From June 2013, purchaser of property with value of Rs50 lakh and above should deduct 1% TDS at the time of making payment. Here is the guide about making payments of TDS and obtaining form 16B for the buyer and form 26QB for the seller
I would like to run the readers through the TDS payment process and the steps to be taken to obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee).
Firstly one has to go to the following link:
This is the first phase of the process. Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site - https://www.tdscpc.gov.in/. As a first time user, you will have to register on this website. Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS.
Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number, total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.
Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website, and click on ‘Downloads’ tab. In the dropdown menu click on ‘requested downloads’. If no application has been made you will be asked to make a request for download, here fill in the acknowledgment number (nine digit number) which is reflected on Form 26AS Part F as mentioned above. Once this is done, you will be able to view the status of your application, which generates an application request number.
Within a couple of hours, the application gets processed and you will be able to view your Form 16B by putting in the request number which you have obtained. You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.
The entire process is system driven and works very smoothly.
For more details, you may also want to visit the Tax Information Network site.
Canara Bank sanctioned education loan of Rs15 lakh and after the borrower completed his course, told him that it can sanction only Rs10 lakh. The borrower was made to pay interest on Rs5 lakh as the Bank termed it as overdraft
A general perception is that a public sector unit (PSU) bank would work by the book and would be less aggressive in penalising its good, regular customer. However Canara Bank in Mumbai has done just the opposite by blatantly charging clean overdraft rate of interest on an education loan. All this due to the mistake of the sanctioning authority.
On 9 April 2009, Canara Bank sanctioned an Education loan of Rs15 lakh to Parag Punjwani for pursuing post-graduate (PG) programme in management at International School of Business (ISB), Hyderabad. Full disbursal of the loan was done and Parag completed the course in April 2010.
Suddenly in June 2010, the Bank informed him that a loan of Rs15 lakh was not possible as the ceiling for education loan to study in India is only Rs10 lakh. The Bank then applied an interest rate of 9.75% for Rs10 lakh as education loan and 14.75% (applicable to over-draft facility) for the remaining Rs5 lakh of the sanctioned loan amount.
Over the next three years endless letters, requests, pleas and follow-ups with the bank by Parag continued, without any success.
This looks like a clear case of error on part of the Bank official/s that sanctioned the education loan or Rs15 lakh without knowing if there could be any ceiling limit.
If Parag was told of this limit at the outset, he would have arranged for the shortfall from other sources. But as a result of this mistake, he was being penalised and forced to pay excess interest at the rate of 5% on outstanding amount of over Rs10 lakh. All this while, he was paying regularly his equated monthly instalments (EMIs) without any delays or disruption.
Finally, in April 2013, out of frustration on the issue being dragged on for so long, Parag filed a formal complaint before the Bank's Complaint redressal cell and later to the Banking Ombudsman.
Thereafter, the Bank agreed to refund all excess interest. Parag received this message over a telephone call from the Bank's Head Office (HO). Nothing in writing was issued either by the HO or by the Bank. The branch (from where Parag borrowed the money) said that it would refund Rs31,960 which was due as per their calculations. However the actual refunds were in excess of Rs80,000.
In the last week of July 2013, Parag was asked (by the Bank) to submit detailed calculations of the refund amount. He informed the bank that the excess amount deducted was Rs80,696. In August 2013, the amount of Rs80,696 was refunded into the loan account of Parag. It was a huge relief to the customer who felt harassed and victimised for no fault of his. Only his conviction saw him through this trauma and he was able to take on the might and muscle power of a large PSU bank.
There are a few issues, which can be highlighted and learnt from this incident:
1) Customers should read all communication from the bank carefully. Do not tear away/ destroy communications before reading through. It could be levy of extra charges or hike in interest rates.
2) Do not believe that the Bank deals with numbers and is fully automated, so will be always correct. Empower yourself with the knowledge of basic banking rules, interest calculation methods, look for extra debits of charges in the account statement and do not hesitate to ask for explanation from your Banker.
