Townships Trend-II
Realty stronghold

When acquiring property in any city becomes difficult the potential of smaller townships around is put to test. The same appears to be the case with Kharar. After Panchkula and Mohali, Kharar seems to be on its way to becoming a major residential option. Grilling evidence of this is the fact that several major land promoters have come up with a number of projects at the same time for residential and commercial colonies.

Kharar is the centerpiece of Mohali district. Mohali is touted to become the next IT hub of North India. So Kharar, being placed virtually in the backyard of Mohali, will serve as a perfect habitat to the denizens of the IT hub, firstly because of its location, and secondly, because of the affordable housing it provides. Its proximity to Chandigarh has an added advantage. It is because of this influx and easier approachability to the tricity that Kharar has become a hotspot with real estate developers and buyers.

Main players

With decks being cleared for the international airport its vicinity, Kharar has become the fulcrum of transit route for entire Doaba and Majha regions, as the highway connecting the international airport with Punjab criss crosses through its heart.

This has given a boost to the development of residential settlements in the town. Name any leading real estate player and you sure to find it in Kharar. Amongst the earliest one to start the development of a township in Kharar was J.S. Bajwa, of Bajwa Developers, who developed Sunny Enclave,

“Highway connectivity with Punjab was one of the main reasons because of which we chose Kharar as a destination to develop our township here,” says Bajwa. The development of Sunny Enclave started in October, 2002. The township is spread across 600 acres. It is a complete township with housing for everyone. One can get a flat with a price tag of Rs 15 lakh and a swanky villa, which comes at a price of Rs 1 crore. Being an integrated township the promoters have constructed a gymnasium and a sports complex also. Buoyed by the positive response, Bajwa claims,”Almost 90 per cent of our villas and flats have already been sold, and construction work has been undertaken on about 50 per cent of plots.” There are about 800 families living in the township, which is a fairly decent number, given the fact that the township is on the outskirts of Mohali. Sunny Enclave at Kharar is the most developed PUDA-approved colony, and perhaps the most preferred address in Kharar. As property prices in Mohali now are way beyond the reach of common man, this colony is becoming the destination of choice for middle and upper middle class families aspiring to buy houses, shops or showrooms in and around Mohali or Kharar.

“Easy availability of large tracts of land, which gave us an elbow space to set up a big township, was the principal reason behind setting up our township in Kharar”, says Amardeep Singh Hira, promoter of Shivalik City — a 250-acre township in Kharar. With as many as 500 families living in the township, Shivalik City is has the amenities that a township can boast about. The USP of Shivalik City is, “60-foot wide straight road, which connects the length and breadth of the township,” adds Amardeep. The plan of the township was drawn keeping in mind only the high-end clientele, and there is no plot less than 200 sq.yards in the township. Proximity to the proposed golf club and lake, coupled with aneducational institution belt to be developed near the city, has brought several families to the Shivalik City. The Kharar railway station, too, is just half a kilometer from the city,

Strategically placed in the heart of Kharar, between National Highway-21 and the Landran-Jalandhar highway is Gillco Valley. “We have around 200 acres for the construction of our project, of which around 95 acres have been fully developed and the remaining chunk of land would be developed in due course,” says R.S. Gill, promoter of Gillco Valley. According to him a majority of the 900 flats have been sold out, and the response has been good for the state-of-art villas also. Gillco Valley offers good infrastructure to prospective real estate investors. Development work is in progress, and Gillco offers readymade flats and houses, in addition to plots at very practical rates. This colony has also been approved by the Punjab Urban Development Authority (PUDA), and offers infrastructure similar to the other developed colonies in Kharar. Gillco Valley has a sizeable area demarcated for commercial use adjoining the main entry from the Mohali- Ludhiana road. There are options for shops and showrooms.

