5(1) Money Making Ideas in Real Estate
Always have faith in the concept of
New
Innovative
Money
Making
Ideas
In
Real Estate
- for progress and prosperity
5(2) Money Making Ideas in Real Estate
Iconic
Commercial
Building
in
your
Town
5(3) Money Making Ideas in Real
Estate
New Innovative Investment Idea for you and
your client
. . . Unite
To
Invest . . .
(UTI)
- Invest Jointly – Build Hotel Jointly Build Hospital Jointly
- The Crossings Township near NOIDA
5(4) Money Making Ideas in Real
Estate
Senior Citizen
Relocation
Services
.
5(5) Money Making Ideas in
Real Estate
Real Estate management
Services – a big business to
be in U.K., A2 Housing
Solutions a group of nonprofit
making
social
landlords
manage
5,000
properties.
5(6) Money Making Ideas in Real
Estate
Setting
up
and
Operating Specialised
Clubs like – The
Vegetarian Club, The
Emotion Exchange Club
5(7)
Money Making Ideas in
Real Estate
Join Hands with
FDI
in Real Estate.
5(8) Money Making Ideas in
Real Estate
Cheap Agricultural Land. As
per the Guardian (London)
Dt. 19-1-2005 there has been
226% rise in Greenfield land
Values in eight years. This
will happen in India too.
5(9) Money Making Ideas in Real
Estate
Retirement Village,
Senior
Citizen
Home, Seven Star
Super
Deluxe
Old Age
Home
.
5(10) Money Making Ideas in Real Estate
Condo Apartments.
Golf Course with
Condo Apartments
5(11) Money Making Ideas in Real Estate
A Spiritual City
With all religion
Temples,Chruches
etc.
5(12) Money Making Ideas in Real Estate
Single
Family
Homes
And
Apartments
with
Gym and Private Club.
5(13) Money Making Ideas in Real Estate
Setting
up
a
Private
Country Club with Swimming
Pool and Sports activities
And stay in facilities - also
TIE up with similar reciprocal
Arrangements.
5(14) Money Making Ideas in
Real Estate
Underground
Cottages
and
Green
surface
apartments.
5(15) Money Making Ideas
in Real Estate
Health Spa
&
Massage Parlour on
your Real Estate
- Highend.
5(16) Money Making Ideas in Real Estate
Ultra
Modern
Night
Club
- A feeling as if we
are
in
USA.
5(17) Money Making Ideas in Real Estate
Serviced Apartments
with
Roof
Swimming
Top
Pool.
5(18) Money Making Ideas in
Real Estate
Encash
on
the
theme :
Buy one Property and
Get One Property Free.
5(19) Money Making Ideas in Real Estate
Property Barter Business
With persons engaged in
Real Estate.
5(20) Money Making Ideas in Real Estate
Special
With
Country
Homes
no Boundary, a special
Joint family Community
living.
5(21) Money Making Ideas in Real Estate
Special Real Estate Projects
on Sea Front, on
Or Opp.
Front
Mountains.
Real Bliss and
Hence Super
awaited
River
enjoyment,
Super success
5(22) Money Making Ideas in Real Estate
Setting
up
Industrial Parks.
5(23) Money Making Ideas in Real Estate
Construct Sunrise &
Sunset Apartments in
One Complex
( For young & for old )
5(24) Money Making Ideas in Real Estate
Property
Collaboration
Agreements
&
Tax Saving.
5(25) Money Making Ideas in RealEstate
Real Estate Investment
Trusts. (REITS)- the
shape of things
to
come.
5(26) Money Making Ideas in Real Estate
A special Real Estate
Consultancy Service
run and managed by
LADIES only
5(27) Money Making Ideas in Real Estate
Health Village
- New Idea to collaborate between
Real Estate Developer & Nature Cure
Doctor
- Ultra Modern Massage Parlours, Spa
& Health related activities for joy and
bliss
- Better option then “Renting Real
Estate”
- Kick Start and then think of a chain of
“Health Villages”
5(28) Money Making Ideas in Real Estate
Setting up a Wedding Plaza on the
outskirts of your Town.
1.
2.
3.
4.
A to Z facilities for Wedding
An ideal place for most happening
activities.
Rooms for Marriage Party.
Better yield realization from real
estate.
5(29)
Money Making Ideas in Real Estate
Buy Land –
Double
the
Requirement, Just pay token
advance, take Lot of time for
payment and Sell the
required parcel of land
higher
price.
not
at
5(30) Money Making Ideas in Real Estate
Setting
up
Super
Deluxe Luxury Mall –
to compare best in the
World,
only costly
luxury items.
