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TREND MILL
REAL TALK
Changing Times
GREEN HOUSE
Resuscitating Gurgaon
Divinity meets luxury
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TREND MILL
As we drive through the narrow lanes of a small village, Jhamat, near Ludhiana, a mansion spread over 2500 sq feet stands majestically at the end of one of the dusty bylanes. An imposing state of the art structure that could put any proud homeowner in the metros to shame, complete with lush, landscaped greens. Its owner, Bhupinder Singh, pulled down the old structure to construct the mansion after prices of his agriculture land skyrocketed. Similar stories can be heard from hundreds of small farmers and agriculturists with big landholdings who too struck gold by selling chunks of land. Now, building dream houses —2500-5500 sq ft of luxury, opulence and comfort — is the done thing for these farmers. These mansions range between Rs 1 and 3 crore.
Building dreams
THE impact of neo-Indian architecture is evident from the upcoming modern housing in Barewal, Jassian, Pakhowal, Lalton, Mullanpur and various other villages in the close vicinity of Ludhiana. Irrespective of regional aspirations, diversities and requirements, progressive farmers are engaging architects to give them a perfect feel of spacious and well-lit interiors with minimalist design to capture elegance. "Inflow of cash has definitely improved the living standards of the agriculturists who are going in for best designs and facilities irrespective of the money involved," voiced Harpreet Singh, a city-based architect involved in more than half a dozen projects in villages adjoining Ludhiana.
Old meets new
TARLOCHAN Singh Safri takes pride in disclosing details of various kinds of stone he personally bought from various cities to be used in the construction of his 2700 sq ft house in Barewal. Gwalior stone, Kota stone, Agra Red, Kullu Tile, Italian Marble, Katni Marble and teakwood have been used abundantly. Where on one side, it is the contemporary modular kitchen equipped with latest gadgets that promises a gastronomic delight, the old kitchen in the courtyard complete with a mud chullah, brass vessels and utensils, chatti and handi reminds one of the real Punjab! The best thing about these modern houses in villages is "proximity with nature". All house owners have taken pains to green their surroundings. So much so, that the department of landscaping and floriculture in Punjab Agricultural University, is frequented by majority of the villagers making new houses!
NRIs home in
AS far as choosing a site for constructing a house is concerned, NRIs living across the seven seas are pretty clear — it has to be in a village, says Major Singh Mullanpur, who constructed a farmhouse over 5300 sq ft. But having spent a lot of time in Canada and the US studying modern dwellings, he landlord has espoused the best features of all housing in his mansion. "I gave my preferences pertaining to colour schemes, accessories for washrooms, living room, pooja room and bedrooms to my architect but without interfering in his work," says Singh. Ordering furniture from Italy and China or reproducing designs available overseas, depending on the budget, is the way to furnish houses.
Money talks
GIVING an insight into the monetary aspect behind country houses, Daljit Singh, proprietor of Surya Realtors, Ludhiana, says that the cost of one acre, which was priced between Rs 80 and 90 lakh four years ago, had gone upto Rs 5 crore in 2007-08. "Many farmers living in villages adjoining Ferozepur Road, GT Road and Chandigarh Road sold off small portions of their landholdings to buy new vehicles and construct manors which they could just dream of before the boom," he says.
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REAL TALK
DUBBED as a sleepy township not many years ago, the strategically-located Dera Bassi township on the Chandigarh-New Delhi highway is set to emerge as Chandigarh's Gurgaon, a leading realtor has claimed.
