REAL ESTATE
 


Diwali explosions: Part III
All things bright and beautiful
There is scope for adding more sparkle to the dazzling celebrations. After all, its once-in-a-year occasion and you want to celebrate the event with a bang. So, here are some last-minute tips for adding zing to the merriment
Saurabh Malik
You have already exploded into festive celebrations; the unending festoon of lights garlanding the house is brightening up the mood; and the rangoli at the entrance is designed to leave the guests floored. The aromatic candles too are adding a whiff of freshness to the carousing.

Land prices boom as militancy ebbs
With the sudden escalation of land prices, people living in this hinterland of the state, Sarthal, that once remained a safe haven for militants, are hanging on to their land like a golden egg-laying hen. What’s the reason for the newly found love for land? “After militants were killed or flushed out of the village, people’s hopes were revived. Some two years ago, the Department of Tourism identified this site and started building a tourism reception centre (TRC),” says village-head, Nazir Ahmed.

GROUND REALTY
ROMANCING WITH MARBLE
Taj Mahal, the epitome of love, has fascinated the world for centuries. Its unparalleled beauty has reinforced the faith of people in a wonder material called marble. “If Taj can withstand the vagaries of nature for centuries together, why can’t the marble used in our houses?” is a general question.

Wealthy homeowners hit by weak prices, stock crash
ST. CHARLES, Ill: Despite some signs that the worst of the US residential housing crisis may be over, many wealthy homeowners are still being squeezed by the combination of weak home prices and the stock market crash.

Patiala to have shopping mall soon
Known for its handicrafts, juttis and parandies, princely state of Patiala is all set to get its first shopping mall. While cities like Ludhiana, Amritsar and Jalandhar are already having shopping malls and multiplexes, Patiala will also join them in a few months, with “Omaxe Mall” being set up here.

Best Western checks into Amritsar
World’s largest hotel chain Best Western along with Armaan Resorts Pvt Ltd has announced the launch of Best Western Merrion at Amritsar as its latest operational property in India.

TAX TIPS
House property can be mutated
Q. I am a 79-year-old man and my daughter (only child) is an Australian citizen, who has two grown-up children. I have a self made house and investments in PPF (Public Provident Fund), MIS (Post Office Monthly Income Scheme), SCSS (Senior Citizen Saving Scheme), Bank FDs (fixed deposits) and some company equity shares.





 

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Diwali explosions: Part III
All things bright and beautiful
There is scope for adding more sparkle to the dazzling celebrations. After all, its once-in-a-year occasion and you want to celebrate the event with a bang. So, here are some last-minute tips for adding zing to the merriment
Saurabh Malik

You have already exploded into festive celebrations; the unending festoon of lights garlanding the house is brightening up the mood; and the rangoli at the entrance is designed to leave the guests floored. The aromatic candles too are adding a whiff of freshness to the carousing.

But you still think there is scope for adding more sparkle to the dazzling celebrations. After all, its once-in-a-year occasion and you want to celebrate the event with a bang. So, here are some last minute tips for adding zing to the merriment.

Bedroom Brights

Your bedroom lacks brightness. “The fresh coat of paint has really not given it a facelift and it still looks dull and dreary. If the brightness of the exteriors is further dulling the interiors, just hang a bright painting,” says Mohali-based inside-outside expert Rominder Kalsi. “Come on, it’s easy. If you do not have time to pick up a new one, remove the canvas from the lobby and place in under the spotlight, preferably”.

Now that the painting is in place, throw in some bright coloured cushions all over the bed. Choose from the ones in shimmery reds, alluring yellows and blondish gold.

For cushion covers, mirror work material and artifacts are easily available in the market. You can always stitch round or square mirrors onto the cloth, and in the process make cushion covers, bedspreads, wall hangings and table covers.

“Just in case, the painting and the cushions are now drawing your attention to the unwashed, un-replaced, old and frayed curtains, simply wrap a cotton decorative sari to your drapes,” suggests Kalsi. “And lo, the room will look brighter and different, without spending much time decking it up”.

