Book under construction flat before July 2010 to avoid 3.30% Service tax on Agreement Value

Mar 6, 2010

Those looking to buy a house would do well to book one before
July, when the new service tax levy on construction service
will come into effect. The cost of flats will go up 3.3% of
the total purchase consideration once service tax begins
to be levied on construction.

The government is considering exempting from tax flats
booked before the notification of the expanded
construction service, a finance ministry official told 
“There is a case for giving relief to buyers who booked their
houses before the service is notified… We are examining it,” he said.

So, a buyer who has booked a flat but will get possession only
after the notification of the new service need not worry.
A clarification to this effect may be issued when the tax is
notified after the passage of the finance bill, he said.

The Union Budget proposes to expand the definition of construction
service and levy tax on houses under construction as well.
The new rule, which will come into effect when Parliament
approves the budget, says service tax would be imposed
if payments were made before the completion of construction.

Realty companies typically sell property before they begin
construction and fear that the move will hit the sector hard as
it would lead to a rise in home prices and depress demand.
“The government must reconsider its decision to impose service
tax on under-construction housing as the real estate industry is
already paying 14-16% as indirect taxes.
The current move will make affordable housing unaffordable
in the future,” said the DLF spokesperson.

The government plans to include charges such as development fee,
parking fee and premium location charges usually paid at the time of
completion of construction in the base price. Only 33% of the base
price of the flat will be chargeable to service tax levied at the rate
of 10%, taking the effective tax to 3.3%.

“Since an amendment has been made in an existing service already
under tax net, there are diverse views whether this will be operative
from a specific date after notification or treated as a clarificatory
amendment roping in construction-linked payment plans of houses under
construction,” said Anil Kumar, CEO and deputy managing director,
Ansal API. If it is to be operative from a prospective date,
booking a house in the next 3-4 months may result in savings
of up to 4% for a customer, he added.

However, the government remains firm on levying the tax. Revenue
secretary Sunil Mitra said the proposal would not hike prices by
more than 3.5%, an increase that could be afforded by the customers.

“Construction is a service. As a service, there is no reason why
it should not be taxed,” he said. “It is only 3% or 3.5% that gets
added up (for the buyer),” Mr Mitra added.

Realty developers not pleased at many Budget details

Raghavendra Kamath & Kalpana Pathak / Mumbai March 6, 2010, 0:47 IST

The devil is in the detail for the real estate sector.

Though the Budget gave sops to home buyers in the form

of tax savings and interest rate subvention, it quietly 

brought back service tax on lease rentals in the Finance Bill.


Builders said they’d pass on the service tax burden to
customers. The silver lining was that the continuation
of interest rate subvention and higher disposable income
in the hands of individuals through income tax reliefs
would more than make up for it.

The Budget announced a maximum tax savings of Rs 20,000
for those earning an annual income up to Rs 5 lakh and up
to Rs 50,000 for those earning up to Rs 8 lakh.
This additional income is likely to find its way towards buying homes.

Says Aashiesh Agarwaal, research analyst at Edelweiss
Capital: “For people getting an annual income of Rs 8 lakh, there will be a saving of 10 per cent, which will increase disposable income and their affordability. This will mean they can pay a higher EMI and be eligible for loans of higher value.’’

This Budget also extended the interest rate subvention
on a housing loan up to Rs 10 lakh where the house price
is up to Rs 20 lakh, announced in the earlier Budget, to
March 31, 2011. But, many developers are unimpressed.
“Overall, home sales may go up, but there is no incentive fo
developers to launch more affordable housing projects.
Why should we?’’ said Niranjan Hiranandani, managing director
of Hiranandani Constructions.

SERVICE TAX WORRY
The biggest worry of developers is re-introduction of service
taxes. In April 2009, the Delhi High Court stayed the tax on
lease rents when some retailers approached it, opposing the
government move to impose it. According to the Finance Bill,
service tax would be levied for renting immovable property or
any other service to such renting with retrospective effect from
June 1, 2007. The service tax rate is 10 per cent now.

Buildings under construction and the leasing of vacant land
would also attract service tax, the Bill says.

“The levy of service tax will increase the price of properties.
This has come as a dampener, as even renting under-construction
property will attract service tax now,’’ says Jai Mavani, executive
director and head of the real estate practice at KPMG.

