give your pain…….a smile :)

Life teaches us a lot.. every minute every second we are taught a new lesson or a lesson already learnt.We tend to forget and move on from our past for our better future and for welcoming the new spring of happiness, little do we know a lesson is hid behind it.

We rectify our mistakes , still we find we are back to square one.. we do our best possible effort to smile yet v are stopped again..often it is heard and said life moves on.. but does it really ?? I strongly feel when we are low, we cry and do everything to divert our mind and look for something good to smile..a ray of hope, a sunshine is all we aspire to have.. we do try to move on!

Maybe moving on is all about getting used to the pain, hurt, or maybe it means giving yourself another try. First step is the hardest to make, welcome life as it comes. You would never have bed of roses to walk on, you would never have cushions all your life..things that are meant to happen would anyway’s your call either stop living because of the fear of pain or make yourself strong enough to fight. fight would be by weak hands initially because you are taking baby step towards your life.. however keep your head high, heart strong n move.. life which consists of different individuals, who would be having a different role to play in your life shouldn’t know you as  a weak person..but as someone who would manage in the hardest of times, who would fight till she is satisfied.. not every fight is about making others loose, many are even for yourself….for your win.

So be yourself fight and never give up! fall, get hurt but don’t stop…..keep moving on! remember the biggest slap on people who hat you is you smiling and progressing”give them their slap back” 😉


a talk on EPF..”

EPF tax stopping people to invest in real estate :

With the government recently coming up with the budget stating the proposal to tax interest accrued on 60% of EPF, it seems government is intending to divert people to invest in pension products and not towards the real estate.

Salaried people contribute a certain percentage of their salaries to EPF account every month and their employers add 12% to it. An individual is permitted to withdraw the full amount at the time of retirement and partially during his service life for children’s education, marriage of self etc.

Financial advisors point out that if a certain % of population wishes to convert 60% of the corpus on retirement into annuity, they may have to pay tax to get their own money. If they buy a house or pay off a loan using the EPF amount, they are likely to use the remaining sum for pension plans.

People are eligible to withdraw a portion of EPF if they have a 5years of service. Funds equivalent to 24 months and 36 months of salary can be withdrawn for buying a plot and house/apartment respectively.

Technically a person can avail of 24 months of EPF for 5 years or whatever is available to his/her account whichever is less.

The government may come out with a clarification whether withdrawal of EPF before retirement for a specific purpose will be taxable or not. As per the rule introduced last month, if an employee decides to quit and needs to access EPF, he can only withdraw his share and not that of employer which can only be accessed after 58years or retirement whichever is later .

Also about the transfer of amount enabling provision. The government has introduced that the EPF amount can be transferred to national pension scheme.

Example: if the corpus is rupees 100, 40% withdrawal of the corpus will be tax free but interest earned on the remaining 605 may attract a tax under the new proposal.  This can prove to be a deterrent for people wanting to put in their EPF money for real estate. “Rather than buying real estate, the intention of the government here seems to be to encourage people to move towards buying a pension product”

Business Trust in Finance Act,1994

Hon’ble Finance Minister Shri Arun Jaitley introduced the concept of Business Trust by Finance Act, 2014. In India, Business Trust would operate as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Real Estate Investment Trusts (REITS) have been successfully used as instruments for pooling of  investment in several countries. REITs were created in the United States in 1960. Since then, many countries around the world have established REIT regimes.
Business Trust Section 2(13A) of Income Tax Act defines Business Trust as below:
2(13A) “Business Trust” means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognized stock exchange, in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and notified by the Central Government in this behalf.
Business Trust= Real Estate Investment Trusts (REITs) + Infrastructure Investment Trusts (InvITs).
These trusts are like mutual funds that raise resources from many investors to be directly invested in realty or infrastructure projects. The income-investment model of REITs and InvITs (referred to as business trusts) has the following distinctive elements:
the trust would raise capital by way of issue of units (to be listed on a recognized stock exchange) and can also raise debts directly both from resident as well as non-resident investors;
The income bearing assets would be held by the trust by acquiring controlling or other specific interest in an Indian company (SPV) from the sponsor.
The Securities and Exchange Board of India (SEBI) has notified regulations relating to two new categories of investment vehicles namely, the Real Estate Investment Trust (REIT) & Infrastructure Investment Trust (InvIT) on 26th September, 2014. These are SEBI (Real Estate Investment Trusts) Regulations, 2014 and SEBI (Infrastructure Investment Trusts) Regulations, 2014.

Real Estate Investment Trusts (REITs)
Real Estate Investment Trust (REIT) is a trust that owns and manages income generating developed properties and offers its unit to public investors. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands.
Globally, REITs invest primarily in completed, revenue generating real estate assets and distribute major part of the earning among their investors. Typically, most of such investments are in completed properties which provide regular income to the investors from the rentals received from such properties.
REITs are principally expected to invest in completed assets. Income would consist of rental income, interest income or capital gains arising from sale of real assets / shares of SPV.
REITs are managed by professional managers which usually have diverse skill bases in property development, redevelopment, acquisitions, leasing and management etc.
Listed REITs provide liquidity, thus providing easy exit to the investors.

Infrastructure Investment Trusts(InvITs)
Infrastructure Investment Trusts make direct investment in infrastructure facilities which are yielding income e.g. Toll Road, Railways, Inland waterways, Airport, Urban public transport. InvITs will allow infrastructure developers to monetize specific assets, helping them use proceeds for completing projects of theirs stalled for want of funds. Structure of InvITs is quite similar to REITs.
The main difference is InvITs make investment into infrastructure facilities whereas REITs make investment in commercial real estate properties.
The country’s largest real estate player, DLF and private equity players such as Blackstone have been planning to launch REITs. MAT was one of the biggest hurdles in the way of REITs, now the discussions have again started after the government has relaxed norms on minimum alternate tax. Finance Minister had addressed the issues to simplify REITs taxation regime. In his budget speech of Union Budget 2015-16, Finance Minister has mentioned that these collective investment vehicles (namely REITs and InvITs) have an important role to revive construction activity. A large quantum of funds is locked up in various completed projects which need to be released to facilitate new infrastructure projects to take off.