Ringing in style

The bedroom is done, but there are still some dark, uncared for, scruffy corners in the house. You have already placed lamps and diyas for showing the nooks in a new light, but something is still lacking. Well, take a cue from business executive Vivek Bali. He has used conventional and unconventional bells to ring in style at his hose in Nangal. Just enter the bungalow, and you see an assortment of bells and diyas placed at different heights to give an interesting effect. “Some of them were picked up from the roadside vendors, so they didn’t really burn holes in my pocket, says Bali with a smile.

Revelry in new light

Well, you have grown up referring to Diwali as the festival of lights. So, you better pay attention to the illumination. Oh, yes, you have picked up lamps and chandeliers, but you just cannot have them in all the rooms. “The solution lies in simple rice paper lanterns,” says another executive Harminder Chadha.

Taking you inside his house in Yamunanagar, Chadha says you can add a personal touch to your lighting; and be different simultaneously. All you have to do is to design or modify your wall lights by doing simple things.

Chadha suggests picking up paper lanterns or even glass globes from the lighting fixture shops.

Good earth

Go beyond the diyas. Pick up some inexpensive earthenware pots and urns from the market, recommends Chandigarh-based regional manager with an IT giant Deepak Jotshi. “If you still have time, give the urns and the pots an exclusive touch by decorating them yourself”.

Just dye a thick rope of any color and glue wrap it around the earthen pot to decorate any corner of your house. A combination of pots of different sizes will make it more dramatic.

This is not all. Punjab and Haryana High Court advocate Vikram Jain has filled up shallow terracotta vessels with water before strewing flower petals for allowing them to float with candles and diyas at his Chandigarh residence. So fellows, what are you waiting for? Get down to the business of adding last minute touches to your decorations. After all, it’s Diwali, folks.

(Series concluded)

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Land prices boom as militancy ebbs
Ashutosh Sharma

With the sudden escalation of land prices, people living in this hinterland of the state, Sarthal, that once remained a safe haven for militants, are hanging on to their land like a golden egg-laying hen.

What’s the reason for the newly found love for land? “After militants were killed or flushed out of the village, people’s hopes were revived. Some two years ago, the Department of Tourism identified this site and started building a tourism reception centre (TRC),” says village-head, Nazir Ahmed.

Earlier, when the air in this area was filled with the fear of militants, people started migrating from the place in search of safer places. As there were no takers for their abandoned lands at that point of time, villagers were not getting even Rs 30,000 against a tract of land measuring as much as 1 kanal.

“Who would have dared to purchase land over here some five years ago?” asks the village head.

“Sarthal is connected to Doda and Bani through a fair-weather road that remains closed in the view of snowfall.”

“If the road connectivity gets improved, the area will turn into paradise within no time. People avoid coming here because of bad serpentine roads snaking through dangerous heights,” he opines.

Situated at a height of 7,200 feet on the edge of Kathua district, some 285 km from Jammu, Sarthal is a beautiful meadow surrounded by hills and thick forests. The place is marked by several small rivers besides magnificent waterfalls. During winters, it exhibits snow-capped hills for nearly six months, while for the rest of six months, it presents a panoramic view of lush green dense forests.   Besides, it’s a part of least explored exciting trekking route located at some 20 km from Bani tehsil.

The area falls under winter zone and experiences snowfall measuring up to 8 feet. During winters, villagers migrate from this place for at least six months. And, during that period there is no influx of tourists either. “It’s only in March that villagers as well as tourists start pouring in,” says Rajesh Singh, a shopkeeper.

Even though the tourism reception centre is under construction, says Singh: “No one would sell off even a small tract of land. It’s a popular perception that soon the area will draw crowds of tourists that will ultimately boost economy of the area.”

Corroborating similar views, Shankar Dass, an elderly man, said: “The government can change the entire face of Sarthal, provided it wants. A lot of people from other states have started coming here. Every day someone comes here looking for a plot to make a hut for short-term stay during the summer.”

However, buoyed over the supposed business prospects, villagers are relentless. “Even if we get Rs 15 lakh for a kanal, we will not part with our lands,” Dass adds.

“We came here in the hope of purchasing a small tract of land. It’s a serene place with healthy environs, good for any sort of intellectual exercise. But we are faced with disappointment as the economic aspirations of the people have been touching sky,” said Pushkar Raj, an activist for civil liberties.

