Most of the roads in Bangalore have European names as the main city roads and areas were planned and built by the British. But somehow over the years the significance behind the names have been lost.

Till 1948 MG Road was known as South Parade

Mahatma Gandhi, Sir Mark Cubbon, B.R Ambedkar apart from being historic personalities also share the distinction of having roads named after them. After having lived in Bangalore for quite sometime, most of us always tend to wonder about the origin of names of neighborhoods that we reside in or have visited. Though most of the roads have been named after historic greats from across the world, some seem to have lost their identities over time. People living in Yeshwanthpur or Sadashivnagar in Bangalore would not know, why their areas are known by that name.

In fact not many even know the hidden stories behind the names of some of the prominent areas that is frequented by a large part of Bangaloreans. Most of the  areas in Bangalore are named after the British monarch who reigned over India for the greater part of its most dominant period. Delving into the origin of the names of places is an interesting but a difficult task as there is no definitive compilation of these names and the story behind them. In a bid to throw light upon the origin of these names, we bring to you stories behind some of the most prominent areas in Bangalore.

Mahatma Gandhi Road – There are vast eat-outs, shopping centres and book houses on MG Road. It is one of the most popular shopping destinations in Bangalore and attracts a large amount of tourists every single day. It runs east from Trinity Circle to Anil Kumble Circle and has the famous Parade Grounds on the other side. Till 1948 the road was known as South Parade and was later renamed as Mahatma Gandhi Road post-independence on 26 February 1948.

Cantonment Area – The lovely and serene Cantonment area which still represents Old Bangalore was initially named Civil and Military (C&M) Station. It was home to the British Military Garrison and the names given to the roads in the area were according to the military arrangement and campus. Thus, there was Artillery Road, Brigade Road, Infantry Road, Cavalry Road.. Though some names have been changed for certain roads and circles, old-timers in the city still tend to use these names. Since a large part of the British soldiers stayed in the Cantonment area, they heavily influenced the colonial style of architecture which is still seen in some of the houses today.

Cunningham Road – Cunningham Road is one of the busiest areas in Bangalore with malls and eateries cropping up every single day. The names of several roads in Bangalore have been derived from military nomenclature and similarly Cunningham Road was named after Francis Cunningham who was an officer in the Madras Army. Francis Cunningham was the son of the poet Allan Cunningham and the younger brother of Joseph Davey and Alexander Cunningham, who spent most of their working lives in India. He was a member of the Mysore Commission and Literary Editor. For a short while the area was called Sampangi Ramaswamy Temple Road.

Cubbon Road - Cubbon Road which runs along the stretch of Cubbon Park was recently closed due to the underground Metro work. However it was named after Lieutenant-General Sir Mark Cubbon who was a British army officer with the East India Company and later became the British Commissioner of Mysore state in 1834. Cubbon Park which is now is under the control of the Department of Horticulture has a history of over 100 years and was established in the year 1870.

St. Marks Road – St.Mark’s Road gets its name from the famous St.Mark’s Cathedral which is the oldest Anglican Church in Bangalore. The Church is now under the Governing Body of the Church of South India (CSI) and is named after St.Mark, one of the 12 disciples of Jesus Christ, who was believed to have been the first Gospel writer. The church was modeled along the lines of the 17th-century St Paul’s Cathedral. However the new structure is known for its magnificent stained glass work.

Lavelle Road – The posh and uptown Lavelle Road which is now home to many International fashion brands was named after an Irish soldier Michael. F. Lavelle, who re-discovered the gold mines in Kolar. It is claimed that mining had completely stopped until M.F. Lavelle applied to the Mysore Government for the exclusive privilege of starting mining in the Kolar district. It is said that he made a living out of the riches he made from the gold mines.

Residency Road – Residency Road is a posh residential locality admired for its good houses and seemingly straight roads. In the earlier days the house of the British resident of Mysore was located on Residency Road and that’s how the name came to be. Around 1883, three new extensions were added to the Municipal area of the region – Richmond Town, followed by Benson Town and Cleveland Town – all named after British aristocrats.

Jayanagar – Jayanagar is considered to be one of the largest planned residential areas. It is home to prominent names like Infosys co-founder, N R Narayana Murthy and late actor Vishnuvardhan, this area has wide roads, well planned layouts and good public transport facilities. The area came into existence in 1948 and is named after Maharajah Jayachamrajendra Wodeyar, who was the 25th and the last Maharaja of the princely state of Mysore. He was a noted philosopher and musicologist who richly contributed to the field of science and music.

Malleswaram – Malleswaram is one of those areas in Bangalore which still retains the old world charm and can be called as one of the most prominent cultural hubs in the city. The area got its name after the Kaadu Malleshwara Temple in the old Mallapura village which was built by Venkoji, the step brother of Chhatrapati Shivaji in 1669.  However the area was founded by an aristocrat named Sri Venkatranga Iyengar. He envisioned a locality of affluent who would lead a rich and cultured life and suggested the area of Kaadu Malleshwara be converted into a locality.

Basavanagudi - Basavanagudi is one of the oldest areas in Bangalore which is surrounded by lush greenery and stands out as one of the coveted constituencies in the city. The name ‘Basavanagudi’ refers to the Bull Temple that is located there, which is a monolith statue of the Nandi Bull. The temple was built by Kempe Gowda in the 16th century and the statue has been carved out of single granite rock. Basava in Kannada, means bull and gudi means temple, hence the name Basavanagudi.