5(31) Money Making Ideas in Real Estate
India’s longest RAIL BRIDGE is in
Kerala ( 8.6 KM rail link). Why not
build something of this type which
will attract the whole world and
become a great
tourist
spot.
Lakhotia’s Idea : The longest
building
in
the
world.
5(32) Money Making Ideas in Real Estate
Build a New
Market
in your
town with
Minimum 200 / 500 shops. No lift. Less
Maintenance expenses. Same size. Fast sale.
Very popular Like New Market of Kolkata.
The concept of
“Chhoti Dukaan – Chota
Daam”. Think of “New Market” concept of
whole
India under franchise
module.
5(33) Money Making Ideas in Real Estate
The Fifth Avenue.
Have you ever been to the Fifth
Avenue
The
in
best
Nu
York.
address.
Construct “Fifth Avenue” in
your Project and make money.
5(34) Money Making Ideas in Real Estate
Develop
Resort
&
Heritage Village
And Combine Time Share
concept.
Five or ten developers can do
it
in mutual exchange benefit programe.
Plant
Green
-
High End
-
Low End.
trees,
5(35)Money Making Ideas in Real
Estate
The Sandalwood Garden with a
Cottage. Would enable investor
to reap the Benefit of Tax Free
Income of nearly 1000
times
in
years.
next
20/25
5(36) Money Making Ideas in Real Estate
Entire
Glass
House
Building using the Glass
from the window glass
experts. Specially very
successful in country side.
5(37) Money Making Ideas in Real Estate
Encash on new Entertainment
Opportunities on your Real Estate
Like
Kingdom of
Dreams
in Gurgaon. 3 D Attractions,
XD Theatre, 4D Cinema like the
one’s in Pattaya Which attracted
1,00,000 customers last year.
5(38) Money Making Ideas in Real Estate
Prepare
illustrated
“Property Guide” and
place in public places
and Malls like USA,
London etc.
5(39) Money Making Ideas in Real Estate
Visit Vibrant Towns and
Vibrant Cities of USA,
Germany, Tokyo, China
and make money grow.
5(40) Money Making Ideas in Real Estate
Special
Stilt
Houses
5(41) Money Making Ideas in Real Estate
The
Rotating
Temple.
5(42) Money Making Ideas in Real Estate
The
Ultra
Modern
Burning Ghat.
5(43) Money Making Ideas in Real Estate
Buy
the
Cheapest
Agricultural Land in India,
minimum 4000 to 6000
Acres,
construct
a
Modern Township
with
Private
Airport.
5(44) Money Making Ideas in Real Estate
The next
one :
Think and you Tell me
- Just think and meditate and
meditate and think and you
get a
brilliant new idea
- Take a 24
hour “Silence
Journey” (MAUN) to reap the real
best
Fruits.
5(45) Money Making Ideas in Real Estate
The best idea to make your
Money grow in Real Estate
always adopt 2% PC Formula.
- The sure shot guaranteed
idea to increase your money.
Experience it and enjoy more
money for you, by you.
5(46)
Money Making Ideas in Real Estate
Luxury Appartment
With
Independent
Swimming
Pools
6(1)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
Comes into operation as per The
Limited Liability Partnership Act, 2008.
Passed by both the Houses of
Parliament & received the assent of the
President of India on 7th January, 2009.
An innovative new platform for Micro,
Small & Medium enterprises in
particular as also for the Professional
persons.
6(2) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
Existing the World over
Some important countries where
concept is in operation:Italy
Great Britain
France
USA
Germany
Japan
Singapore
… And Finally now in India
LLP
6(3) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1.
2.
With the growth of Indian economy & the role played by
entrepreneurs a need was felt for a new corporate form that
would provide an alternative to the traditional partnership, with
unlimited personal liability on the one hand, and, the statutebased governance structure of the limited liability company on
the other, in order to enable professional expertise and
entrepreneurial initiative to combine, organize and operate in
flexible, innovative and efficient manner.
The Limited Liability Partnership (LLP) is viewed as an alternative
corporate business vehicle that provides the benefits of limited
liability but allows its members the flexibility of organizing their
internal structure as a partnership based on a mutually arrived
agreement. The LLP form would enable entrepreneurs,
professionals and enterprises providing services of any kind or
engaged in scientific and technical disciplines, to form
commercially efficient vehicles suited to their requirements.
Owing to flexibility in its structure and operation, the LLP would
also be a suitable vehicle for small enterprises and for
investment by venture capital.
6(4)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
The Following are the salient features of LLP:1.
2.
3.
4.
