|
|
|
| REAL ESTATE |
|
|
|
Holy city to hotel city
TREND MILL
All roads lead to court
Tax tips
GROUND REALTY
|
|
|
|
Holy city to hotel city
THE holy city of Amritsar will never look the same again. Its skyline is set to be altered for good with the coming up of four five-star hotels. The city already has many three-star and four-star hotels and once the five-stars come up, it will earn the distinction of being the second city in the north — after Delhi — to have so many five-star hotels.
While three of the hotels are under construction, Amritsar’s first five-star hotel is likely to be operational within a couple of months. Aiming to cater to NRIs, international tourists and pilgrims besides high-end local customers, these hotels would offer a range of facilities at one place. The state government had recently
initiated a Rs 2,500-crore world-class central business district project, which includes a 22-storey five-star hotel. Once complete, the 300-room hotel would be the tallest in north India. Located in the Civil Lines area, it would be completed within the next four years. The ambitious project would also offer shopping malls and an entertainment and IT hub. According to an Amritsar Hotel and Restaurant Association spokesperson, hospitality chains Radisson and Holiday Inn were other players opening up five-star hotels. Currently, six three-star hotels are also being built. Two four-star, two three-star and six two-star hotels are already operational. The recent standoff between India and Pakistan after 26/11 has dampened prospects of the tourism industry. It had been expecting inflow of visitors after starting of open trade between the two neighbouring countries through the Attari-Wagah joint check post. Alpha G Corp Development Private limited, a mid-size real estate company, would throw open the city’s first five-star in a couple of months. Located on the Amritsar-Jalandhar highway at the beginning of the elevated road leading to the Golden Temple, the 11-storey building promises to be a feast for the eyes. Arvind Kumar, head facilities, said that besides the 245 rooms, the hotel would also offer recreational facilities under one roof. Accepting that the affect of recession was palpable in the reality sector, he said it had not deeply cast its shadow on the project. “Maximum number of NRIs visit the city and it gets more tourists than Agra. The need for a five-star hotel with all round facilities is heightened. Not only is there tremendous scope for business, we would also be generating employment,” he said. Constructed in a record span of two years, the project is expected to offer direct employment to nearly 250 people while over 1,000 would benefit indirectly. Capt (retd) Lokesh Jain, senior manager operations of the group, said that the
complex would also have five auditoriums with a seating capacity for 1,150, family entertainment places, all-cuisine food courts, three specialty restaurants, health club, spa and a hyper market spread over 10.6 acres. The hotel would have parking facility for 1,200 cars Talking about the group’s concern for the environment and differently-abled, Jain said, “The hotel will be a barrier-free zone for the physically-challenged. We have made ramps everywhere and special provisions have been made in toilets too. It is also an eco-friendly project with zero discharge. Seven recycling systems were installed taking due care of rainwater harvesting. We have also planted ornamental plants and well-grown trees,” he said. However, seasoned players in the hospitality industry are not excited. They fear that a deluge of hotels in the next three to four years would see availability of rooms surpass the demand. As it is, scores of lodges and tiny hotels mushrooming around the Golden Temple cause heartburn to hoteliers. They claimed that most run without valid documents and do not have provisions to face any eventuality. A common grouse is that there is no government-prescribed tourism policy and that it does not offer any assistance to the hospitality sector. Amritsar Hotel and Restaurant Association general secretary A.P.S. Chatha said the government had not yet formulated any policy to keep visitors engaged in the city for long. He said that after visiting Harmandar Sahib, Durgiana Temple and attending the retreat ceremony at Wagah-Attari joint checkpost, a visitor did not find a place worth visiting. “For the industry to flourish, Amritsar needs to be projected as more than a weekend getaway,” he said.
|
|
TREND MILL Home swimming pools are the newest must-have on the luxury block, finds Sanjeev Singh Bariana WHAT is cool and fun, promises hours of fun for weekend picnics, lazy summer afternoons and romantic nights and offers a convenient place to exercise and gather with family and friends? Hint: A party by its side at your home states that you have arrived, and with a bang. Yes, yes you are right. It is a swimming pool at home! Seamlessly blending into your garden or home extension and combined with effects to create a truly elegant setting, pools are emerging as the favourite hang out places at homes as well as in corporate houses and hotels. They offer a variety of options for shape, size, depth and style and you can choose between above ground or in-ground pools. A major investment in your home, these contribute to the value of your property besides catapulting you into the luxurious league. Picture this: It was yet another manic Monday at work but you drive home through crawling traffic with a smile on the lips. Your thoughts are with your family by the pool in your backyard, frolicking in the water, waiting for you to join them, your favourite cool drink almost ready… A relaxing evening later, you are ready for a million Mondays! Ludhiana-based property dealer Mohan Adhar says that the buyer’s emphasis is now on making life comfortable. “My experience tells me that besides a greater spending power, people public now want grander returns for their cash to make life as luxurious as possible. Not very long ago, a big house with facilities was only the choice of a fraction of the population. Now, with easier loans, even high net worth service class individuals want maximum facilities. A swimming pool is just one of them,” he says. Agrees property consultant Anil Sawant. He says swimming pools and other top of the line products cater to a very fixed, niche clientele. So, the creators and spenders want only the best. “Home pools are the rage in several Punjab cities like Ludhiana and Amritsar, Delhi and other big cities. Across the rest of the country, clubs, hotels and even certain guest houses are setting up swimming pools,” he shares. Hemant Atris, chief designer of Technology Pools, one of the pioneers in providing fully customised swimming pool design, manufacture and installation service, says, “One of the most difficult aspect of building a pool is selecting the person to build it. It is always advisable to go in for a specialist, who has the right intention to provide the best of products and advice. Apart from selection, designing is another very important aspect that can either add to the beauty of the surrounding or mar it.” Atris explains that pools are classified into different categories — outdoor and indoor pools, private pools, hydro pools, hotel pools, resort pools, water parks, school pools and society pools. All have a distinct style and the selection depends on the personal choice of the homeowner. “It is always nice to take the help of the designer before finalising any design,” he adds. Besides regular pools, certain companies also offer state-of-the-art technology to fit spas, sauna and steam rooms. Atris says, “People pay great attention to aesthetics in homes these days. In my 25 years in the field, I have seen the home layout change from the routine three rooms, a drawing room, three bathrooms and a kitchen! One of the common orders these days is 'a lawn in the front and a fish pond in the rear, a swimming pool in the back verandah accompanied by a steam room, a gymnasium and a home theatre'.” So, what to do want?
|
|
All roads lead to court
PUSHED into the corner, real estate investors unable to payback loans are now scurrying to lawyers. In no mood to give up properties purchased at high rates against loans, they are making a beeline for lawyers in Rajasthan with a SOS: “I have paid some installments to the developers, but cannot pay more. I don’t want to lose the plot. How can you help?”
The lawyers actually manage to come up with valid reasons from the contract to move court. "Of course, we can't create an issue. We study the contract norms and if there is some discrepancy between what was promised and what was the actual ground scenario, we can file a case," said an eminent lawyer in Jaipur. Of the ten persons who came to meet the lawyer in a span of less than two hours in this reporter’s presence, six were investors keen on delaying the installment and retaining the land. As profits dwindle, bank balances gradually move into the red and money inflow decreases for the working class and businessmen, investors are finding it hard to continue paying installments for a plot or house. Naturally, they don't want to lose the property purchased when prices were spiralling. “There are no buyers for land. I have already invested so much that I just can’t forget about it," says share broker Shashi Mahajan. "At the time of buying, the developer promised me that the prices of the land would increased manifold. He has failed to fulfill his promise and is at fault. He has to suffer.” Real estate agent Prabhakar Saini ruled out any distress sales. “As of now, nobody is selling in distress, but if the recession continues, people won't be able to defer payment of installments for long,” he says. Talking about Jaipur, Saini says that many colonies did come up on the outskirts in the last four or five years but none could develop in accordance with the hopes of the investors and promises of developers. “The reasons are manifold. For starters, too many housing projects came up in the Pink City and disturbed the basic demand-supply balance,” he analyses. “People started buying flats and plots on installments solely as an investment. They are the ones in trouble now,” he explains. Another lawyer, not wanting to be quoted, said litigation between developers and investors was on the rise. “There are genuine grouses. Investors want development but the company has failed to do so. Hence, we have the reason to seek stay orders on payments. Yes, it helps the investor but then why not? He has suffered. He was shown false boom in many cases,” he argues. In Rajasthan, a politico-criminal factor is also at play. The income tax department has reportedly seized incriminating documents from a number of developers. Unique Builders and Unique Dream Builders — run by two brothers close to the former BJP government — top the list of companies involved in “shady” deals. Investments in their over 100 housing projects is in disarray following the change of guard. Diaries found from the possession of the brothers allegedly containing details of kickbacks given to some politicians have further complicated the matter. At the bottom of the pyramid is the hapless investor. He can neither sell his land nor hold on to it at this critical juncture. With a bit of luck, the worst in the recession may be over by now. But if the worst is yet to come, god save.
|
|
Tax tips
n
Is there any income tax liability in the whole episode? — Raza Sharma A.