Source
My Bangalore

Source
Times Property

Every heavenly body and every worldly body in universe is made of five elements basically, earth, water, air, fire and space based on “taitirya Upanishad”, these are called as Panch Mahabhoot. Our Body is also made up of these five elements. The knowledge, how these Panch Mahabhoot affects house construction and how these Panch Mahabhoot will react upon the residents of house, is collected in these ancient books. The magnetic force, gravitational pull& other natural energies are making effects on our body, mind and soul, and thus our activities.

vastu is a science that deals with knowledge & significance of various directions to get more positive energy and reduce negative energy, the art of positioning right things in right direction and results in wellbeing, beautiful and happy environment.

And thus, the vastu Shashtra is science of happy living.

Vastu Shashtra is also called Building Biology,which further teaches us to design building with Soul that helps in creating a unique relationship between human & building.Every human being holds several forms of energy, mostly unknown and unseen energies, both Good and Bad, Evil and Divine, Positive & Negative. Not just human being, but constructed houses and other kind of buildings or places of dwellings also hold these forms of energy.

Vastu Shashtra is also the Science of Balancing these Energies. Both Humans and Buildings play equal role in creating the required harmony. Scientific study of the holistic interaction between humans and buildings, is vastu shastra. Study of the forces involved, individual energy meridians, the Chakras and influences of the building on the human character as well as the systems that may be implemented to create a healthy living environment.

Source
Vaastu comic

Parking your money in ELSS, infra bonds, PPF or buying an insurance cover can still help you cut down on your tax outgo

Life insurance policy
You can buy a life insurance policy and the premium paid on that would be tax deductible. Often, it is seen that since a person is buying a policy in a hurry during this time of the year, he ends up buying a cover that is not exactly suitable for his future financial goals. So, it is advisable to go through the policy document in detail and consult your financial advisor to choose the best one before you sign that cheque.
Public Provident Fund
This is one of the most popular tax saving options for investors. This is a 15-year scheme of the government where the interest accrued is tax free.However,interest in a PPF account is not paid to the account holder every year, but adds to the total corpus,and at the end of the term the account holder gets a lump-sum. Late last year,the maximum amount you could put in a PPF account each year was increased to Rs 1 lakh. For years,the rate of interest on PPF was fixed. But in December the government has said that from now on every year the rate will change.
Pension plans
There are pension plans from mutual funds and life insurance companies that one can invest in to claim tax deductions. However, at present due to some lack of clarity about IRDA rules governing pension products, life insurance companies are not selling new policies. Some select fund houses, however, continue to sell pension products since their products are governed by Sebi rules. Last week, Sebi chairman U K Sinha even encouraged mutual fund houses to launch more pension products. One of the main advantages of pension products from a mutual fund house is its cost advantage, which directly adds up to the returns for the investors in these plans.
Infrastructure bonds
In his budget speech in 2010, finance minister Pranab Mukherjee gave taxpayers a new option to save up to Rs 20,000 every year by investing in notified bonds of infrastructure finance companies. Popularly called infrastructure bonds, several companies are launching these bonds. While IDFC and L&T Infrastructure Finance have already launched several tranches of these bonds (some are currently open), some other companies, including Srei, are also tapping taxpayers’ money.
When you invest in these bonds, check the credit ratings of the bonds assigned by the ratings agencies. Higher the company’s ratings, lower is the risk associated with the bonds. These bonds also come with a lock-in period of five years, which means one cannot sell these bonds for five years after investing in them. You can avail of the annual interest-payment option or the cumulative option. Under the second option, at the current rate of interest, your initial investment would more than double at the end of the 10-year tenure. So, you will not get any money every year.
Each year you can claim deduction of up to Rs 20,000 from your income by investing in these bonds. This is over and above the Rs 1 lakh you are allowed to invest in select instruments to save on tax.
Although you can claim tax deductions on your initial investments in these bonds, the interest that you earn every year is not tax free. Every year when you file your returns, the interest income from infrastructure bonds should be included in your income.
There are several other options to save on your taxes every year. But not all are suitable for investing at the last moment. For example, you can claim tax deductions on the amount of principal paid within your total home loan payment. Similarly, you can also claim deductions of up to Rs 1.5 lakh every year on interest paid on housing loans. But these are not the options you can consider when you have less than three months to get your finances in place. For pension, you can also look at Nations Pension Scheme (NPS), but that is also a regular investment option, and not an instrument to invest in a hurry. For you as a taxpayer, the ideal situation is that you complete your tax planning at the start of the financial year, that is in April, and not at the start of the calendar year, that is in January.

Source
Times of India

The annual World Wealth

Report of Merrill Lynch Wealth Management and Capgemini has revealed that the number of millIon­aires in India has surged to a record high of 1.53 lakh in 2010, making the country’s high net worth individual (HNI) population 12th largest across the globe. (This year it is estimated that the figures have climbed up by another 3 per cent.) The survey also revealed that the Indian millionaire is no longer shying away from luxury collectibles. This must have perked up the developers in India, most of them having more than one finger in the luxury pie.

This is a niche market that ensures bigger sales figures. It is not very surprising that newspaper advertise­ments across the country shows that there are more luxury housing adver­tisements (or equal to) than those in the affordable or mid-range. While low to middle income groups still continue to be one of the largest marketed seg­ments, developers are not missing out on the fact that there are more yuppie Indians today than ever before with better pay packages and increased spending limits with quicker access to easy home loans; more millionaires and billionaires than ever before and growing. But this is just the tip of the iceberg for many. .