Easy and cheap rental accommodation is another added feature of these townships which gives them an added advantage the houses of Chandigarh.” A 250 sq. yard house in Chandigarh is available on rent for about Rs 20,000, the same accommodation costs around Rs 15,000 in Mohali, but in Kharar township it is available for Rs10,000 per month,” says Mandeep Singh, who works in a construction company in Mohali.

Some people have parked their funds in the townships of Kharar just for the sake of investment. Says Bajwa, ”when we started the Sunny Enclave project in 2002 we sold the plots at the rate of around Rs 1,800 per sq. yard. But now the rates have spiraled up to Rs 15,000 per sq. yard. So investment in our projects is quite a lucrative source increasing the yield of your investment. Initially, the base price of our villas was around Rs l26 lakh, but the current price is around Rs 45 lakh just within five years,” says Gill of Gillco Valley.

Waiting in wings

Major projects of DLF, Ansals, and EMAAR MGF are underway here. When these projects become fully functional, they would bring an imperative change in the lifestyle patterns of people living in the area. EMAAR MGF has named its township ”Mohali Hills” and the villas have been put on sale with a booking amount of Rs 11 lakh. Having an area of 3000 acres in its kitty, it is being touted as the next big residential destination. We also have projects by the Pearl group, JLPL & Unitech coming up. Ansals are developing their township by the name of “Golf Links”. There is a lot of money that is being invested in and around Kharar and these big realtors with their dream projects are sure to make a dent in the residential lifestyles of the area with their sumptuous offerings. Kharar, thus, is poised to become the new address for affordable, comfortable and stylish living.

Thumbs up to Kharar

When the township culture started on the outskirts of Mohali and Chandigarh, all these settlements were under the aegis of the Municipal Committee of Kharar. But with the formation of GMADA (Greater Mohali Area Development Authority), proper and planned development is being undertaken. The major benefit of GMADA coming into force has been the sectorisation of all the projects. With sectoriszation, these townships are beginning to get identified as an extension of Chandigarh and Mohali, which has resulted in a spurt in sales.

Several major institutional and infrastructural ingredients have either been provided or are in the process of getting established in the vicinity of Kharar. Kharar is all set to become the educational hub of the region. Major Institutes like the International School of Business (ISB), are planning to set up their campus near Kharar. Various engineering colleges are also operating from here. One of the major reasons for the townships of Kharar getting a fair amount of success is the master plan of the area. There is no haphazard construction activity, andl the pollution, safety; fire emission norms have been complied with.

Miles to go…
Sandeep Goel

A lot is being expected from the much-publicised announcement of the clearance given to setting up of an industrial belt in Mullanpur, near Chandigarh. The area has been projected as the destination of future due to its proximity to Chandigarh, Punjab as well as Himachal Pradesh. If major industries set base here then it will become a real estate goldmine. Queries from prospective buyers regarding investing in the area are mounting by the day. But all is not hunky dory here. Though the locational advantage of the area is undisputed, a lot of points have to be kept in mind before investing your hard earned money here.

The industrial belt, which is being seen as one of the major moves that will accelerate development of infrastructure like roads, sewerage, transportation etc in the area, may actually not be that feasible here. For the past several years Punjab and areas of Haryana surrounding Chandigarh have not seen any major industrial development basically because of the woeful power situation and proximity to Himachal Pradesh which offer good power supply as well as tax holiday for industrialists.

Keeping in view the fate of the Industrial Areas and Focal Points already cleared by the state government, one is forced to think how successful and feasible this much-publicised Mullanpur project would prove to be. Does it really make sense to come up with this plan. Ask any industrial expert the answer is a straight no.

A few years ago around 10,000 acres in Mohali were brought under the industrial belt, courtesy Punjab State Industry and Export Corporation (PSIEC) that had developed five industrial areas in Mohali itself and one by a private developer in sector 82 Mohali. Unfortunately, 30 to 40 per cent of the land is either still lying vacant or some sheds have been constructed there but there is nothing going on as far as industrial activity is concerned. The main reason for this being that most of the industry has been shifted to Himachal Pradesh due to long power cuts and non-availability any tax benefits in Punjab. A majority of the remaining areas have been converted into commercial establishments with the allottees either paying nothing at all or a very nominal amount as conversion fee as compared to the rates of commercial land being auctioned by government agencies like PUDA and GMADA.