"With the Tricity — Chandigarh, Mohali and Panchkula --bursting at its seams, Dera Bassi offers affordable housing for the middle and lower middle class in Chandigarh's vicinity," says Rajit Kakar, managing director of the Silver City Group. In fact, the promoter of Silver City — one of the oldest townships on the Ambala-Chandigarh highway at Zirakpur — claimed that Dera Bassi provided an ideal location for mega housing projects given the large-sized plots and excellent infrastructure being developed by the Municipal Council and the leading realtors. Since the township has escaped haphazard construction synonymous with nearby Zirakpur, its growth potential is far better than other peripheral towns, he opines. That is perhaps the reason why big real estate players, including Parsvnath, ATS Infrastructure and Raglans, were developing mega projects in the township, Kakar, whose group recently re-launched the mega housing project Silver City Themes, says Kakar. "Construction of the flyover at Zirakpur has given a shot in the arm to the real estate industry in Dera Bassi cutting the travel time from the township to various towns in the region." The shifting of the toll plaza outside the jurisdiction of Dera Bassi would also augur well, he says. Terming housing as a basic need in India, Kakar opined that Chandigarh's periphery would continue to catch the fancy of the investors and end users as all sections of society could not afford a house in the Tricity. "Since the city's periphery offers vast scope for housing sector, demand would continue to swell in the years to come," he says. Punjab Government's friendly policies towards the real estate sector and proposed extension of the Chandigarh metro to the periphery in the years to come would provide further boost to the realty sector in the city and its surrounding areas, the builder says. On the ongoing slowdown in the economy in general and realty, particularly, Kakar claimed that the recent response to the Silver City Themes at Dera Bassi proved that recession was on its way out. "Wait for a few months and the boom would returns," he says.
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Changing Times
After the state government identified 4,000 kanals of land in the lap of nature for the proposed central university near Suchani Village in Samba district last year, realty prices have witnessed an unprecedented boom in more than a dozen villages in anticipation.
Though the government has not yet announced the location of the central varsity, the price of lands in villages close to Jammu-Pathankote National Highway have shot up overnight and but the people have simply stopped selling their lands. “The proposed site is just six kilometres from the national highway, 22 km from Jammu Airport and about 23 km from the winter capital,” says Suchani village Sarpanch Yogeshwar Singh Jamwal. Prior to the Prime Minister’s announcement and subsequent identification of site here, one kanal land fetched Rs 50,000 to Rs 1.5 lakh. “Now one kanal costs Rs 7 to 9 lakh depending upon location,” Jamwal says. Villagers in Suchani, Badori, Rajinderpura, Raya, Gurah Salathia, Smailpur, Nathwal, Sangwal, Badwal, Ranjiri, Meen Sarkar, Meen Charakan and Patti have simply stopped selling their lands anticipating hefty returns once the university comes up. “Villagers don’t want to sell lands and even though they are getting good money. Prices are bound to skyrocket when the announcement is made,” Jamwal says. People here have big plans up their sleeve like constructing hotels, restaurants, shops and other commercial establishments. The Vijaypur Assembly constituency, which also includes these 13 villages on the left of the national highway alone, has an electorate of 1.03 lakh. “People who owned lands in Suchani but had migrated to Jammu have started returning,” says Jai Pal Singh, an employee at the Directorate of School Education. Ever since the announcement to set up the varsity and government’s initial exercise identifying the land, 50 per cent villagers, who had migrated to Jammu some three decades back, have returned. Echoing similar views, master Prem Singh, a retired school teacher from Raya village, fully aware of the importance of central university, says the varsity would bring development to this area. “Several moneyed people from Jammu are now interested in purchasing land here. They are ready to cough up good money to acquire land here but at the same time villagers are now reluctant to sell,” he says. “One of my friends from Jammu has been asking me for the past six months get him at least two kanals in Suchani,” he tells, in a bid to indicate the sea-change the area has undergone ever since government identified the site. “After identifying the land, the government — for reasons inexplicable — is now dilly dallying but the people will not retreat now,” he adds. Revenue and relief minister Raman Bhalla, Jammu divisional commissioner Pawan Kotwal and previous deputy commissioner Mandeep K Bhandari along with a team of officials had made sorties to inspect the site identified for the purpose. Retired Army officer Shashi Pal says, “Opening of the university would change the outlook of this area, which is why families that had moved out have started constructing their houses here.” Village youth Vikrant Singh said that a businessman recently purchased one kanal in Raya for a whopping Rs 9 lakh! “Prices of land, particularly in Raya, Suchani, Badori and Rajinderpura villages, which lie close to the identified land for the varsity, have shot up like the stock exchange index. Like the Sensex, which either goes up or crashes in anticipation, the prices of land here also witnessed an unexpected upward swing after the government identified the location,” he adds.
