Saturday, August 22, 2009


NBCC has launched “NBCC Town” scheme at Khekra on Delhi – Sharanpur Highway. 19 Km Away from the ISBT, the flats start at a price of 6.75 Lac for One Bedroom Flat (493 Sq. ft.) at 4th Floor of Lotus Apartments. The scheme opens from 25th August,2009.

NBCC has come up with four type of apartments. The Lotus apartments (4 Storey) will house One bedroom Flats. Lilly apartments (4 storey) will house 2 bedroom flats. Tulip Apartment (4 storey) will house 3 Bedroom and Marigold Towers (7 storey) will also house 3 Bedroom flats but will have facility of stilt Car parking.

The costliest flat in the scheme is located at the First Floor in the Marigold Towers with an area of 1100 Sq. Ft. and is prices at 17.8 Lac for 3 Bedrooms with 2 Balconies. Car parking will cost additional 1.25 Lac for flats at Marigold Towers.

The application form is available at the NBCC Bhawan at Lodhi Road and Sector 41 Noida at a price of Rs 100.The forms are also available at designated branches of HDFC Bank, Union Bank, Corporation Bank and Axis Bank.The application form for NBCC Town can be downloaded here:

NBCC has come up with four type of apartments. The Lotus apartments (4 Storey) will house One bedroom Flats. Lilly apartments (4 storey) will house 2 bedroom flats. Tulip Apartment (4 storey) will house 3 Bedroom and Marigold Towers (7 storey) will also house 3 Bedroom flats but will have facility of stilt Car parking.If you are a working or retired Government / PSU Employee then you are eligible for a special discount of 5%.



The 47-year-old direct tax law in India may soon be history. The draft of a new direct tax code was unveiled on Wednesday and will become law in 2011 after a process of due consultation.

But what's more important is the big shift proposed in the way we compute tax and the entire philosophy behind taxation.

Here are some of the simplified Highlights of the the Draft Tax Code bill (I have highlighted the ones that are important):

1.Higher income tax slabs, lowering net payable taxes.
New tax slab
Up to Rs1.6 lakh: No tax
income between Rs160,000 and Rs10,00,000 20% tax
for income between Rs10,00,000 and Rs25,00,000
30% tax for income over Rs25,00,000

2.Lowers the incidence of tax on corporate and individual incomes

3.Reintroduces wealth tax and capital gains tax, albeit at lower levels:securities transaction tax (STT) is scrapped, capital gains tax unified to one in the long and short term and wealth tax reduced to 0.25 per cent from one per cent with an increase in limit to Rs 50 crore.

4.Scope of income tax expanded to include value of perks, gifts, profit in lieu of salary and capital gains but excludes farm income

5.Removal of most exemptions

6.All long-term savings to come under EET

7.Tax exemption to PPF and other pension schemes on withdrawals accumulated up to March 31, 2011.

8.The code proposes to abolish STT.

9.Wealth to be taxed on net basis; Amount in excess of Rs500mn to be taxed at 0.25%
Moves the base year for calculation of capital gains tax to April 2000

10.Dividend will continue to be tax-free in the hands of investors
Effective corporate tax rate at 25% with no surcharge or cess

11.MAT to be levied on gross assets as against book profits now
MAT to be 0.25% for banking and 2% for others
MAT carry forward to be disallowed

12.Business losses to be carried forward indefinitely

13.No tax deduction on interest payable on any government security

14.Wealth tax liability to be discharged by payment of prepaid taxes

15.Rationalization of taxes for all non-profit organizations

16.Annual disclosure of profits of non-life insurance businesses

17.Govt may enter overseas agreements for double taxation avoidance

18.No tax deduction on interest payable to banking firms and insurerance companies.

Download full tax code bill 2009

Tuesday, August 18, 2009


Investment Details

Options I II III IV
Interest Payment Quarterly Semi - annual Cummulative Semi - annual
Min Application (Rs) Rs 10,000 /- (Retail)
Rs 10,100 /- (HNI)
Rs 10,000 /- (Retail)
Rs 10,100 /- (HNI)
Rs 10,000 /- (Retail)
Rs 10,100 /- (HNI)
Rs 10,000 /- (Retail)
Rs 10,100 /- (HNI)
Face Value Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Rs 1,000 /-
Multiples Rs 1,000 /- Rs 1,000 /- Rs 1,000 /- Rs 1,000 /-
Coupon Rate 9.51% p.a. 9.62% p.a 9.95% Compounded annually 10.24% p.a
Yield on Redemption 9.85% 9.85% 9.95% 10.50%
Tenure 60 months 60 months 88 months 120 months
Redemption Date / Maturity Period 60 months from the deemed date of allotment. 60 months from the deemed date of allotment. 88 months from the deemed date of allotment. 120 months from the deemed date of allotment.
Redemption Amount Face value plus any interest that may have accrued payable on redemption. Face value plus any interest that may have accrued payable on redemption. Rs.2,005/- per NCD Face value plus any interest that may have accrued payable on redemption.