Your queries are replied hereunder: n
It is assumed that the amount received on the sale of ancestral property has been received in your individual status. n
The long-term capital gain arising on the sale of land would be leviable and payable by the seller of the property. n
Government employees are normally required to submit complete details of acquisition of assets, especially on yearly basis. I hope you had already informed the government about your share in the ancestral property. As a matter of transparency, you and your wife should inform the government with regard to the acquisition of the new property in the details furnished to the government. n
The gift to your wife can be made by a letter. The gift so made should be accepted by the donee, which can also be done through a letter.
Q. I was allotted a plot by the Haryana Urban Development Authority in Sonepat. After paying six equal installments, I was given offer of possession in June 1995. At that time its value was Rs 75,000. Now I want to sell it at Rs 8 lakh and purchase a new plot. Please guide me about my tax liability. I read in your column that keeping a plot for three years won’t attract capital gain tax. — Vivek Jain A.
I hope you accepted the offer of possession and possession was handed over to you in 1995. On the said basis, the cost of inflation index for the year 1995-96 would be adopted taking financial year as 1995-96 as the base year so as to arrive at the cost for the purposes of computing long-term capital gain as the plot was held for more than three years by you. The capital gain on the said basis works out at Rs 6,44,662 (8,00,000-1,55,338). The tax on the above gain would be payable at the rate of 20 per cent thereof, plus education cess of 3 per cent on such tax.
CGT may vary, here are options
— T.C. Chopra A. It is evident from the facts given in the query that the residential property was held for more than three years and therefore the capital gains arising on the sale of such residential property would be treated as a long-term capital gain. There is difference of judicial opinion on the subject whether the cost inflation index should be applicable from the date of acquisition of the property by the original owner or from the date of inheritance by the present owner of the property. The Kolkata Tribunal in one of the cases has held that the benefit of cost of inflation index should be allowed to an assessee from the date of acquisition of the property by the original owner. However, in case a literal interpretation of the explanation to section 48 of the Act is taken, the cost inflation index should be applicable from the date of inheritance of the property. Therefore in case the cost inflation index is applied taking 1981-82 as the base year, the cost of the property on the said basis would work out to Rs 8.73 lakh and the long-term capital gain would work out to Rs 27,000. CGT, including surcharge for education cess, would be Rs 5,562. In case the cost inflation index is applied taking the financial year 2006-07 as the base year, the long-term capital gain would work out to Rs 7,31,792. CGT, including education cess, would work out to Rs 1,50,750.
No choice : Tax deductible at source
Q. I am an NRI and intend selling a house in Jalandhar I inherited from my parents about 10 years back. I have been informed that tax at source will be deducted from the consideration receivable by me on sale of such property. Is it correct? Kindly advise. — A.K. Bawa A. The capital gain arising on the sale of the property owned by you would be a long-term one as the property has been held by you for more than three years. In accordance with the provisions of section 195 of the Income-tax Act 1961 (the Act), tax at source will have to be deducted from the sale consideration. For this purpose, the benefit of basic exemption limit — the maximum amount on which tax is not payable — would not be available and tax at source will be deducted from the gross amount. These provisions would be applicable even if the capital gain earned by you is exempt from tax by virtue of the amount of capital gain having been invested in capital gain tax saving bonds.
Family settlement deed should suffice
— Harvinder Singh A.
A family settlement deed that is duly registered should be a valid document for the purpose of getting the mutation done in your favour. All concerned parties must have signed the family settlement deed and, therefore, the tehsildar should have no difficulty in mutating the agricultural land in your name on the basis of such settlement deed. At best, he may ask for no objection letter from all the parties to the deed, which should not be a problem in view of their having consented to such a settlement.