Some developers are unmoved.
“We will transfer the service tax to home
buyers and to that effect there will not be
any additional liability,’’ said Sarang Wadhawan,
managing director of HDIL, a Mumbai-based developer.

OTHER SPURS
Though the Budget allowed projects started
before March 31, 2008, to be completed within
five years instead of four for claiming deduction
of their profits as “one-time relief to the sector’’,
developers and consultants said the measure does not help much.

“It is unfortunate that the commencement date of March 31, 2008,
has not been extended but the period for implementation
has been extended by one year. Hence, the impact of the
amendment would be marginal,’’

said Pranay Vakil, chairman of Knight Frank India,
an international property consultant.

However, the hotel industry gave a thumbs-up to the finance
minister’s move to give investment-linked deduction to new
hotels in two-star or above categories.

The benefit was hitherto available to certain states such as
Uttarakhand and Himachal Pradesh; it has been extended to all.

It allows 100 per cent deduction in respect of the whole of any
expenditure of a capital nature (other than on land, goodwill and financial instruments).

“It’s a good measure that will boost investment in the tourism
sector, with high employment potential. Also, the fact that the
benefit is made available to hotels across the board will boost
investment in all categories,” said a Delhi-based analyst.

FAQ-reverse mortgage?

 

Q.1.What is reverse mortgage?

When you buy a house through a home loan, every EMI
you pay towards servicing the loan increases your equity in
the house. Once you payoff the loan in full, your equity
in the house is 100 per cent. In reverse mortgage, exactly
the opposite happens. When you pledge your house for
reverse mortgage with a lending institution,
your equity in your own house decreases with every
disbursal that the lending institution makes to you.

Q.2 Which institutions offer reverse
mortgage as a product in India?

Reverse mortgage as a product is fairly new to India.
Dewan Housing Finance was the first institution in the
country to come up with its reverse mortgage product-Saksham.
Since then, most leading lending institutions have come up
with their own reverse mortgage products.

Some of these are State Bank of India, Punjab National Bank,
Bank of Baroda, Central Bank of India, Union Bank of India,
LlC Housing Finance, Indian Bank, Andhra Bank,
Corporation Bank and Canara Bank.

Q.3 What is the eligibility criteria for reverse mortgage?

First, Second you need to have 100 per cent equity in
your should be more than 60 years of age.
If your wife is a co-applicant, she  should be above 58.

Q.4 How do I apply for reverse mortgage?

Once you decide to pledge your house for reverse
gage, you should ideally go to the branch of the bank
with which you have a banking relationship and fill up
the necessary form–provided the bank offersreverse mortgage.
If your bank does not offer reverse mortgage ,
then approach the nearest branch of a bank that
does, and fill up the form.

You will need to furnish your personal and financial
details: details about The property, your legal heirs,
and so on. To authenticate that you own that the property,
you will also need to furnish property papers and a
proof that the house that you are pledging is your residence.

Q.5 How does the lending institution arrive at 
the amount that would be disbursed under the reverse mortgage product?

The qualifying amount of loan will depend on the
realisable value of your property after maintaining a
margin. This margin covers the rate of interest on the
loan and any possible fluctuations in the value of the
property pledged for reverse mortgage.

The value of the property is evaluated every 3-5 years,
depending on the lender, and this will affect the amount of
funds being released to you as per the payment plan you choose.

Q.6  What are the payment options that lending
institutions provide under reverse mortgage?

The money can be credited into your savings bank
account or in a joint account-with the either or survivor
option-in the same bank either on a monthly or quarterly
basis, or as a one-time lump sum payment.

Q.7  What is the rate of interest on the amount 
that the bank sanctions under reverse mortgage?

The rate of interest on the reverse mortgage loan typically
varies between 10 per cent and 12 per cent.

However,
you will not be required to pay this interest.
Once you vacate the premises permanently, or in the
event of your death, the lending institution will give the first
option to the legal heirs of the property to settle the loan.

If they are unable to settle the loan, the lending institution
will sell the property and, from its proceeds take its
share-principal, i.e., the total amount disbursed  as loan
and the interest on it-and give the to the legal heirs.

Q.8 Is there a processing fee?

Yes, There is a processing fee. This typically varies between
0.15 per cent and 1.50 per cent of the loan amount.
In some cases, apart from specifying the percentage
of loan amount as processing fee, they also have an upper
limit as to how much they can charge as processing fee.

