Tree Credits

Following article was published in Times India on 13^th July and may be of interest to readers of this blog

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Soon, you can earn credits for planting trees

Sandeep Ashar TNN 

Mumbai: The government, within three months, would decide on a proposal of offering “credits” to residents for planting trees, forest minister Bhaskar Jadhav said on Thursday. Modelled on the carbon credit concept, the social forestry department has proposed to offer incentives, called “tree credits”, to individuals, corporates, institutions and industries that grow as well as protect trees on plots owned by them or in their possession.

    An increase in green cover will generate more carbon credits and according to the proposal, the government would offer “tree planters” a share of the carbon credits it earns; these credits are proposed to be offered till the tree attains silvicultural maturity and certificates given to the private partners could subsequently be encashed. The social forestry department submitted the proposal on June 21 and the government was considering its approval, Jadhav stated in reply to a query raised by Shiv Sena’s Ramdas Kadam and Diwakar Roate in the legislative council.

    The proposal is aimed at increasing the state’s forest cover, which currently stands at 20.13% of the total area. According to norms, Maharashtra must have a minimum forest cover of 33% of its area. To achieve the target, the government had decided to plant 100 crore trees annually for the next five years and that, “planting of trees on individual lands by private partners” would also be encouraged, Jadhav said. He also said the trees would be planted, taking into consideration the suitability of the soil condition and the local topography.

What Is Tree Credit? 

Modelled on the carbon credit concept, the social forestry department has proposed to offer incentives, the “tree credits”, to individuals, corporates, institutions, and industries that grow and protect trees on plots owned by them or in their possession. With green cover going up, the government will earn more carbon credits, which it proposes to share with the private partners and offer them certificates; these certificates can subsequently be encashed.

Property Tax- Capital Value Based System

Following article was published in The Times Of India Mumbai Edition on 14^th July 2012 Readers of this blog may find it useful.

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Pay property tax arrears from Apr ’10

Shawan Sen TNN 

Mumbai: Come September and you will receive your “final bill” for property tax calculated under the newly implemented capital valuebased system that was approved last month. This spells bad news for owners of buildings, both residential and office complexes, which have come up after 2010 as they will have to pay property tax arrears from April 2010 in this financial year.
    

For older buildings, which have been receiving provisional bills, the final bill will be adjusted to reflect the outstanding or refund amount calculated according to the new system. 

Pay property tax early, rebate likely

Mumbai: In September, property owners will not just receive a final property tax bill, but also a special notice that will reflect the property’s capital value. The special notice will also entail space for objections and citizens will get 21 days to raise objection on the bill, if any. The notice will mention the area of the building for which property tax is to be charged, the new tax that has been calculated, the old tax rate, method of the new capital value-based tax, among other details of the new system. 

    S S Shinde, joint municipal commissioner, told TOI, “We are targeting end-August to send across the bills. Along with the bills, a special notice will also be sent. Every flat
owner will be sent details such as the user category, nature of the building, floor number, etcetera  things that will determine the capital value of the property.” 

    The BMC is also working on incentives to lure citizens to pay the bills on time. For instance, if the bills are paid before June 30, you can get a rebate of 2% to 4%. “We are working on the incentives. This will also reflect in the special notice that will be sent along with the final bill,” said a senior official of the assessment and collection department. In case of late payment, a penalty would be imposed. 

    According to the department, citizens will have to pay the difference amount between the new method and the old rateable value system. Citizens will get approximately three months to pay the additional property tax based on the capital value for the past three years,sinceApril2010.In case after calculating the difference, a property owner has made excess payment, the BMC will refund the amount on an interest rate of 6.25%. “The bills will reflect the retrospective amount,” said Rajiv Jalota, additional municipal commissioner.

 

    The BMC’s standing committee had approved the new capital-value system, which bases taxes for all buildings (old and new) according to the Ready Reckoner Rate. The BMC had switched to the new capital value-based system that calculates property tax based on the use of property, construction, type and age from the former rateable value system, based on the property’s rent.

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How to buy and sell a house on loan

This below article was published in The Times of India Mumbai on 25th June 2012. Readers of this blog may find it interesting.