LUXURY HOUSING BEING REDEFINED

Nikhil Thard, MD, Edifice Builders feels that luxury is defined by space and not by number of bedrooms, et al. He adds, “In Bangalore the general specifications of the units are very good and so luxury homes have to strive to do a better job. A truly luxu­rious home means a well designed layout having open space. a garden. Facilities like jacuzzi, piped gas, a concierge desk, etc. It also means services like rental management and property management so that the customer doesn’t have to worry’ about anything at all.­

Nagaraju Routhu, Vice President, Corporate Planning, Unitech Lim­ited, says, ”The definition of luxury homes in India has seen a sea change. As aspirations rise, the  globe trotter consumers are seeking for exclusivity and customisation in every nook and

corner of their home:Unitech, one of India’s premier developers, has luxury projects such as Espace Premiere (Rs 2.25 crore onwards), The Villas (Rs 6.90 crore onwards) and Karma Lakelands (Rs 7.45 crore onwards) in Gurgaon. In Noida it has Unitech Golf &Country Club with prices ranging from Rs 1.65 crore – Rs 3.25 crore.

“Luxury homes today are more about making a lifestyle statement. High­end specifications coupled with designer fit-outs and high-tech gad­gets of global standards are the driving factors;’ feels Percy Chowdhry, Director, Rustomjee Group. ”This trend is only bound to continue with aggressive real estate appetite demonstrated by Indian HNls. According to a report, Indian HNls would like to invest at least 10 per cent of their total portfolio in residential real estate. This was double than what financial advisers would have done.”

Rustomjee has a host of upcoming luxury properties that include Elita- a 14 storied residential tower, and Rus­tomjee Elements, both in Juhu. Rus­tomjee Oriana in Bandra is a 21 storey tower comprising 3BHK and 4BHK apartments. Among the completed projects are ‘nine JVPD’ and ’seven JVPD’ situated at the heart of Juhu that houses most of India’s topmost celebrities.

”The new breed of premium and luxu­ry homes offer a mix of grandeur and high-end contemporary facilities for those who are upwardly mobile, both in terms of wealth and aspirations. These homes range from the elegant and contemporary to the lavish and plush in thejr design and facilities. Features of such housing nowadays typically include landscaped settings, regal layouts, centrally air-condi­tioned buildings, high-quality floorings, and electronic access control and ensuite swimming pools, all- packaged in sleek finishes Percy adds.

HEBBAL TO BIAL

Time taken from Hebbal to BIA now: 45 mins Service roads & exits: Sahakaranagar,Jakkur,Yelahanka and Amruthahalli residents can use service roads.There are lateral exits at Kogilu and Vidyanagar Time taken from Hebbal to BIA after May 2013: 18.75 mins Toll booth: At Sadahalli Cross,500m before Trumpet Junction.Toll plaza now has six lanes;it will be reconstructed after road-widening

DEEP FOCUS

THERES A HIGH SPEED RAIL TOO
You could speed down the expressway,or swoosh on the High Speed Rail Link,running parallel.HSRL,connecting the heart of the city to BIA,will be taken up by Bangalore Metro Rail Corporation.The DPR is ready and fund allocation from the state and Centre are to be finalized.Union urban development minister Kamal Nath had announced the project during the inauguration of the Metro in October 2011.NHAI had known that the HSRL project would be elevated all along the route.NHAI sources said the space requested for the project was less than 10m,for the tracks to run along on the left side of the road.BMRC has already shortlisted the consortiums constructing the HSRL,and is waiting for approval from the Centre.The expressway was designed keeping the HSRL in mind.Our roads or flyovers will not be affected by the construction or operation of the HSRL,which will run almost parallel to a little below the level of the elevated road, said an NHAI official.
TRAIN SPEED : 155-165 KMPH

COMPARISONS

E-City Elevated Expressway Completed 2010 Cost 765 cr Length 9.5 km Width 15 m

Tumkur Expressway Completed 2011 Cost 720 cr Length 19.5 km

Expressway SNAPSHOT Cost 680 Cr Length  25 Km from Hebbal to Trumpet Junction near BIA Flyovers.7 Lateral exits, 2 crosses,4 underpasses Project time,25 months From Sept 2010 to May 2013

If there are easy exit points from the flyover and a station close to the hospital,many patients can access our services.Signal-free flyovers will help ambulances move faster to the hospital.
Tufan Ghosh | CEO,COLUMBIA ASIA HOSPITAL

Vehicles moving to the airport can take the elevated expressway,leaving the road below for school buses to move freely.This will reduce travel time and the wait at traffic junctions,and reduce stress for students.
Manju Balasubramanyan | PRINCIPAL,DELHI PUBLIC SCHOOL,NORTH

Source
Times of India

Nashik-based Sirish Lokhande, 43, is planning to buy a house, but is facing a serious dilemma. He wants to take a loan for a house that is still under construction and is unsure about the repayment schedule to opt for.

Lokhande has two options. He can either opt to pay full, equated monthly instalments (EMI) or pre-EMIs. In the first option, the amount he pays each month will be calculated on the basis of the total loan amount, while according to the second option, he would have to pay only the interest on the loan that will be disbursed at each stage of construction. The real EMI payment will start after he gets possession of the house.
On the face of it, the second option looks more lucrative since Lokhande has to pay only the interest component for the first three years, which would be a lot less than paying the full EMI. However, tax experts are of a different opinion. Amarpal S Chadha, tax partner, Ernst & Young says opting for the full EMI payment is more beneficial in the long run as you start repaying the principal amount from the first day. “This reduces the outstanding principal amount before you get the possession,” he says.
Tenure of payouts
In the case of the pre-EMI option, you will pay only the interest component till you get possession. Assuming that the developer takes three years to hand over the house and the loan tenure is 20 years, you will actually make payouts for 23 years. If you pay the complete EMIs, the payout will be for a lesser duration as the decrease in the principal component will translate into a shorter loan tenure.