Q.9 What is the maximum payment tenure that a
lending institution offers under reverse mortgage?

Most reverse mortgage loan products available have a maximum
tenure of 15 years, with a minimum tenure of 10 years.
However, RML products of central Bank of India andBank
of Baroda can be extended further, to the advance value of the
property. In case of Central Bank of India, the loan can be
further extended by another five years. Punjab National Bank
is the only institution that offers RML for 20 years.

Q.10 Can I prepay the amount that the lending 
institution disburses under reverse mortgage? 
Is there a pre-payment penalty?

Yes, you can prepay the loan along with the interest any
time during the loan tenure. Typically, there is no pre-payment penalty.

Q.11 Is the rate of interest on the RML and the value 
of the house fixed for the entire tenure or are they revised at regular intervals?

Considering that real estate, like any other asset class, passes
through cycles and the cost of funds for lending institutions also
keep changing, most lending institutions have a reset clause
in the their respective RMLs. This is to ensure that at no
point during the loan tenure, the loan to
value ratio exceeds the maximum unlock able value of the
mortgaged property.  However, this reset clause varies across
institutions. While mostlending institutions have a reset clause
of five years, Central Bank of India and Dewan Housing
Finance have a reset clause of three years.
 

So, after the scheduled period, both the value of the house
as well as the rate of interest will be re-evalued and necessary
adjustments will be made in your monthly payments.

Q.12 What if I outlive the tenure? Can I still stay in my house?

In case you outlive your loan tenure, you will continue to live in your house. However, the lending institution may stop the monthly payments to you if the unlock able value of the property has already been exhausted.

Q.13 When will the lending institution take my house?

After your death, or if you have permanently moved out
of the property, the bank will first give your legal heirs an
option to settlethe loan. In case of a joint loan,
it will become due for recovery and payable six months
after death of the last surviving spouse,

Q.14 How does the lending institution recover the money that it has given me under reverse mortgage?

If your legal heirs cannot settle the reverse mortgage loan, t
hen the property will be sold off and after realizing its money
(total advances and the accumulated interest), the bank
will pass on any surplus to your legal heirs.

Q.15When does it make sense to opt for reverse mortgage?

Reverse mortgage should ideally be used to augment one’s income in
the golden days in the retirement years. It should ideally be the
last resort to make good of the shortfall in funds in your retirement years.

Mumbai to lead office space take-up

 

 

 

3rd March,2010

Mumbai and Delhi NCR are expected to absorb

 about 20-22 per cent of the projected demand for  

office space during 2010-2012, says a report The year 2009

would be marked in Indian real estate as one of the most 

difficult periods for the industry in recent times.

However, despite the turbulence and uncertainty, there are 

momentous opportunities to learn through the turn.

 

With signs in the global economy that the worst may be

behind us, commercial office space in India has begun to 

consolidate, focusing on affordability, diversification and delivery, 

says a report by realty consultant Jones Lang LaSalle Meghraj.

The year witnessed a considerably lower net absorption of 19.6 million sq ft 

against a robust net absorption of 33.1 million sq ft in 2008.

Quarterly absorption rate was recorded at 17 per cent

in the fourth quarter of 2009, which has been increasing 

steadily after hitting bottom in the first quarter of 2009.

Indian real estate witnessed net absorption of 8 million sq ft 

in quarter 4, 2009, nearly four times the lowest witnessed in quarter 1, 2009.

With lower rents in IT as well as non-IT spaces,

the opportunistic demand is led by domestic occupiers, 

who have expanded their real estate portfolios in various 

Indian cities. The sunshine sectors ­ telecom, pharmaceuticals,

healthcare and manufacturing leased large spaces in various cities. 

A larger share of transactions happened in operational vacant

stock rather than under-construction projects in 2009, contrary

to the trend observed during 2007 and 2008, when options in 

operational office space weren't available to the tenants in

the same measure.

Projected supply and demand of office space Office 

space amounting to 162.6 million sq ft is expected to

become operational in the next three years, which would

increase the pan-India grade-A office stock to 387.4 million sq ft.

By end-2010, Mumbai is expected to lead in terms of

operational office stock in the country, pushing the leader,

Bangalore, to second position.

