Thursday, March 23, 2006

Tax, Tax and more Tax

This mrng i came across this article regarding caution deposits for house advances and the Tax on that. Gosh! i didn't knew that u have to pay registration tax on advance (security deposit or caution deposit) which we pay while renting a house. According to new State Budget we need to shell out 7.5 % registration tax on caution deposits for house advances. That’s too much! Well if u look at the prices in Bangalore of any commodity, all are Too Much! I do not understand the logic behind it. A US to India power converter plug costs Rs. 45 in Bangalore (Koramangla) while the same damn thing costs Rs. 15 in South Delhi. Can anybody explain me the logic? Well some say all here are working class (read Software/IT Professionals)...So? does this mean that we have to shell out so much money for such small things. This just reminded me of my days in Port Blair where there was an unwritten rule that "Anything that is not branded or doesn't have an MRP marked, its going to cost u the much", and i guess the same thing applies to Blore city too. Any product frm unorganized sector u buy and it will cost u heavily. Also look at the rent rates these days ... in my view the only thing that can give competition to the bull run we are seeing these days in stock markets. Any place u look for a decent house and the rent are sky rocketing. To make matters worse, landlords ask 10 months advance as a security deposit. What for? am i gng to run away with ur house and why 10 months...in Delhi advance is max. 3-4 months. Why? Well we are all prospering working in IT companies, making good money...does this justifies the irrational demands of landlords....and why are we paying that much? Well yea we can afford it but till when? ppl here (auto drivers, landlords) should understand we do not have a money plant in our backyard and govt. should understand that levying more taxes will not take them anywhere either.

PS: anybody havin more info abt state budget and its impact on us can do a post or send links.

17 comments:

Anonymous said...

Cant agree more! I am loking for a 2 bedroom house. In a god forsaken place like BTM it costs 10K. 10000 per month for an area where roads are bad/ rain water accumulates :O
Worst part is, there are people ready to pay this amount!

greensatya said...

Wow great piece of information. This is what we can expect in India. I would rather the government made it illegal the 10 months advance concept but true to its style it went ahead with earning few bucks for itself. Let the hapless tenant pay through the nose.

Bangalore is the only city in India where everything is priced more than its worth just cause of demand and supply. Top of it the greed of houseowners of Bangalore never gets satiated. Why 10 months make it 20 months and 2 months commission to the realtor. I am pretty sure none of the ministers of the government would be paying even income tax.

Unbelievable is what I can say. This goes in hand with what one Premji once proposed- to tax the IT professionals more while he merrily stashes his tax free dividend made possible by those very techies. What a person !!!

Professional tax is highest in Karnataka and many other states don't have any. And what it provides -pothole roads, traffic jams, unfinished flyover, no sense of security, etc..

Bangalore is fast becoming a city of suckers be it the houseowners, governments or some 'ethical' businessman.

I condemn them with every molecule of my existence.

Raj said...

Its a sad reality. But then its dumb to expect the pigheaded Karnataka govt to do anything to help the citizens.

Everybody in Bangalore expects techies to pay more which is totally ridiculous. And everything is so expensive.

I know so many people who live in bad PGs just bcos they can't pay the 10 months' deposit.

Preeti said...

hey... this matter reminded me of an ad in the radio.... travel karo toh tax, pizza khao toh tax, film dekho toh tax...dhaal mein paani ke liye bhi tax... goes on...

day is not far for the air we breathe to be taxed :-p

Y said...

good post and true what u say

killer is i said...

yea .. really .. till now i just heard that bang is a costly city. Wats soo spl in it that things costs much there, i mean its costlier than delhi.
That sux ..
Well, don't knw much abut it ryt now coz i used to thought that del mein price zayada hai :D ... but thats wow .hehe

XVSA013 said...

Bangalore was known to be a costly city way before it became a IT hub.

and with IT, it has just went up.

3 yrs ago .. first time i came to bangalore and started looking for a house, i was shocked at the rents ... i thought with this amt i can pay an EMI and buy a house for myself !!!

and not only this, most of the house rents goes undeclared by the landlords ... its not at all good for the economy ... 10 months is horrendous man ...

with a lousy infra, Bangalore seems to be all set to crumble under its own weight.

Abhinav said...

Ferrari: yea man the sad part is that ppl are ready to pay but there is a logic behind that too. When 4 ppl live in a 2 BHK house it doesn't cost much per person...but the downside is when u get married or decide to live alone then that rent hurts.

Satya: yea it can be made illegal or a regulation of taking say only 2 months advance...but u know how our govt. works and ppl are too busy to take note and file a PIL.

Raj: why ppl expect techies to pay more...it is the env. we have created by ourselves by not bargaining....go to delhi and u will know ppl bargain on all sort of shops.

Preeti: Very true..that day is not far.

Abhinav said...

sher: Thanx sher.

killer: Well i thought Delhi was expensive then i went to Port Blair..man that was expensive but now there is no match for Bangalore.

mowgli: true...blore is losing its charm and that day is not far when ppl will start moving to different cities.

Freeze said...

lol.. I am waiting for the day that everyone moves to different cities so that bangalore gets its charm back!

Abhinav said...

Freeze: Yea that day is not far as many of my frens have already moved out of the city.

XVSA013 said...

i also wish ppl move out of bangalore and leave it for me ... :p

bablu said...

"Worst part is, there are people ready to pay this amount!"- cant agree more with you Ferrari... God knows what will happen to this city - the way its going.

Abhinav said...

mowgli:just wait for sometime pal. your wiah will come true.


bablu: i hope atleast God knows it!

Sara said...

"the rent rates these days ... in my view the only thing that can give competition to the bull run we are seeing these days in stock markets."
- that was a gr8 piece... but atleast at stock market theres a cycle...a bear after the bull...but rent market??? i dont know...probably never...:(

Abhinav said...

Sara:
True this seems to be a bull run all the way...but hey whatever goes up has to come down ;)

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