A reality check of the situation reveals that most of the plots in such industrial areas were allotted, at throwaway prices, to influential people who sold these at market rates (some 800 to 900 per cent higher) after a gap of a year or so. The allotments were made around a couple of years back at the rate of approximately Rs 10 lakh per kanal for setting up industry. Some of these plots were resold for around Rs 1 crore within a year.

So, Mullanpur area is definitely a very good investment opportunity but for those who are ready to wait for at least five to seven years to reap rich profits as the area is going to take around that much time to be properly developed. Another simple funda is to get an industrial plot and convert it into commercial establishment at a very nominal rate as compared to buying commercial land.

TAX TIPS
Investing capital gain
S.C. Vasudeva

Q.I wish to seek your advice in the case of an NRI who invested long-term capital gain after the sale of property to book a flat, which is under construction. The complete payment, including capital gain amount of Rs 5 lakh, was paid to the builder. As the pace of construction is slow, it appears that the possession will not be given within three years i.e. before March 2010. The property on which the capital gain of Rs 5 lakh was earned, was sold in September 2006. Please advise if the Income Tax authorities can allow time beyond three years if the construction is delayed for want of certain permissions by the builder from the government.

What will be the tax liability on long-term capital gain of Rs 5 lakh in case of an NRI, who is not having any other income in India, in case IT return is required to be filed for the year 2009-2010 in the absence of extension in the time limit of three years?

— S.K. Handa

Section 54 of the Income-tax Act 1961 (the Act), provides that in case capital gain earned on the sale of a residential house is utilised for the construction of a house property within three years of the date of sale, no tax will be chargeable on such capital gain. The Income-tax Appellate Tribunal in case of Ms Seetha Subramanian vs. ACIT (59 ITD 94) (Madras) relying on two circulars, circular no. 471 dated October 15, 1986, and circular no. 672 dated December 16, 1993, has held that the intention of the Legislature was to invest in the acquisition of a residential house and completion of construction or occupation is not required.

It has also been held that in order to get the benefit under the provisions of Section 54 and 54F of the Act, the assessee need not complete the construction of the house and occupy the same. This aspect also stands confirmed by a decision by Madhya Pradesh High Court in the case of Smt. Shashi Verma vs. CIT (224 ITR 106).

In view of the above decisions read with the circulars referred to hereinabove, it should be possible for you to claim the benefit under Section 54 of the Act even if you are not able to occupy the residential flat within a period of three years. I may add that the reply is based on the assumption that the capital gain was earned on the sale of a residential house property.

Q. As per Section 54EC of the Income Tax Act, if the whole amount of long-term capital gains is invested in capital gain bonds issued by NHAI or REC within six months of the date of transfer of a long-term asset, it shall be exempted from income tax.

I transferred an asset on September 15, 2009. I came to know of NHAI bonds on March 13, 2010, only. It was a Saturday. I calculated that the Act doesn’t specify 180 days and says six months after the date of transfer. So in my case, the period available was from September 16, 2009 to March 15, 2010. Therefore, I invested the full amount of long-term capital gain in NHAI bonds on March 15 (as March 14 was a Sunday). I hope it will be accepted and the IT department. will not reject my investment. Am I right?

— Dr D.P. Singh

A. The General Clause Act, 1897, provides that “month” shall mean a month reckoned according to the British calendar. However, for tax purposes Allahabad High Court in the case of CIT vs. Laxmi Rattan Cotton Mills Co. Ltd. (97 ITR 285) has held that “month” has to be reckoned as a period of 30 days. You should be able to claim the benefit under Section 54EC of the Act as March 14, was Sunday (a bank holiday) and the investment made on March 15 should be taken to have been made within a period of six months after the date of sale. This is in view of the fact that February 2010 was of 28 days. The investment under Section 54EC of the Act could have been up to March 17, 2010. 