Deputy Director Planning, Department of Tourism, Madan Gopal Sharma, said: “Under the centrally sponsored scheme "Integrated Circuit Development Scheme", the "Lakhanpur-Sarthal Circuit", we are developing the TRC there. As part of the second phase of development, we are trying to acquire more state land in the vicinity of the TRC to set up facilities. We are also roping in horticulture department to improve the landscape.”

“Sarthal is connected to Bhaderwah and Dalhousie(in Himachal Pradesh) through the Bani-Bhaderwah road, most of which is fair-weather track and the construction work is in full swing. Since the area was militancy-prone, the road work got delayed. Now GREF is carrying out construction work at full pace,” he informed.

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GROUND REALTY
ROMANCING WITH MARBLE
Jagvir Goyal

Taj Mahal, the epitome of love, has fascinated the world for centuries. Its unparalleled beauty has reinforced the faith of people in a wonder material called marble. “If Taj can withstand the vagaries of nature for centuries together, why can’t the marble used in our houses?” is a general question. That’s why the attraction for marble never ends. Many new materials have been invented and used but somehow people often tend to return to this natural and captivating material. Not only for floors, marble has been put to use for such a number of house accessories that are difficult to count.

Here is an effort to count as many as possible products of marble that can add to the beauty and utility of a house. Scan them and try choosing the ones you like. Or take a note of them for adding to the courtyard or inside of your house in future:

Fountains: Available in small to big sizes and in many a shade, marble fountains are easy to install in your front lawn as minimum construction work is involved. Least maintenance is required for them. The cost ranges from a few thousand rupees to lakhs depending upon the size and quantum of carving work involved. Those with multiple statues incorporated in them are costlier. Simple floor fountains in marble can be simply stationed on the ground or floor or embedded in it.

Statues: These look beautiful when stationed at the main gate, in the lawn or in the front verandah. Traditional elephants or lions, one on each side of the main gate, a woman statue inclined forward with water flowing from her pitcher, statues of Lord Shiva or copies of Ajanta Ellora carvings are preferred by the people. The size varies from 2 feet to 5 feet.

Furniture: Marble furniture available is suitable both for indoor and outdoor use. However, it looks beautiful when kept in the open. Beautiful carving work transcends one to the Mughal age. Pure white marble furniture looks enchanting. Simple single seaters, two-seaters or three seaters can be chosen. Otherwise a full set including a round central table with benches all round looks compact and useful.

Fireplaces: Marble fireplaces, both for indoor and outdoor use, are available. These can be laid on the floor or can rest over marble pillars. Special care is taken to use marble lots that withstand heat better.

Temples: Beautifully built, marble temples having single or multiple huts, open all round or covered at the back are being marketed by marble dealers. These are pedestal-mounted as well floor-resting for standing or sitting worshippers respectively. Mostly white and pink colour marble is used for the temples. Size varies from 2 feet X 2 feet to 6 feet X 4 feet. Customised temples are also produced.

Jharokha: Want to feel like the queen watching the people or proceedings from behind a marble curtain without others noticing you? Well, marble jharokhas are the answer. These can be embedded in the wall or a simple balcony-like structure can be added to your house by keeping care of symmetry where required.

Flower pots: A beautiful range of marble flowerpots is produced by the marble product manufacturers. The size of pots varies from 18 inch to 4 feet. Big sized flowerpots look beautiful. Well carved and durable, these add to the ambience in the drawing room when clustered in a corner, bigger sizes at the back. Colours available are pure white, pinkish and very light blue.

Bird-bath: During summers, many people like to keep a shallow pot full of water for the birds in the front or back courtyard of their houses. Marble bird baths are available in many shapes and sizes. While outer and inner carving is essential in bird baths too as a trade practice, artisans produce simple pot type as well as pedestal mounted bird baths. Prices are quite reasonable.

Lamps: Marble lamps in different coloUr shades when fitted with lights and stationed in the corners of the drawing room add a magic touch to the drawing room atmosphere. Just switch off all other lights, let the soft light flow through the slits and sieves of the lamps and enjoy your drink. There are pillar mounted marble lamps also available. You can add one or two to your lawn to bring a traditional look to it. During rains, let these remind you of those beautiful scenes from Raj Kapoor’s black & white movies!