About 85-90 per cent of the near term supply of 68.3 million sq ft,

which is expected to become operational in 2010, is

in advanced stages of construction with more than 50 per cent

of the structure completed at end-2009.

The pace of supply infusion is expected to outgrow the 

demand in the medium, term thus creating a condition of 

oversupply across the secondary and suburban micro markets.

Net absorption of office space is projected to grow at a compound 

annual growth rate (CAGR) of 29 per cent during 2009-2012,

increasing from 19.6 million sq ft registered in 2009 to 42.2 million sq ft in 2012.

While Mumbai and NCR Delhi are expected to absorb

about 20-22 per cent of the projected demand during 

2010-2012, Bangalore and Chennai are expected to 

absorb about 14-15 per cent of the projected demand

during the same period.

Despite a projected growth of 10 per cent for IT/ITES 

and the BPO sector in India during 2010, demand for

real estate space is only expected by end of 2010.
During 2011-2012, with better growth projections 

of IT/ITES sector, demand for office space in these 

micro markets is likely to increase.

Budget-2010-Impact on Real Estate

 

Real Estate sector which is slowly coming out of the Mid 2008 slump,
has received good support from Union Budget 2010-11.

While the budget has encouraged affordable housing below
Rs 20 lakhs with 1% interest subvention for housing loan
upto 10 lakhs and extension of  benefits available under
section 80IB by one more year, extension of some services
are extended so as to bring under service tax impacting
the industry in difficult times.

However the industry which asked for industry status
for township projects,


changes in tax deduction on housing loans relaxation of
ECB route to fund projects etc has been overlooked.

Budget provisions

Extended the interest subvention scheme of 1% on all
individual housing loans upto Rs 10 lakh for units costing
upto Rs 20 lakh till March 30, 2011.

Housing projects which are eligible for
benefits U/s 80IB(10) as being approved after
1st April 2005 and before 31st March 2008 by
 respective local bodies will now be allowed to
be completed in five years instead of earlier
4 years from the date of sanction.

The definition of ‘Construction of complex service’
is being clarified/ scope extended that unless the entire
 consideration for the property is paid after the completion
of construction (i.e. after receipt of completion certificate
 from the competent authority), the activity of construction
 would be deemed to be a taxable service provided by the
builder/promoter/developer to the prospective buyer and
the service tax would be charged accordingly.

Definition of ‘Renting of immovable property service’
 as far as service tax is amended to  (i) provide explicitly
 that the activity of ‘renting’ itself is a taxable service.

The change has been given retrospective effect from 01.06.2007.
Similarly the rent of vacant land where there is an agreement or
contract between the lessor and lessee for undertaking construction
of buildings or structures on such land for furtherance of business
or commerce during the tenure of the lease will now be levied service tax.

Excise duty on cement (produced by non mini cement plants)is
increased to Rs 290/ tonne (from Rs 230/ tonne) if retail sale
price is not exceeding Rs 190 for 50/ kg bag or Rs 3800/ tonne
or 10% of retial sale price (from 8%) for cement if retail sale
price exceeding Rs 190 per Rs 50 kg bag or Rs 3800/ tonne.

In case of cement sold other than packaged form 10% or Rs 290 per
tonne which ever is higher compared to 8% or Rs 230/ tonne.

Excise duty on steel, PVC pipes, ceramic tiles increased from 8% to 10%.

The surcharge on corporate tax has been reduced from 10% to 7.5%
while MAT has been hiked from 15% to 18%.  This should benefit
many real estate companies, as most of them are outside the
purview of MAT, but will benefit from effective reduction in corporate tax.

Impact analysis

While the hike in excise duty on cement, steel and other inputs
 will pinch the industry at a time when the demand is on slow
recovery path, as the industry could not afford to pass on the
 same to the homebuyer.

However the industry players who have got their 80IB (10) eligible
projects delayed can take comfort with the time for completion being
 extended to 5 year from current 4 years. Moreover interest subvention
scheme of 1% on all individual housing loans upto Rs 10 lakh (Rs 1 million)
 for units costing upto Rs 20 lakh (Rs 2 million) till March 30, 2011
 is a positive move to encourage affordable housing units costing upto Rs 20 lakhs.

Since real estate sector is more interest sensitive this 1% subvention
 will reduce the EMI significantly and improves affordability.