Couple calculations

Q. We have booked a flat in a private builder’s society in the name of my wife and myself by paying booking amount of Rs 4 lakh from my account and Rs 1 lakh from my wife’s account on March 16, 2010. The possession of the flat is expected in September 2010. Home loan has been applied with my wife as co-applicant. My queries are as under:

At the time of possession can we register this flat in the ratio of 50:50 even if the amount paid to builder by us and the amount repaid to bank against loan is not in the ratio of 50:50 between my wife and me?

If we keep the flat as self-occupied from possession till the end of financial year i.e. till March 31, 2011 and suppose the interest on home loan paid to bank in the year 2010-2011 is Rs 1,40,000 from my account and Rs 40,000 from my spouse’s account, then can me and my wife claim a deduction Rs 1,40,000 and Rs 40,000, respectively from “income from house property” and generate a loss to be reduced from income from other heads?

As there is no limit on deduction u/s 24 if the house is rented out, if I keep the house self-occupied from possession till January 31, 2011 and let it out from February 1, 2011 to March 31, 2011, then can I claim the full amount of interest (even more than Rs 1,50,000) paid in 2010-2011 as deduction.

— Lokesh Dhureja

A. Your queries are replied hereunder:

It would be advisable to register the flat in the ratio in which the amount has been spent on the construction by you and your wife. In case the amount spent by your wife is less than 50 per cent of the total cost and the registration is made on 50:50 basis, the difference would be treated as gift to your wife and to that extent the income from property would be taxable in your hands.

In case the house is jointly owned and each one of you has borrowed separately for the construction/ acquisition of the house and payment of interest is being made by each of the co-owners, the limit of Rs 1,50,000 would be applicable to each one of the co-owners. If the house is self-occupied for a part of the year, the deduction in respect of the interest would be allowed proportionately for the period for which the property has remained self-occupied. The interest payable in respect of let out property is allowable without any limit.

HUF income and tax rebate

Q. I am being assessed under HUF in respect of rental income from commercial property in Delhi. I am also filing a separate return in my name for my pension income.

Now our group housing society has been allotted land in Mohali for the construction of flats. I will get one flat in the society. For payment to the society I will take a loan in my name from some bank. Kindly advise me whether I will be able to set off rebate of interest on loan from my HUF income account?

— Jagteshwar Singh

A. The amount of interest paid/payable on the amount borrowed for the purpose of construction of a residential flat is allowable as deduction against the income of the flat in respect of which the borrowing has been made. The amount of interest paid/payable on such borrowing will not be allowable as a deduction against the HUF income, which has a separate status for the purposes of tax proceeding. 

GROUND REALTY
On firm footing
Jagvir Goyal

Slipping on the wet bathroom floor is something everyone fears the most as it can cause grievous injuries. That’s why people are always on the lookout for a bathroom floor that is not slippery when wet or soapy.

Three types of bathroom flooring options are prevalent — marble, tiles and terrazzo flooring. While teraazo flooring with skirting was popular in the 1970s, marble was the preferred choice in 1980s. These days tile flooring is the most popular choice. However, the problem of having wet and slippery bathroom floors still troubles many of us.

Let us examine all three kinds of floorings in regard to this factor of providing a firm foothold.

Tile flooring

Two types of tiles are available in the market. These are vitrified tiles and ceramic tiles. Ceramic tiles are categorised in different groups with Group V tiles being the strongest. Porcelain tiles are also available under names like porselano etc. These tiles also belong to ceramic group tiles.

Vitrified tiles have zero water absorption property. These are very strong and come in highly glazed and matt finishes.

Ceramic tiles are not as strong and impervious as vitrified tiles. These are manufactured with glazed, matt and anti-skid finishes. Porcelain tiles, though a type of ceramic tiles, look like a separate group and are manufactured mostly in matt finish.