Pedestals: A wide range of marble pedestals is produced by craftsmen. These present a combination of beautiful carving and animal or human figures. A symbol of our heritage, these can be used in the lawns to create benches, the seat being of any material like wood or bamboos. Two ready-to-attack tiger mouths when used as pedestals for a bench look classic.

Grills: For a change, add some marble grills to your house. Best location shall be the parapet or outdoor staircase Jali. Beautifully carved grills are just impossible to ignore once your eye catches them.

Washbasin: Add a marble washbasin to your front or back lawn and feel safe about it. No one is going to steal it. Moreover, it synthesises with other provisions. Wash basins of many shapes - round, oval and semi-circular are produced. One showing the eagle with wings fully spread and the tap fitted at eagles’ mouth looks wonderful.

Decorative items: Pots, bowls, big-sized saucers of various shapes are some other decorative items produced by artisans. These can be used as show-pieces resting on the floors or wall niches.

Garden accessories: Some of the big-sized garden accessories in marble are used as flower beds or pots. The size may be as large as 6 feet and it looks beautiful when pedestal mounted. Simple table tops produced in multi-colours when used over rough wooden stands look stunningly beautiful.

Availability: Many marble producers and dealers in Rajasthan trade these items at affordable prices. Bhartiya Arts produce a range of each of these attractive house additions, making the decision difficult for you. Choose your items and make your house look different of all.

More tips will follow next fortnight. Till then, happy building.

The writer is deputy chief engineer, civil, PSEB. He can be reached at www.jagvirgoyal.com

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Wealthy homeowners hit by weak prices, stock crash
Nick Carey

ST. CHARLES, Ill: Despite some signs that the worst of the US residential housing crisis may be over, many wealthy homeowners are still being squeezed by the combination of weak home prices and the stock market crash.

"I think for wealthy homeowners it will get worse before it gets better," said Dennis Hedlund, founder of iEmergent, a forecaster for mortgage and real estate companies.

"I don't think home prices have bottomed yet. Many people are stuck at the high end, as there aren't many buyers out there," Hedlund said of owners of luxury properties. From California to Massachusetts, the US housing crisis came after years of easy credit and soaring property values. Towns like the western Chicago suburb of St. Charles saw an unprecedented growth of wealth, especially in high-end homes.

An hour by train from Chicago and known for good schools, St. Charles was a magnet for senior managers and professionals.

But as the housing crisis that began in the subprime residential market spread up the property chain, the once-thriving high-end local market ground to a near halt.

"We've never seen anything like it," said Maurine Trafals, office manager at local realty agency Source One. "The market just stopped in the summer."

St. Charles, population 40,000, now has 74 homes for sale with buyers asking more than $1 million. "That's a huge number to have on the market in a community of this size," Trafals said.

In 2009, five homes over $1 million have sold, compared with 21 in 2008. Prices are down 20 percent from the peak in 2007. "There are fewer and fewer potential buyers out there, as mid-range homeowners are getting squeezed," said Ray Schafer, co-owner of home builder Michael Raymond Custom Homes, whose firm has had a luxury home on offer here for more than a year.

Schafer has cut his asking price by $50,000 to just under $1.2 million, without drawing out any offers. "We can't hold onto inventory forever," Schafer said. "So we're just lowering the price until it's such an extreme bargain someone picks it up." The national luxury market is weak on both the buyer and seller sides, coast to coast. Wealthy homeowners have seen cash reserves erode from the stock market collapse, which also hit retirement savings. The big drops in home prices have squeezed home equity loans. And many high-earners have also lost jobs. "High-end owners have been hit from all sides," said Cora Berkery, a realtor at Surterre Properties in Orange County, California, site of Disneyland and hundreds of million-dollar homes.