This column appears weekly. The writer can be contacted at sc@scvasudeva.com
|
|
GROUND REALTY The perfect electric switches & safety gadgets are a blend of aesthetics and functionality. Now, choosing these is no mean feat. So, JAGVIR GOYAL attempts to simplify the task at hand. Read on...
Decide in advance whether you would want ordinary or modular switches. This decision will affect the wiring plans as well as the size of MS boxes to be inserted in walls. If choosing modular switches, keep in mind that it is impossible to accommodate an extra switch or point at a later stage in a plate. So plan wisely. Of course, you can provide for dummy modular switches in the plate for use in future. Ordinary switches offer flexibility: You can add any number of switches or sockets at any stage. Let’s get modular
MOST modern buildings and houses use modular switches, which is why these have flooded the market. A house builder’s earnest desire is to install beautiful switches. Legrand, Schneider, SSK, Cona, Clipsal, Havells, Crabtree (Havells group), North West and Anchor Roma are some of the reputed makes. Vimar and Anchor’s Ave are the costliest. Legrand, MDS, and ABB come somewhere in the middle while Anchor, Crabtree, Finolex and Cona are easy on the pocket. Some of these companies even provide a lifetime guarantee! I have tested these guarantees — they actually replace faulty switches at no extra cost. Decide the brand depending upon the look you like and the cost you are willing to pay. However, you must ask the seller if the switches carry spark shields inside them. This is vital -- such switches don’t allow a spark to burn the wires. Must buy: Look for switches and plates that are screw-free and dust-proof. If you like white switches, choose polycarbonate ones, as these remain white for longer. A range of SSK switches can be used horizontally and vertically. All switches now produced are fire retardant. Cost varies from Rs 15 to Rs 1.5 lakh a switch. Gewiss from France is also selling in India now. One of its models — consisting of a switch, a socket and FM radio — costs Rs 1.5 lakh! Don’t waste money on these fancy products. Look for the above features and make the best buy. Switch boxes: Prefer 16 Gauge MS switchboard boxes instead of wooden boxes. Termite often attacks wooden boxes, as they are made of poor quality wood. Keep in mind that these boxes are available at high discount — as much as 50 per cent. Though discounts vary from dealer to dealer, even reputed companies like Clipsal or Canon will provide this discount. So ask for maximum discount. A three-inch x three-inch box should cost around Rs 22 net while its eight-inch counterpart should be around Rs 80 net. Other sizes will cost somewhere in between. General sizes in inches are 3x3, 4x3, 5x3, 8x3, 5x5, 8x6, 8x8, 9x3 and 8x10. Depth varies from 2.5 to 4 inches. Location of switches: Provide room switchboards near the entrance door. That way you can reach out for them on entering the room. The plus point is that these won’t interfere with art pieces on the walls. But if that’s not possible, fret not. Opt for switches that glow at night. These come with softly glowing backlights and avoid groping for switches in the dark.
Safety saves
PLAN for some security gadgets in your house while the electric wiring drawings are being made. If you feel unsafe about opening the main door without knowing who is at the door, install a video door phone. Through this door phone, you can view the person standing outside and can talk to him before allowing him in. These provide both coloured and black and white pictures of the visitor. While the black and white unit costs around Rs 7000, its colour counterpart is double the price. Zicom and Godrej are reputed manufacturers of the video door phone, but the Blue Beacon ones are cheaper. Choose a videophone that provides a view of about 25 feet radius and thus eliminates any chance of the visitor hiding himself. Get a CCTV: Installation of a closed circuit television in your home may seem odd at first, but post-installation you may become fond of it! Most people using safety gadgets like hidden cameras, alarms, videophones and CCTV don’t want others to know of them nor wish to talk about them. However, using them offers peace of mind while you are away on vacation. While videophone and CCTV are useful when you are in, choose intrusion detection and alarm system to warn you when you are out. It will send a message to you on your mobile as well as the police control room as soon as someone makes an unauthorised entry into your house. These safety gadgets are becoming compulsory in the times to come in view of rising crime graph in metros and main cities. So, go ahead and stay
bright!
Bright ideas
n If you have small children, opt for electric sockets with shutters. Children often insert metallic things into open sockets and may be electrocuted. Sockets with shutters are safe.
(This column appears fortnightly)
|
||
|
Realty Bytes
DESPITE the slump in the construction industry owing to the global meltdown, the interior designing business in eastern India was maintaining a steady growth and would grow by 35 per cent in the next fiscal.
