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Back with a bang!
Reality of Realty
n After wife’s death, you & kids are legal heirs n For senior citizens, no tax upto Rs 2.4 lakh n Rebate allowed on two home loans n Plot sale: Deposit tax before April’10 n No tax liability for FY 09-10 n To compute tax, land location needed
GROUND REALTY
Bangalore may lead realty revival
Needed 75 lakh homes in 5 years
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Back with a bang!
BANG! Bang! Bang! Explosive Diwali celebrations are just round the corner; and you can already hear the convivial clamor in the air. That’s not all. The dazzling garlands of nice psychedelic lights, hanging in the shops and showrooms across the city and even suburban areas, to commemorate the festival of illumination are brightening up the mood like never before.
But what is this? Just over two weeks and you are still groping in dark on how to go about lightening up your life, and your house. Not an issue! You still have time to get started and do some fiery decorations. Just let the wick of passion ignite in you. “Diwali is all about doing up homes. So get cracking folks, lest the celebrations fizzle out like a wet firecracker,” suggests Amritsar-based inside-outside artiste Tanisha Kapoor. Ask her and she says: Walls wearing a coat of bright fresh paint; brand new curtains and upholstery tailor-made to compliment the hues of enthusiasm splashed on the walls; slight breeze finding its way through the doors and windows carrying along with it the wafting fragrance of aromatic candles, doorsills lined with diyas and an entrance blooming with blossoming flowers… The list of home décor ideas for Diwali goes on and on. And why not? After all, you are right in the middle of the great Indian celebration season. So folks, go traditional this Diwali. It’s the latest scream; and you know it. After all, you have picked up time-honored Victorian furniture for your living room, and have just put up bright glasses in motley hues over the doors and on the ventilators. To begin with, remember to switch on the lights of revelry, but not forget the diyas. It’s a bright idea, really. “You may find it hard to believe, but markets in almost all the boomtowns of the country are dispelling the darkness of ignorance on diyas by flaunting nearly 2,000 types of earthen lamps from Jaipur, Allahabad, Kolkata, Gorakhpur, the Kutch region and other parts of the country,” says Delhi-based event manager Diksha Arora. Go to the arcade and pick up the ones in shape of gods and goddesses, even animals and birds. Piously speaking, goddess Lakshmi and Lord Ganesh intricately molded out of earth are the favourites; heart-shaped diyas are traditionally preferred. Then there are the ones designed like betel leaves. “You can also choose from among the traditional oil lamps and the newer wax varieties. Ask people, and they swear the wax ones look all the more lucrative and are convenient to use,” Diksha asserts. The diyas can be yours without burning holes in your pockets. The price begins at Rs 2. But, it can go up to Rs 500, depending upon the variety, the material and the place it has been brought from. For those unwilling to put in much effort at pouring in the oil, pick up the lamps fitted with electric bulbs. It’s conventional, yet modish and convenient. Now that you are well illuminated on the diyas, get ready for giving a colour to the festive fervor with a Rangoli. The bright and cheerful design will not only leave the visitors floored, but the motifs are also considered auspicious for welcoming goddess Laxmi. “Create your own designs, copy patterns from rangoli books or simply do some net picking,” suggests Ludhiana-based home-maker Aruti Sharma. "If you are not comfortable with the idea of tracing the designs, call up the professionals. Or else, go in for rangoli stickers. They were there last Diwali also, but not so popular. They cannot beat the designs and the colours of the real rangolis, but are very convenient.” Another thing! Pick up kalash torans. Or else, go in for goddess Lakshmi and Ganesha torans or just other designer torans. In Chandigarh, you can have them from Sector 20. Soon you will have roadside vendors too offering the door hangings. Just in case you do not know, toran refers to an ornamental door hanging, usually decorated with marigolds and mango leaves. It can even be a string of flowers you can tie on the door as a part of traditional Hindu culture. Torans can be yours by pulling out anywhere between Rs 200 and Rs 1,200. Now, before you sit down and relax on the sofa set, place flowers at strategic locations in the house to bring about freshness and vibrancy. Also, a rich splash of colours can add so much to the hues of celebrations. “Liberally use orange, yellow and gold,” recommends advocate Chandigarh-based advocate. Ardent about the interiors of his house, Jain says. “You necessarily need not repaint the house. Just change the fabric of the sofas, the curtains, the bed linens, the bedsheets and the bedcovers. It will do the trick.” So, folks explode into merriment in a brightly, and traditionally, decked up home.