Many wealthy homeowners have held asking prices high in the hope of outlasting the 2-year old property slump. But more are expected to slash prices in the coming year to avoid further losses or obtain cash, adding more properties to the market. 'Shadow inventory' lurking

More unwanted supply of US homes at the high end may also come from foreclosures. According to data from research firm First American CoreLogic, the rate at which wealthy homeowners are falling behind on their mortgage payments is increasing. It says 9.4 percent of those with jumbo prime mortgages -- those over $417,000 -- are 90 days or more behind on their payments. This pales next to the 33.8 percent of subprime loans that are delinquent 90 days or more. But the rate is rising.While the subprime delinquency rate is 1.3 times higher than a year ago, the jumbo prime delinquency rate is 2.6 times higher, suggesting that wealthy homeowners overstretched themselves financially much as their poorer counterparts did. "The lower income brackets tend to have much of their equity tied up in their homes," said Sam Khater, chief economist at First American CoreLogic. "Those with higher incomes have a combination of stocks, bonds and home equity." "During the boom they felt they could save less and borrow more," he said. "But they've taken a huge hit since the peak." While California still paces the country in many of the worst aspects of the housing crisis, the plight of wealthier homeowners is now largely the same nation-wide, Khater said. On a drive through Prairie Lakes, a development in St. Charles where $1 million 20-room homes stand barely 15 feet (4.6 meters) apart, Maurine Trafals points out homes for sale but also a few that are empty but still not on the market. "Some home builders are waiting for things to pick up before they sell," she said, pondering this "shadow" market. "Shadow inventory has become the industry buzzword over the past few weeks," said Michael Lefevre, head of the National Association of Mortgage Professionals. "There is a lot of property out there that is yet to hit the market and could mean 2010 will be worse than 2009." Shadow inventory is a wild card. But Khater said the trend is significant enough that he is working on an estimate. So the irony for wealthy homeowners is that the longer they wait the more they may have to cut their asking price. Realtors say sellers are awakening to the danger of a downward spiral. Surterre Properties' Berkery said in the past few months she has seen more high-end homeowners "become proactive" and sell their homes at auctions at a massive discount. "As corporate cost-cutting is moving up the management ladder, some people are taking matters into their own hands and selling rather than be forced to later on," she said. Berkery said the most affected are the "lower-end" wealthy with homes valued at up to around $3 million, as they tend to be more overstretched than the super wealthy. "The good news is property is selling, if at a huge discount," she said. "Most of the buyers we're seeing are foreign investors from the Far East and, now that the euro is stronger, we're seeing more Europeans too." — Reuters

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Patiala to have shopping mall soon
Umesh Dewan

Highlights

  • Four-screen multiplex
  • Food court and specialty restaurant
  • Two large banquet halls for marriages, parties and innovative exhibitions
  • Wedding related service providers
  • Centrally air-conditioned
  • 100 per cent power back-up
  • Double basement parking
  • High-tech security system

Known for its handicrafts, juttis and parandies, princely state of Patiala is all set to get its first shopping mall.

While cities like Ludhiana, Amritsar and Jalandhar are already having shopping malls and multiplexes, Patiala will also join them in a few months, with “Omaxe Mall” being set up here. Coming up on a prime location on the Mall Road and surrounded by Baradari Park, a beautiful lake and Kali Devi Temple, the shopping mall would have 150 shops, three food courts, a banquet hall and four screen multiplex cinema hall. Besides being fully air-conditioned, the shopping mall will offer the facility of capsule lift and escalators. There will be a double basement parking in order to ensure that there is no parking chaos outside the mall.

Senior manager, sales and marketing, Omaxe Limited, Manoj Suri, said the Mall aims to bring every business associated with the concept of wedding under one roof.

“Immaculately designed with spacious showroom spaces, spread over a staggering 2,75,000 square feet (approximately), it'll be a grand structure dedicated to the very theme of marriage,” he said.

The mall will also offer exquisite jewellery, footwear, apparel, entertainment, floral arrangements and service providers for printing cards, ladies' sangeet, puja, henna, beauty and slimming centres. The speciality mall would also house banquets for solemnising wedding and related celebrations.

Apart from this, the mall will also house a multiplex, food court, speciality restaurants. “The four-screen multiplex cinema hall will finally provide Patiala residents an opportunity to enjoy movies with great comfort and all sorts of facilities.”

Regarding the opening of the mall, Suri said the construction work was already complete and 55 brands had already booked space in the mall. “The interior work in the mall is in progress and most likely, it will be opened in three months time”, he revealed.

