Land Savings Account
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Land Savings Account/LSA shall be utilised as the de-mat account for holding ownership rights of immovable properties like lands, plots, flats, factories, commercial and residential establishments. Land Savings Accounts will be operated by banks. While purchasing or selling, the transfer of ownership rights of these assets/properties from one person to another person shall be made from one person’s Land Savings Account/LSA to another person’s LSA through banks/service centres in an electronic/digital form. So the transfer of assets like lands, plots, flats, structures, commercial and residential establishments will take place in physical form upon the transfer of ownership rights of that asset in digital form from one LSA (seller) to another LSA (buyer). In literal sense banks will virtually act as custodians for people’s immovable properties. The bank branches/ banking service centres will be intermediaries between people and Depositary, who should be under full control, governed, monitored and checked by Central Bank of that particular country. TOP Tax system suggests that total land record of the country should be digitalised according to extent, location, mapping and ownership. The ownership rights of all immovable properties belongs to people will be recorded in digital form in their respective Land Savings Accounts. Similarly the land that belongs to Government, Government organisations, companies should be recorded in their respective Land Savings Accounts.
Under the TOP tax system the purchase of lands, plots, flats or other properties should be made through Land Savings Account (LSA), the sub account of pan India portable bank accounts operated by banks. The ownership rights of all immovable properties will be recorded and stored in digitalised form in Land Savings Accounts and can be transferred from one LSA to another LSA by bank in digital form. If any person buys land, plot, flat or any other property anywhere in India the extent and nature of the property will be credited in his Land Savings Account and the same property will be debited from the seller’ Land Savings Account (LSA). Whenever he/she sells any property that is credited in his LSA, the same will be debited from his/her Land Savings Account and the same property will be credited in the buyer’s Land Savings Account (LSA). Just like shares there will be no paper documents for properties. Unlike cash transfers the buyer’s presence and signature/authentication shall also be needed for any movable or immovable property transaction.
There will be no multiple selling of the same property to different people and unauthorised selling/purchase and illegal occupation of other person’s property without his/her knowing/consent will not be possible.
Advantages of Land Savings Account:-
1. Land ceiling act
In the present system rich people are having huge tracts of agriculture lands in different districts and States making mockery of the land ceiling act. The registrations of lands, flats, plots and other properties are being made by the registration departments and land records are maintained by revenue departments.
In the TOP Tax system land ceiling act can be strictly enforced on individuals and no individual can have more than 20 acres of land in the entire country. Every individual will have one portable bank account consisting of separate sub account called Land Savings Account for holding ownership rights of all immovable properties like lands, plots, flats, etc., in digital form. All immovable properties, situated wherever in the country, along with all details of Survey numbers, boundaries, description, nature, map, geo location, village, district, state, extent and date of selling/buying of each property of each person will be recorded and maintained in Land Savings Account (LCA) in digital form
The Land Savings Account will be operated and maintained by banks just like money savings accounts. Debits and Credits of ownership rights of all properties will be made in the Land Savings Account while a person buys or sells his property. The total extent of land recorded in all Land Savings Accounts belonging to people, Governments, departments, organisations, companies, institutions etc., will remain exactly the same even after countless number of debits and credits each day. The total land extent in each Land Savings Account will never cross the upper limit of 20 acres strictly adhering to land ceiling act. There can be absolutely no multiple selling of same property to different people. TOP Tax system ensures that the land ceiling act can be implemented in totality to perfection making Government’s task easier in pushing forward land reforms and allocating land to landless poor.
There will be no paper documents for all immovable properties.The ownership rights of all immovable properties are recorded in digital form in Land Savings Accounts of citizens, governments, institutions, trusts etc. Hence no separate registration and revenues departments are needed in the suggested TOP Tax system. Only land survey department would suffice to mark and clear boundary disputes.
2. Farm subsidies; - In present system 90% of total farm subsidies are being gobbled up by rich farmers (10%), while the small and marginal farmers (90%) are getting only 10% of total farm subsidies. This anomaly can be totally checked in TOP Tax system where Land Savings Account is a sub account of pan India portable bank accounts operated by banks. According to records in Land Savings Accounts, the total farm subsidies (100%) would reach the small and marginal farmers while keeping away rich farmers from all subsidies. Here rich farmers means industrialists, contractors, professionals, celebrities, individuals, politicians, business class, salaried class (govt or private) etc., whose annual incomes are more than 2,00, 000 (other than agriculture income).
3. Farm loans; - In the present system getting farm loans by farmers is cumbersome, laborious, time consuming and bribery ridden exercise. Farmers need to go from one department to another department to get land documents, evaluation and encumbrance certificates, revenue certificates etc., after paying heavy bribes. Farmers are being forced to take loans from private lenders who charge high interest rates.
But Land Savings Account will make money borrowing by farmers from banks so much easy, instant, smooth, timely and time saving exercise. By using Land Savings Accounts the branch managers can sanction farm loans instantly based on land records in the LCAs.
4. Interest rates on farm loans
In the suggested TOP Tax system the interest rates on farm loans, up to Rs.10, 000, 00, will be only 2% per annum and 4% per annum beyond Rs. 10,000,00.
5. Land acquisition and compensation;- If an individual or company acquires land of more than 20 acres of land for industry, studios, real estate or any other purpose, land tax of 10,000 per acre per annum needs to be levied. If land is acquired for SEZs the farmers should be paid not only the market price of the land but also Rs 1,000 per acre per month for rest of his/her life and thereafter to his/her legal heir. It is easier for local panchayats, municipalities, corporation to collect house tax, vacant plot/land tax and properties tax as all the details of a person’s properties are recorded in his/her Land Savings Account (LSA).
6. Land transfer/registration/stamp duty;- The registration charges for purchasing any property i.e. land, plot, flat, house or other commercial establishments will be same and equal all over India irrespective of the place and market value of property. The registration charges would be only Rs. 1,000 per acre, Rs. 1,000 per 300 square yards of plot or Rs 1,000 per 1000 square feet of flat and multiples thereof. These registrations of land transfers can be made in any bank and anywhere in India. It is needless to mention that if a person buys a property (land, plot, flat, house, commercial establishment) for Rs. 10 lakhs, a TOP tax of Rs. 40,000 will be deducted from his money savings account while transferring the cash to the sellers account. If he/she buys the same property for Rs. 1 crore the deducted TOP tax will be Rs. 4 lakhs. In the case a person transfers a property as a gift to his/her son/daughter or any other person, trust or organisation the TOP tax deducted will be nil as there is no cash transfer made