How the EMIs are calculated
Under the full EMI scheme, payouts are computed on the total amount. If the loan is 10 lakh, EMI comes to 10,152.
In the pre-EMI option, the loan payouts are calculated only on the basis of the actual loan disbursement. For instance, if you have applied for a 10 lakh loan and the bank has disbursed 3 lakh, you will only have to pay the interest component on the latter amount, which comes to 2,687.50.
Tax benefits
There is no difference in the tax treatment under both schemes and you will not benefit from any kind of tax deduction until the project is completed. Adhil Shetty, CEO of Bankbazaar.com, explains that the tax benefits on the pre-EMI interest cannot be derived from the same year of payment. In both the cases, the value of the total interest paid will be accumulated and divided into five equal parts. It will be considered for tax deduction for the first five years from the date of final disbursement. When it comes to the repayment of the principal amount, no deduction is allowed on the EMI repaid during the years that the property was under construction.
Is full EMI a better option?
It may not be the best, considering the downsides. Firstly, if the project is delayed for a long time, you may end up repaying more than the principal amount even before you get the possession. If the project gets stalled, you may have to put in a lot of effort to get back the principal component that you would have paid to the builder. Secondly. your spending power may be higher later on in life as your salary is likely to rise by the time you get possession. Also, under the pre-EMI plan, you could invest the money saved and prepay a part of the loan. But if you plan to sell the house immediately after getting possession, pre-EMI option may be better than paying full EMIs.
Pitfalls of pre-EMI
It’s more expensive to opt for the pre-EMI option as you pay interest till the loan is fully disbursed as well as during the loan tenure of.
You will not be able to avail of any tax deduction during the pre-EMI phase. The entire interest that you pay will be aggregated and allowed as deduction in five equal installments only after the construction is complete.
Source
Times of India

Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6 (3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in the Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time. Section 2 (v) and Section 2 (w) of FEMA, 1999 defines `person resident in India’ and a `person resident outside India’, respectively. Person resident outside India is categorized as Non- Resident Indian (NRI) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin.
The Reserve Bank does not determine the residential status. Under FEMA, residential status is determined by operation of law. The onus is on an individual to prove his / her residential status, if questioned by any authority.
A person resident in India who is not a citizen of India is also covered by the relevant Notifications.

2. In terms of the provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was a resident in India or inherited from a person who was a resident in India.

3. The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house. Further, foreign companies who have been permitted to open a Branch or  Project Office in India are also allowed to acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. Such dispensation is however not available to entities which are permitted to open liaison offices in India.

4. The restrictions on acquiring immovable property in India by a person resident outside India would not apply where the immovable property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is deemed to be resident in India.
In order to be deemed to be a person resident in India, from FEMA angle, the person would need to comply with the provisions of Section 2(v) of FEMA 1999.  The Press Release dated February 1, 2009 issued by Government of India in this regard is enclosed as Annex.
Note: Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India, (other than on lease not exceeding five years) without the prior permission of the Reserve Bank.

5. NRIs/ PIOs are allowed to repatriate an amount up to USD one million, per financial year (April-March), out of the balances held in the Non-Resident (Ordinary) Rupee (NRO) account, subject to compliance with applicable tax requirements. This amount includes sale proceeds of assets acquired by way of inheritance or settlement.

6. The FAQs cover the following topics :
A. Acquisition of Immovable Property in India by a person resident outside India, i.e., by a NRI / PIO / foreign national of non-Indian origin by way of purchase / gift / inheritance.
B. Transfer of immovable property in India by a person resident outside India by way of
i) sale
ii) gift
iii) mortgage
C. Mode of payment for purchase of immovable property in India.
D. Repatriation of sale proceeds of residential / commercial property, in India, outside India acquired by NRI / PIO by way of
i) purchased
ii) gift
iii) inheritance
E. Provisions for Foreign Embassies / Diplomats / Consulates General
F. Other Aspects.

A. Acquisition of Immovable Property in India through purchase / gift/ inheritance

Q.1. Who can purchase immovable property in India?
Ans. Under the general permission available, the following categories can purchase immovable property in India:
i) Non-Resident Indian (NRI)1
ii) Person of Indian Origin (PIO)2
The general permission, however, covers only purchase of residential and commercial property and is not available for purchase of agricultural land /plantation property / farm house in India.

Q.2. Can NRI/PIO acquire agricultural land/ plantation property / farm house in India?
Ans.  No.

Q.3.  Are any documents required to be filed with the Reserve Bank after the purchase?
Ans.  No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file any documents/reports with the Reserve Bank.

Q.4. How many residential / commercial properties can NRI / PIO purchase under the general permission?
Ans. There are no restrictions on the number of residential / commercial properties that can be purchased.

Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?
Ans.  No.

Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?
Ans.  No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India unless such property is acquired by way of inheritance from a person who was resident in India. However, he / she can acquire or transfer immovable property in India, on lease, not exceeding  five years. In such cases, there is no requirement of taking any permission of /or reporting to the Reserve Bank.

Q.7. Can a foreign national who is a person resident in India purchase immovable property in India?
Ans. Yes, a foreign national who is a ‘person resident in India’ within the meaning of Section 2(v) of FEMA, 1999 can purchase immovable property in India, but the person concerned would have to obtain the approvals and fulfill the requirements, if any, prescribed by other authorities, such as, the State Government concerned, etc. The onus to prove his/her residential status is on the individual as per the extant FEMA provisions, if required by any authority.
However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of the Reserve Bank.