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It’s looking up in Patiala
With reports of realty sector recovering, UMESH DEWAN examines the scenario REALTY was one of the worst affected with the economic meltdown. Though Patiala never witnessed an unusual property boom like Ludhiana and Amritsar, recession did affect property business there. Majority of those dealing in the real estate business said that the property business in the city is likely to be back on track in the coming months and they were receiving demand for residential plots and houses. “Unlike Ludhiana, there is no industry in Patiala and hence investment in the commercial sector had never been much. As far as residential properties are concerned, the effect of recession was that interested buyers preferred to wait with a hope that land prices will go down. But now customers have started realising that prices have bottomed out and are now on the upswing. As a direct outcome of that clients have started approaching us,” said Mohammad Ramzan of Farid Property Dealers. Real estate agents also disclosed that property in Patiala had never been in demand from the investments point of view. The land requirment remained mainly confined to the residential houses. SP Singh of SP Property Consultants said that response from the buyers in the Urban Estate area has been very encouraging. “Earlier demand had gone down considerably but now the market is picking up. There is more demand than avalibility of the residential plots. Even the land prices in Urban Estate have witnessed an upward treand, which is clear indication to the fact that market is recovering from the recession.” Expressing similar views, another property dealer, Pradeep Khurana, said that the market is stable now. While disclosing that even during recession the land prices had not gone down, Khurana said, “During past one year, purchasers had literally vanished but now things are improving and buyers are approachig us. There is demand for land in Urban Estate and Sirhind Road.” He also said that hopefully in coming few months, real estate sector in Patiala will recover fully from the economic slowdown. Another interesting thing that property consultants told The Tribune was that the real boom in the sector would come with the Congress government. “Patiala witnessed unprecedented development during previous Congress regime that had great positive impact on the real estate sector. But ever since Akali government came to fore, the development has come to a standstill, which is one of the factors that had adversely affected the sale-purchase business in Patiala”, asserted Sandeep Singh of King Properties. Meanwhile, private colonisers have revealed that they are also getting good response from buyers now. Manager of Bajwa Developers Private Limited, Sukhchain Singh, said that queries for land requirement in Sunny Enclave being developed by them on Devigarh-Pehowa Road are pouring in for the past month. “Earlier the demand was not there but now things seems to have improved,” added Sukhchain.
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TAX TIPS
— Ram Singh Bansal A. The rules with regard to the succession of property in case of a female Hindu dying intestate (i.e. without making a will) as contained in Hindu Succession Act 1956 are given hereunder:
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firstly, upon the sons and daughters (including the children of any pre-deceased son or daughter) and the husband;
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secondly, upon the heirs of the husband;
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thirdly, upon the mother and father;
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fourthly, upon the heirs of the father; and
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lastly, upon the heirs of the mother. In your case, therefore, the house property of your wife will be succeeded to by your daughters, sons and yourself. The application for mutation should be made by all of you so that the property is mutated in the name of all the legal heirs.
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For senior citizens, no tax upto Rs 2.4 lakh
— Vinod Sharma A. The facts in the query are not complete as the amount of cost incurred on purchase of land has not been indicated. It is, therefore, not possible to compute tax liability in respect of the capital gain arising on the sale of land. She being a senior citizen, it is a possibility that she may not have any tax liability as the maximum amount upto which tax is not chargeable in her case is Rs 2.4 lakh. The said limit is applicable for the financial year ending March 2010 (assessment
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Rebate allowed on two home loans
— Dev Raj Garg A. Yes, you can take rebate in respect of the loan raised from a bank for the construction of a house. However, the claim for deduction in respect of repayment for the first and second loan will have to be within the limit of Rs 1 lakh specified in section 80C of the Act.
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Plot sale: Deposit tax before April’10
n Quantum of capital gain in this case. n Tax payable on capital gain earned. n Procedure to deposit tax on capital gain. n Upto which date tax so payable can be paid/deposited without penalty. — R.P. Singh A. Your queries are replied hereunder:
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The capital gain arising on the sale of residential house property would be Rs 2,09,832. The computation is based on the amount of cost of house property indicated in the query. You have the option to adopt the fair value of the house property as on 01.04.1981. In case such figure is adopted the amount of capital gain may reduce on account thereof.
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The tax on the aforesaid capital gain would be payable @ 20% plus education cess 3% thereon.