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GREEN HOUSE
THE climate in the foothills of the Shivaliks is conducive for most flora. When Chandigarh came into existence, many new species and varieties were introduced here. Following the principle of survival of the fittest, the hardy ones survived. These were in addition to the indigenous ones and were introduced here as any other city flora. Most of those — even the exotic species ‘settled’ here — made this region their abode. So, the city — besides being beautiful — is also a delight for any botany student. It is a big centre of bio-diversity
conservation.
Let me introduce you to some of this green wealth of Chandigarh. See the accompanying picture of Erythrina crista galli (sorry, there is no common name). This is one such tree that can be termed as ‘Beauty Persona’, be it in terms of flowering or otherwise. The main trunk of the tree is extremely ornamental and artistic. It has immense architectural beauty. The corky brown trunk has grayish white grooves on artistically bending branches. It definitely makes this tree a candidate tree for the ‘photo spot’ in any garden! You can find one such tree in the rose garden growing near the fountain. Other such trees are planted at the entrance of the Terrace Garden in Sector 33. The tree flowers during May-June. The blooms are borne in bunches and bear a strong resemblance with anthuriums. Another sister species of this tree is Erythrina indica. The saying ‘life should be small but meaningful’ fits well for this species. The tree does not have a long life but is spectacular when flowering, which is during March-April. It goes leafless and is abundantly laden with flowers like a parrot’s beak. The tree is all red at the time of flowering! Leaves are shed during winter and reappear during early summer. One of the best merits of this tree is that it can live under drought conditions. It can, therefore, be a good candidate for planting along highways interspersed with greens. It can easily be propagated by way of cuttings. Another excellent tree that needs mention in the category of surviving trees and a living legend is the taxodium, standing like a pyramidal mast at many places, including the Rose Garden fountain. A columnar tree with linear growth, it is valued for its grandeur and majestic look. The compound leaves of this conifer are a miniature replica of imli and its bottlebrush-like seeds grow exactly like on a bottlebrush spike. The tree is also a favourite with bonsai fans. It has easily been propagated in the Chandigarh Botanical Garden from seeds and the plants have been planted in groves. This column appears fortnightly. The writer is a senior horticulturist at PAU and can be reached at
satishnarula@yahoo.co.in
Fortnightly Alert
Starting with potted plants, some pots get clogged leading to water accumulation. This could prove detrimental for plant health and it may even die due to choking or root rotting. Do not try to correct the fault in the pot by disturbing the bottom hole. This will not work. Instead, repot it. If you feel the period of raining is prolonged and there is temporary water stagnation but for a prolonged period, place the pot parallel to the ground to facilitate draining. There could also be a problem of limb breakage, especially in cases where the tree has tree-borer infestation. The hollow stems cannot carry the weight of the limb and break. In such cases, give a clean cut to the limb with the help of a saw and give a smearing at the cut end with some disinfectant. Give support wherever feasible.
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Resuscitating Gurgaon
City-Based stakeholders came together to launch the Real Estate Development-Council (REDCO) - Haryana in Gurgaon recently to put an end to crumple infrastructure in the Millennium City.
