TREND MILL
To safe beginnings!
Make the house more accessible and comfortable for the elderly and you won’t ever be sorry, writes SAURABH MALIK. What better time than Mother’s Day this Sunday to get cracking?

YOUR innovative chalet is turning out to be quite something, but you still feel a little more is expected to make a home out of the bungalow. After all, your new villa is not so friendly for the parents and grandparents.

Safety concerns remain on the front burner with more than a few opportunities for accidents continuously cooking up in the kitchen. Room doors with latches on the inside keep locked the apprehensions of the elderly bolting themselves up. The dicey bathroom tiles do not permit uneasiness to slip away and lighting leaves security affairs in the dark.

So, don’t wait for disaster to strike — act now! On Mother’s Day this Sunday, take some time out of your busy schedule to make the house safer and securer. It’s worth it.

To a safe future

TO begin with, lock all your worries in the closet of your heart and work towards making the house more accessible and comfortable for the elderly. An easy ramp here and a railing there will not only add charm to the surroundings, but also minimise the chances of an accident. In fact, you can pick up a classy "wave" railing or even a "heritage" banister. Aluminum ones also look good, are easy to hold and easier to clean.

“Precaution’s the buzz word,” says Harminder Singh, Mohali-based real estate developer with operations in Punjab and Himachal Pradesh. “It is not easy to identify problem areas but you can always think in terms of prevention. Take a round to evaluate the safety of your house with the intention of quickly rectifying, or removing, real dangers. You should continuously be alert and on the lookout for accident-prone spots. Keep asking yourself what all can be done to make the house safer.”

Harminder Singh suggests starting from the kitchen. “The kitchen has all the ingredients of a bad accident spot. More often than not, a parent misuses the gas burner or an electrical appliance by forgetting all about the under-preparation foodstuff. A sensitive smoke alarm will serve as the topping on home safety measures.”

Also, go in for an automatic exhaust fan to clear out the fumes of trepidation and fear. “A minor change in settings can also cut down on excessive movement in the kitchen. A ledge here and a shelf there will do the trick,” Harminder Singh asserts.

Minimising falls

REMOVING stumbling blocks goes a long way in preventing falls. Real estate developer Ritu Singhal suggests placing furniture along the walls if you share house with the elderly. “All the walk areas should be free of furniture. Wire extensions and electrical cords are completely forbidden,” she asserts. “Make sure all machinery and electrical cords along with other potentially harmful items such as weapons are put away in a safe place when they’re not in use. Do this and you practically rule out the possibility of the aged harming themselves.”

Another thing, potted plants are best kept outdoors. “Agreed, they help bring nature indoors and help you relax, but water seeping out of pots is a potential cause of accident. After all, it’s slippery when wet,” she reminds. Rooms designed by Singhal for the elderly essentially have provisions for low-beds with no carpets at all or rugs that do not fold up into barriers of any sort.

Even if you do not believe in Vastu, there’s one advice you must pay heed to — Remove clutter, throw the junk out. It can cause disorientation and confusion. In any case, it leaves you with very little breathing space.

Safety ladder

ENTREPRENEUR and inside outside expert Bindu Sharma suggests stairs with safety grips. The stairway handrail should also extend beyond the first and last steps to make ascent and descent safer. “No fancy stuff on the rungs for the elderly,” she says. “We do not want them to slip. Do we?”

In the end, make sure all rooms have adequate lighting. Come guys! Do it now for your parents. After all, mom’s the word. 

Towers of Hope
As more and more cell cos come calling to Jammu, residents rake in big bucks by renting out land for phone towersTejinder Singh Sodhi

VIJAY Kumar could barely earn Rs 50,000 a year by growing Basmati rice over his few acres of land. Life was a constant struggle for this resident of Suchetgarh village in Jammu. But ever since the mobile apartheid ended in the state, there has been no looking back for Vijay, his family and many others.

Besides his annual income of Rs 50,000 from his crop, he now earns over Rs 30,000 every month by renting out a few square metres of his land to cellular service providers to erect towers. This year, his only son — a fresh graduate — has also been hired by one of the phone company that has erected its tower in his fields and earns a handsome salary.