Further more and more developers will conceive projects in this
 price segment to tap the potential auguring well for the sector
on a whole. However the impact of bringing rental of vacant land
into service tax as well as other changes in service tax has to be seen.

Since the demand for real estate being a derived one,
the growth thrust as well as more money on middle class
individual will benefit the industry by way of demand pickup .

Budget-2010:Buying under construction flat will attract service tax on payment made before completion of construction

 

Mar 3, 2010

The Budget proposals have thrown up a dampener

for the housing industry.

Construction services have now been brought

under the ambit of the service tax in an unexpected

move that would raise cost of apartments that are

still under construction.

As per the Budget proposal, the finance ministry

has suggested that construction would be deemed

to be a taxable service if the building or complex is

still under construction and approval from the

concerned regulatory authority — which in most

cases is the resident municipal authority — hasn’t

yet been granted. The levy would cover all

construction of complex service or commercial or

industrial construction services, the Finance Bill suggested.

The service tax levy would be 10.3% and would also

apply to additional services such as those offering

preferential locations for flats in multi-storey buildings

where flats in each floor are priced at a premium due

to their location. This too has been described as a

service and hence taxable, according to the proposal

which was tabled in Parliament on Friday

by finance minister Pranab Mukherjee.

The premium is typically levied on categories such as

flats or apartments that are above a certain floor rise

or have other high value locations such as being in front

of a garden or a sea or any other preferred locality.

“The proposal is to tax construction if the entire payment

for the flat is made before completion of construction,”

said consulting firm RSM Astute executive director K H Viswanathan.

“This would increase the cost of the apartment and may discourage

potential buyers.” The service tax would be 10% on 33% of the price

of the apartment, while on the remaining 67%, tax won’t be levied.

Till now, for all apartments under construction, customers

paid in instalments based on plinth level construction and also

on the progress in building activity. Banks too lent money to

the customers according to the requirement of the builder.

Now most developers would ask customers to pay the entire

value of the building if they sought to lock in at a certain value.

This would mean paying the entire sum before the construction.

Typically, in cities such as Mumbai, where there is a pressure

on space and hence apartments and flats are much sought after,

customers booking for flats in an under-construction building, is very common.

“The service tax and excise duty hike on cement would increase the

overall cost of apartment by about 10%,” said Dharmesh Jain,

managing director of Nirmal Lifestyles, a Mumbai-based developer.

“It’s a negative step and we are considering to meet the finance

minister to plead for a relook on this measure,” he added.

But there are other positive measures that the Budget proposes

such as allowing pending projects to be completed within a period of 5 years

instead of 4 years, for claiming deduction of profits, as one time interim relief.

There is also a suggestion that the commercial area included in a housing

project would now be 3% of the aggregate built-up area of the housing

project or 5,000 sq. ft, whichever is higher, compared to the existing limit

of 2% and 2,000 sq.ft. respectively. This would help developers

and real estate companies to make their projects more viable.

Budget ‘10 : Relief to Housing Projects & Hotel / Convention Centre

1 March 2010

Relief to Housing Projects

100% deduction on profits from a housing project is available if the project is completed within 4 years from the end of the financial year in which approval from local authority is obtained. This period is proposed to be increased to 5 years.

Further, the current norm for maximum build area for 

each unit is enhanced from 5% of total build up area or 

2,000 sq ft to 3% of total built-up area or 5,000 sq ft,

whichever is higher. This will be effective from Ay 2010-11 onwards

Relief to Hotel / Convention Centre pending 

for completion in National Capital Territory

Deduction to a Hotel / convention centre in National Capital 

Territory is available if it starts functioning on or before 

March 31, 2010. In light of the fact that the Commonwealth 

Games shall be held in October 2010, it is proposed that 

thededuction shall be available even if the hotel / convention centre 

starts functioning before July 31, 2010.

Deductor and collector will continue to issue TDS/TCS certificate

even after April 1, 2010.

Budget-2010:Positive, growth-oriented Budget say realtors

 February 28, 2010 –

Most market segments have welcomed the union Budget 2010. 

Markets and the indices showed their appeasement by jumping to higher points.

As the reactions to Budget start pouring in, 

we bring you quick bytes from the industry leaders.

Anuj Puri, Chairman & Country head, 

Jones Lang LaSalle Meghraj:

“The positive revision in personal income tax rates will

put more money in the pockets of the middle class, 

thereby increasing the buying power and sentiments 

of home buyers. Coupled with the extension

of the 1% interest subvention for affordable housing, 

this clearly is a sign that the residential sector will 

continue to thrive.