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The capital gain will have to be deposited in the manner described herein below: On or before December 15 of the previous year: 60 per cent of the tax payable on capital gain for the financial year 2009-10. On or before March 15 of the previous year: The balance amount of 40% of tax payable on capital gain. The above tax can be paid by filling in a challan and depositing the same with State Bank of India or any other notified bank.
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There would be no penalty in case the amount is paid in the manner indicated hereinabove. However, in case the tax is not paid in the manner as aforesaid, you will have to pay interest @ 1% per annum from April next following till the date of payment or completion of regular assessment as the case may be
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No tax liability for FY 09-10
— Sohan Lal A. Your queries are replied hereunder:
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The capital gain on the plot purchased on November 2, 2001 would be Rs 94,510.
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The capital gain on the plot purchased on March 6, 2003 would be Rs 91,090.
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A deposit of Rs 1 lakh under section 80C of the Income-tax Act 1961 (the Act) would enable you to claim the deduction to the extent of Rs 60,000 (interest income) only.
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There would not be any tax liability as the total income of your wife would be Rs 1,85,600 (94,510+91,090) which amount is less than Rs 2.4 lakh, the maximum amount upto which tax is not chargeable in case of a senior citizen for assessment year 2010-2011.
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To compute tax, land location needed
— Manjit Singh A. The profit arising on sale of an agricultural land is taxable provided the agricultural land is situated within municipal limits or within the distance specified in the notification issued by the government. For computing tax liability on the sale of such agricultural land, it is essential to know about the location of the agricultural land and its distance from the specified city/town. Further, it would also be necessary to have the figure of cost of the agricultural land or if the same was acquired by prior to April 1981 its fair market value as on 01.04.1981 so as to compute the indexed cost that would have to be deducted from the sale price for ascertaining the amount of capital gain. These facts are not indicated in the query and therefore it is not possible to compute the tax liability. The tax on capital gain is also payable as advance tax in installments. The advance tax is payable in the following manner: On or before September 15 of the previous year: Up to 30 per cent of tax payable on estimated total income for the financial year for which tax is being paid. On or before December 15 of the previous year: Up to 60 per cent of the tax payable on estimated total income for the financial year for which tax is being paid (i.e. another 30%). On or before March 15 of the previous year: Up to 100 per cent of the tax payable on estimated total income for the financial year for which tax is being paid (i.e. the balance 40%). In case the capital gain arises after the due date of installment of advance tax, say September 15, the amount due on September 15 shall be paid together with the December installment. In case such capital gain arises after March 15, the whole of the tax due shall be paid by March 31 of the financial year. The tax on capital gain arising on the sale of land can be saved by utilising the same by purchasing the tax saving bonds within six months of the date of sale of land. The tax can also be saved by utilising the net consideration realised on sale of land for the purchase or construction of a residential house anywhere in India. The purchase of a house has to be effected within one year before or two years after the date of sale. The construction of a house has to be completed within three years of the date of sale.
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House building simplified
Age-old tools, techniques cause avoidable delays and inconvenience. Insist that masons use equipment that speeds up work & gives better finish Jagvir Goyal OVER the centuries, the construction industry has seen great mechanisation and amazingly large and efficient machines now dot building sites, but housing has somehow been an exception. Even today, masons, blacksmiths, carpenters and plumbers use pretty much the same tools for house building that they did long ago — there has hardly been any improvement or change. In fact, the science of building has travelled down more through experience than education and has been a “from father to son” affair! Age-old tools — the spade and basket, the trowel and pan, the chisel and hammer — not only make building work tedious but also hamper progress and efficiency. Often, the house-builder is irritated to find daily wage workers showing little output during the day. The good news is that many such instruments and small equipments have now become available that can be highly beneficial to the user. The house owner, too, is happy to see better progress of work. It is time for you to tell and teach your workers about these. Here are a few of them: n Bar tying machines: Till date, the blacksmith has been manually tying the steel lengths laid in the slabs and beams by using the pliers. Binding wire is used for the job and it cuts into the skin if gloves have not been worn. Many times, the tying work is not tight enough. Laying of concrete makes the binding wire come off and the steel bars tend to get displaced. To tie the bars, now, bar tying machines have been invented. These are called Rebar binders. ‘Rebar’ is a short and popular word for ‘Reinforcement bar’. Binding wires are fed into the rebar-binder just like staples in the stapler. No electric or battery power is required. Use is totally manual and easy. No experience is required. 