3) While taking up a controversial issue with your Banker, do not continue talking to them on phone or meeting them. Create a trail by way of letters and emails, which will come in handy at a later date. Even after a meeting, drop them an email mentioning the face-to-face discussions held.
4) The last resort help is by way of Consumer Redressal Forums and Banking Ombudsman. They have certain processes and time frames, which need to be followed. It would be helpful to know such details and abide by them, when writing to such authorities.
5) Give wide publicity to such incidents so that more people are aware of how Banks and Financial Institutions fleece innocent customers - sometimes to line their own pockets and sometimes to save their own skin.
Nifty has gone above the first of three short-term indicators we track. It has to close above today’s high for the upmove to continue
Today the indices opened in the positive and edged higher each time after a minor dip – until a selloff in the end. The market was expected to be volatile on account of the expiry of the futures and options contract. The National Stock Exchange (NSE) recorded a volume of 87.05 crore shares, among the highest on an expiry day.
The Sensex and the Nifty opened with a gap up at 18,074 and 5,317 respectively. Soon they hit their respective lows. The Sensex hit a higher low of 18,071 while the Nifty hit a higher low of 5,303. Towards the end of the session the indices sold off sharply. The Sensex hit a high of 18,456 and closed at 18,401 (up 405 points or 2.25%) while the Nifty hit a high of 5,429 and closed at 5,409 (up 124 points or 2.35%).
Except for PSU Bank (down 0.46%) all the other indices closed in the positive. The top gainers were Infra (3.01%); Energy (2.97%); Finance (2.74%); Metal (2.71%) and Media (2.55%).
Of the 50 stocks on the Nifty, 38 ended in the green. The major gainers were Sesa Goa (12.83%); Hindalco (5.78%); HDFC (5.73%); Lupin (5.10%) and Kotak Mahindra Bank (4.92%). The major losers were Punjab National Bank (2.05%); UltraTech Cement (1.96%); Coal India (1.54%); Infosys (1.36%) and State Bank of India (1.06%).
The latest measure of Reserve Bank of India (RBI) to control the volatility in the currency market was taken on late Wednesday when the RBI decided to provide a special window with immediate effect under which the RBI will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank.
The partially convertible rupee was hovering at 67.655 against the dollar, sharply higher than its record close of 68.80/81 on Wednesday, 28 August 2013.
Prime Minister Manmohan Singh told parliament he was likely to make a statement on the economy on Friday when asked by MPs what steps were being considered on the rupee.
Global rating agency Moody's Investors Service today said that the Indian government's plan to provide cheap grains to the poor is credit negative and will bring more pressure on the government's weak finances. The measure is credit negative for the Indian government because it will raise government spending on food subsidies to about 1.2% of GDP per year from an estimated 0.8% currently, exacerbating the government's weak finances, Moody's said.
The land acquisition bill, which provides extra protection for landowners whose property is bought for industrial development, was introduced in Lok Sabha today, 29 August 2013. The bill proposes to establish new rules for compensation for land acquired for infrastructure projects and industry, a move seen as raising costs but potentially reducing protests that have plagued India's industrialization drive. The bill calls for taking the consent of 80% of land owners for acquiring land for private projects and of 70% landowners for public-private projects.
Except for Shanghai Composite (down 0.19%) all the other Asian indices ended in the green. Jakarta Composite was to top gainer (up 1.92%). Speculation that geopolitical tensions arising from a possible US-led military strike against Syria may also lead the Fed to hold off the reduction in stimulus aided gains in Asian stocks.
Market now looks ahead for the US economic data that will reinforce the case for the Federal Reserve to slow stimulus. Data awaited is of US gross domestic product for the second quarter and that of US initial jobless claims.
Brazil's central bank on Wednesday raised its key lending rate by a half percentage point, reinforcing a commitment to curb worrisome inflation despite parallel concerns over the pace of economic growth. US indices ended in the positive on Wednesday and opened positive today. European indices were trading in the positive.