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Find out how you can dispose of a property for which you are still paying an EMI, or to purchase one that is mortgaged to a bank or a housing finance company
AMIT SHANBAUG

    When Sameer Khan purchased two properties in the western suburbs of Mumbai three years ago, the idea was to generate extra rental income for his family. “I had taken loans for both flats when they were under construction. Though the properties are nearly completed, it will take another six months to get the possession,” he says. However, with the steep increase in home loan interest rates, Khan is finding it difficult to service both the loans and plans to sell one property. “The profits generated from the sale of one house can be used to pay the loan for the other,” he says.
   
Financial insecurity is just one of the reasons a property owner may want to sell a house for which he is still paying the EMIs. A couple of years after buying the house, you may feel the need to upgrade to a bigger property. If you are moving to a different city for work, you may want to settle down there after disposing of the existing property.

    While these arguments are valid for a seller of a mortgaged property, it may also make sense to buy a mortgaged resale property rather than one that is under construction. The advantage of purchasing a resale property is that it may be at a better and established location and you will be dealing with an individual instead of a builder’s sales team. In the case of a resale property, you have ample time to examine the pros and cons of the deal before taking a decision. Another advantage with buying a resale property is that banks generally conduct due diligence for the house that they are going to finance.

    While the reasons for selling and buying a mortgaged property may vary, one common problem that most people face is: can you sell a mortgaged property at all? Do you need to settle the home loan first and then approach a buyer or can the buyer take over your loan? What if the buyer himself plans to take a loan to fund the purchase? Many property owners who have bought the house with money borrowed from a bank have grappled with these questions. To avoid confusion while finalising a deal, here’s how you can sell (or buy) a house against which a loan is outstanding.

Get the property documents in order

The main documents required to sell a residential property are the housing society share certificate and the sale/ purchase deed of the property. The sale deed confirms that the land is in the name of the seller and that he has the right to dispose it of. If the property has changed hands more than once, the buyer may also ask for a copy of the previous deeds, in order to confirm the authenticity of the deal and property.

    The buyer will also demand the copies of stamp duty and registered house documents. Since these papers will be mortgaged with the bank if you have taken a home loan, you can use a photocopy of the required documents to initiate a deal. Depending on the kind of property and ownership, some more documents, such as a no-objection certificate from the housing society and a documented consent in case of jointly owned property, may be required.

If a buyer pays with own funds

In this case, the procedure is pretty straightforward. The seller first needs to obtain a letter from the bank with which the property is mortgaged, stating that the bank agrees to relinquish the property documents after the full and final payment of the loan. The buyer will then be required to pay an amount equivalent to the outstanding loan to the seller’s housing loan account, after which the process of releasing the documents by the bank is initiated.

    Once the borrower pays off all the dues, he receives the ‘no due’ letter from the bank. The original documents kept with the bank as security are usually released over a period of 5-10 working days of receiving the money. Ramesh Bhojwani, a Mumbai-based financial expert, explains that the sale proceeds cannot be fully executed till the time you are servicing a housing loan. “You can’t sell a mortgaged house if the buyer insists on the documents required to apply for a loan because all the original papers are lying with the bank,” he points out.
    Are there any tax implications either for the buyer or seller if the amount is paid as a lump sum? Hiten Shah, associate director, tax and regulatory practice, Ernst & Young, explains, “The lumpsum payment made by the seller will not have any impact on his cost of acquisition. However, the interest paid on the loan can be claimed as deduction under income from house property and a deduction for principal repayment can be made under Section 80C of the Income Tax Act,” explains Shah.

If the buyer takes a home loan

In this case also, the seller will still be required to settle his home loan first. The buyer of the property will have to submit all his financial documents to the bank and once the bank is fully satisfied about his repayment capacity, he will be eligible for the new loan. Experts advise that it is better to take a housing loan from the same bank where the seller has mortgaged the property as the bank will just have to examine the buyer’s financial eligibility before furnishing the loan.

Tax implications

While selling or buying a mortgaged property is possible, selling it within a couple of years of buying it can pare down your actual profit by half. “The seller will incur short-term capital gains tax regardless of whether the sale proceeds are invested in a new property or not,” says Om Ahuja, CEO, residential services, Jones Lang LaSalle India.