Q.8. Can the branch / liaison office of a foreign company purchase immovable property in India?
Ans. A foreign company which has established a Branch Office or other place of business in India, in accordance with the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, can acquire any immovable property in India, which is necessary  for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through the proper banking channels. A declaration in form IPI should be filed with the Reserve Bank within ninety days from the date of acquiring the property. Such a
property can also be mortgaged with an Authorised Dealer as a security for the purpose of borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of the Reserve Bank. Further, acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan and who have set up Branch Offices in India and would require prior approval of the Reserve Bank.
However, if the foreign company has established a Liaison Office in India, it cannot acquire immovable property. In such cases, Liaison Offices can acquire property by way of lease not exceeding 5 years.

Q.9. Can a NRI/PIO acquire immovable property in India by way of gift? Can a foreign national acquire immovable property in India by way of gift?
Ans. (a) Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from
i) a person resident in India; or
ii) an NRI; or
iii) a PIO.
However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift.
(b) A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift.

Q.10. Can a non-resident inherit immovable property in India?
Ans. Yes, a person resident outside India i.e. i) an NRI; ii) a PIO; and iii) a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek prior approval of the Reserve Bank for inheriting immovable property in India.

Q.11. From whom can a non-resident person inherit immovable property?
Ans. A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
(a) a person resident in India
(b) a person resident outside India
However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
B. Transfer of immovable property in India
(i) Transfer by way of sale

Q.12. Can an NRI/ PIO/foreign national sell his residential / commercial property?
Ans. (a) NRI can sell property in India to
i) a person resident in India; or
ii) an NRI; or
iii) a PIO.
(b) PIO can sell property in India to
i) a person resident in India; or
ii) an NRI; or
iii) a PIO – with the prior approval of the Reserve Bank
(c) Foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to
i) a person resident in India
ii) an NRI
iii) a PIO

Q.13. Can a non-resident owning / holding an agricultural land / a plantation property / a farm house in India sell the said property?
Ans. (a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.
(ii) Transfer by way of gift

Q.14. Can a non-resident gift his residential / commercial property?
Ans. Yes.
(a) NRI / PIO may gift residential / commercial property to
(i) person resident in India or
(ii) an NRI or
(iii) PIO.
(b) A foreign national of non-Indian origin requires the prior approval of the Reserve Bank for gifting the residential / commercial property.

Q.15. Can an NRI / PIO / foreign national holding an agricultural land / a plantation property / a farm house in India, gift the same?
Ans. (a) NRI / PIO can gift an agricultural land / a plantation property / a farm house in India only to a person resident in India who is a citizen of India.
(b) A foreign national of non-Indian origin would require the prior approval of the Reserve Bank to gift an agricultural land / a plantation property / a farm house in India.
(iii) Transfer through mortgage

Q.16. Can residential / commercial property be mortgaged by NRI/ PIO?
Ans. i) NRI / PIO can mortgage a residential / commercial property to:
(a) an Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank
(b) a bank abroad, with the prior approval of the Reserve Bank.
ii) A foreign national of non-Indian origin can mortgage a residential / commercial property only with prior approval of the Reserve Bank.
iii) A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an Authorised Dealer in India.
C. Mode of payment for purchase of immovable property in India.

Q.17. How can an NRI / PIO make payment for purchase of residential / commercial property in India?
Ans. Payment can be made by NRI / PIO out of:
(a) funds remitted to India through normal banking channels or
(b) funds held in NRE / FCNR (B) / NRO account maintained in India
No payment can be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned above.

Q.18 Is repatriation of application money for booking of flat / payment made to the builder by NRI/ PIO allowed when the flat or plot is not allotted or the booking / contract is cancelled?
Ans. The Authorised Dealers can allow NRIs / PIOs to credit refund of application/ earnest money/ purchase consideration made by the house building agencies/ seller on account of non-allotment of flat/ plot/ cancellation of bookings/ deals for purchase of residential, commercial property, together with interest, if any, net of income tax payable thereon, to NRE/FCNR account, provided, the original payment was made out of NRE/FCNR account of the account holder or remittance from outside India through normal banking channels and the Authorised Dealer is satisfied about the genuineness of the transaction.

Q.19. Can NRI / PIO avail of loan from an authorised dealer for acquiring flat / house in India for his own residential use against the security of funds held in his NRE Fixed Deposit account / FCNR (B) account? How the loan can be repaid?
Ans. Yes, such loans are permitted subject to the terms and conditions laid down in Schedules 1 and 2 to the Notification No. FEMA 5/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time. Banks cannot grant fresh loans or renew existing loans in excess of Rs. 100 lakhs against NRE and FCNR (B) deposits, either to the depositors or to third parties. The banks should also not undertake artificial slicing of the loan amount to circumvent the ceiling of Rs. 100 lakh.
Such loans can be repaid in the following manner :
(a) by way of inward remittance through normal banking channel or
(b) by debit to the NRE / FCNR (B) / NRO account of the NRI/ PIO or
(c) out of rental income from such property
(d) by the borrower’s close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower’s loan account.

Q.20. Can NRI / PIO, avail of housing loan in Rupees from an Authorised Dealer or a Housing Finance Institution in India approved by the National Housing Bank for purchase of residential accommodation or for the purpose of repairs / renovation / improvement of residential accommodation ? How can such loan be repaid?
Ans. Yes, NRI/PIO can avail of housing loan in Rupees from an Authorised Dealer or a Housing Finance Institution subject to certain terms and conditions laid down in Regulation 8 of Notification No. FEMA 4/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Borrowing and lending in rupees) Regulations, 2000, as amended from time to time. Authorised Dealers/ Housing Finance Institutions can also lend to the NRIs/ PIOs for the purpose of repairs/renovation/ improvement of residential accommodation owned by them in India. Such a loan can be repaid (a) by way of inward remittance through normal banking channel or
(b) by debit to the NRE / FCNR (B) / NRO account of the NRI / PIO or (c) out of rental income from such property; or (d) by the borrower’s close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower’s loan account.