The state of Jammu and Kashmir has now become a green pasture for mobile phone companies in stiff competition with each other to attract more and more customers in the state. The struggle for cellular supremacy has come as a blessing for people like Vijay Kumar, who now rake in big bucks by renting out land for erecting phone towers and constructing other requisite infrastructure.

Obeying the demand and supply curve, land prices have gone up considerably and as more and more cell cos make a beeline for the state, the prices are expected to only spiral. Article 370 of the Indian Constitution, according special status to the state and forbidding outsiders from owning immovable property in the state, has also come as a blessing. Mobile phone companies have no choice but to rent out land.

“I have rented out land to three mobile phone companies. It was even difficult to make ends meet as a farmer but now things have changed for good,” says Vijay Kumar. “I have not given up farming and still grow Basmati rice on my land, but the monthly rental income of Rs 30,000 has made a big difference. Plus, my son, who completed graduation last year, has also landed a good job.”

There are thousands like Vijay Kumar in the state and elsewhere who are enjoying the benefits of the cellular revolution in more ways than one. After security agencies gave a go ahead to mobile phone companies in the trouble-torn state, there has been a tremendous growth in business and more and more companies are keen to jump into the fray. Already, there are six mobile phone operators in the state.

In Jammu and its adjoining areas, phone towers dot the Temple City skyline. After the district administration banned erection of towers on terraces, residents have even rented out lawns and just about any open space on the ground floor for their construction! An official of a private mobile phone company said that land rental was more in urban areas. “Besides offering rent for the land that we use, we also offer a job to a member of the family. Earlier, people were reluctant to rent out space to us but now many approach us to setup our infrastructure on their property,” he added.

Full circle!
HOT PROPERTY: Ludhiana shopkeepers make a beeline for old city markets to cut overheads, draw vanishing customers
Kanchan Vasdev

OLD is truly gold. This adage has once again proven itself during the days of recession. As many stores in multiplexes and commercial complexes shut down, businessmen are tracing their steps back to crammed shops in congested old bazaars of Ludhiana.

The decrease in footfall in bigger stores, which burn a hole in buyers’ pockets, is forcing storeowners to do a rethink and buy shops in old bazaars where business has not been affected till date. Since these shops do not have to add to costs of saleable goods by providing numerous AC units, lights and other overheads, these shops are once again topping the list of most recession-hit shoppers perpetually on the lookout for a bargain.

“The meltdown has, in fact, helped us. The old markets were being ignored by the affluent as they turned to swanky malls and boutiques for shopping but not the tide is turning. They have now realised that the same stuff is available with us for a fraction of what it would cost in a store in a mall or multiplex. Why spend more is the ruling sentiment,” says Charanjit Singh, a shopkeeper in Chaura Bazar.

With old clients returning, the interest of buyers in property in old city markets has also increased manifold. “I am receiving a number of queries everyday. Though there are not many shops that available for sale for the time being, buyers want to see whatever is available. Shopkeepers this side of city are at least managing to keep their kitchen fires burning,” says Pritpal Singh, a shopkeeper cum real estate agent in Akalgarh Market. “The opening of malls and huge commercial complexes with comfortable parking space and other facilities had made shopkeepers in the old city very nervous but we had could never imagine the trend would be reversed this soon. Good we did not hurry and sell off our shops. Now we know we are a happier lot,” he adds.

A storeowner, who sold off his shop in Chaura Bazar to move to a multiplex, said he wanted to return to the old market, as sales were now even lesser than the princely rent. Once he told his landlord about his inclination to surrender the multiplex shop, he asked him to pay less rent and stay on! “For the time being, I am staying put. I started off by paying Rs 125 a square foot and now pay Rs 70. I am waiting and watching. If I still don’t do good business, I will buy or rent out a shop in one of the old city markets,” says the storeowner, preferring anonymity.