Suitability for bathrooms: Use of vitrified tiles in bathrooms is ruled out. Having high gloss, these may make a person slip when wet. Moreover, these are mostly available in 2 x 2 feet or bigger size. These sizes are not suitable for bathroom floorings unless the bathroom has more than 10’x10’ size.

Among the ceramic and porcelain tiles, the use of glossy tiles in bathrooms is again ruled out. Anti-skid tiles are the most suitable for the bathrooms. These are available in size of 1’x1’ and above. These are non-glossy type and have a textured surface.

Here one must note that the so-called anti-skid tiles are not fully slip-proof. These are fine till the floor is simply wet but don’t save a person when the floor is wet as well as soapy. Many people have slipped on wet and soapy anti-skid tile floors.

Marble flooring

Marble is a natural product, a metamorphic rock and therefore varies in colour, density, porosity and hardness. White, green and pink are its preferred colours, though it is available in brown, gray and black colours also. It accepts polish very well. Its fixing and polishing take a lot of time, while tiles need no grinding and polishing. Yet marble is preferred by many due to its natural look. Imported Italian marble is very popular in India. Botticino, Rover, Greek Thassos are some of its hard, compact and durable varieties. Indian marble weighing more than 2,800 kg per cubic meter is good.

Suitability for bathrooms: Both, Indian and imported marbles are widely used for bathroom flooring in India. Marble is quite porous in comparison to tiles. But when laid in bathrooms, it loses its polish very soon due to the repeated use of water on it. It also develops stains along the joints of floor and skirting and begins to look dull after sometime. So it is hard to maintain in bathrooms.

The whiteness of imported Italian marble, however, lasts longer and it keeps giving crystal like appearance for a long time.

Marble, too, turns slippery when it is wet as well as soapy. One has to be extra vigilant in the initial stages when the marble flooring in bathrooms is newly polished. After sometime, its performance is similar to that of anti-skid tiles. Thus both, anti-skid tiles and marble provide non-slip floors when wet but not under soapy conditions.

One should avoid going in for high polist or granite polish for marble floors in bathrooms.

Terrazzo flooring

Once extremely popular and a unanimous choice for houses, terrazzo flooring is vanishing now. It has been virtually replaced by marble and tile floorings.

Terrazzo flooring looks strikingly uniform, perfectly level, non-porous and above all is cheaper than marble and tile floorings. It can be provided in any colour and design by mixing the necessary colour pigment with white cement. When laid in right manner and cement-chips composition with good quality chips like Dehradun or Narnaul chips, the results are excellent.

Suitability for bathrooms: Earlier, terrazzo flooring was usually provided in the bathrooms.But it has been written off only due to the advent of new materials and not because of any technical or performance faults.

Like marble, it, too, loses its polish and develops stains along joints and strips if not kept properly clean. However, its shine can be restored easily through polishing after a few years. It offers anti-slipping floors even under wet and soapy conditions. Unless one is too careless, there are hardly any chances of a person slipping on a terrazzo floor.

The final choice

Thus the first choice for an anti-skid bathroom floor is terrazzo. Thereafter, marble and anti-skid tiles score equally. Anti-skid tiles, if chosen, should have extra-textured or embossed surface. In case a person uses marble or anti-skid tiles, he should take following precautions:

Provide grab bars near the shower and bathtub. These are especially useful for older people for getting up if in a sitting posture. Also, while standing and using soap or shampoo, these save a person from slipping. Bathtubs often become slippery and grab bars help in getting up from the lying position.

See that the towel rack or towel hook is within your reach and one should be able to grab a towel after taking a shower without stepping towards the rack or towel hook.

Use slip-guard treatment on the floor. Under this treatment, a special chemical liquid composition is painted on the floor with a brush. The liquid is transparent and doesn’t affect the appearance of the floor, but increases its coefficient of friction. Once applied, the treatment remains effective for many years.