    If you have taken a home loan on the property, you will also have to take into account the interest that you have already paid before calculating your actual gains. Under Section 80C of the Income Tax Act, the principal of the home loan can be claimed as tax deduction. However, if the property is sold within five years of buying, the tax deduction is reversed.

    If you have held the property for more than three years, the gains are treated as long-term capital gains and taxed at a lower rate. The taxman also gives you the option of using indexation to bring down your tax liability. This lowers the effective profit from the sale of the asset and, therefore, the tax liability.

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Gymnasium Etiquette

Oh my. That's what I was saying to myself at the gym the other day as I got on a treadmill and noticed the glistening puddles of sweat left behind from a previous exerciser. Sigh.

Anytime you smush groups of sweaty people together in small spaces, there are bound to be problems and, though there may not be rules posted around the gym for how to act, there are some unspoken rules that all of us should be familiar with, whether we're veteran exercisers or we're just starting out.

The Basics

While it's perfectly acceptable to sweat, grunt and make mean faces while working out, there are a few behaviors that aren't acceptable. Here are just a few rules for getting along with your fellow exercisers:

• Share. If you're doing multiple sets on a machine, it's common courtesy to let others work in during your rest periods. This may not always be practical, but offer to share whenever you can.

• Clean up After Yourself. My biggest pet peeve is someone who walks away from a machine, leaving a slimy pool of sweat behind. Thanks! Always bring a towel with you and wipe the machines down when you're finished. Most gyms offer wipes or sprays strategically located around the gym for this purpose.

• Leave no trace. My next biggest pet peeve is the person who leaves six million pounds on the leg press machine. I don't know, maybe I look stronger than I am. The point is, always put your weights back when you're finished.

• Don't hog the treadmill. Many gyms have time limits on cardio machines during busy hours. There's a reason for that, and you should obey it. And no, throwing your towel over the display doesn't fool me.

• Keep it down. Most gym-goers I know have seen That Guy. The one pumping away on the treadmill while screaming into a cell phone. Unless it's an emergency, save your chat-time for after your workouts.

• Cover it up. I respect the confidence that allows some people to walk around the locker room naked. Know what else I respect? Seeing you wearing a towel after your shower to keep the locker room a comfortable place for everyone.

Aside from practicing good manners at the gym, you also want to make sure your workouts are safe and effective. Use the following tips for navigating the confusing world of gym workouts.

How to Workout at the Gym

There are days when I cringe watching people workout. I see people flinging weights wildly, dropping heavy weights on the floor, hanging onto treadmills for dear life and just generally using bad form with their exercises. Here are a few tips for getting an effective workout without hurting yourself:

1. Use good form. Good form is different depending on what exercise you're doing but, in general, good form includes the following:

2. Don't swing your weights. Unless you're doing a sports specific workout, use slow and controlled movements. If you have to heave the weight up, it's too heavy.

3. Don't drop or throw the weights down. That's a great way to break a toe--yours or someone else's. If you're using a heavy weight, have a spotter nearby to help you.

4. Don't lock your joints. When you get to the end of a motion--like a squat--keep your joints soft to avoid hurting yourself.

5. Don't slump. Keep your abs engaged during all of your exercises and stand up straight to avoid injury and get the most out of your exercises.

·                     Let go of the rails. It's tempting to take your treadmill speed/incline up so high, you have to hold on for dear life. I'm not sure why that's tempting, but it apparently is since a lot of people do it. You'll get a better workout if you let your arms swing naturally. Unless you need the rails to keep your balance and stay safe, keep your speed and incline at a level where you can comfortably let go.

·                     Learn how to use the machines properly. I've seen people doing crunches on a leg press machine. If you don't know how a machine works, either look at the diagrams on the machine or ask someone to show you how it works. Most gym-goers are happy to help.

·                     Learn how to set up a good workout for your goals. Rather than just showing up at the gym and randomly picking machines, have a plan before you walk in the door. This might mean hiring a trainer or educating yourself about the basics of exercise.

·                     Learn how to monitor your intensity. Since I started training, I've seen more than a few people puke after working too hard on the cardio machines. Beginner's often aren't sure of how much they can handle and end up working too hard, exercising too soon after eating or exercising without having eaten at all, all of which can cause stomach problems. Educate yourself on how to monitor your intensity and the right way to begin a cardio program.