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Best Western checks into Amritsar
Sanjay Khurana

World’s largest hotel chain Best Western along with Armaan Resorts Pvt Ltd has announced the launch of Best Western Merrion at Amritsar as its latest operational property in India.

Sudhir Sinha, president and chief operating officer, Best Western India, while talking to The Tribune said, “Stepping into this region is part of our growth strategy for Punjab. North India is an important market for us and Punjab is crucial for our expansion plans.

“Our booking systems from across the world have always been receiving queries for hotels in this region. After Amritsar we will soon be coming up with more hotels in cities like Ludhiana, Jalandhar and Chandigarh to cater to that demand.” Sinha further said they were planning to add 10,000 rooms across India in the next 10 years. The chain is aggressively looking at northern region, especially Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir, besides setting up hotels at other locations in the country.

The hospitality chain is also looking for properties at Mohali, Zirakpur, Katra, Srinagar, and Leh in Jammu and Kashmir.

Talking about the company’s expansion plans, Sinha said: “We intend to cover 140 cities across the country, which has only 1 lakh rooms in the ‘categorised’ segment. At present, we have 11 properties in India and 30 are in the pipeline.”

Gurjinder Singh, managing director, Armaan Resorts Pvt Ltd, said, “The association with the Best Western brand will bring two most important components to this location. The foremost being, the international standard of hospitality and second being international bookings based out of their robust chain of hotels across the world.”

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TAX TIPS
S.C. Vasudeva

House property can be mutated

Q. I am a 79-year-old man and my daughter (only child) is an Australian citizen, who has two grown-up children. I have a self made house and investments in PPF (Public Provident Fund), MIS (Post Office Monthly Income Scheme), SCSS (Senior Citizen Saving Scheme), Bank FDs (fixed deposits) and some company equity shares. Initially I nominated my daughter for all above investments by giving her address as my address for myself occupied house as above. Now, she has migrated to Australia and I want to change her address to her address in Australia.

Please advise me regarding following in case I change her address to her NRI address:-

Can she transfer my house in her name on my death as per my will?

Can she transfer all my above financial investments to her name in India? If so, how she can transfer these to her bank account in Australia, and are there any I. tax, wealth tax and foreign exchange regulations or considerations which she shall follow for this transfer outside India.

I will not take any action on it as yet and await for your reply.

A.K. Walia

A. Your queries are replied hereunder:

The house property held in your name can be mutated in her name in the records of the revenue authorities on the basis of the Will. The legal transfer can take place provided the Will is probated in her favour.

The investments made by you can also be transferred on the basis of the Will or nomination as the case may be. The amounts so inherited can also be remitted to Australia through banking channels. The foreign exchange regulations in India presently are quite favourable for such like transfers. She will have to approach the bank with the details of funds inherited from you and the bank would take care of the transfer of such funds to her bank account in Australia.

Property partition

Q. I have a house in Ludhiana in the name of my father (expired 20 years back). Me and my brother are the only two legal heirs. The house is 200 sq. yard. I am living with my family in the front portion i.e. 100 sq. yard and my brother is living in the back portion on the same area i.e. 100 sq yard. We divided the portion 20 years ago. Now I want to sell my portion but my brother is not ready to sign anywhere. In patwari records, mutation is done on both names. Please suggest me how can I sell my portion. Will there be issue of front portion and back portion because back portion is having less value but I compensated him for the same 20 years ago, but I don't have any written document. Kindly suggest me.

Tarsem Gupta

A. The facts in the query are not complete, as it is not indicated whether the revenue authorities have accepted the partition of the house property in the manner pointed out in the query. The question of providing independent entrance to your brother who is staying in the back portion would also be very relevant to give any opinion on the issued raised by you. It is also not evident from the query whether the property is freehold or leasehold. In case it is freehold, it may be possible to divide the house into two portions and to provide independent access to the house of your brother. In such a circumstance, it may be possible for you to sell your portion of the property without any consent of your brother. I would, however, suggest that you should try to reconcile and reach an amicable settlement with your brother.

Income from house property

Q. I own a house which I constructed by taking a loan from a bank. I have given house on rent at time as I am living with my parents. Am I entitled to get the deduction of the interest paid on the loan raised from the bank as well as towards the repayment of the house building loan which I took from the bank?