Q.21. Can NRI/PIO avail of housing loan in Rupees from his employer in India?
Ans. Yes, subject to certain terms and conditions given in Regulation 8A of Notification No. FEMA 4/2000-RB dated May 3, 2000 and A.P. (DIR Series) Circular No.27 dated October 10, 2003, i.e.,
(i) The loan shall be granted only for personal purposes including purchase of housing property in India;
(ii) The loan shall be granted in accordance with the lender’s Staff Welfare Scheme/Staff Housing Loan Scheme and subject to other terms and conditions applicable to its staff resident in India;
(iii) The lender shall ensure that the loan amount is not used for the purposes specified in sub-clauses (i) to (iv) of clause (1) and in clause (2) of Regulation 6 of Notification No.FEMA.4/2000-RB dated May 3, 2000.
(iv) The lender shall credit the loan amount to the borrower’s NRO account in India or shall ensure credit to such account by specific indication on the payment instrument;
(v) The loan agreement shall specify that the repayment of loan shall be by way of remittance from outside India or by debit to NRE/NRO/FCNR Account of the borrower and the lender shall not accept repayment by any other means.
D. Repatriation of sale proceeds of residential / commercial property purchased by NRI / PIO

Q.22. Can NRI / PIO repatriate outside India the sale proceeds of immovable property held in India?
Ans. (a) In the event of sale of immovable property other than agricultural land / farm house / plantation property in India by a NRI / PIO, the Authorised Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely:
(i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations;
(ii) the amount to be repatriated does not exceed:
the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or the amount paid out of funds held in Foreign Currency Non-Resident Account, or
the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property; and
(iii) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
For this purpose, repatriation outside India means the buying or drawing of foreign exchange from an authorised dealer in India and remitting it outside India through normal banking channels or crediting it to an account denominated in foreign currency or to an account in Indian currency maintained with an authorised dealer from which it can be converted in foreign currency.
(b) in case the property is acquired out of Rupee resources and/or the loan is repaid by close relatives in India (as defined in Section 6 of the Companies Act, 1956), the amount can be credited to the NRO account of the NRI/PIO. The amount of capital gains, if any, arising out of sale of the property can also be credited to the NRO account.
NRI/PIO are also allowed by the Authorised Dealers to repatriate an amount up to USD 1 million per financial year out of the balance in the NRO account / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank.
(c) A person referred to in sub-section (5) of Section 6 of the Foreign Exchange Management Act3 , or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section.

Q.23. Can an NRI/PIO repatriate the proceeds in case the sale proceeds were deposited in the NRO account?
Ans. Please refer to the answer at Q.22 above. NRI/PIO may repatriate up to USD one million per financial year (April-March) from their NRO account which would also include the sale proceeds of immovable property. There is no lock in period for sale of immovable property and repatriation of sale proceeds outside India.

Q.24. If a Rupee loan was taken by the NRI/ PIO from an Authorised Dealer or a Housing Finance Institution for purchase of residential property can the NRI / PIO repatriate the sale proceeds of such property?
Ans. Yes, Authorised Dealers have been authorised to allow repatriation of sale proceeds of residential accommodation purchased by NRIs/ PIOs out of funds raised by them by way of loans from the authorised dealers/ housing finance institutions to the extent such loan/s repaid by them are out of the foreign inward remittances received through normal banking channel or by debit to their NRE/FCNR accounts. The balance amount, if any, can be credited to their NRO account and the NRI/PIO may repatriate up to USD one million per financial year (April-March) subject to payment of applicable taxes from their NRO account  balances which would also include the sale proceeds of the immovable property.

Q.25. If the immovable property was acquired by way of gift by the NRI/PIO, can he repatriate abroad the funds from sale of such property?
Ans. The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorised Dealer and payment of applicable taxes.

Q.26. If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?
Ans. Yes, general permission is available to the NRIs/PIO to repatriate the sale proceeds of the immovable property inherited from a person resident in India subject to the following conditions:
(i) The amount should not exceed USD one million, per financial year (ii) This is subject to production of documentary evidence in support of acquisition / inheritance of assets and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.4/2009 dated June 29, 2009 (iii) In cases of deed of settlement made by either of his parents or a close relative (as defined in section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler (iv) the original deed of settlement and a tax clearance / No Objection Certificate from the Income-Tax Authority should be produced for the remittance (v) Where the remittance as above is made in more than one installment, the remittance of all such installments shall be made through the same Authorised Dealer (vi) In case of a foreign national, sale proceeds can be repatriated if the property is inherited from a person resident outside India with the prior approval of the Reserve Bank. The foreign national has to approach the Reserve Bank with documentary evidence in support of inheritance of the immovable property and the undertaking and the C.A. Certificate mentioned above.
The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran and he has to seek specific approval of the Reserve Bank.
As FEMA, 1999 specifically permits transactions only in Indian Rupees with citizens of Nepal and Bhutan. Therefore, the question of repatriation of the sale proceeds in foreign exchange to Nepal and Bhutan would not arise.
E. Provisions for Foreign Embassies / Diplomats / Consulates General

Q.27. Can Foreign Embassies / Diplomats / Consulates General purchase / sell immovable property in India?
Ans. In terms of Regulation 5A of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations 2000, Foreign Embassies/ Diplomats/ Consulates General, may purchase/ sell immovable property (other than agricultural land/ plantation property/ farm house) in India provided –
(i) Clearance from the Government of India, Ministry of External Affairs has been obtained for such purchase/sale; and
(ii) The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through the normal banking channels.
F. Other Aspects

Q.28. Can NRI / PIO rent out the residential / commercial property purchased out of foreign exchange / rupee funds?
Ans. Yes, NRI/PIO can rent out the property without the approval of the Reserve Bank. The rent received can be credited to NRO / NRE account or remitted abroad. Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs/PIO who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.