The LLP shall be a body corporate and a legal entity separate from its partners. Any
two or more persons, associated for carrying on a lawful business with a view to
profit, may by subscribing their names to an incorporation document and filing the
same with the Registrar, form a Limited Liability Partnership. The LLP will have
perpetual succession;
The mutual rights and duties of partners of an LLP inter se and those of the LLP and
its partners shall be governed by an agreement between partners or between the LLP
and the partners subject to the provisions of the LLP Act 2008 . The act provides
flexibility to devise the agreement as per their choice. In the absence of any such
agreement, the mutual rights and duties shall be governed by the provisions of the
LLP Act;
The LLP will be a separate legal entity, liable to the full extent of its assets, with the
liability of the partners being limited to their agreed contribution in the LLP which may
be of tangible or intangible nature or both tangible and intangible in nature. No
partner would be liable on account of the independent or un-authorized actions of
other partners or their misconduct. The liabilities of the LLP and partners who are
found to have acted with intent to defraud creditors or for any fraudulent purpose
shall be unlimited for all or any of the debts or other liabilities of the LLP;
Every LLP shall have at least two partners and shall also have at least two individuals
as Designated Partners, of whom at least one shall be resident in India. The duties
and obligations of Designated Partners shall be as provided in the law;
6(5)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Partnership Firm: The partners are liable to
unlimited extent, jointly as well as severally. The
maximum limit of partners is 20.
2. LLP:
 The partner’s liability is limited to his contribution.
 LLP is liable to the extent of its assets.
 Partner not affected by misconduct of other
partners.
 No limit on the maximum number of partners.
6(6)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Internal structure and governance
of a Company is regulated by
statute (i.e. Companies Act, 1956).
2. In case of an LLP internal
structure and governance is
regulated
through
agreement
among partners.
6(7)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
 Most SMEs are Proprietorships or Partnerships.
 Proprietorship form provides flexibility but is a
constraint in obtaining institutional finance.
 Partnership-Risks are higher for the entrepreneur
on account of the misconduct of the other
partner.
 Stringent legal obligations and high compliance
costs deter corporatization of SMEs High
compliance.
 LLP Act would be an incentive to existing
unincorporated entities, particularly partnerships,
to corporatize due to limitation of liability,
flexibility, low compliance burden and provisions
for conversion.
6(8)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Minimum Number of partners required
for formation of an LLP : TWO.
2. Minimum Number of Designated
Partners required for formation of an
LLP : TWO (At least one should be
resident in India).
3. Maximum number of partners : NO
LIMIT.
6(9)
Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Liability of partners is limited to the extent
of their respective contribution.
2. Every partner of an LLP would be an agent
of the LLP but not of the other partners. A
partner would not be personally liable for
the wrongful acts or omission of any other
partner.
3. Individual liability of partners would,
however, be unlimited in case of
unauthorized acts, fraud and negligence
without involvement of the LLP itself.
6(10) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Each partner shall bring contribution in LLP
and nature & amount shall be disclosed in
the Accounts of LLP.
2. Contribution can be in tangible, movable,
immovable or intangible Form.
3. In case of “tangible / Intangible (other than
cash) Form of contribution” or “contribution
by way of service contract” it shall be
valued
by
a
practising
Chartered
Accountant / Cost Accountant / Approved
Valuer.
6(11) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Two LLPs may merge, amalgamate or
acquire other entities in accordance with
Rules made by Central Government for the
purpose.
2. Winding up of an LLP may be either
voluntary or by the Tribunal. Power is
provided to the Central Government to
make rules in relation to winding up and
dissolution of LLPs. (Already prepared and
laid before the Parliament prior to
Notification – as per the special procedure
laid down in the Act).
6(12) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. Minimum should have two “Designated
partners”. However, there can be more
than two designated partners.
2. All Designated Partners to obtain
“Designated
Partner
Identification
Number” by filing Form No. 7.
3. To make physical application to be sent by
Hand Delivery or by Post to LLP
Registrar’s office at 3rd Floor, Paryavaran
Bhawan, CGO Complex, Lodhi Road, New
Delhi-110003.
6(13) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1.
2.
As per the Finance (No. 2) Act, 2009 the taxation of Limited
Liability Partnership is at par with the Partnership Firms.
Changes made to s. 2(23) of The Income-tax Act, 1961 :‘23 (i) “firm” shall have the meaning assigned to it in the Indian
Partnership Act, 1932, and shall include a limited liability
partnership as defined in the Limited Liability Partnership Act,
2008;
(ii) “partner” shall have the meaning assigned to it in the Indian
Partnership Act, 1932, and shall include –
(a) any person who, being a minor, has been admitted to the
benefits of partnership; and
(b) a partner of a limited liability partnership as defined in the
Limited
Liability Partnership Act, 2008;
(iii) “partnership” shall have the meaning assigned to it in the
Indian
Partnership Act, 1932, and shall include a
limited liability partnership
as defined in the Limited Liability Partnership Act, 2008;
6(14) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
3.