Being a newcomer to a health club is tough for anyone, even veteran exercisers, especially when you're not sure how things work. Things will typically go much more smoothly if you take the time to follow the rules, be a pleasant gym-goer and, most of all, learn how to set up a safe, effective program. You'll be much more more likely to keep showing up for your workouts and make some new friends with like-minded people.

Credits: http://exercise.about.com/cs/healthclubs/a/gymetiquette.htm

Smelling a rat

All the apartment owners in Mahindra Eminente must have received notice for First Annual General Meeting on Saturday 21st April 2011 at 1730 hrs in Clubhouse. Few important points on the Agenda are as follows:

1. Induction of those flat owners as members of the society who had not yet signed the documents of society formation. In order not to get entangled in government procedural quagmire and delays at that moment it is recommended to bring along your photo identity card and copy of flat purchase agreement.

2. Second and MOST IMPORTANT agenda item is to select/ elect the members of Managing Committee who will subsequently takeover from MLDL, the reins of day to day management of society affairs.

Constitution of Managing Committee is most important in the sense that right set of skill-set within the management committee will be able to skillfully outline the future of this residential complex. It is unarguably true that only the right set of leaders bring along the leadership skills to lead with honour and lead by example. Not so long ago, one resident had mentioned few important points in his email of date 10th March 2011 and one very important word which appreciatively caught my attention was - "Raj Dharma".

Now when we are on the verge of constituting the managing committee, shouldn't we choose the people who can exercise "Raj Dharma" selflessly without fear or favour, without any vested interests, can lead by example, be the role model, provide character-based leadership, have with them what is required to lead with honour, are strong enough to lead authentically from the inside out/ from their own true North.

We desperately need the managing committee with the people who have their values and ethical standards sorted out and truly committed to them, who will lead with honor, who can constantly engage in the battle to guard their character.

In order to search for such individuals, it was decided after the meeting of residents on 18th April that we shall assemble again on 19th April night at 2130 hrs. On 19th April meeting began in humble note but ended with people reaching to highest possible decibel level.  Interestingly we got introduced to some new faces with some new motives and some new agendas. The sudden unfolding of new events laden with some new motives and some new agendas was so swift that while sitting there in amphitheatre we couldn’t help but smelling a rat which largely signified something fishy and like flies swarming around a spoonful of honey.

It’s a seriously challenging task to vote and elect deserving people. I am going to suggest something, some may like to disagree with. I completely understand  and very comfortable by the fact that disagreements are very healthy and is one very important hallmark of democratic society. I also don’t know who all are going to contest the election on 21st to secure place in Managing Committee. Over a period of last two years whatever I observed, based upon the participation and enthusiasm in society related matters, I have no hesitation in taking the liberty of short listing following ladies and gentlemen, in no specific order of preference:

Mr Paresh Shah
Mr Shafi Sheikh
Mr Arif Siddiqui
Mr Anish Gupta
Mr Shrenik Baid
Dr Neeta Modi
Dr Amit Shah
Mrs Priti Gupta
Mr Ravi Krishnamoorthy
Mr Mahadevan
Mr Sanjay Dosi
Mr Rajesh Sonawane.
Mr Nagendra Pai
Mr Vilas Aras.
Mr Vivek Lodha
Mrs Meenakshi Jaura
Mr Kedar Sohoni
Mr Nilesh

Only 7 or 9 office bearers can be selected as per norms of managing committee formation. This list is produced in good faith with due respect to all, without meaning any offence to anyone not finding mention in this list. Some names have been knowingly omitted because those gentlemen are not comfortable about entering into fray. Surely there may be few more interested candidates who may like to come forward and in a democratic set up which is very much welcome and likeable.

I have just put together my thoughts above. You may choose to either accept or decline the suggestion. I very humbly acknowledge the fact that all  the members in this society are greatly respectful and intelligent enough to make their own informed decisions. My only humble advice is to please come and attend the first AGM in large numbers and don’t hesitate to elect people worthy of your trust.

Wish you all great weekend. See you all on Saturday 21st April at 1730 hrs in the clubhouse.