We would have been even more grateful for the re-introduction

of the 80 IB (10) tax benefit scheme, first implemented in 2001, 

which was definitely a boost for developers of affordable housing.

Nevertheless, the fact that existing incentives continue to be in place is positive.

The increase in allocation for slum redevelopment to Rs 1,270 crore 

will ensure that key areas in city centres will begin to yield quality

real estate supply. This is of critical importance when it comes to

giving form and logic to the urban landscape in congested cities like Mumbai.”

Union Budget 2010 – Highlights

Pradeep Jain, Chairman, Parsvnath Developers Limited:

“The budget is good for all public in general and for infrastructure

sector, food processing units and the large support to the rural 

development including PPP projects, education and health etc. 

But the developers have looked forward to more sops to bring

housing affordable for all the sectors of the society, however,

we welcome Finance Minister’s move of provision of Rs 700 crore

and extension of interest subvention scheme of 1% on all individual 

housing loans upto Rs 10 lakh for units costing upto Rs 20 lakh

till March 30, 2011.

The scheme recognizes that cut in interest rates has an important

role to play in reducing EMIs of borrowers & creating additional

demand for low cost housing. We are of the view that it will encourage

and prompt the developers to give more importance to projects which

will cost upto Rs 20 lakh. However, it would have been more fruitful for

the buyers and developers had the limit been increased from units

costing  upto Rs 20 lakh to units costing upto Rs 30 lakh.”

Mr. RK Arora, Chairman & Managing Director, Supertech Limited.
The budget, this year has both positive and negative aspects for the

real estate developers as well as the buyers. There is a revision in

personal income tax slabs, which will strengthen the purchasing

power of the buyers affecting the demand of the residential sector. 

The common man will also be benefited by the continued subsidy 

of 1% for affordable housing loans, which will help this sector to grow. 

On the other hand, a 2% increase in Excise Duty of cement and steel 

might not prove profitable for the real estate developers as the cost 

of construction would be expensive which will ultimately result in the

increased cost of the project and hence the buyers will be affected. 

Also, it would have been a great support to the real estate sector 

if Section 80I (B) would have been renewed to thrive the

demand of affordable housing.

Mr Kabul Chawla, MD - BPTP Ltd.
Commenting on the Budget announced by the Finance
Ministry today, Mr Kabul Chawla, MD, BPTP Ltd, the leading real estate
player, has said that the budget is stable for over all economic development.
We welcome finance ministry announcement of Sops for real estate,

housing projects extended by a year and one-time interim relief provided 

to the housing & real sector projects. . Norms for built up area for shops

in residential projects have also been changed to benefit residents
Thus, overall the budget will contribute to infrastructure

development across the country.


Mr.Navin M Raheja , Managing Director, Raheja Developers Limited
“The budget presented by the Finance Minister is good for the Indian

economy. We appreciate the decision of Finance Minister to continue

the stimulus package. The budget is focused on the overall infrastructural 

development of the country including the rural sector.

But the Finance Minister has not considered the real estate 

sector’s major recommendations such as status of infrastructure 

to the industry, extension of tax exemption/tax rebate under 

section 80 IB up to March 2011, ECB for real estate etc. 

This would have helped the country to focus on meeting 

the housing shortage in the country as well as improving 

the overall GDP of the country.

Further, we had recommended that the central support under

Rajiv Awaas Yogna should be passed to the party who is

executing the project under PPP instead of passing the

benefits to the state Government/agency which has also

not been considered.”


Mr. Rohit Raj Modi, Spokesperson, Raj Nagar Extn; (NH-58) Developers Association
The budget has been a well balanced keeping in view the fiscal

deficit. The clarity on GST, DTC rollout is welcome. 

On the housing front, we welcome the extension of 

completion time by 1 year for the projects under section 80IB,

however, the extension should be for at least 2 years in the view

of delay in projects completion due to slow down in 2008 and

partly 2009. It was also expected that the 80IB scheme be revived 

so that the mandate of affordable housing could be taken up in right

earnest by the private sector. We welcome the extension of the 

subvention of 1% on loan amounts below 20 lacs.

However it is not enough, the government needs

to up this limit to 30 lacs.