Issue: 50,00,000 NCDs of Rs.1,000/- each aggregating to Rs.500 Crores with an option to retain over-subscription upto Rs.500 Crores for issuance of additional NCDs, aggregating upto a total of Rs.1,000 Crores.

Stock Exchanges proposed for listing: NSE.

Issuance and trading In Demat form only.

Depository NSDL and CDSL.

Rating(s) CARE AA+ by CARE and LAA+ by ICRA.

Issue Schedule – 18th August’09 – 4th September’09
Deemed Date of Allotment Deemed date of allotment shall be the date of issue of the letter of allotment.
Min. Application Money Rs. 10,000 and in multiples of Re. 1,000 thereafter. Interest Payment Quarterly Option, Semi-annual Option, Cumulative Option, Semi-annual Option.
Tenor 60 months, 91 months, 120 months respectively.


Tuesday, May 19, 2009

Time to be euphoric?

"Stock market is a voting machine in the short term and weighing machine in the long term."

with a stable government in place a lot of things would be happened––India would be re-rated from the S&P or Moody’s point of view, the investment climate will improve and India would be a capital investment story. India’s growth rate improves to 6–6.5% that will account to about 20%–22% of the global growth. A country that gives such kind of growth cannot be ignored. So I expect $50 billion investments coming in the full year either in the form of FDI or Porfolio Investment. However,“I think retail investors should be cautious at this point in time.” One should focus on bottom up approach and invest in the stock at the appropriate level rather than looking at the market indices.

The double freeze at the circuit breaker may be a pleasant shock for sentimental purpose. The bulls may have enjoyed a pleasant day in the woods. But the fact remains we are not out of the woods as yet and never know which beast could cause trouble.

Plug into reality and you will realize this overdone ovation is a hope that the best brains would get their act together to decouple India from the myriad of woes plaguing the global economy. Clearly the exuberance has been overdone. Clearly there are several headwinds still to be tackled, both local and foreign.

The market has got into a nice rhythm and will see increased participation in terms of players as well as in terms of stocks. However I caution, it is important not to get carried away by the euphoria but still look for opportunities to increase exposure to equities.

There in no need to indulge in "Panic" buying as every market gives at least one opportunity to enter or exit at correct levels. However there are lots of investors who has left out the entire rally. Huge Liquidity is sitting on the fence to enter into the market which will provide enough support and cushion in the event of any pull back.

Flat Buyers, Beware!

Be Careful While You Book A Flat.

Signing blindly the agreements that the developers want you to sign will place you at a disadvantage

