|
|
|
| REAL ESTATE |
|
|
|
White Revolution!
Tax tips
Mumbai, Delhi in most expensive cities’ list
Full circle?
|
||||||
|
|
|
TREND MILL Cute, salacious & glam: You want your room to look just like you. SAURABH MALIK tells you how
Have you tried new gadgets and gizmos for your room that are techno-responsive but still endearing and adorable? Don’t know about the stuff? Worry not! Just drive to the arcades in the boomtowns of the region and experience love at first sight with some of the urbane, classy and chic, yet technically sophisticated products. Lips to listen
TO begin with, you have feminine and delicate lips coated with cheerful hues of the beau monde. In reds and in pinks, they let you do more than just talk. In case you still haven’t figured it out, these are lip-shaped telephones for your bedside table. That’s right, folks. They call in style and are not very expensive either. “You can take home one by just paying something like Rs 1,500,” says Vinod, working as manager with Chandigarh-based chain of apparel and more, Emerge-10. “In something like four months, we have sold over a thousand pieces to pretty young things right from Kullu in Himachal Pradesh to Jaipur in Rajasthan.” You also have ‘cell’ phones, ‘photo’ phones and even ‘can’ phones. That’s right. They are designed like Duracell batteries, Kodak reel and Pepsi cans -- all yours for as less as Rs 1,000 each. The phones are ringing, folks!
Soft, but not cuddly
TEDDY may still be a girl’s best friend, but you have better soft toys for your room. You have Rasta and you have Shrub. And if that does not suit your style, you still have the option of enjoying the hilarious company of droll and entertaining Mr Bean. The stuff’s costing something like Rs 1,500. Mr Bean is there in “piggy” bank’s nature as well — diminutive, but as strong as a vault. So, all the change clanking in your tense trouser pockets can go into it. His steady cohort, teddy, is also there and can be all yours with a swipe of Rs 650 from your credit card. Barbie? If you think you are too old for it, you still have the choice of picking up Begoths — the gothic doll. Depending on the size, the doll in elegant monochromatic dresses, preferably black, or leather skirt and skull swirl tee, can adorn your niche for anywhere between Rs 650 and Rs 1,500. Gals, all time darling Mickey Mouse is there, too!
Up and hanging
FORGET Shah Rukh Khan and Ghajini’s Aamir Khan. They really don’t add glamour to your room’s wall. And Tom Cruise is kind of outdated for the posters. So what do you have? “Well, you have giant black and white posters of, say, ‘women on the top’, says Chandigarh-based gift gallery owner Capt Rajneesh Talwar. “Oh yes, it’s the one showing the smarter sex on a plank across high-rise apartments in a foreign land. A poster of a painting is also a tidy idea.”
Knick-knacks
YOU have the “flying” helmets and pilot’s goggs for smartening up the corners. “And then there are all those nice and smart bags with the Beatles and even James Dean printed on the canvas,” says Ludhiana-based gift dealer Deepak Joshi. You can hang these from closet knobs for storing all your trimmings and accessories. It will leave your bank balance poorer by just about Rs 1,500, but is worth it." So, what are you waiting for? Happy adorning!
|
|
White Revolution!
WHAT is common between the United States of America and Jammu? Hint: It is white in colour and while there is only one in the US, the Temple City boasts of many.
The White House in Washington DC — home to the most powerful person on the planet — has scores of humble “replicas” in Jammu’s various posh localities. The nomenclature of the house has not only earned fame for itself, but has also become a status symbol for homeowners. Residents say naming their homes after the White House has increased the rate and demand of their property! “The moment I started constructing my house, I decided to name it White House. The name spells class and has become a symbol in the locality,” says Parminder Singh, owner of White House in the posh Gandhi Nagar locality. “Naturally, we could not construct an exact replica of the White House, but ours is a miniature version of the mighty building. While lending finishing touches, we painted it white,” he says. Property dealers say that after people name their houses White House, rates and demand for property in that particular area increase as people want to be recognised with the original majestic building. “The White House is a universal symbol of status and power. Naming their houses after it has not only increased prices, but home owners are also competing with each other to construct a more beautiful bungalow,” says Prabjot Singh Sassan, a property dealer in Trikuta Nagar. Architects in the area say that several of their clients approach them to construct a miniature form of White House. Many even keep readymade plans and elevations of it! “I have already made a few drawings for the miniature form of the White House, as clients are so smitten by the White House. Though its scale and grandeur cannot be matched, we try to give the clients something,” says renowned architect Sunil Kumar.
Mera wala white…
|
|
Tax tips
Q. I purchased a housing plot in 1989 from PUDA on which I constructed a small portion to avoid its resumption. I sold it in October 2008. My query is:
n
At the time of purchase I did not inform the IT authority. Was it required? If so, what is the repercussion?
n Long capital gain is kept in my saving account purely for the purchase of property within three years from the date of sale. I understand that this LTCG amount is supposed to be deposited in a specific LTCG saving account in an authorised bank. If yes, please specify by what date is this account to be opened and what are the conditions of its withdrawal. — G.D. Singh A.
Your queries are replied hereunder: The income-tax return applicable for assessment year 1989-90 or 1990-91 did not contain any column for the purpose of informing the department the fact of the acquisition of a capital asset in the nature of a plot of land. This information was voluntarily given by some of the taxpayers in order to avoid any difficulty at a later stage. You have, thus, not committed any default in not informing the department about the acquisition of land at that point of time. n
Yes, the amount of capital gain is required to be deposited in an account required to be opened under capital gain scheme in case the same is to be utilised for the acquisition/construction of a residential house within the specified period. Such deposit is required to be made before the due date of filing the income-tax return for the year in which the capital gain has arisen. The amount so deposited is to be utilised for the purchase or construction of the residential house within the specified period.
What is fair value of the house?
Q. I purchased a residential plot of 200 sq. yards in May 1977 within the municipal limits of Patiala for Rs 10,000 and spent Rs 500 on its registration. I constructed about 350 sq. feet covered area in 1978
by spending around Rs 35,000 from my savings (the record of which is not
available). I sold the same in December 2008 for Rs 10 lakh. Kindly let me know the capital gain on it.
— Chanchal A.
The facts given in the query do not indicate the fair value of the house as on 01.04.1981. The owner has option to adopt such fair value for the purpose of computing the capital gain arising on the transfer of a capital asset. Assuming that you do not exercise the option, the indexed cost of the residential house would work out at Rs 2,64,810 for the financial year 2008-09. On the said basis capital gain would work out at Rs 7,35,190, which would be taxable @ 20 per cent plus surcharge for education cess @ 3 per cent.
It’s a long-term gain
Q. I had bought a plot three years ago for Rs 1.5 lakh and sold it three years
later for a sum of Rs 3 lakh. Please tell me the tax treatment and amount of tax for the above-said transaction. I am a retired govern-ment employee. — Ashu Singla A.
The relevant dates for the purpose of ascertaining the indexed cost are not given in the query. It is, therefore, not possible to compute the correct indexed cost of the plot. However, presuming that the plot was purchased in the financial year 2005-06, the indexed cost for the financial year 2008-09 (assessment year 2009-10) would work out at Rs 1,75,654 and the capital gain thereon would work out at Rs 1,24,346. This being a case of long-term capital gain, the same would be chargeable to tax @ 20 per cent plus surcharge for education cess @ 3 per cent. The total tax on the said basis would work out at Rs 25,615.
Conversion delay
Q. Two adjacent residential plots, measuring 35 yards each, situated in a DDA Colony, Delhi, were allotted to different applicants on leasehold basis with stipulation to construct individual. Residence units on each plot of 35 yards as land use condition in DDA plan. Later, a builder purchased both plots from allotees and constructed a building on the said twin adjacent plots as single unit of 70 yards in violation of the stipulation of land use condition and sold the unit to an ignorant buyer through a property dealer. Then the Delhi Government allowed conversion of leasehold plots to free hold. Accordingly, the buyer (present owner) applied for conversion but his application is pending with DDA for many years for unknown reasons. He had applied though proper channel and submitted relevant documents as demanded by the authorities. The buyer is in physical possession of the property and pays house tax as owner. Please suggest a way
to get that property converted into freehold by paying penalty or any other possible measure.
— Kamal Jain A.
The Delhi Development Authority (DDA) should be approached again with a request to take up the matter (regarding conversion from leasehold to a freehold land) which has been pending for a very long time (preferably indicating the date, month and the year). The letter should also mention that in case the matter is not taken up immediately the applicant shall be constrained to take an appropriate action at the risk and cost of the DDA. In case no action is taken on such a notice, the only alternative with the buyer is to approach the court for directing DDA to process the application and give the desired relief to the buyer. It would be worthwhile to engage a lawyer for issuing the notice as well as for taking up the matter with the court.
