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Hot property
They came, bought & are now repenting
Ground realty
Tax tips
Realty
Bytes
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Hot property
The project – under which a 26 km stretch of single road running along Sidhwan Canal would be converted into a four-lane one — has caught the fancy of many investors, who have begun bombarding real estate agents and colonisers with enquiries about available pieces of land. Interest has been renewed soon after the state government prepared the project and invited tenders for the same. With Ludhiana bursting at its seams and residents on the constant look out for more residential areas, especially on outskirts, the new colonies mushrooming on this road have generated a great deal of interest. Colonies that had come up in the past did not have many takers. Colonisers had tried all possible means to attract buyers. Recession had proved to be a second blow to the business here. But no more. Real estate watchers say the area would go the South City, Rajgarh and Janpath Estate way, which are now inhabited by the masses. These areas are also located along the Sidhwan Canal on the other side of Ferozepore Road. The colonies located on the other side are within seven km from Ferozepore Road and the new colonies mushrooming are also within 7-8 km from Gill Road. Hence, the interest.
All roads lead to...
DEALERS say tourism minister Hira Singh Gabria’s announcement on exploiting the tourism potential of Sidhwan Canal, too, has done wonders for the area. ‘‘I have received many queries for farmhouses and plots. Then there are colonisers, who want four-five acres of land to develop small colonies. We are hopeful that soon the entire stretch would the densely inhabited,’’ said Parminder Singh, a real estate dealer. He added the massive cleaning operation of Sidhwan Canal also contributed in attracting buyers. ‘‘The entire stretch of the canal has started looking very beautiful and one just feels like sitting on its banks under the trees! Who wouldn’t want to own a house on its bank? After all, the locality will be away from the madding crowds and pollution of the city. It is the dream location for those who want tranquil mornings, peaceful evenings and smoke-free air,’’ said Parminder. The location of Bapu Asa Ram’s ashram, which is just opposite the colony sites, will also help as many autorickshaws and public transport brings devotees to the place. Model Town Extension resident Amarjit Singh said the mushrooming colonies had caught his fancy and he was planning to buy a piece of land to build a farmhouse.
Price tag
EXPERTS say plots are available for Rs 3,000-4,000 per square yard in unapproved colonies and for Rs 8,000 to 10,000 in PUDA-approved colonies. The prices were comparable with South City, Sukhmani Enclave and Rajgarh Estate where a square yard costs between Rs 20,000 and 40,000. An acre of land could be had for Rs 1 to 1.5 crore while on the other side it cost Rs 8 to 10 crore. ‘‘This is a much cheaper option. History has it that in Ludhiana property prices have always skyrocketed. People had never imagine that the South City side would become so expensive one day,’’ said a coloniser. There were already 20-odd approved and unapproved colonies on this side of canal. Most had no takers: People never wanted houses at the canal’s far end. The expressway would regulate and ease out the flow of traffic in the industrial hub, leading to development of the area.
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They came, bought & are now repenting
IT all seemed like a good idea to begin with: Owning a house in close proximity to state-of-the-art townships established by leading realty developers in Amritsar. A quality life and handsome returns on the investment and were a given. But that’s not how it turned out.
Residents of several of these unauthorised colonies now find themselves in a Catch-22 situation. Rattled with problems like non-existence of private and government transport, absence of sewerage, potable water and many more, residents can neither live there nor find buyers. When realty czars homed in on the holy city’s periphery to establish townships, a number of local residents built residences in close proximity expecting an astronomical rise in land prices. Interestingly, hardly any structure has been raised in these colonies but the unapproved colonies are teeming with houses of all shapes and sizes. Majority of these colonies are located on the Circular Road from Jandiala bypass on Amritsar-Jalandhar road to Verka bypass, Majitha bypass, Fatehgarh Churiya bypass and Ajnala road. In their pursuit of a kothi, buyers did not mind even raising a house on fringes of the open drain running from Fatehgarh Churiyan bypass to Chheharta bypass. Some avenues that came up along the drain are Chand Avenue, Suraj Avenue, Bhullar Avenue and Deep Enclave. A real estate developer, on the condition of anonymity, said colonies offered all kinds of amenities and environs to make the dream home a reality. They were equipped with efficient sewerage system, 24-hour water supply, provision for recycling rainwater, streetlights, wide roads and security. However, people preferred to procure land in unauthorised colonies at cheaper rates. He said no government dared to take action against unauthorised colonies, as they formed a large vote bank. “Inhabitants came to settle there from various parts of the city. Residents of the walled city formed a large chunk of the dwellers. To escape congested arterial roads, they settled down without noticing vital points, including transportation,” he said. As middle and lower income group families form a large chunk of dwellers, a number of colonies mushroomed like Suraj Avenue, Chand Avenue, Green Field, Nagina Avenue, Akash Avenue, Silver Estate Colony, Guru Ram Das Avenue, Guru Har Rai Avenue, Lakshmi Vihar and Khadak Singh Wala village, now a residential area. The colonies came up on along the road being four-laned from Amritsar-Jalandhar bypass to Attari-Wagah joint check post, again anticipating high-rise in prices of adjoining land. Small time private developers, property dealers and individuals developed majority of these colonies caring two hoots for norms and regulations.