4.
5.
6.
7.
Income-tax on LLP @ 30% plus 2% Education Cess
& 1% Secondary & Higher Education Cess. No
surcharge.
LLP cannot take advantage of Presumptive tax
system – s. 44AF & 44AD.
Interest to Partners of LLP allowed upto maximum
12% p.a.
Salary to Partners as per s. 40 :(a) On First Rs. 3,00,000 of Book Profit = Rs. 1,50,000
or 90% of Book Profit whichever is more.
(b) On balance of book profit = at the rate of 60%
To write in the LLP Deed about Interest & Salary
6(15) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
.…
Innumerable
Planning
Vistas
Tax
would
make LLP a preferred Tax
entity ….
6(16) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
1. No Dividend Distribution Tax on LLP
as is applicable for a Corporate entity.
2. No Minimum Alternate Tax.
3. Non-applicability of section 2(22)(e)
relating to Deemed Dividend.
4. Interest/salary received by a Partner
of LLP is “Business Income”.
6(17) Utilising Limited Liability Partnership
Firms for your Real Estate Investments.
A Private Limited Company and a non listed Public Limited Company can
be converted into LLP without any liability to Capital Gains.
Important conditions :(i)
the total sales, turnover or gross receipts in business of the company do not exceed
sixty lakh rupees in any of the three preceding previous years;
(ii)
the shareholders of the company become partners of the LLP in the same proportion
as their shareholding in the company;
(iii)
no consideration other than share in profit and capital contribution in the LLP arises to
partners;
(iv)
the erstwhile shareholders of the company continue to be entitled to receive at least 50
per cent of the profits of the LLP for a period of 5 years from the date of conversion;
(v)
all assets and liabilities of the company become the assets and liabilities of the LLP;
and
(vi)
no amount is paid, either directly or indirectly, to any partner out of the accumulated
profit of the company for a period of 3 years from the date of conversion.
Notes:
1.
Carry forward and set-off of business loss and unabsorbed depreciation to the
successor LLP which fulfills the above mentioned conditions.
2.
If the conditions stipulated above are not complied with, the benefit availed by the
company shall be deemed to be the profits and gains of the successor LLP chargeable
to tax for the previous year in which the requirements are not complied with.
7
The New Concept of “Real Estate Business
Oxygen Company” for making money in Real Estate.
1. The importance of OXYGEN is known to
one and all.
2. Now is the time to relise the importance of
“Business Oxygen” for Real Estate
ventures.
3. Reap the fruits of Business Oxygen and
make your money grow.
4. Think of innovative 24 hour Business
Oxygen to be made to real estate
developers.
8. Invest in India by Non Resident
Indians
1.
Investment by NRI in real estate :
- Except Agricultural Land, Plantation
& Farm House
- Transfer Any Property
- Get the Rent from Property repatriated.
- Repatriate rent and property sale
proceeds.
- Gifts and succession of Real Estate by NRIs.
- Big scope to market “Real Estate” for NRI’s
- Visit foreign countries for sales to NRI’s
9(1)
Miscellaneous aspects of
Tax Planning of Real Estate
• Important of Government Approved
Valuation Report.
• Reopening of Tax Assessments due
to Property transactions.
• Cash Loan and Cash transactions in
Real Estate.
• Search & Seizure and your Real
Estate Investment.
9(2) Miscellaneous aspects of Tax
Planning of Real Estate
Contd…
5. Enjoy tax deduction for rent payment
as per section 80GG
6. Tax exemption income of a Builder as
per s. 80 IB (10)
7. Installment Payments on Properties +
Tax Benefits on Sale.
8. Pre construction Interest = Deduction
in 5 years.
9(3)
9.
Miscellaneous aspects of Tax
Planning of Real Estate
Contd..
Interest on Loan on House for
Accessories & Furnishing not allowed.
10. s. 80C = Sale in 5 years = Added to
Income.
11.
Section 56 and the new concept or
Deemed Income from other sources.
12. Exchange of Properties – tax aspects.
Thank
You
SUBHASH LAKHOTIA
Tax Consultant & Motivator
Tax Guru: CNBC Awaaz
Lakhotia Niwas, S-228, Greater Kailash-II,
New Delhi-110048
Phone: 29215434, 29215420, 29217768,
Fax: 29217768
E-mail: slakhotia@satyam.net.in;
lakhotia49@gmail.com;