70 to 80 wires are fed in one time. Tell your blacksmith to buy one or two such machines and to use them for tying the laid steel. Not only the work will be done faster but binding shall also be tighter than ever. The best and most experienced blacksmith cannot tie more than 400 wires in an hour. Rebar-binder binds 1000 wires an hour, 16 wires a minute. What speed! n Chase cutting machines: In most buildings, walls are first erected in bricks or concrete and work of laying water supply lines begins thereafter. To do this work, chisel and hammer are used to cut chase in the walls. Generally, this results in uneven cutting of walls. Sometimes, a harder stroke drives a brick out and a permanent source of inviting dampness gets created in the wall. All efforts to plug the hole thus created go waste. In addition, the vertical lines of the chase cut in the walls are totally uneven. After the laying of pipes, when the repair is applied, it can always be noted later on, even after providing any number of paint coats. Resultantly, the wall looks ugly and spoils the beauty of the room. To do this chase cutting, machines are now available. These do exceptionally neat, clean and fast work. These electrically run machines can work on brick as well as concrete walls. These machines use single-phase electric motors of about 2.5 horsepower. Whereas a worker may take two hours to cut chase in a wall of 10 feet height, these machines can cut chase in 10 feet height in just 2 minutes! The size of the chase cut in the wall is exactly as per requirement and perfectly in rectangular shape. The machine weighs around 8 kg and can be handled easily. It has the ability to accommodate different cutters to do chase cutting of different sizes. Cutters run at about 1000 rpm and the power consumption is about 2 units per hour. As the cutting speed of the machines is fast, overall power consumption is negligible. Another main advantage of the machines is that these take out the bricks and concrete in small fragments thus avoiding production of too much dust all around. Tell your plumber to use machines instead of making manual chases. Water supply pipes laid inside the houses are of 15 mm or 20 mm diameter. In large multi-storey buildings, 25 mm diameter pipes also get used. To accommodate these pipes, grooves of 25 mm X 25 mm, 30 mm X 30 mm and 35 mm X 35 mm are sufficient. Unlike manual chase cutting, no physical fatigue is caused. The machine can be run vertically, horizontally, along a circle or in any direction. While running, it can be left on the vertical wall itself and it will not fall down. Only during its running, the operator needs to push it along the direction of the chase. n Mortar sprayers: Application of cement mortar on the inner and outer faces of walls in buildings is essential to provide a smooth finish. For 9-inch thick walls, only one face can be kept smooth and the other face of wall requires thicker plaster to be done in two coats. Most common practice is to use 12 mm thick plaster on smooth surface and 20 mm thick plaster on rough face. Plaster with thickness more than 12 mm is always recommended to be done in two coats otherwise it comes off after some time. First coat is of 12 mm and applied by throwing mortar from a distance and keeping its surface rough to allow key for the next coat. Second coat is of 6 to 8 mm thickness and finished with a trowel. All this work requires a lot of skill, labour and time. Mortar sprayers now available make plastering work easier. As the name suggests, these spray mortar on surfaces to be plastered under pressure through spray guns attached to the pumps operated by diesel or electrical engines. The sprayer is attached to air compressor that helps in delivery of mortar. Tell your building contractor to own a mortar sprayer and provide it to his masons for plasterwork. Soon, he will see his savings mount because of much faster progress of work. Masons, too, will not feel exhausted after a day’s work. For you, the work will finish faster than expected. n Bar bending machines: Mostly, cutting and bending of reinforcement bars has been a manual affair at all construction sites. A temporary arrangement is made at site by the blacksmiths by fixing wooden sleepers over vertical posts and fixing the anchors over them. Bar are cut and cranked to shape and the job is quite tedious and time consuming. Bar cutting and bending machines now available make the job much easier. Different models of these machines are available for different ranges of diameters of steel bars. Cutting and bar bending machines are normally capable of cutting and bending plain bars up to 42 mm diameter and tor steel bars up to 36 mm diameter. Tell your bar-binder to hire such a machine on rent or own one if possible. The job he intended to finish in 15 days will be done in five — without hurting his palms! n Stirrup bending machines: More difficult than cutting and bending of re-bars is the bending of steel stirrups used in beams. Wonderful machines have now been devised for the bending of steel stirrups also. The machine can bend to shape steel bars up to 12 mm diameter. Normally, stirrups of 8 mm, 10 mm or 12 mm diameter only are used. Higher diameter stirrups are required only in very heavy beams or structures. Stirrup bending machine can produce 900 stirrups in per hour if a single steel coil is used and 1800 stirrups if double coil is used. Weight wise, 6 to 8 tonne of steel can be converted to stirrups in a 10 hour shift. These electrically operated machines make the reinforcement work in buildings quite easier and fatigue free. Stirrup bending machines can produce multiple shapes of stirrups including square, rectangular, trapezoidal, L-shaped or polygonal ones. Size of stirrup can be as large as 1500 mm. These machines also allow simultaneous bending of many coils if diameter of bar is small. 2 bars of 12 mm dia can be bent together and the number of bars goes up to 7 if diameter of bar is 6 mm only. Guide your bar binder for using such a machine for making stirrups. He’ll bless you! This column appears fortnightly. The writer is deputy chief engineer, civil, PSEB
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Bangalore may lead realty revival
BANGALORE has emerged as a clear preference for sectors like office and retail, while coming a close third in the residential and hospitality according to Cushman & Wakefield, a retail estate research firm.