Old markets in Ludhiana including Chaura Bazar, Akalgarh Market, Gur Mandi, Sarafa Bazar, Moch Pura Bazar and other areas have witnessed a rise in interest among prospective buyers. “Things are surely looking up. Many shops were closing down as the shopkeepers were in a race to exit the congested markets and buy a shop in a good area. But the old Indian principle of contentment has helped people who stayed put. They are the happier lot,’’ says S.S. Atwal, a real estate agent.

Tax tips
This column appears weekly. The writer can be contacted at sc@scvasudeva.com
S.C. Vasudeva
For exemption, time matters 

Q. I own a house property in Gurgaon and have been residing in it for 25 years. I intend selling the same and purchasing two separate residential flats situated side by side so that they can be made into one unit by breaking the wall between the two. This will provide me a bigger area as well as better environment for my stay. Will I be entitled to an exemption under section 54 of the Act?

— Narain Dutt

A. Under section 54 of the Income-tax Act 1961 (the Act), exemption can be availed only if the capital asset that is transferred is a residential house, income from which is taxable under the head ‘income from house property’. On the basis of the facts given in query it is clear that you are covered for claiming the exemption under the aforesaid section. The said section also requires that to claim the exemption an assessee should purchase a residential house property within one year before or within two years after the date of transfer of the residential house property or construct a residential house property within three years from the date of transfer of a residential house property. Accordingly, if the above condition is satisfied you will be entitled to claim the exemption from the taxability of capital gain, if any arising on the sale of a residential house property occupied by you.

The Karnataka High Court (309 ITR 329) has recently held that even if two houses are purchased by the assessee, the exemption under section 54 of the Act would be available and the words “a residential property” used in the section should be understood in a sense that building should be of residential nature and “a” should not be understood to indicate a singular number. 

Calculate CGT on Rs 3 lakh

Q. I sold a residential house in Ludhiana on December 30, 2007 for Rs 35 lakh. I had purchased the same in June 1992. After deducting the cost of acquisition on index basis, the capital gain works out at Rs 21 lakh. I could deposit a part of the amount (Rs 18 lakh) in the capital gains deposit account on account of some personal reasons. I purchased a small flat for Rs 15 lakh in April 2009. Please advise me up to which amount I would be able to claim exemption from tax.

— N.K. Gupta

A. I assume that the capital gain computed by you at Rs 21 lakh is correct. Since you could deposit only Rs 18 lakh in the capital gains deposit scheme for being utilised for construction or purchase of a residential house, the balance amount of Rs 3 lakh would be taxable as long-term capital gain in assessment year 2008-09. You would be entitled to claim exemption to the extent of Rs 15 lakh in the previous year 2010-11 relevant to assessment year 2011-12. The balance unutilised amount of Rs 3 lakh would be taxable as long-term capital gain of the previous year 2010-11 relevant to the assessment year 2011-12.

No exemption if you reinvest in plot 

Q. I need your advice on the following issues regarding capital gain:

F If I sell my residential house, can I save capital gains tax by acquiring a plot for the construction of residential house?

F If I build a house on the said plot after two years, will I be entitled to exemption from the leviability of capital gains tax on the capital gain arising on sale of the residential house?

— A.S. Puri

A. Your queries replied hereunder are based on the presumption that the capital gain arising on sale of plot is a long-term capital gain:

F Section 54 of the Act provides that long-term capital gain arising on the sale of a residential house would not be exigible to tax, in case such capital gain is utilised towards the purchase or construction of a residential house subject to certain conditions specified in the said section. No exemption from the leviability of capital gains tax is available in case long-term capital gain arising on the sale of a residential house is invested in the acquisition of a plot of land.

F As stated above, an exemption from the leviability of capital gains tax can be claimed under section 54 of the Act by investing such long-term capital gain in the purchase or construction of a residential house. The purchase has to be effected within one year before or two years after the date of the sale of the residential house. The construction has to be effected within a period of three years from the date of sale of the residential house.

Accordingly, the exemption from the leviability of the capital gains tax would be available in case the construction on the plot is completed within three years of the date of the sale of the residential house and the entire amount of capital gains is invested in such construction. 

You’ll need a deed of relinquishment

Q. My father died in 1997. The house in which we are living is in his name. My elder brother, who was unmarried, also died in 2004. My mother lives with me. I have four sisters, all married and settled. I want the land to be registered in my name. Kindly advise.