No tax on gifting property
Q. I would like to enquire that if a mother wants to present a house or flat to her daughter as a gift, then what all formalities need to be completed? Of the two parties, who will have to pay tax and
how much? — Jaanvi A. A mother can gift the house/plot to her daughter. For such purpose, a gift deed will have to be executed and duly registered with the sub-registrar. The gift deed is to be executed on stamp paper, the value of which would be based on the market value of the property. After the registration of such gift deed, the daughter can take steps for getting the house mutated in her name in the municipal as well as revenue records. No gift tax or income tax is leviable on such a gift.
This column appears weekly. The writer can be contacted at sc@scvasudeva.com
|
|
Mumbai, Delhi in most expensive cities’ list
THE country's financial hub, Mumbai, and the National Capital, New Delhi, are among the world's 10 most expensive cities for expatriates to live in, says a survey by global HR consultancy, Mercer.
According to the survey on housing costs and practices for employees sent on overseas assignments, Mumbai has emerged even more expensive than New York City in the United States and China's Capital Beijing. Mumbai has been ranked as the world's fourth most expensive city in terms of rental property for expatriates, while New Delhi is eighth, the survey for February 2009 said. Mumbai has moved up by one notch from its fifth position in the September 2008 survey, while New Delhi has fallen two places from its sixth place in the previous ranking. Russia's Moscow has topped the list of world's most expensive cities and is followed by Tokyo (second), Hong Kong (third), Mumbai (fourth) and New York City (fifth) as the five most expensive cities across the globe for expats to live in. The survey highlighted that Asian cities have dominated the list of the world's costliest locations for expats living there, with as many as six locations from the region being among the world's top 10. "The world's housing markets have been sliding since 2008 and major currency fluctuations in the past few months have also had a strong impact on the comparative cost of expatriate housing," Mercer information product solutions India business leader Gangapriya Chakraverti said. In today's market, it is imperative for firms to develop a global talent pool that support international business demands and housing remains one of the most sensitive issues in expatriate package negotiation process, Chakraverti added. Further, Beijing has been ranked at the sixth position followed by Geneva (seventh), New Delhi (eighth), London (ninth) and Singapore (tenth). Interestingly, the survey stated that current slowdown has led companies towards a fundamental shift in the types of housing being offered in India. Earlier, multinationals used to provide expat employees with luxurious housing options such as large farmhouses featuring world-class facilities. However, today, an increasing number are opting for luxury condominiums that provide the same kind of facilities but at a
lower price. As a result, expats are increasingly located in Gurgaon, Whitefield and Powai as opposed to more traditional locations such as Chanakyapuri, Indiranagar and Colaba. This has also resulted in more cultural integration between expats and the local population, the survey added.
— PTI
|
|
GROUND REALTY Going in for an air conditioner? Don’t sweat. JAGVIR GOYAL has done the spadework. So, just read through and make your choice
To begin with, decide the cooling capacity required. Called tonnage, it depends upon the ambient temperature of the place you live in. A 1.0 T cooling capacity means 12,000 British Thermal Units (BTUs) an hour. The general tendency is to go in for a 1.5 T AC but if you are living in a coastal area and the summer temperature hovers around 30 degree C, a 1.0 T AC should be sufficient for a 200 sq ft room. For places like Punjab and Haryana, where summer temperature is generally above 35 degree C, a 1.5 T AC is sufficient for 250 sq ft area. The general thumb rule is to find out the square root of the floor area of the room and divide it by 10 to obtain the cooling capacity required in tonnes. An AC with larger than required tonnage will cool too quickly and will have to be switched on and off frequently, which is rather uncomfortable for the user. Comfort air conditioning means running an AC at 23 degree C not at 18 degree C. Once cooling capacity is decided, choose from window or split models depending on where you want to install it. Normally, window ACs are preferred for residences. A split AC can also be chosen where it can be provided without the necessity of false ceiling. Not only do false ceilings cost more, split ACs are also costlier than window versions. Ducts, if provided, add to cost. In case of split ACs, drainage pipes will also need to be embedded in walls. The benefit of a split version is that these don’t block windows. Cases where outer walls are not available for installation of window ACs are also fit for split models. Keeping these points in view, make your choice. n
Check power use: This is the most important factor. A power efficient AC helps not only reduce your power bill but also aids the power-demand supply gap. Let an AC mean Ampere Conservation for you! Ask the dealer to show ampere reading to you while the AC is running. For that reading, note the voltage also. Lesser the ampere reading for a fixed voltage, the more energy efficient the AC. Check star rating: Just checking the ampere reading doesn’t ensure power efficiency. Check its star rating also. The Bureau of Energy Efficiency (BEE) has devised star ratings for electric appliances, on a scale of one to five. The more the number of stars, the higher its energy efficiency. However, in India, no window AC has so far achieved four or five star rating. All window ACs come with one, two or three stars. Split ACs, however, have achieved five-star rating and are produced by 10 companies. n
Check Energy Efficiency Rating (EER): More the EER, greater its energy efficiency. It is worked out by dividing the cooling capacity of an AC by its power consumption. Some companies work out EER by dividing the cooling capacity in BTU/hour with power consumption in watts. A 1.5 tonne AC has the cooling capacity of 18000 BTU/hour. If it consumes 1800 Watts of power per hour, its EER is 10. However, BEE works out the EER by taking cooling capacity, too, in watts. In watts, a 1.5 tonne AC has the cooling capacity of about 5270 watts. With a power consumption of 1800 Watts, its EER will be 2.93. Therefore, while checking the EER, check whether it is based on BTU/W basis or W/W basis. Compare the EER of short-listed models. An AC with higher EER value is more efficient. You may also convert EER in BTU/W to EER in W/W or vice versa. To convert it from one ratio to other, an approximate formula is: EER (in BTU/W) = 3.417x EER (W/W) The star labels on all ACs exhibit EER values in W/W rating in bold letters. n
Age matters: It is very important to check the year of manufacture of an AC. It must be noted that star rating norms are getting stringent year by year. ACs that had two stars till December 31, 2007 lost one star from January 1, 2008 onwards as per new EER values. Similarly, all higher star categories of ACs manufactured till 2007 also lost one star on 01.01.08. From January 01, 2010 onwards, ACs that were three star rated till December 31, 2007 will practically become one star rated. So, to work out the correct star rating, check the year of manufacture also. n
Inspect filters: Look for ionisation. It is a filter that cleans the air from smoke, germs and dust by creating negative ions that attract positive ions of smoke, germs and dust in air. In addition, you may look for deodorising filters. It cleans the air of any foul smell and odour generating particles. People sensitive to respiratory problems should look for anti-fungus and anti-bacteria filters. Presence of an electrostatic filter can be additional advantage as it creates an electrostatic field to attract dust particles and clean the air. n
Sound advice: Look for an AC that produces noise of less than 45 decibels indoors during the day. Note that sound pressure increases 10 times for every 10-decibel increase. A 60-decibel noise is 10 times louder than 50-decibel noise while a 70-decibel noise is 100 times louder than 50-decibel sound. Basically, every decibel counts. ACs produced by some companies make very low noise, even below 30 decibels. n
Check compressors: Com-pressors may be rotary, reciprocating or scroll. Scroll compressors have the highest efficiency and reliability but are costlier. Function of the compressor is to circulate refrigerant, a cooling fluid through the refrigeration system for uninterrupted cooling. Different types of compressors lend different efficiencies to the AC. Prefer a rotary compressor — it consumes less power and makes less noise. n
Brand power: Don’t go in for an assembled AC. Choose a branded one — as many as 20 brands are now available in India. These include Azure, Blue star, Carrier, Daikin, Daenyx, Electrolux, Godrej, Haier, Hitachi, Koryo, La Vida, LG, Onida, Samsung, Sensei, Toshiba, Videocon, Voltas and Whirlpool in alphabetical order. In addition, O General is an imported brand. Models of all brands except O General have been given star ratings by Bureau of Energy Efficiency. Only Voltas, Carrier, LG, Electrolux, La Vida produce two tonne models. The commonly used 1.5 tonne variant is produced by all brands. Go in for an AC with a remote control. Imagine not having to move from your bed in the middle of sleep to turn the AC on or off! This convenience also saves power. Ensure that the buttons of the remote glow in the dark for easy use at night.
The C-factor
NEVER make the cost of an AC the sole criterion to buy it. In fact, assign last priority to it. Power consumption must be the deciding factor. An AC may consume electricity worth its cost in a single season! So, if it costs more but is energy efficient, effective, silent and comes with a good filter, go for it. The extra cost paid will get recovered soon. AC costs have come down significantly. In 1995, a 1.5 tonne window AC set you back by nearly Rs 30,000. Thirteen years later, it costs Rs 10,000 less and comes with improved technology. Overall, ACs account for 50 per cent of the total power demand of residential and commercial sectors. Try to minimise their use and help yourselves and the nation. More tips will follow next fortnight. Till then, pamper yourself!
