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(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


Iconic Commercial

Building in

your Town


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.


Real Estate management Services – a big business to be in U.K., A2 Housing Solutions a group of non-profit making social landlords manage 5,000 properties.


Setting up and

Operating Specialised

Clubs like – The

Vegetarian Club, The

Emotion Exchange Club


Join Hands with

F D I

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.


Retirement Village,Senior Citizen Home, Seven StarSuper Deluxe Old Age Home .


Condo Apartments.

Golf Course with

Condo Apartments


A Spiritual City

With all religion

Temples,Chruches etc.


Single Family

Homes And

Apartments with

Gym and Private Club.


Setting up a Private Country Club with Swimming

Pool and Sports activities

And stay in facilities - also

TIE up with similar reciprocal

Arrangements.


UndergroundCottages and Green surfaceapartments.


Health Spa &

Massage Parlour on

your Real Estate

- Highend.


Ultra ModernNight Club - A feeling as if we are in USA.


Serviced Apartments

with Roof Top

Swimming Pool.


Encash on the

theme :

Buy one Property and

Get One Property Free.


Property Barter Business

With persons engaged in

Real Estate.


Special Country Homes

With no Boundary, a special

Joint family Community

living.


Special Real Estate Projects

on Sea Front, on River Front

Or Opp. Mountains.

Real Bliss and enjoyment,

Hence Super Super success

awaited


Setting upIndustrialParks.


Construct Sunrise &

Sunset Apartments in

One Complex

( For young & for old )


PropertyCollaborationAgreements& Tax Saving.

5(25) Money Making Ideas in RealEstate

Real Estate Investment

Trusts. (REITS) - the

shape of things

to come.


A special Real Estate

Consultancy Service

run and managed byLADIES only


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”


Setting up a Wedding Plaza on the

outskirts of your Town.

1. A to Z facilities for Wedding

2. An ideal place for most happening activities.

3. Rooms for Marriage Party.

4. Better yield realization from real estate.


Buy Land – Double the

Requirement, Just pay token

advance, take Lot of time for

payment and Sell the not

required parcel of land at

higher price.


Setting up Super Deluxe Luxury Mall – to compare best in the World, only costly luxury items.


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.


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.


The Fifth Avenue.

Have you ever been to the Fifth

Avenue in Nu York.

The best address.

Construct “Fifth Avenue” in

your Project and make money.


Develop Resort & Heritage Village

And Combine Time Share concept.

Five or ten developers can do it

in mutual exchange benefit programe.

Plant Green trees,

- High End

- Low End.

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 next 20/25 years.


Entire Glass House

Building using the Glass

from the window glass

experts. Specially very

successful in country side.


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.


Prepare illustrated

“Property Guide” and

place in public places

and Malls like USA,

London etc.


Visit Vibrant Towns and

Vibrant Cities of USA,

Germany, Tokyo, China

and make money grow.


Special Stilt Houses


The

Rotating

Temple.


The Ultra ModernBurning Ghat.


Buy the CheapestAgricultural Land in India,minimum4000 to 6000Acres, construct aModern Township withPrivate Airport.


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.


The best idea to make your Money grow in Real Estatealways adopt 2% PC Formula.- The sure shot guaranteed idea to increase your money.

Experience it and enjoy more money for you, by you.


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.


Existing the World overSome important countries where LLP

concept is in operation:- Italy Great Britain France USA Germany Japan

Singapore… And Finally now in India


1. 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 statute-based 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.

2. 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.


The Following are the salient features of LLP:-1. 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;

2. 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;

3. 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;

4. 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;


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.


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.


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.


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.


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.


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).


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. As per the Finance (No. 2) Act, 2009 the taxation of Limited

Liability Partnership is at par with the Partnership Firms.2. 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;


3. Income-tax on LLP @ 30% plus 2% Education Cess & 1% Secondary & Higher Education Cess. No surcharge.

4. LLP cannot take advantage of Presumptive tax system – s. 44AF & 44AD.

5. Interest to Partners of LLP allowed upto maximum 12% p.a.

6. 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%

7. To write in the LLP Deed about Interest & Salary


.… Innumerable Tax

Planning Vistas would

make LLP a preferred Tax

entity ….


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”.


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) Miscellaneous aspects of Tax Planning of Real Estate Contd..

9. 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: [email protected]; [email protected];

mailto:[email protected]

mailto:[email protected]

Documents

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