Q.29. Can a person who had bought immovable property, when he was a resident, continue to hold such property even after becoming an NRI/PIO?
Ans. Yes, a person who had bought the residential / commercial property / agricultural land/ plantation property / farm house in India when he was a resident, continue to hold the immovable property without the approval of the Reserve Bank even after becoming an NRI/PIO.

Q. 30. In which account can the sale proceeds of such immovable property be credited ?
Ans. The sale proceeds may be credited to NRO account of the NRI /PIO.

Q.31. Can the sale proceeds of the immovable property referred to in Q.No. 29 be remitted abroad ?
Ans. Yes, From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of Authorised Dealer and payment of applicable taxes.

Q.32. Can foreign nationals of non-Indian origin resident in India or outside India who had earlier acquired immovable property under FERA with specific approval of the Reserve Bank continue to hold the same? Can they transfer such property?
Ans. Yes, they may continue to hold the immovable property under holding license obtained from the Reserve Bank. However, they can transfer the property only with the prior approval of the Reserve Bank.

Q.33. Is a resident in India governed by the provisions of the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000?
Ans. A person resident in India who is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000, as amended from time to time, i.e. she/he would require prior approval of the Reserve Bank for acquisition and transfer of immovable property in India even though she/he is resident in India.  Such requests are considered by the Reserve Bank in consultation with the Government in India.
The citizens of countries other than those listed above can be PIOs who are covered under the general permission (please refer to Q.No.1). The provisions relating to foreign national of non-Indian origin are covered in detail in Q Nos. 6 and 7.
Note:
The relevant regulations covering the transactions in immovable property have been notified vide RBI Notification No. FEMA 21/2000-RB dated May 3, 2000 and this basic notification has been subsequently amended by the notifications detailed below:
i) Notification No.FEMA 64/2002-RB dated June 29, 2002;
ii) Notification No.FEMA 65/2002-RB dated June 29, 2002;
iii) Notification No.FEMA 93/2003-RB dated June 9, 2003;
iv) Notification No. FEMA 146/2006-RB dated February 10, 2006 read with A.P.(DIR Series) Circular No. 5 dated 16.8.2006; and
v) Notification No. FEMA 200/2009-RB dated October 5, 2009

All the above notifications and A.P. (DIR Series) Circulars are available on the RBI website: www.fema.rbi.org.in. The Master Circular on Acquisition and
Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin is also available on the website under the link “www.rbi.org.in à Sitemap à Master Circulars”.

In case of clarification, a reference may be made to the following address:
Chief General Manager-in-Charge,
Foreign Exchange Department
Central Office,
Foreign Investment Division,
Reserve Bank of India,
Mumbai- 400 001
Email : Our Regional Offices at Ahmedabad (fedahmedabad@rbi.org.in), Bangalore (fedbangalore@rbi.org.in), Bhopal (fedbhopal@rbi.org.in), Bhubaneswar (fedbhubaneswar@rbi.org.in), Chandigarh (fedchandigarh@rbi.org.in), Chennai (fedchennai@rbi.orgin), Guwahati (fedguwahati@rbi.org.in), Hyderabad (fedhyderabad@rbi.org.in), Jaipur (fedjaipur@rbi.org.in), Jammu (fedjammu@rbi.org.in), BKC Mumbai (fedbkc@rbi.org.in), Kanpur (fedkanpur@rbi.org.in), Kochi  (fedrbikochi@rbi.org.in), Kolkata (fedkolkata@rbi.org.in), New Delhi (fednewdelhi@rbi.org.in), Panaji (dgmpanaji@rbi.org.in) and Patna (fedpatna@rbi.org.in).

[Updated as on April 08, 2011 on http://www.rbi.org.in/scripts/FAQView.aspx?Id=33]

Source

Yahoo! India News – Tue, Dec 6, 2011

Last week I read an interesting article “how we can make a budget to purchase our Dream Home”, I just thought of sharing it with you all. All of us have a dream of owning our own dream home but we always worried about the budget, finance etc if we plan properly sure we can have our own asset without any complexity  here is some guidelines how we can budget for our home purchase.

Mr. Krishna likes a two-bedroom apartment that costs Rs 30 lakhs. At a rate of 12 percent, for tenure of 15 years, the EMI for a loan of Rs 30 lakhs works out to be Rs 36,000. How does Krishna plan his finances?
For smooth repayment of your home loan, it is essential to plan your finances well. A home loan debt is a huge financial commitment spread over many years. Taking additional loans like a car loan or personal loan will only make repayments tougher for a borrower. It is advisable to procrastinate any huge expense till the home loan debt is paid off. Those walking on tight finances must not indulge in other loans.