— D.R. Kamraj

A. The land can be registered in your name provided your mother as well as sisters, who are legal heirs, give their consent in this regard. Normally, the consent is given in the form of a Deed of Relinquishment. This should be in your favour and is to be executed on stamp paper of requisite value. 

Gift: Movable vs immovable property 

Q. In one of your previous columns, you had advised that a gift can be given on plain paper only. The donor should sign it and the donee should accept the same with his signatures affixed thereon. However, in your column dated April 25, you had guided Dr Baljit Singh Natt to receive the gift from a relative on a stamp paper, the value of which would be based on the market value of the agricultural land proposed to be gifted. You had also suggested registry of gift deed with the sub-registrar. Please clarify the difference between the two pieces of advice.

— Nripander Parkash Khanna

A. The reply to Dr Baljit Singh Natt’s query was in respect of immovable property. In accordance with the provisions of the Transfer of Property Act, 1882, read with the Registration Act, 1908, an immovable property cannot be transferred without the execution of registered sale deed or a gift deed. However, in case of movable property no such requirement exists. The reply to your query was in respect of movable property and, therefore, it was suggested that such a gift could be made by a simple letter. Such a gift is, however, required to be accepted by the donee. 

GREEN HOUSE
King of the garden
Satish Narula

SOMETIMES one wonders what happened to the burly dinosaurs that ruled the earth for centuries. They vanished just like that! There are many theories put forward. One thing is sure — whatever it was, the catastrophe must have been of very high magnitude. But do you know that a few plant species of that era survived and still exist? Yes, the Cycads have seen the dinosaur age, survived and lived through ages without changing their morphology. Let me familiarise you with the ‘Cycads’. One of the most common plants in gardens is the Cycas palm, popularly known as kangi palm (Cycus revoluta).

Before I tell you more about this plant, let me caution you against being mislead by the name — this plant has nothing to do with the palm family. You thought it did because it is so-called and may be you read somewhere that its leaves are also called fronds, like those of palms. But it is in no way associated with the palm family and belongs to the cycads group.

The cycads have found favour with landscapists for several reasons. For starters, plants of this genus are very beautiful. Its leaves are like bird feathers in construction, stiff, leathery yet glossy and arranged in a set pattern. Take the example of Cycas Palm — its leaves (fronds) come out of the plant in a much-disciplined manner and none is misplaced. You can actually predict their placement. They come out in a round fashion and give the plant the look of a big dish antenna! The otherwise thick and leathery leaves are very delicate when they emerge. Since the leaves have a very long life and each one contributes to the plant’s look, these should be protected against insects at an early age.

Besides the ornamental value, what makes this group of plants a favourite with horticulturists is low maintenance, the present day demand of any client. Since it grows best in poor lands, this plant is very suitable for rockeries and mounds. Its adaptability can be gauged from the fact that these plants can live in the environs of both the cacti and ferns with equal ease. The plants are very woody and their growth rate extremely slow. The kangi palm may grow not more than a centimeter to an inch in height in a year. This is one reason that the plant is a favourite with the Japanese, who pass it on through generations. Surprisingly, bonsai freaks also use this slow-growing wizard. Another popular species, the Cycas circinalis, grows comparatively faster and higher. Such plants are very suitable for location near water pools and near places where you do not want to treat the area time and again from the landscape point of view.

The cycads multiply in this region by way of giving offspring on the main stem. The base of the young emerging plant is like a swollen bulb. It can be removed from the mother plant and planted in sand or soil. Remember, the cycads do not like water standing in their feet.

(This column appears fortnightly)

The writer is a senior horticulturist at PAU and can be reached at satishnarula@yahoo.co.in

Keep pets away! ONE disadvantage of the kangi palm’s domestic use is that it is extremely poisonous to both humans and animals if ingested. Pets are at particular risk since they seem to find the plant very palatable. Clinical symptoms of ingestion will develop within 12 hours and may include vomiting, diarrhea, weakness and seizures. The pet may appear bruised, have nosebleeds, blood in the stool, bloody straining and even blood in the joints. If any quantity of the plant is ingested, rush to the vet immediately. Effects of ingestion can include permanent internal damage and even death.

Expertspeak REMEMBER that plants of the Cycad family do not like water standing in their feet. So, give it soil that is sandy and well-drained and watch it flourish!

REALTY BYTES
Slowdown worsens property slump

FAILURE by retailers to exploit the fall in real estate prices has led to further correction in property prices across major cities in the country, real estate consultant Cushman & Wakefield (C&W) has said.

“Most retail micro-markets, both malls as well as main streets saw a further correction in rental values. Mumbai saw the sharpest decline in rental values for both malls -- Goregaon with 42 per cent and main streets Colaba Causeway with 38 per cent,” C&W said in a report. Mumbai witnessed the second-highest mall supply with an addition of 3,05,000 sq ft in the first quarter of 2009. However, it also recorded the highest mall rental correction, the report said.

Receding user-demand has severely curtailed uptake of space across most micro-markets, it added. “The trend of further correction is likely to continue in short-to-medium-time frame leading to further correction in both mall rentals as well as high-street rentals,” C&W India retail services executive director Rajneesh Mahajan said.

Delhi's National Capital Region (NCR) witnessed an up to 25 per cent decline in rental values, the report said. “Increase in malls has impacted main street rental values that have seen a downward trend especially in areas around South Delhi like Greater Kailash I M-Block market recording a correction of 25 per cent,” C&W said.

While the main streets of Bangalore saw much wider corrections in the range of 6-28 per cent, Hyderabad recorded one of the highest mall rental corrections between 25 and 29 per cent. Kolkata saw mall rental values shrinking by 12-25 per cent due to delays in mall projects, while those in central Chennai were pulled down by eight per cent, it said.

It noted that only 1.4-million sq ft of fresh mall supply was added in the first quarter of 2009, mainly in Mumbai and NCR and five other major cities. The fresh supply was much below initial expectation largely due to the slowdown in uptake of space by retailers, which led developers to reduce the speed of construction in the already-underway projects, it said. “Estimated mall supply by the end of 2009 is calculated to be 17.66-million sq ft, approximately 11-million sq ft of the same has been carried forward from 2008,” the report said.

Other developers, who are yet to begin construction of its previously announced projects, may be reconsidering their retail mall plans, the report said. “Most retailers are now renegotiating their rental commitments as per the actual business potential in the mall, thereby exerting downward pressure on the rental values,” Mahajan said.

“Many developers have now begun to support retailers by reducing the fixed occupancy cost as well as offering revenue-sharing opportunity with retailers to promote increase in occupancy,” he added. — PTI

Office rentals fall in major cities
Likely to remain subdued unless global economy begins to stabilise: CBRE

OFFICE rental prices in major Indian cities fell by up to 10 per cent in January-March, said a report released by global realty consultant CB Richard Ellis (CBRE), adding that the situation was unlikely to improve in the near future. 

According to the Asia Office Rental Index, rentals across prime buildings in New Delhi and Bangalore underwent a correction of over 10 per cent while that in the Mumbai commercial and business district suffered a 6.7 per cent drop. 

“Demand for office space in major cities in India remained weak as economic and business sentiment continued to deteriorate, especially in the financial services and IT sectors. Any major increase in demand is unlikely in the near term,” the report said.

Anshuman Magazine, chairman and managing director (South Asia) of CBRE, said the office market rentals would likely remain subdued in the short to medium term. “However, if the global economy begins to stabilise, I feel that the Indian economy would see the benefits earlier than many other countries resulting in improved demand in the office sector,” Magazine said.

Overall office rents in Asia fell 7.9 per cent quarter-on-quarter in the January-March period, according to the CBRE Asia Office Rental Index. Overall Asian market rentals have now declined 18.5 per cent from their peak in the second quarter of 2008, with Asia's major financial centres suffering the sharpest falls.

The last quarter saw Singapore recording a 18.6 per cent drop in rents while in Hong Kong overall office rents declined 14 per cent quarter-on-quarter.  — IANS