Stating this In Kolkata, Association of Architects, Builders, Interior Decorators and Allied Business (ABID) president Sundeep Gupta said since last year, 30 lakh sqft of built-up space had been created, which translated into business of about Rs 120 crore for the interior designing sector. Gupta made this observations while speaking at the inauguration of Interiors 2009, the annual exhibition on interior designing, trends and products at the Netaji Indoor Stadium. ''In these times of recession, the economic crisis seems not to have affected the interior designing business in the eastern India, as the industry is getting work from realty projects developed during the early months of 2008,'' Gupta observed. Inaugurating the exhibition, MP Md Salim urged ABID to focus on not only furthering businesses of constituent members, but also for creating awareness of new exterior and interior designs as well as decorative frills to raise the quality of living. '' Altogether 82 participants are taking part in the six-day exhibition that will conclude on February 24.
— UNI
Govt to consider 16 SEZ proposals
Realty major DLF, which was in December granted denotification for its zone in Delhi, has proposed a 10.68-acre IT SEZ in Tamil Nadu. The proposals, listed on the agenda for the February 23 meeting, include those of RIL Chairman Mukesh Ambani’s close aide Anand Jain-promoted Navi Mumbai SEZ for setting up a gems and jewellery unit, L&T’s ship-building project and Maharashtra Airport Development Corp Ltd power SEZ, it said. Among other proposals to be considered by the BoA are five IT/ITeS zones — MM Tech Towers, Anand Infoedge, Helios Constr-uction, Sky Zone Infrastructure and DLF Ltd. A tax-free enclave by Carborundum Universal Ltd for manufacturing products required by solar photovoltaic industry and a multi-services zone by Maharaja Multitrade would also be considered.
— PTI
In Pune, realty prices plummet 20-40 per cent
THE Promoters & Builders Association of Pune (PBAP) said in the face of plummeting demand, real estate prices in the city have come down by 20-40 per cent. “We have requested all our members to bring down the prices to the lowest minimum possible. Many of our members have brought down prices by 20-40 per cent. Those who have not complied will do so very soon,” Lalit K Jain, PBAP president has said. PBAP is the representative body of 260 builders and they make 95 per cent of the residential projects in Pune city. “Inventories are piling up in the city as sales came to a standstill,” he said, adding that this was caused by poor market sentiment, high interest rates and job insecurity among the buyers.
— PTI
|
Hobson’s
Choice for investors Can’t pay up, can’t sell; seek legal recourse to delay
installments
The
perfect electric switches & safety gadgets are a blend of aesthetics and
functionality. Now, choosing these is no mean feat. So, JAGVIR GOYAL attempts to
simplify the task at hand. Read on...
Realty
Bytes
Q. I am a Class II government employee and my wife works in a recognised public school. I am expected to get more than Rs 4 lakh from the sale of ancestral land owned by my grandfather in Hindu undivided family. I want to invest the amount in a plot in the name of my wife. I want to know:
Q. One of my friends inherited a residential property during 2007 and plans to sell it in March 2009 for a consideration of Rs 9 lakh. His forefathers acquired the property in 1960 as a plot and construction was done in 1980-81. The value of the property as on April 1, 1981 was assessed by a valuer at Rs 1.5 lakh. Kindly intimate the capital gains tax required to be paid by him.
Q. I would like inquiry on the following revenue matter. My family — mother, brother, sister and I — inherited several properties after the demise of my father, which he too had inherited. After my father died, my mother, brother, sister and I distributed all the properties among us by making a family settlement deed duly registered. In the family settlement, I got agricultural land within municipal limits. Now, I want to get the mutation done in my name alone and get my brother’s name removed. Do I have to pay any registration fee to get it transferred in my name alone, as there is no sale and purchase but an exchange of properties?
THERE were times when an electric switch consisted of a bulky black, round, two-part assembly with an on off lever in the centre mounted on a thick wooden plate. Modern electric switches have come a long way — durability, soundproofing and beauty are their integral features. These not merely serve their function, but also add to the beauty and aesthetics of the building. With a large variety of them available in the market, making the right choice has become difficult for the homemaker and here’s some help to get you started.
THE government will consider 16 special economic zone proposals, including those from ailing realty firm DLF Ltd, infrastructure company L&T and Navi Mumbai SEZ, next week. The Board of Approval in the Commerce Ministry will consider the proposals in its meeting on February 23, an official statement said.