BUDGET

Deciding on a home purchase budget is the first crucial step. Repayments on a very expensive house could be a nightmare, especially in the scenario of increasing interest rates. Figure out how much you can set aside every month towards a housing loan debt, after taking into account your future financial commitments. Then save regularly towards an emergency fund apart from regular investments.
As a thumb rule, a person with a good credit history will be sanctioned a loan amount where the monthly repayment is equal to 30-40 percent of his gross monthly income. The lender perceives lending any percentage more than this amount risky with higher chances of default.
With a monthly income of Rs 70,000, Krishna will eligible for a home loan of Rs 24 lakhs. He can club the income of his spouse who earns Rs 30,000 per month to increase his loan eligibility. Applying jointly will enhance their loan eligibility to Rs 33 lakhs. For a loan tenure of 15 years and at 12 percent interest, their monthly EMIs work out to be Rs 39,000.

PLAN FINANCES
Borrowers taking the floating rate option should bear in mind interest rate hikes when planning their finances. Krishna can increase the loan tenure if he is uncomfortable with the amount of money spent towards this debt. It is advisable to borrow as little as possible and raise money from other assets for a house purchase. A large amount of down payment eases your monthly EMI burden significantly.
Taking a huge home loan can even lead you to defaulting. A huge medical bill, or home repair or an expensive purchase should not throw your finances out of gear. In these times of high inflation and increasing rates, homebuyers must exert extreme diligence when preparing the house purchase budget.
Some steps in financial planning:
DEBT-TO-INCOME RATIO
Determine if you can afford a new home loan debt. A thumb rule is that your overall debt-to-income ratio should not exceed 35 percent. Some lenders ensure that to be eligible for a home loan, the maximum monthly home loan repayment must be less than 30 percent of the monthly income.
DETERMINE AFFORDABILITY
Evaluate your comfort level. If you overstretch, repayment may become a struggle. To determine your affordability level, set aside a lump sum every month pretending to have taken a home loan.
INCREASE DOWN PAYMENT
Arrange for down payment of about 10-20 percent of the cost of the house. If you have other assets that are not yielding attractive returns, consider making a higher down payment by liquidating them. This way your EMI burden comes down.
In case of a floating rate loan, make arrangements for paying extra money in the event of rate hikes. Avail tax benefits. Keep in mind additional costs of maintenance, furnishing and other moving-in expenses.
BUILD AN ASSET
The money paid as rent disappears and you do not see it again. A house is an asset that builds up in value and returns manifolds when you sell it.

Source
Times of India

Besides, the residential market saw new entrants like RMZ, which has so far been in the commercial and retail space. Embassy Group, also engaged in development of commercial space, retail, and business parks, is making a comeback to residential space with the launch of two premium projects.
“Bangalore’s residential property market has exhibited a remarkable recovery from the downturn compared to other cities. This can be attributed to fast-tracking of various infrastructure projects, a vastly improved job market and a decisive return of positive investor sentiment. As a result, developers have also put project launches on the fast track,” says Karun Varma, managing director, Bangalore and Kochi, Jones Lang LaSalle India.
Says Venkat K Narayana, CFO of the Prestige Group: “So far this fiscal, the Bangalore market has done very well, much better than the past three or four years. At Prestige, in the first half of this financial, we reported Rs 1,000 crore in new sales, and will definitely meet our guidance of Rs 1,500 crore in new sales by the end of this fiscal.”
Interestingly, the downturn seems to have had a positive impact on buyers in respect to affordability and range of products. In 2007, most developers concentrated on the Rs 40 lakh and upwards price bracket, “but now, projects are being launched starting from Rs 25 lakh to upwards of Rs 2 crore,” says M Murali, managing director of Shriram Properties.
By the end of the next quarter, Shriram would have launched 3.4 million sqft of residential space, an 88% increase from its previous best of 1.8 million sqft in 2006-07, offering a price range of Rs 20 lakh to Rs 1.5 crore.
HOMING IN
Bangalore is one of India’s largest markets for organized residential activity in the form of organized Grade A apartments/ villas.
Overall size of market is over 175,000 apartment dwelling units and over 17,500 villas, higher than the organized Grade A stock in Hyderabad and Chennai

Expertspeak
With good infrastructure and office space, locations such as Sarjapur Outer Ring Road and Whitefield are witnessing large-scale apartment activity. North Bangalore has emerged as the new growth vector and there’s been more apartment activity in the region.
Ram Chandnani | DEPUTY MD, SOUTH INDIA, CBRE (GLOBAL REALTY CONSULTANCY FIRM) IN REALTYMore launches, higher absorption
Bangalore: The Silicon Plateau is witnessing a plethora of realty project launches.
DLF on October 8 launched its first value homes project in the country, Maiden Heights, at Rajapura, with each unit priced between Rs 25 lakh and Rs 35 lakh. At the other end of the price spectrum, DLF is launching a villa project in the last quarter of this financial, priced at upwards of Rs 2.5 crore, which would be part of Phase 2A of its premium project Westend Heights, in New Town, Bangalore.
Sobha’s eight project launches this financial year would see units priced between Rs 2,750 per sqft and Rs 8,000 per sqft.
“We are witnessing a monthly absorption rate of 1 million sqft of which 65% comes from the Bangalore market. That represents a 30% growth compared to the same period last year. The growth is on two accounts — more project launches and higher absorption rates,” says J C Sharma, MD, Sobha Developers.
The other trend that the downturn has presented to buyers is that “In order to make apartments more affordable, developers have gone in for different unit sizes. Earlier, 3-bedroom units would range between 1,700 sqft to 1,800 sqft, which now range between 1,450 sqft to 1,500 sqft. Two-bedroom units, which used to be 1,300 sqft to 1,400 sqft in size, have been resized to approximately 1,100 sqft,” says Sushil Mantri, CMD, Mantri Developers, and president, CREDAI, Karnataka.

Source

Times of  India