Fix anti-slip tape on the floor around shower area. The tape will prevent a person from slipping beyond it. As this tape is available in many colours, a colour matching that of the floor can be chosen so that it doesn’t look odd. It is cost effective in comparison to the chemical coating treatment of the whole floor.

This column appears fortnightly. The writer is deputy chief engineer, civil, PSEB

DESIGN TRENDS
Stamp of individuality
Sharmila Chand

Have we arrived finally? The answer seems to be positive. We have matured and arrived in the sense we wish to have some ‘purpose’ and ‘meaning’ in everything around us in our homes. We no longer believe in unnecessary ‘acquisitions.’ Being fashionable seems to be passé, at last. That brings to light the first crucial trend of 2010 as far as Interiors are concerned : Strong personalisation. Lets have a look at the major design trends this year:

Individualism vs Fashion

There is a well thought out move towards creating interiors that reflect a definite ‘timelessness’ as contrast to just being perceived as modern and contemporary. The individual, therefore, is the focal point and aesthetic expression is what matters, and not the so-called designer tags. Hence, one would see a lot more innovative, individualistic ideas rather than off-the-shelf productions.

Ecological bent

Increased environmental awareness has ensured that design is moving towards eco-friendly options.

Demand for recycled and renewable materials in high-style design, bamboo, and antibacterial, non-allergen, and organic products is fast growing.

As Ashwani, Design Head of Bench Craft, says, “The trend towards 2010 is certainly going the earthy way. Deriving colours from plants, minerals, historical natural dye developments such as baby indigo and madder red in high gloss.”

There is a strong sense of fun experiment spirit. Such as dyeing with beetroot, using recycled wallpaper for walls.

The magic word is eco–friendly and how ecology becomes business too.

Simplicity redefined

There is renewed interest in keeping things simple. As the lifestyle is catching up pace, people are responding to it by seeking simplicity. Clean lines, simpler shapes and styling, and natural materials are replacing heavy carving and fussy detail. Comfort is all-important. Durable, easy-care surfaces and finishes are critical.

Multi-purpose furniture

The utilitiy of furniture has assumed greater importance. As Amitabh Bendre, Design Head, Evok says, “Today, a piece of furniture can’t just be decorative; it has to ‘do something’. As home offices are being integrated into the main living spaces, there is a need for furniture that can be used for both work and play, and that looks good in the living room or bedroom. All kinds of storage are much in demand, especially hidden storage, foldaway workstations, built-in chargers and plug-ins, and storage for remotes.”

There is need for furnishings that can evolve and grow with the household, changing functions as the needs change. As people downsize or relocate for jobs, furniture will need to become more portable and able to fit through narrow apartment doors and up staircases, and be adaptable for use in different dwelling types. As Bendre maintains, “Dining room furniture that can be converted into wardrobes and armoires would be hugely valuable for anyone moving into an apartment without a formal dining room and too few closets. Besides children’s furniture that transforms from a crib into a bed, youth products are becoming less juvenile and more ‘small adult’, and can be moved to other parts of the home when no longer needed in the nursery.”

He further adds, “While the trend is towards smaller, less ostentatious furniture, dining tables that can dramatically expand are becoming increasing popular, especially among wealthier immigrant and ethnic groups that value the extended family sharing meals and holidays together.”

Mass customisation

“It’s a dichotomy – consumers want what their friends have, but they also want to be unique, and recognized for being hip,” points out Bendre. There is huge demand for “personalization”. Mass production and container requirements demand simplified homogenized products, but people want to express their individuality.

Some suppliers are developing interchangeable components that allow the consumer to customise their purchase.

Another emerging trend is buying by the item. Consumers are more reluctant to commit to any one style, theme or color palette. Purchases can be made as money becomes available, allowing for multiple styles to be mixed eclectically together, creating an individual statement.

Last but not the least, value addition is not just about being different but making a difference!