There are a host of real estate developers promising starry flats to investors in NCR (the National Capital Region). These developers invariably collect approximately 35 per cent of the cost of the flat from you within the first six months of booking. The construc-tion schedule committed to is invariably in excess of three years. They commence con-struction generally after a year and earn interest on the instalments collected from the buyers, until then. When asked for an explanation, the developers will invariably pass the buck by attributing it to the delay in receiving government approvals.
Before construction is set to commence, the developers protect themselves from all expo-sures by forcing the buyers to sign a "buyer's agreement" which is unilateral and biased in nature and content. Buyers are given no exit option - either they sign the agreement or pay the penalty for not signing it. The penalty entails cancellation of the flat and forfei-ture of the Earnest Money Deposit (EMD). The EMD accounts for 10 per cent of the cost of the flat already paid. The agreement is couched in such a language that the buyer can never dream of raising any representation / objection to any act of commission and omission on the part of the developers. Since it is a lengthy document, everybody signs without reading it but actually it could shock the buyer into disbelief when he / she actu-ally reads and understands it.
a) While booking, the developers declare in the brochure that the flat will be handed over to the buyer within 36 months from the date of booking. But the agreement on the other hand, says it is 36 months from the date of signing the agreement.
b) The agreement lays down in the definitions that the `super area' of the flat is sub-ject to change. It is understandable that post construction, the actual super area may change slightly but how can a definition change? After all, definition is about things definite and not indefinite!
c) All payment clauses mentioned are one-sided; whenever there is a price escalation, the buyer has to pay the escalation on demand but the developers will adjust the fall in prices, if any, at the end of the project.
d) The developers take it in writing from the buyer that the buyer surrenders all rights to challenge/represent against the developer in a court of law and the developers have the sole discretion to stipulate payment conditions, change specifications, etc, in a manner deemed fit by them.
e) Post construction, buyers sign a `maintenance agreement', without any represen-tation from their side. However many developers do not disclose its content while the buyer signs it. How can a buyer be forced to commit to sign a document whose content will be disclosed after, say, two years?
f) Developers undertake that provision of a three-tier security system is their respon-sibility but in the agreement they seek indemnity from theft.
g) Buyer's agreement expects buyers to pay electricity charges for back-up (genera-tor) services, `as decided from time to time'. But the agreement is silent on who will de-cide these charges. Rightfully, it should be decided by a committee on which the buyers are represented.
h) Buyers are bound to pay administrative charges from time to time. But the agree-ment is silent about the actual amount payable for the purpose; nor does it say who will quantify this amount.
i) The agreement expects buyers to pay electricity charges which are at variance with what is charged by the Electricity Board concerned. How can developers charge more for a service that is delivered by the government?
j) Developers protect themselves by mentioning in the agreement that power back-up facilities are an `additional feature' and buyers will indemnify the developers from all damages accruing from faults in the supply of power from the said back-up facilities. But while launching the project, the developers state that the said facility is a part and parcel of the offer. Also developers charge the buyers up-front for this facility.
k) If the buyer mortgages the flat for finance, the developer is indemnified; on the other hand, if the developer mortgages the entire project, all buyers are a party to it.
l) In case of insolvency of the developer, the entire project will be sold off to clear all the dues of the developers first and the balance of the sale proceeds, if any, will be shared by the buyers. This means that the buyers bear the risk arising from the insolvency of the developers and the insolvency of the developers. Further, the agreement does not say when the buyer will get the money back in such a situation.
m) Developers notify the changes in specifications to the buyers. If buyers do not ob-ject to the specifications within 15 days, it will be deemed as accepted. If they do, the allotment will be cancelled. This means that they do not have a right to represent against their grievance.
n) The agreement mentions that while taking over the flat, the buyer relinquishes all rights to challenge any deviation in quality / specifications promised by the developers while booking the flat.
o) Developers have unlimited rights to erect additional towers/buildings, etc, within the same area. This grossly violates the layout furnished by the developers in the brochure during the launch of the project.
p) Developers always seek `IBMS' or `Interest Bearing Maintenance Security'. Buy-ers are expected to deposit the money, post construction. But it is conveniently silent on the rate of interest payable to the flat buyers.
q) Developers indemnify themselves from any damage arising from non-adherence to any clause/condition/covenant of the agreement. Then what is the sanctity of this agreement? On the other hand, the buyer is expected to abide by it religiously.
r) Any expenses arising from the upward revision of the specifications is chargeable to the buyer but the agreement is silent on the reimbursement to buyers, in case of any downward revision.

Monday, May 11, 2009

Warren Buffetts’s Advice for 2009

Shubh Griha "NANO HOMES"- Details

Types of Flats
1 BHK - 465 Sq. Ft. No. of Flats 660 Price : Rs. 6,74,250
1 RK Large - 360 Sq. Ft. No. of Flats 474 Price : Rs. 5,04,000
1 RK Small - 283 Sq. Ft. No. of Flats 108 Price : Rs. 3,90,540

Payment Plan
Rs. 10,000 have to be deposited with the Application form.
7.5% –8.5% (depending on type of flat) of the amount to be deposited within 15 days of allotment letter
85% of the amount to given in 7 Quarterly Installments starting from September,2009
Balance 5% to be deposited at the time of Possession

Expected Date of Allotment : 29th June,2009
Expected Date of Possession: May 14th, 2011

Forms will be available at Boisar, Virar, Vasai, Palghar, Nallasopara,Dahanu Road, Thane, Borivali(W), Andheri East branches of SBI.In addition the forms would also be available at the Fort Regional Office of Tata Housing. Detail address:

For Details visit the tata's Subhgriha website: