tax from last 5 years , So what could be the consequences if we unable to Pay stamp duty and Registration...I won't sell this house in future , we will stay here forever .. What problems I could face in case I have to sell my flat in future ? ....kindly advice

[email protected]

Rahul

1 year ago

We gave our land for development , instead of taking cash we decided to keep 1000 Sqft Flat , now society has been registered but its been 5 years we have neither Registered nor paid stamp duty of our Flat Due to Financial problem ..
We ourself live in this flat and paying maintainance and property tax from last 5 years , So what could be the consequences if we unable to Pay stamp duty and Registration...I won't sell this house in future , we will stay here forever .. What problems I could face in case I have to sell my flat in future ? ....kindly advice

[email protected]

SANJAY SINVHAL

4 years ago

I recently wanted to register my Leave & Lic agreement using the Maharashtra Givt portal. However even after online Regn, when I reached the Registrar office along with other party, we were in for a shock. You can't avoid the broker as you need 2 witness to identify you. I wonder when PAN card or other identity proof are compulsary & to be shown in original, why this ancient reqt of 2 witness still stands. This is how touts make money. It is high time that Mah Gvt relook at such rules & do away with Witness when doing registration etc. Then only e-Gov will flourish.

Nagesh KiniFCA

6 years ago

as one who attended vimalbhai's very lucid and lively talk fielding all kinds of questions it was indeed one of the best conducted by moneylife. keep it up.

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