REDCO Haryana is an apex body of all stakeholders in the housing and construction industry. The Government of Haryana, along with the Ministry for Urban Development, are its patrons. Eight government officials nominated by the body will also be a part of its governing council. The mandate of REDCO Haryana is to encourage co-ordination and co-operation amongst all the entities dealing with the entire aspects of real estate development like land development, layout, planning and construction of residential, commercial and institutional buildings, complexes, townships and enhancement of urban infrastructure, architecture and town planning in the state of Haryana. REDCO website and a three-week training programme cum certification course, in collaboration with Human Settlement for Realtors, has also commenced. Management Institute (HSMI) of Housing and Urban Development Corporation (HUDCO) was also launched as part of the various offerings to be initiated by REDCO Haryana. Arun Anand, president, REDCO-Haryana, described the vision of the council to be the development of Gurgaon, including its physical and social infrastructure, to make it one amongst the top 10 cities of the world in a period of 10 years while adhering to a code of ethics and conduct through self-regulation. All the stake holders, including builders, residents, politicians and the state government will be involved in it. This vision would be applied to Haryana as well as North India. "REDCO-Haryana will provide a dedicated focus on urban, town planning, land and infrastructure policies", he said. “Every developer has paid his share of external development charges (EDC) to the tune of Rs 3,000 crore to the state bodies in order to ensure proper infrastructure like roads, water, power, sewage, etc. We have done our bit in putting the internal infrastructure in place. It is time that we understand where all the money is going,” Anand emphasised. The body highlighted that municipal functions and security were of prime importance at this stage. Sunil Dahiya, MD, Vigneshwara Developers, said, “It is necessary that we have an internal tribunal system which will have a panel of retired judges. The basic principal is to avoid lengthy trials. However, the modalities have to be worked out. Also, a communication plan between the consumer and the developers has to be built so that it can we can also have a self regulation.” The inaugural ceremony of REDCO Haryana was held amongst the founder members, RWAs, Senior Citizens Council and eminent citizens from the community.
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Divinity meets luxury
SET amidst a green environment and a host of recreational and entertainment facilities will be Omaxe Sangam City in the holy city of Allahabad. The integrated township with plot areas ranging from 86 sq yards to 671 sq yards will be developed over an area of 96 acres with project value of approx Rs 100 crore.
Strategically located on the banks of the Ganga, Sangam City offers magnificent view of Sangam Triveni of the Ganga, Yamuna and Saraswati. It promises to unveil a divine and lavish lifestyle away from the hustle-bustle of daily life and will also facilitate easy accessibility through a 24 metre-wide road and direct access to the Civil Lines area through the new hanging bridge. Omaxe Ltd CMD Rohtas Goel said that the township would be Allahabad’s first self-contained township on the banks of the Ganges. “World over, waterfront developments have always been marvels for appreciation; be it London or New York waterfront development have been landmarks for many to relish and own their dream home. The project will redefine luxury as a statement and will emerge as a perfect spot for lifestyle admirers with a magnificent view of Sangam Triveni,” he said. Limited edition villas at Omaxe Sangam will be aesthetically designed and furnished with imported modular kitchen. High on features, the township will be self-sufficient with healthcare support, prominent educational institutes, office spaces and retail opportunities. Possession of Omaxe Sangam city plots will be offered in 30 months. Plots are priced at Rs 5,200 per sq yd.
—TNS
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TAX TIPS
Q. Kindly advise me on the following:
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Can I take advantage of Section 54 in this case? If yes, upto how much amount this benefit can be claimed? n
If I raise loan from some bank, say Rs 20 lakh, what will happen to advantage of Section 54? n
Can I add the name of my wife in registration of this property as second signatory? She already has a dwelling unit in her name.