The writer is deputy chief engineer, civil, PSEB. He can be reached at www.jagvirgoyal.com
|
|
Full circle?
When realty was booming, sellers would overnight increase prices in violation of the agreement giving buyers a tough time. Driven by greed, the seller was tempted to sell the land to a new buyer, who promised more. Consequently, buyers would be chasing the sellers. Now, it is the seller chasing the buyer, citing the terms and conditions of the agreement and the price fixed in it. But instead of gambling crores on finishing the deals in this scenario, the buyer is rather happy dishonouring the agreement. He is content losing the surety money paid while inking the agreement instead of paying lakhs or crores for land and then repenting at leisure for striking a deal in times of recession. When a buyer refuses to honour the agreement, the seller does not have much choice. Scores of such cases are reaching the police. According to Ludhiana senior superintendent of police Dr Sukhchain Singh Gill, four to five such disputes are received in police stations of the city everyday. The magnitude of the problem can be gauged from the fact that 100 such cases every month are reported in police headquarters, Ludhiana. Enquiries revealed that a number of plots in new colonies on Chandigarh Road were recently embroiled in such disputes. Real estate agents negotiating these deals are in a tight spot. As deals seldom matured, they could not make a single penny. In a similar case, a land deal for 16 acres on Pakhowal Road was struck three years ago. The price was fixed at Rs 25 lakh an acre and changed several ownerships on agreement till it was passed on further for Rs 80 lakh. Despite the manifold appreciation within three years, it was never sold. Now, the seller has moved court. Another dispute is on for a piece of land on Ferozepore Road where investors would leave no stone unturned to possess a plot. Since it was termed as a goldmine, there were plenty of takers, but not any more. There are several similar instances where the buyers did not want to get the sale deed registered. Disputes were witnessed especially for big plots and huge chunks of agricultural land, where the purpose of deal was basically investment. “Things have come to such a pass that people do not mind losing the surety money. It is usually 10-15 per cent of the total sale deal depending on the size of land. I have seen many cases where buyers go back on their word saying it was better to lose that money than to invest in land. The uncertainty about the future of real estate is making them do so,” said a property dealer. A Moga-based lawyer, on the condition of anonymity, said he had received seven cases of breach of agreement in the last few days. “Two of them effected a settlement out of the court only and the rest are seriously pursuing the cases.” Recently, realty major DLF had also made headlines for allegedly backing out of a housing project, causing a loss of Rs 16.5 crore to a firm and farmers. A local court had recently summoned its chairman. The Haveli project on 700 acres on the Ludhiana-Ferozepur Road and Dakha and Kailpur village was dumped two years after its MoU was signed. Director of Northern Trading and Impex Poonam Mehra had alleged that she and her son were forced to sign a new MoU by DLF officials on September 25, 2007, according to which the area of project land was reduced to 143 acres. Even then the trading firm was not paid the amount as promised in the MoU. Mehra’s firm, which had to acquire the land for the township on behalf of DLF, had filed a fraud case against DLF chairman KP Singh.
|
TREND
MILL
GROUND
REALTY
THE walls wear a fresh coat of baby pink — the colour you love to give your persona a charming outlook. The downy curtains in pastels compliment the delectable walls, the near-white carpet looks all nice and neutral and goes along well with the comforting bedsheets. You even have a photo frame with a flower motif, the one in which your childhood snap blooms. But still, the room does not exude the charm of style and youth. You need something more.
Then you have velvety hearts to wear up your walls. They even have nice amorous messages embroidered across in bold passionate letters. Don’t worry about the price. You can always get your guy to gift it to you. Feng Shui wall hangings are not all that popular nowadays. And really, do you need them to perk up your
fotunes?
“Our area has become famous just because almost three in five houses here are named White House,” says Sandeep Kumar of Trikuta Nagar, a posh locality.
THE trend of naming residences White House is not restricted to posh localities. Residents living in other localities are also following suit. “We cannot compete with the rich and famous who construct big houses and name them White House. However, we have with our modest means build our home and named it so,” tells house-proud Kamaljeet
Mangotra, a resident of the Model Town locality.
AN air conditioner is no longer a luxury. Small, high-rise buildings, improving living standards, rising temperatures and lowered AC costs have made it a necessity. Under such circumstances, it is worthwhile to be aware of the basic points that one should keep in mind while selecting and buying air conditioners.
THE cat and mouse game between the seller and buyer has reversed in the existing economic climate. Now, sellers find themselves at the receiving end with little choice but to hope that buyers will uphold the price agreed to before the meltdown.