Amit Bhalla

A. In case of a let-out property, the entire amount of interest is deductible under Section 24 of the Act and the ceiling of Rs.1,50,000/- for a self-occupied house is not applicable. In view thereof, you are entitled to the entire amount of interest paid/payable as deduction against the income from house property. You are also entitled to a deduction for the amount paid towards the repayment of the house building loan which you have raised from the bank. However, the deduction for the repayment of the principal amount has to be within the limit of Rs 1 lakh specified by Section 80C of the Act.

Home loan repayment

Q. I am a government employee. I have taken home loan from ICICI Bank. I am paying EMI @ Rs.6,772/-per month. Total annual payment is Rs.81,884/-.from which interest is Rs.69,878/- & principal is Rs.11,306/-. I am taking income tax rebate of interest & principal individually. But other government employees have taken home loan from S.B.O.P. The bank issuing statement to them for rebate of principal of u/s 80C by writing word repayment of loan, which is the total amount of annual payment they had paid during the year i.e. (Interest + Principal) & verbally bank says that it comes u/s loss of property. In this way they are taking rebate of interest in double i.e. Rebate of Interest u/s 24 & again with principal u/s 80C by adding interest in the principal amount. Kindly tell me which is the right procedure for taking HBA rebate?

D.R. Garg

A. Section 80C of the Income-tax Act 1961 (the Act) provides for a deduction towards the repayment of the principal amount borrowed for the purpose of construction of a residential house. The deduction so allowable does not include the amount of interest payable on the amount borrowed for the purpose of construction of the house property. Such deduction is allowable under Section 24 of the Act. The claim made by your colleagues is, therefore, not permitted under the provisions of the Act as stated herein above. It may be added that Section 80C of the Act covers payments/contributions to various schemes and maximum deduction allowable under the said section is Rs 1 lakh.

Will matters

Q. My father constructed a house in 1993. He died in 2003 without writing a will. We got the papers of the said house transferred in the names of my grandmother, my mother, my brother and myself as alive legal heirs.

In 2007, my grandmother also expired without any will. A friend of mine told me that share of my grandmother in the said house will automatically get transferred to her legal heirs i.e., my paternal uncles and aunts (7 in nos.).

Please tell me how is it possible that share of a house, which was constructed by my father for his subsequent family, is going to become share of his brothers and sisters, which my father would never have desired.

Please tell me what can be done to get the same house transferred in my mother, my brother and myself name.

 H.S. Jalandhar

A. As per the provisions of the Hindu Succession Act, 1956, the property of a female Hindu dying without making a Will devolves on the following persons:

firstly, upon the sons and daughters (including the children of any pre-deceased son or daughter) and the husband;

secondly, upon the heirs of the husband;

thirdly, upon the mother and father;

fourthly, upon the heirs of the father; and

lastly, upon the heirs of the mother.

In case, there are no legal heirs under category (a) and (b), the property can be inherited by persons covered under category (c) i.e. brothers and sisters of your grand-mother being legal heirs of her father.

Seek legal aid on Hindu Undivided Family Dispute

Q. My grandfather had HUF property. He had one son A from his first wife and after the death of his first wife, he had two sons from second wife. The first son A requested my grandfather to separate him from the HUF family. My grandfather agreed to separate him from the HUF by an Award. The separation was duly registered and accepted by the son A in front of witnesses and he duly acknowledged the partition in writing. The son A has given statements in various courts that he has separated from the family and any property of his father where his name comes, is to be deleted and the property belongs to children from second wife. Now after more than 50 years the son of A has filed the case claiming to be co-parcener in the grandfather property. Can he be co-parcener in the HUF property after his father has separated from HUF? If not, please give the judgement(s) that can help us.

Rajan Kuthiala

A. I assume that the partition deed did specify the apportionment of the properties held by Hindu Undivided Family of your grand-father. The partition having been registered, it may not be possible for the son of Mr. A to make any claim in respect of the other properties which continued to be part of the HUF of your grand-father. It may be added that the contents of the partition deed would be very important in this regard. This being a civil law matter, I would suggest that you should consult a lawyer to guide you.

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