— Kuldip Singh Bajwa A. Your queries are replied hereunder: n
You can avail the benefit of Section 54 of the Act provided you have deposited the amount of Rs 40.5 lakh with a bank under capital gain scheme account before the due date of filing your return of income for assessment year 2009-10. The amount of Rs 40.50 lakh can be utilised by withdrawing the same from the said account for the purchase of a residential house. Long-term capital gain on sale of a plot would not be chargeable to tax provided the net consideration realised on the sale of the plot is utilised for the purchase of a residential house. In case the net consideration is not utilised before the due date of filing the tax return for assessment year 2010-11, the net consideration will have to be deposited in a bank under the capital gain scheme account before the above-said date for being utilised towards purchase of a residential house. This benefit is available under section 54F of the Act. n
In case the short fall for the purchase of the house is met by raising a loan from a bank it will not affect the benefit available under section 54/54F of the Act. n
In case the residential apartments and the plot were held in your name it would be obligatory for you to purchase the house in your name so as to avail the benefit under section 54/54F of the Act
No tax on reverse mortgage payment
A. Reverse mortgage is an arrangement whereby a mortgager, mortgages his house and takes a loan against the same. The Finance Act 2008 has now clarified the position with regard to reverse mortgage that was not clear earlier with regard to taxability of the amount so received. According to the present legal position, in case the mortgager mortgages his house and takes a loan against the same, which can be either a lumpsum or in the form of installments, the payment so received under the reverse mortgage scheme whether in installments or, as a lumpsum will not be taxable. The capital gain will arise and chargeable to tax if and when the house is eventually sold by the mortgagee to recover the loan.
For HRA deduction, file declaration in Form 10BA
A. In accordance with the provisions of section 80GG of the Act, the deduction in respect of house rent paid by an assessee is lower of the following amounts:
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Rs 2,000 per month. n
25 per cent of the total income for the year excluding long term capital gain. n
Amount in excess of 10 per cent of total income before allowing any deduction under this section. However, above deduction is not allowable where (a) a residential accommodation is owned by the assessee, his spouse or minor child or HUF of which he is a member at a place where the assessee ordinarily resides or performs duties of his office or employment or carries on his business or profession; (b) the residential accommodation is owned by him at any other place and the assessee claims that the same is self occupied property thus having nil annual value; (c) the assessee is receiving house rent allowance from the employer. Presuming that you meet the conditions for allowability, the deduction allowable to you would be as under: n
25% of Rs 60,000: Rs 15,000 n Excess of 10% of income over the rent
(Rs 7,000--6,000): Rs 1,000 n Maximum amount allowable: Rs 2,000 The deduction allowable in your case, thus, would be Rs 1,000 a month. For claiming deduction, you should file a declaration in Form 10BA alongwith return of income.
Deductions allowed only to house owner
A. The Act contains provision for allowance of: n
Deduction of interest paid in respect of the amount borrowed for construction/acquisition of a house; and n
Deduction in respect of amount paid towards the repayment of loan borrowed for construction /acquisition of a house within the overall limit of Rs 1 lakh specified in Section 80C of the Act. These deductions are however allowed to an owner of the house. For the purposes of claiming such deduction you will have to get the land leased in your favour or buy the property from your wife. Your wife can also gift the said property to you and a gift deed for the same will have to be registered in your
favour.
Computing CGT
- House purchased on hire purchase basis. - Total principal cost Rs 87,922 - Down payment before possession Rs 37,922 - FY 1981-82 - Possession given October 1981 - Self occupied, never given on rent - Balance payment of principal cost of Rs 50,000 + interest of Rs 58,000 paid in 180 monthly installments (15 years) from 1981 to 1996 - Registration done after completion of installment payments. Purchase deed registered in FY 1997-98 - House sold in FY 2009-10 My questions for the calculation of indexed cost of acquisition are: n
Please inform if I can consider the total price of Rs 87,922 and indexed between the FY 1981-82 (the year of possession) and FY 2009-10 (year of sale) to arrive at indexed cost of house. Similar basis is given by Mr A N Shanbhag in reply to Usha Gupta’s question. n
In your reply to Ms Gupta, you have considered the total price, including interest, and indexed it for FY of registration and FY of sale. This appears contradictory to the reply given by Mr Shanbhag for the same question as far as calculation of cost of acquisition is concerned. n
Considering the above, please advise the correct basis for calculation of the cost of acquisition for hire purchased house in my case as per the details given above. n
For the purpose of sale price, should I consider the actual value recorded in the sale deed registration or the deemed value noted in the sale deed for calculation of stamp duty for registration? —
A.K. Banerjee A. Your queries are replied hereunder: n
The query of Ms Usha Gupta referred by you did not make any indication as to the amount of interest paid. It only mentioned, “the total cost of the house was Rs 49,521”. The query also did not indicate date of possession. Therefore, possession was presumed to have been taken in 1992 and the cost mentioned at Rs 49,521 was taken as its actual cost for the purposes of computing the tax liability. n
As mentioned by Mr A.N. Shanbhag, the indexation would be permissible from the date of possession. The indexation in your case would thus be based on the principal amount of Rs 87,922 from the date of possession. n
There is no contradiction with regard to the reply given to Ms Gupta as the facts in the query did not indicate any amount of interest paid but the reference was only with regard to the cost that was presumed to be the actual cost of the property. n
In accordance with provisions of section 50C of the Income-tax Act 1961 (the Act), the deemed value noted in the sale deed for the calculation of the stamp duty shall have to be taken for the purposes of computing the capital gain.