No basic amenities
SINCE majority of these colonies are unapproved, they do not have sewerage connections, proper roads and other amenities. All households have constructed underground septic tanks in front of their houses and draw water from deep bore wells. Transportation is another major problem. Lakshmi Vihar resident Mukul Ahuja said life was extremely tough for residents who did not have their own conveyance as no private or government transportation was available. The Municipal Corporation’s announcement to introduce a city bus service on the lines of the highly successful Indore City bus service brought even more families to the holy city’s periphery. However, even after two years, the project is nowhere near implementation. Former Congress Mayor Sunil Dutti said the Municipal Corporation House had passed City Bus Service plan in 2006. “Indore City Bus service was chosen as prototype because of its immense success. An Indore-based private transport company was also invited to realise the ambitious plan and routes were selected. It was to cover Circular Road and GT Road initially. As many as 15 passengers could board and alight the specially designed bus at a go,” he said.
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Leading the way
THE Silver Estate Colony is extraordinary as it gained approval the other way round — it became a panchayat to receive basic amenities! Unlike names of villages in Punjab that which reflect its culture, it adopted name of Silver Estate Gram Panchayat. Earlier, the area was part of Pandori Warraich village, which falls under Verka, made famous by Verka Dairy. The colony — located in the middle of bypasses of Majitha and Batala roads — does not fall under Municipal Corporation (MC) limits. It became a gram panchayat as it fulfilled criteria of minimum 250 votes and fell out of the MC’s jurisdiction.
Its first sarpanch, Ajay Arora, said that since they unanimously elected the gram panchayat, the state government had given it Rs 2 lakh to improve sanitary conditions. To bring the colony under the MC’s purview, residents had to shell out Rs 365 a square yard as development charge. Resident Suresh Gupta said he paid Rs 3.65 lakh for his 1000 square yard house. Apart from waste discharged by households, the drain also receives effluents released by factories. Gases emanating from it are not only harmful for health but also machines. A technician associated with a leading international air conditioner company, Bikram Jeet Singh, said, “The gases damage copper wire and pipes in air conditioners in houses near the drain in less than two years. We receive maximum number of complaints from the area.”
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Ground realty
JOINERY work makes up a major percentage of the cost estimate of a house. Not only has the cost of wood increased manifold over the years, good quality wood is also not available. Many wood substitutes and products have entered the market and are widely in use. Several tips and guidelines on doors have been shared through this column in earlier issues. Here is some more valuable and useful information on wood products and related issues...
Particleboard
Window dressing
IS Codes
Some important ISI marks that should be checked in woodwork are listed here: Factory made shutters:
IS 1003 Factory made chowkhats: IS 4021 Veneered particleboard:
IS 3097 Plywood: IS 303 Seasoning of wood: IS 1141 Chemical treatment of wood:
IS 401 Factory made flush doors: IS 2202 Synthetic resin (SR):
IS 851 Screws: IS 6760 Sheet glass for glazing: IS 1761 Creosote oil:
IS 218 PARTICLEBOARD is being used increasingly these days. Use it for sliding doors of cabinets, shelves, wardrobes, closets, panelling, partitions, wall or ceiling interiors and flush doors. Whenever choosing particleboard for home use, look for the type of resin used to bind particles in it. For bonding, resins used are urea formaldehyde, phenol formaldehyde and melamine formaldehyde. Among these, phenol formaldehyde provides best strength and durability. Next comes melamine followed by urea formaldehyde. Next, see the board grade whether it is BWP, BWR, WWR or CWR. Choose BWP grade board for best results. Next come BWR boards. Avoid WWR or CWR boards. If using for interior wall or ceiling panelling, see that the board has three layers with high quality facings. Also see to it that the particleboard is termite and fungus resistant. Thickness available: 12mm, 19mm or 25mm
Pane no pain
IN glazed shutters for doors, windows and ventilators, use thicker glass panes. In no case should the thickness of glass be less than 4 mm. Prefer 5.5 mm thick, plain float glass. Take measurement for glass panes carefully by leaving a margin of 1/16 inch (half soot). Otherwise wrong sized panes may go waste. Check and ensure that the glass is free of flaws and bubbles. There is a revolution in glass and there are variants available that can’t be broken even with a sledgehammer! Superior glass such as sheet glass, plate glass or pinhead glass may be used, budget permitting. Choose glass from a reputed manufacturer. Modiguard, Saint Gobain, Asahi and AIS are some reputed manufacturers. w Panel fixing: Fix all types of panels in stiles and rails by providing grooves and beading except glass panes for which no groove is to be provided. In all types of panels — except glass — prefer to provide beading on both sides. For fixing glass panes, provide beading on one side only. For external doors, keep beading on the outer side, not inner side. Support the panes on other side by the rebate in stiles and rails. Wherever wooden beading is used to hold glass in position by using mitred joints, apply a thin layer of putty between glass panes and rebate. Press the glass pane against the putty. Wipe off the squeezed out putty. Again apply thin layer of putty between glass pane and beading. Prepare putty by mixing one part white lead with three parts finely powdered chalk and then adding boiled linseed oil to the mixture to form a stiff paste. Ready mixed putty is also available in market these days.
In full swing
IN case you plan to add a swing door to the kitchen or any other room, plan it at initial stage. The frame (chowkhat) for swing door has to be different from the single rebate and double rebate frames. It needs to be manufactured accordingly and fixed in position while fixing other frames. w Moulding: Provide a solid wood moulding all around the chowkhats. Though the carpenter can make it, prefer factory made mouldings. A wide range is available. Sections vary from 12mm x 20 mm to 100 mm x 150 mm. Generally, moulding pieces are three-metre long. Choose as per your taste and budget. See that the moulding is fixed with headless nails so that after polish or paint, the nails are not visible.
Say no to wood
DOORS manufactured from materials other than wood include MDF and HDF doors, UPVC doors, fiber reinforced plastic (FRP) doors and aluminium doors. MDF is medium density fibreboard while HDF is a high density fibreboard. Durian has also ventured into HDF door manufacturing. However, these doors are yet under keen observation of users. For MDF and HDF doors, it is especially to be seen that screws driven in them don’t get lose with time. GRP doors are comparatively new and under trial and their behaviour in the long run is yet to be seen. In UPVC doors, though the danger of termite attack is not there and polish is not required, it needs to be seen that these don’t get distorted or discoloured under intense sun. In these doors, the exact locations where the fittings like locks, bolts and handles are to be installed also need to be marked.
The perfect cupboard
FOR cupboards, use two inch wide and one inch thick wooden stiles and rails to make the shutter frame. All joints should be mortise and tenon joints similar to those in shutters. Fix chosen plywood — preferably 4 mm thick — on inner and outer faces if you want flush shutters. Otherwise plywood panels may be used. Shutters of both types look good. Prefer to use synthetic resin or Fevicol to fix plywood to the frame. Synthetic rubber (SR) adhesive has better water resistant properties and should be preferred for exterior work. SR costs around Rs 200 per litre while Fevicol costs about Rs 125 per litre. SR doesn’t need the support of nails for proper fixing. With Fevicol, use ply nails of 17 or 18 gauge. w Hinges: In cupboards, prefer to use continuous hinges (piano) to hang shutters made of particleboard. If you are providing wooden frame shutters, usually three hinges of 4-inch size may be used. Prefer to get the cupboards walls made in masonry with shutters in wood and shelves in particleboard. Provide particleboard even at the back and for side walls. Cupboards fabricated at site prove much cheaper than factory fabricated wooden ones. A prefabricated teakwood cupboard costs Rs 3,000 per sqft and the cost of a 7ftx4ft one will be Rs 84,000 while similar size cupboards manufactured at site will cost much lesser. w Screws: Screws used to fix door and window fittings need selection. Good screws will not lose grip or shall not widen the screw holes with the passage of time. Look for steel screws conforming to IS 6760. Also look for slotted-counter-sunk head wood screws. Look for their shaven heads. In the market, these are available as unshaven and shaven head screws. Shaven heads are bright and finished plain at the lathe while unshaven heads look unfinished. Choose the right length – neither too long not too short — as it may pass through full thickness of wooden member, tearing it apart. A 6x25 screw means a screw of 25mm length drawn from no. 6 mild steel wire gauge. A packet has 200 screws when length is less than 25mm and 100 screws when length is more than 25mm. More tips in next episode. Till then, happy building! This column appears fortnightly. The writer is deputy chief engineer, civil, PSEB. He can be reached at www.jagvirgoyal.com
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Tax tips
Q. I sold my HUDA plot in 2007. I kept the money from the sale in a bank for six months. In 2008, I purchased a flat from a private builder and am paying installments. Is there any capital gain on the amount I have received? I have not shown any deal in my IT return. Please advise.
— Reetoo A.
You are liable to pay tax on the capital gain arising on sale of plot affected in the year 2007. You could have saved capital gain tax in case the amount of net consideration (full value of consideration of sale as reduced by any expenditure incurred wholly and exclusively in connection with such sale) had been deposited in a bank under capital gain scheme account. It seems you have not done the same and, therefore, you were liable to declare the capital gain earned on such sale in the income-tax return for the year ended March 31, 2008, relevant to the assessment year 2008-09. You can file the return for the assessment year 2008-09 by March 31, 2010, by declaring therein amount of capital gain. You will have to make the payment of tax along with the interest under the applicable provisions of the Income-tax Act 1961 (the Act).
Your sisters can claim share
Q. My grandfather (who was an agriculturist) acquired six acres of land as compensation for the land left in Pakistan during Partition of 1947 through the Ministry of Rehabilitation in 1950. My grandfather was the only son of my great grandfather and had two sisters, who did not claim any share in land. My grandfather did agriculture on the six acres and in due course of time sold it and together with some self acquired amount purchased 20 acres of land at another location. My grandfather had two sons and no daughter. With the land ceiling laws troubling my grandfather and on the advice of advocates, both sons of my grandfather (my father and my uncle) got the decree of separation of the said land from the court and got the said land mutated equally in their favour in the revenue records. My father and my uncle cultivated that 20 acres of land for about 35 years. In due course of time my father and my uncle (both brothers) sold their joint 20 acres of land and purchased 48 acres of land at another place but this time this 48 acres of land was registered in the names of four persons (my uncle and his son, my father and myself) for 12 acres each to avoid any complication of land ceiling laws. The said land (12 acres for each) has been mutated in revenue records. My grandfather since died and my father has become old. My father has three children (my two sisters and I) and all three of us are married. I practice agriculture on our 24 acres. Can my sisters claim their share of land whether from my father’s 12 acres of land or from my 12 acres because both lands (12+12 acres) were purchased not from our own sources, but after selling the land which originally belonged to my grandfather? — Jagdish Singh A.
On the basis of the facts given in the query, it should be possible for your sisters to claim their share in the land owned by your father. As far as the land owned by you is concerned, it should be possible for you to claim that out of the money received on the sale of 48 acres of land, the amount paid for acquisition of 12 acres in your name was a gift to you by your father and, therefore, your sisters have no right in the said part of the land.
Apply for PAN, then file return
Q. My father-in-law had constructed a house in 1998 at Kotdwar, Uttrakhand. Two years back he died. Now, my mother-in-law has sold the same house for Rs 17 lakh and wants to buy a house in Pinjore for Rs 7-8 lakh and deposit the balance amount in the bank to have a monthly income. She is 58 and has no other source of income. She also has a son who works with a private company and earns around Rs 6000 a month. Will she have to pay any tax on long-term capital gain? If yes, then where? She is not assessed in income tax and does not have a Permanent Account Number. Please advise accordingly from income tax angle. — Davinder Singh
A.
On the basis of facts given in the query, your mother-in-law would be liable to pay tax on the capital gain arising on the sale of house. She should have filed the return for financial year (April to March) in which the sale took place. The amount of capital gain arising on such sale should have been declared in such income-tax return. The return will have to be filed on the basis of her permanent residential address. She will have to apply for a Permanent Account Number before filing
the return.
What will matter
Q. I am interested in executing my will as I am getting old and would like to clearly specify who should be entitled to my self-acquired properties in the event of my death. Would you please give a brief idea as to how and in what manner the will should be executed? — Krishan Kumar
A.
According to the provisions of Indian Succession Act 1925, a will is a legal declaration of the intention of the testator with regard to his properties that he desires to give effect to after his death. A will becomes enforceable only after the death of the testator. It has to be executed by the testator by signing the same. Two or more witnesses should attest it, each of who should have seen the testator signing it. Though the registration of a will is not compulsory, it should be registered so as to create an evidence for the execution of the will. Will should be sealed and kept in a safe custody and after the death of the testator the executor can apply for probate. Probate is a copy of a will certified by the court and is conclusive evidence of
its genuineness.
If you stay in India, RBI nod not needed
Q. Thank you for your reply to my inquiry on whether Merchant Navy personnel fall under NRI category when it comes to buying agriculture land in India. I have been working in Merchant Navy for last 10 years in a foreign company and meeting the 182 days criteria of working abroad all these years. My query is that though working in Merchant Navy and staying outside India for more than 182 days for last 10 financial years, do I hold NRI status and can’t buy agricultural land as I am NRI because of employment and not a residing NRI? Please advise me further in case I require to take RBI approval. What are the RBI procedures and where all I can take RBI permission to buy agricultural land? I am presently residing in Punjab. — Raj Mundi
A.
On the basis of the definition of a Non-Resident Indian contained in the Foreign Exchange Management Act 1999, you will be considered a Non-Resident Indian as you have gone out of India or stayed outside India for taking up employment outside India. If you are continuing with the same status it may not be possible for you to buy an agricultural land in India. However, as you have mentioned that you are presently residing in India and if your intention is to stay in India for an uncertain period you will be considered a resident and in such a case it may be possible for you to buy an agricultural land in India. In such a case, you would not be required to seek any permission from the Reserve Bank of India.
This column appears weekly. The writer can be contacted at sc@scvasudeva.com
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Realty
Bytes
THE real estate market is likely to recover on increasing demand in the residential segment in 2010, driven by improving affordability, steady economic growth and greater liquidity, a Crisil report says.
“The demand in the residential market is expected to turn positive in 2010 owing to improvement in affordability, steady economic growth and greater liquidity, “ a ten-city research report on the real estate market stated. However, a decline in the currently over-priced capital values of all the three real estate segments —residential, commercial and retail — would persist through 2009, it said. Further, the commercial and retail markets would continue to witness erosion in lease rentals through the next two years. “Accelerated growth of Indian economy, recovery of global economy, improved liquidity and expected fall in interest rates are key factors that will signal demand revival in the residential segment. This segment is likely to see a much faster revival due to strong underlying demand for housing and supply coming at attractive price points,” Crisil research head Sudhir Nair said. Demand in the commercial and retail segment is likely to remain under stress for the next two years owing to excess supply and weak offtake, Nair added. The report indicated that capital values for residential sector and lease rentals for commercial and retail properties have substantially corrected till March this year, due to a slowdown in both the domestic and global economies. Cities such as Kochi, Chandigarh and Pune, which have greater investor presence as against end-users, witnessed a greater fall in capital values compared to other cities, the report revealed. The situation is expected to continue through 2009 and 2010, particularly so for the commercial and retail segments. However, Crisil believes that demand for houses would improve in 2010, backed by lower home loan interest rates as well as better job security owing to higher growth in the economy. “Hence, capital values are likely to stabilise in the first half of 2010, and increase during the second half of the year,” the report said. Crisil Research pointed out that the pace of economic recovery and confidence revival would have an impact on sentiments across all the real estate categories and would be an important variable to watch out for. The report provided information and analysis of more than 400 areas across 88 micro markets in 10 cities —Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai-MMR, NCR and Pune.
Maha to levy cess on construction activity above Rs 10 lakh
IN line with a Central legislation, Maharashtra government will soon levy a cess on all public and private constructions in the state costing over Rs 10 lakh, hoping to generate Rs 2,000 crore annually for rolling out schemes for construction labourers. “The cess is likely to be one per cent of total cost of construction of various projects including buildings, real estate, bridges, factories, roads and flyovers,” state labour minister Nawab Malik said. The welfare measures include insurance, healthcare and education with the aim of providing security and ensuring well-being of construction labourers. The measures have already been implemented in Punjab, Haryana and Chhattisgarh and Maharashtra will follow suit while Kerala is in the process of implementing it, Malik
said. — PTI
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IT all seemed like a good idea to begin with: Owning a house in close proximity to state-of-the-art townships established by leading realty developers in Amritsar. A quality life and handsome returns on the investment and were a given. But that’s not how it turned out.
THE Punjab Government’s announcement to set up a Rs 400 crore expressway on the Southern bypass alongside Sidhwan Canal in Ludhiana has provided a fresh breather to the real estate business on the canal banks.
DECIDE whether you want to go in for pelmets or curtain rods above windows. The present trend is to use curtain rods with brackets. Choose curtain rods with matching end pieces instead of golden ones. Rate for first three feet will be higher than next three feet as cost of bracket and end piece is included in the initial length. The cost of the rod varies from Rs 10 to Rs 250 a running foot. Depending upon the weight of rod selected, provide enough number of support brackets so that the rod does not sag under the weight of curtains. Generally, brackets should be provided at 2.5 to 3 foot intervals.