In its report Cushman & Wakefield GRI India Real Estate Investment report 2009: ‘Survival to Revival - Indian realty sector on the path to recovery,’ the firm said that Bangalore is expected to see the highest demand for office space in the period 2009 - 2013 with approximately 34 million sq.ft. The expected recovery in the IT/ITeS sector would have a positive effect on the demand in Bangalore, the preferred location for many IT/ ITeS companies. The demand for retail sector is also expected to be the highest in Bangalore with approximately 7 million sq. ft. while demand for residential is expected to be approximately 570,000 units over 2009 - 2013, with the highest compounded annual growth rate at 14 per cent. The hospitality sector in Bangalore too is forecast to register the highest compounded annual growth of about 26 per cent in demand, followed by NCR at 24 per cent and Pune at 23 per cent. The city of Chennai is expected to witness the second highest demand for office space in India between 2009 to 2013 with a projected cumulative 27.2 million sq ft and the city also holds the fifth largest demand share for retail and hospitality space demand in India. Anurag Mathur, managing director, India, Cushman & Wakefield said that the office market in Chennai has seen a renewed interest from the corporate sector, post the economic crisis. While demand will be visibly affected this year, “We expect the five-year horizon (up to 2013) to be upbeat for the commercial markets in the city. The retail and hospitality segments are also likely to see considerable demand in the coming years.” Chennai is likely to witness the second highest demand for office space after Bangalore of approximately 27.2 million sq.ft. by 2013. Good infrastructure, high quality construction and competitive pricing would be the key reasons for the location to see high demand from corporate sector. Hyderabad is expected to witness office demand of 16.6 million sq. ft. over a five year horizon and records the highest compounded annual growth of approximately 28 per cent during 2009 - 2013 in the office sector along with Pune and Kolkata. The residential demand for Hyderabad is expected to be 290,000 units with the highest compounded annual growth of 14 per cent in the next five years akin to Bangalore. Mathur, further added that though the high growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector to gradually return to the path of recovery and witness robust demand for real estate across sectors.
— PTI
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Best time to buy? Maybe not
GLOBAL property consultancy firm, Knight Frank India, said prices in the residential property segment are likely to decline in a short time.
"We feel prices of residential segment may go down over a period of time," Knight Frank India Chairman Pranay Vakil said. The residential segment may see a robust demand in certain markets, he said, adding that it was also a good time for property developers to invest in land. Demand for real estate at this stage is a combination of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and a corresponding increase in property prices, he said. Today, property buyers are worried that prices may go down after they purchase property and projects may not be completed on time, Vakil said. Knight Frank launched a book titled ‘Real investment-A real estate investment guide for India’. The book seeks to lend a helping hand by covering all the information that one may require while investing in real estate. The book compiles the perspectives of real estate industry experts to help deepen knowledge about real estate and consider it as an asset class. Commenting on the book launch, Vakil said, "As property advisors, we continuously work with some of the best minds in the sector. We felt the need for a single credible source of information, for which we brought together the best minds in the business. This book makes the seemingly daunting task of delving into the real estate market simpler by offering tips on how to make real estate a lucrative investment option." Meanwhile, the Reserve Bank of India (RBI) has cautioned banks on assessing risk of advances. With some real estate companies having substantial investment in their subsidiaries, the RBI has asked banks to assess the risk of the group as a whole while giving loans to these companies. "...Some of the companies operating in the real estate sector have significant exposure in the form of advances, investments, etc. To their subsidiaries and other group or related entities," RBI said in a notification. As a matter of prudence, banks may meticulously assess the inherent group risk of their borrowal accounts falling under the purview of real estate sector, the RBI added. The central bank further said that while assessing the loan requirements of large builders or land developers, they may carefully analyse the financial credentials and viability of the borrowers supported by the position of the group. The banks may also examine the financial credentials or viability of the relevant unconsolidated related entities such as Special Purpose Vehicles, it added. If the RBI advice is headed by banks, they will assess the risks associated with other interests of the real estate companies and may reduce the loans depending on the risk factor.
— PTI
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Needed 75 lakh homes in 5 years
THE total demand for housing in the country is likely to cross 75 lakh units within the next five years, while the same for commercial spaces will touch 195 million sq ft, signalling a revival in realty sector.
According to a report by global real estate consultant Cushman & Wakefield (C&W), the cumulative demand in the residential sector will be about 75.43 lakh units between 2009 and 2013. The demand in the housing segment this year is estimated to be 11.96 lakh units and is expected to grow by over 55 per cent to reach 18.64 lakh units in 2013. "Though the high growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector to gradually return to the path of recovery and witness robust demand for real estate across sectors," C&W managing director (India) Anurag Mathur said. In the commercial space, C&W said the total five-year demand would be 196.3 million sq ft from the estimated 26.5 million sq ft in this year. In 2013, the demand is expected to be 53.9 million sq ft. Mumbai is expected to see the highest demand for residential space of about 16.4 lakh units in the five years due to the large scale urbanisation, followed by the National Capital Region (10.2 lakh) and Bangalore (5.7 lakh), the report said. Of the total commercial demand, about 42 per cent is expected to be generated in the Tier I and II cities. The highest demand in five years is expected to be in Bangalore at 34 million sq ft, followed by Chennai at 27 million sq ft. The demand for the hospitality sector is expected to see a surge and is likely to be about 6.91 lakh room nights between 2009-2013. "While the upcoming Commonwealth games in 2010 have been the key demand driver for the hospitality segment in NCR, the significant expected rise in office demand in the peripheral locations is also likely to play a role is boosting room night demand," Mathur said.
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BANG! Bang! Bang! Explosive Diwali celebrations are just round the corner; and you can already hear the convivial clamor in the air. That’s not all. The dazzling garlands of nice psychedelic lights, hanging in the shops and showrooms across the city and even suburban areas, to commemorate the festival of illumination are brightening up the mood like never before.
— Photo by Vinay Malik
scenario
TAX
TIPS
Q. My wife expired last month. I have two daughters and two sons, all married and living separately. I live separately in my house but it is in the name of my wife. Please let me know who are the legal heir of my wife’s property (among all of us) and who is competent to file an application to the tehsildar for mutation i.e. transfer of my wife’s property in the name of legal heir.
Q. I took a home loan from ICICI bank in 2007. Now I want to purchase another constructed house with the help of bank home loan. Can I take income tax rebate on both houses?
Q. I am a retiree and filing IT return in ITR-1. I purchased a residential plot in a rural area of Ludhiana on 08.04.1974 for Rs 2,400 and sold on 29.07.2009 at Rs 2.25 lakh getting through bank draft, which amount, i.e. sale proceeds, has been utilised for other than residential property. Kindly let me know:
Q. My wife, who is a senior citizen, had two plots. One plot was purchased on 2.11.2001 and sold on 27.09.2009. Plot was purchased for Rs 1.2 lakh + stamp papers used for Rs 7,200 + registration fee Rs 1,200 and was sold for Rs 2.85 lakh. The other plot was purchased on 06.03.2003 and sold on 09.04.2009. Plot was purchased for Rs 61,250 + stamp paper used for Rs 3,675 + registration fee Rs 612 and sold for Rs 1,83,750. My wife has Rs 60,000 income from interest during financial year 2009-10. If she invests Rs 1 lakh under 80C during financial year 2009-10, what will be the income tax liability for the financial year 2009-10?
Q. We are three brothers (all senior citizens) who have inherited ancestral agriculture land measuring about two acres in a village in Tehsil Jalandhar. We want to sell it for about 25 lakh, which will be equally distributed amongst us. We want to know the tax liability on this amount. In case it is taxable, then how much tax will we have to pay? Is there any way to save tax? Can the amount so realised be utilised for the construction of a house on an allotted land elsewhere?