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The landscape of Ludhiana’s villages will never be the same again. Farmers who struck gold by selling off agricultural land are now building modern mansions in sleepy bylanes
After the state government identified 4,000 kanals of land in the lap of nature for the proposed central university near Suchani Village in Samba district last year, realty prices have witnessed an unprecedented boom in more than a dozen villages in anticipation.
Chandigarh is home to many plants that were brought in from the Shivaliks but have now made the city their home
City-Based stakeholders came together to launch the Real Estate Development-Council (REDCO) - Haryana in Gurgaon recently to put an end to crumple infrastructure in the Millennium City.
REDCO Haryana is an apex body of all stakeholders in the housing and construction industry. The Government of
Haryana, along with the Ministry for Urban Development, are its patrons. Eight government officials nominated by the body will also be a part of its governing council.
Living under the open, urban sky of the world’s second fastest growing economy may have till now been a dream of the city elite, but things are now changing in rural Punjab.
THE Weather Gods seems to have finally changed his mind and the monsoon has reappeared. Rainfall is widespread and ‘monsoon like’. The water penetration in such cases is excellent. But at the same time there are certain cautions for gardeners.
In case of trees if there is stagnation of water, make provision for proper drainage. Make a gulley in the basin and direct the stagnating water outwards. If the level of the land is such that there is no movement of water, then make a pit at some corner of the garden and direct the water to move towards it. This will not only rid you of the stagnating water but you will also contribute with your little might in recharging ground water. 
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I sold a residential apartment in October 2008 for Rs 63.5 lakh and after indexation LTCG comes to Rs 40.5 lakh. I also sold a residential plot in July 2009 where after indexation LTCG comes to Rs 13 lakh. Now, I want to buy a residential property for Rs 80 lakh and this will be only house property in my name. My queries are: 
Q. I am a senior citizen. My children are based outside India and have no intention of coming back. I own a house and am living alone after my wife died few years back. I understand that the banks have started a reverse mortgage scheme whereby I can get some regular income from the house in which I am living. Would you please elaborate about the same?
— R.D. Khanna
Q. I am a salaried person and pay a rental of Rs 7,000 every month. I am staying in Gurgaon these days. The employer is not paying any HRA towards my house rent but I am getting a consolidated salary of Rs 60,000 per month. Am I entitled to any deduction of house rent paid? Please advise me whether I can get any deduction for the house rent paid by me.
— Harish Tandon
Q. My wife has a house that she constructed from her own resources. There is a proposal to construct an additional floor thereon. I will take up the construction from my own funds. Can I get a deduction of interest in respect of such an amount against my income? — P.P. Thukral
Q. I read with interest your reply to Usha Gupta's question in the issue dated July 18 (To save tax time is crucial). My situation is similar to hers regarding the calculation basis for indexed cost of acquisition. I give the brief details below: