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Set for a smooth takeoff
Traffic sense
Highway blues
TAX TIPS
GREEN HOUSE
Home DECOR
Show Window
Realty Bytes
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Set for a smooth takeoff
In what is being billed as the largest housing project launched by any government agency in the past decade, the Aerocity, which is being launched formally by the Greater Mohali Area Development Authority (GMADA) on June 7, is set to give the housing projects by private realtors in the area a run for their money. The scheme would close a month later on July 6.
Strategically located east of the Mohali city and in the vicinity of the upcoming international airport here, in the Aerocity GMADA is offering 4,000 residential plots, ranging between 125 square yards (5 marla) to 500 square yards (1 kanal).
Connectivity bonus
Unlike many of the private housing projects in the Mohali master plan area that still do not have proper road connectivity, GMADA urban estate has been carved out on both sides of a 200 ft road. Work on this road that will provide a direct link with the Chandigarh-Patiala road, is already on. On completion this road link will cut short the travelling distance between Mohali and Patiala. In the next few years the road will ultimately link the airport with Panchkula. From Chhat village an 11 km-long (approx) circular would link Sector 21 on the Panchkula-Kalka road. Keeping in mind the NRIs who would wish to own a property close to the international airport, another road has been planned to provide a direct link to the airport. Officials in GMADA say the area has been specifically chosen as expansion of the future city has been envisaged toward the south-eastern edge of existing Mohali city.
The scheme
In the airport city, the GMADA has, for the first time, entrusted the entire work of selling and collecting the application forms at the authorised banks. Under the scheme, plots would be allotted on freehold basis at Rs 12,000 per square yard (Rs 3 lakh per marla). The prevailing market rates ranges between Rs 20,000 per sq yard and Rs 25,000 per square yard, depending upon the location. Estate Officer, GMADA, Balbir Singh, said the draw of lots would be held in the first week of September. “The earnest money would be refunded to the unsuccessful applicants within 90 days from the date of draw of lots or 180 days from the date of closure of the scheme closes. For the period beyond 180 days, GMADA would pay interest at a rate of 5.5 per cent per annum. GMADA has announced to give possession of plots within 30 months from the time of allotment.
In all “earnest”
The project is being projected as one of the most ambitious ones floated by GMADA and for this purpose the authority has acquired about 800 acres of land at the rate of Rs 1.5 crore per acre and has paid about Rs 1,000 crore to the farmers. But the Aerocity is surely going to fill the coffers of the authority and GMADA has ensured this with some of the conditions in the scheme itself. For example take the eligibility criteria. It has allowed those who have purchased plot/flat/house in SAS Nagar by way of auction or resale or inheritance, to apply for the Aerocity project. With this stroke, GMADA has ensured that the number of applicants is jacked up by several notches. As per industry watchers as many as 50,000 applications are expected for the 4,000 plots of different sizes on offer. This means GMADA is expected to earn anything around Rs 1,200 crore in the form of application and earnest money alone. Barring the successful applicants, the earnest money of the remaining applicants has to be returned within 90 days. One can imagine the interest element of the money that would remain with GMADA for three months. Apart from this the number of plots offered in the 125 sq yd (700) and 200 sq yd (800) sizes is the maximum. As the earnest money for applying for a 125 sq yd plot is an “affordable” Rs 1.5 lakh and for a 200 sq yd plot is Rs 2.4 lakh, a lot of people will be tempted to apply for these hoping to get a plot on the basis of probability formula in the draw of lots. Secondly, as the resale in this segment is more (as most of the applicants in this category are in for investment purpose), GMADA will make an extra buck through transfer money, too. So it is a win win situation for it. As N. K Marwaha, a real estate consultant, feels since GMADA has taken loan of around Rs 1,200 crore from financial institutions for the scheme, it has relaxed the eligibility criteria to jack up the number of applications and has also rescheduled the payment pattern.
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Traffic sense
Learning from its past experiences, GMADA has decided to segregate the urban traffic from the traffic generated from villages. The concept is being put to test in the Aerocity project. As some villages are located near the proposed urban estate, underpasses on the 200-ft wide road, connecting Sectors 66 to Chatt village, will be provided to link the villages. The traffic from the villages would not be directly allowed on to the 200-ft wide road.
Focusing on half acre and above size of green belts in the urban estate, the town-planning wing of GMADA has proposed recess parking. The green belt between the 200-ft wide road and the mix land use belt will be landscaped with walkways and plantations. At least 60 per cent of the plots will face green belts. The concept is based on Swastik Planning.
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Highway blues
Contrary to the expectations of the people in this part of the region, the Jalandhar-Ludhiana stretch of the GT Road has not proved to be a hot destination with the realtors.
Following the six-laning of this road, the real estate developers were upbeat that this development would ensure world-class facilities and connectivity from different parts of the state. But it has proved to be otherwise as the service lanes of the highway have taken away whatever parking space was available in front of prime commercial properties. Many prestigious projects are under construction along this stretch, while some have already opened for public. While Viva Collage, Ansal Plaza, Mc-Donalds, KFC and Coffee Café Day are already functional, Hotel Taj, Bharti Wall Mart, MBD Mall and a couple of other malls are coming up along the stretch. Interestingly, not even a single housing project has come up or is being proposed in this area. This is contrary to the development pattern in other cities where major housing projects, near such prestigious commercial projects are the norm. With the six-laning of the GT Road property prices have actually come down by 25 to 30 per cent, claimed Anil Chopra, a leading realtor of the city. Explaining the reasons for this slump, Chopra said, initially those who had bought property here had taken the empty space into consideration before constructing their buildings little knowing that this land was to be used for broadening the highway. So now the highway has virtually blocked the entrance to these properties and the owners have to use service lanes as the main entrance. So the locational advantage of being on the highway is now lost. This would mean that a commuter will have to cover extra distance before entering a service lane leading to a commercial venture he wants to visit. This has become a major disadvantage for the owners who have now been forced to look for alternative parking sites besides putting up a signage along the highway giving directions to the visitors. Rocky Kamboj, a land developer, says that the primary reason for such places coming on the highway was the haphazard development within the city where big land chunks were either unavailable or were not suitable for such ventures. Easy access was the main reason for this major shift, but ironically it has been lost. Incidentally, the return on investment in commercial properties in Jalandhar range between 7 to 10 per cent conservatively whereas the returns on the residential front vary from 4 to 7 per cent. The upcoming localities on the outskirts have been seen as the most preferable destinations for investments. Moreover, the prices in the city areas are relatively very high as compared to these locations, he added. Although Jalandhar offers large chunks of land for development and the city is expanding in the form of townships, there is a dearth of investors who are willing buy residential property. Davinder Sapra, a land developer from Phagwara, says that the global meltdown has also cast its shadow on the real estate scene in Jalandhar as lesser number of NRIs were investing in Punjab. But big builders are waiting for the right time to create World Class Facilities in Jalandhar which is also called the NRI capital of Punjab. Realtors are optimistic that Jalandhar will witness an upward trend in the residential sector once the integrated township projects get going. Although the investment is likely to be directed towards commercial segment, the residential sector would not be far behind with its share of upcoming projects and rolling investments they opined.
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TAX TIPS
Q. I am the owner of a piece of urban land which is situated within the city and has considerable value. I have filed Wealth Tax return on the basis of registered valuer’s report. However, the Wealth Tax Officer is insisting that he will have to make a reference to the department’s Valuation Officer for the purposes of determining the value of such land. Is it possible for him to ignore the valuation report of the registered valuer and refer the valuation to department’s Valuation Officer?
— S.K. Maini In view of the above provisions and Circular No. 96 (dated 25.11.1972) issued by the department, it is the Assessing Officer who has to determine the value of an asset for which specific provisions of the Schedule III are not applicable. Section 16A of the aforesaid Act provides that where the Assessing Officer is of the opinion that the value determined by the registered valuer is less than the fair market value, he may refer the matter relating to such valuation to the Valuation Officer. In my opinion therefore, the Assessing Officer can make a reference to the Valuation Officer in case he is not satisfied with the valuation made by the registered
valuer.
No exemption on interest on loan for plot
Q. I have purchased a plot and have taken a home loan for this purpose from the State Bank of India. I am paying the EMI regularly. I have purchased the plot to built a house on the site and have got the building plan approved from the Notified Area Committee. Since it takes two to three months at least to get the plan approved, I have submitted the plan to Bank again and have applied for a further home loan of Rs 25 lakh from the same bank. As I have bought a house property, can I claim deduction of interest paid on the amount borrowed for purchasing the lot. Can I also claim deduction under Section 80C for the entire principal repayment of such a loan? — Raj
Agarwal A. The answers to your queries are as under: The interest paid in respect of the loan raised for buying a plot is not allowable as deduction under any provisions of the Act. You would, however, be entitled to a deduction of interest paid/payable in respect of the loan raised for the construction of the house against income from house property. The deduction under Section 80C of the Act is allowable against the total income in respect of the repayment made towards the amount borrowed from a bank for the construction of a residential house. Such a deduction is not allowable for repayment of loan raised for the purchase of a plot.
Status of property
Q.I would be grateful if you kindly give your opinion on the following: — Avinash A. It is not clearly evident from the facts given in the query whether the ancestral house alongwith the
appurtenant land was inherited by your father from his father by virtue of a Will or it devolved upon him as an intestate property. Further it is also not clear whether the property was the self-acquired property of your grandfather or the same had been constructed by your forefathers and devolved upon the family after the death of the elders in the family. The issue regarding the ownership of the aforesaid property would thus depend upon the status of the property on which you and your brothers have constructed the houses. In case the property is a joint family property (having devolved upon the family), a partition deed will have to be executed so that each of the brothers and sisters (including legal heirs of the deceased), your father and mother will get equal shares in such property. Each one of you can sell his/her portion of the property. However, in case it was a self-occupied property of your grandfather and thereafter was inherited by your father by virtue of a Will or it otherwise devolved upon him and he became the owner of such property, he will have full right to sell any portion of the property. In such a case he will also have a right to make a Will in respect of the remaining property in favour any of the sons.
Wealth Tax return
Q. I have recently constructed a commercial complex in Gurgaon, and a part of this has been let out to various tenants. The other part has been sold. I have been advised that the let out building is subject to Wealth Tax and I am supposed to file the Wealth Tax return. Is the information given to me correct? — Satish Kumar A. The wealth-tax is leviable in respect of the net wealth on the valuation date of every individual, HUF and company at the rate of one per cent of the amount by which the net wealth exceeds 30,00,000. However, such net wealth is to be computed after considering the value of those assets which are specified in clause (ea) of Section 2 of the Wealth-Tax Act, 1957. One of the items covered in the said clause is any building or land appurtenant thereto whether used for residential or commercial purpose not including any property in the nature of commercial establishments or complexes. In my opinion, a commercial complex though covered within the term building for commercial purposes, will have to be excluded for the purposes of levy of wealth tax, being a property in the nature of “commercial establishments of complexes”. Therefore, if you do not have other assets which are includible for wealth-tax purposes as specified in clause (ea) of Section 2 of the Wealth-Tax Act, 1957, there should not be any necessity for you to file a wealth-tax return.
Case reference
Q. I am referring to your tax tips regarding sibling rivalry published in these columns (dated Nov. 29). I shall be highly thankful to you if you could give me some law point and any decision by the apex court of India regarding the legal division of the property on the basis of the amount contributed for the purchase of the plot and the construction of the house. — Krishan Chand A. The issue raised by you is covered by a decision of the Mysore High Court in CWT vs. H.H. Smt. Raj Kuverba (86 ITR 783). In this case the assessee held certain shares and debentures which were jointly held with her sons. These were acquired with the funds of the assessee. It was held that the value of such debentures and shares were includible in her wealth.
Saving tax
My query is
— Reetoo A. Your queries are replied
here under:
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Plan to plant
Satish Narula A successful gardener is the one who can foresee and plan gardening operations in advance. This applies to planting, selection of site, seeds, varieties and above all, the plant protection work. Now with the monsoon approaching fast, one should make preparations in advance to get the best results.
At a time when the sun is harsh, the pit should be kept open for a few days before refilling it. It should be refilled using the top soil and well rotten farmyard manure in equal parts. 30 gram of Lindane dust (5 per cent) per pit should be added at the time of refilling of pit. You can also add chlorpyriphos 20EC mixed with two kg of soil. The pit should be filled about six inches above the soil level. As the soil is loose, it settles with watering. Make up the level adding more of the soil-manure mixture. But why the pit should be made about a month in advance? This is due to the fact that the pit made in a hurry has loose soil and if the plant is planted immediately after filling the pit, it will tilt with the settling of loose soil on watering. At early stage you may not even notice the tilt. But the plant with lopsided growth breaks under its own weight when the fruiting starts. It has also been seen that the plants grown in pre-dug and filled pits show excellent growth. Anticipation of white ant attack is very important. The ‘quiet’ damage is revealed only when it is past repair. Although the growing season of plants is also the active season of the white ants, any application of farmyard manure is potential attack time. This is more pronounced when the manure is not properly cured. It is, therefore, essential to give treatment to the soil before such an application of manure. Even the lawns could be given treatment by the application of chlorpyriphos. The complete surface of the lawn is covered by slow movement while applying the chemical with a fountain fitted with a rose, starting from one end and finishing at the same point.
This column appears fortnightly. The writer is a senior horticulturist at PAU and can be reached at satishnarula@yahoo.co.in
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Home DECOR
As rain drops start pouring through the city it is time to ensure that our houses are not only weatherproof but are also well equipped and decorated to keep us warm and dry during the monsoon.
Lively and colourful
Use combinations of colours that are bright and lively giving a warm feel to your room. Moisture usually attacks cotton, silk and woolen; so it is advisable to use polyester and nylon bed linen. Kids generally tend to run around bare feet at home; it is advisable to place small rugs/mats next to the bedside as it will help in keeping the bed clean and dry. Keep selective wall-hangings on walls that would not be affected of the moisture. Wrought iron materials at home can be treated with anti-rust polish.
Sheer window magic
Monsoon is the season to have translucent window drapes. Invest in lace curtains or curtains without lining to ensure that the daylight passing through will bathe the room in a suffused glow. These curtains will allow sufficient amount of light to enter the room and at the same time provide the privacy that you seek.
Practical spread
Invest in bright, multi-coloured washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft as other synthetic fibres but they are very durable, water, static resistant, and offer extremely good value. They are also treated to be moisture and mildew resistant. Now-a-days there are a lot of options in the market; a cheaper option to this would be a decorative bamboo or coir mat.
Mirror, mirror
Mirrors hung on the wall can also help brighten up a dreary dark space. Large mirrors in pretty frames hung on the wall can add an elegant focal point to a room while helping to move light around and creating the illusion of a larger space. Bright colored paint can also help to bounce light around a room too.
Light up
One of the easiest ways to brighten up just about any room is by using diffused lighting; place lamps in the dark corners of your home that you want to brighten up and reflect the light off the walls or ceiling by aiming the lights there. This gives your room a nice bright glow without harsh directional lighting. You may also want to use brighter bulbs in some areas of your home which aren’t bright enough in the fall daylight.
Outdoor score
Care should be taken to prepare the outside of the house as well if you are not living in a flat. Ensure that you designate an area with a coat hanger and umbrella dryers to dry off wet umbrellas and raincoats. Somewhere close to the front entrance is ideal, as you would have guests coming in with their wet raingear. Remember to keep a good waterproof doormat in front of your house so that people can reduce the amount of mud that they might unintentionally bring in. The writer is senior
GM Retail Operations, @home
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Show Window
A steel door is a composition entirely made up of steel, layered with hi-tech honeycomb craft paper with an attractive wood finished appearance. Unlike the conventional wooden door at the main entrance these ensure safety without compromising on the aesthetics.
Five-in-one locking system, multi-layered door frame, termite resistant and moisture resistant doors are available in the price range between Rs 13,000 and Rs 16,000, and come in various sizes, designs and textures.
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Realty Bytes
MOHALI: Mariners Buildcon India Ltd (MBIL), a Delhi-based Real Estate Company working for the Indian Mariners, NRIs and High-end Professionals, is constructing its next housing project, `Mohali Oceanic’, on a 25- acre gated area in Sector 123 of Mohali. It will have around 200 independent expandable villas on a plot area of 300 sq yrd and built up area of 1,850 sq ft each. MBIL has joined hands with M/s Bajwa Developers Pvt. Ltd. (of Sunny Enclave) for the project. H. S. Anand, the Managing Director of the Company, said “We awaited the correction and bottoming up of the prices, which all signs indicate has been achieved. Now the project will also be more manageable as the Government of Punjab has reduced the minimum required area for a plotted housing colony from the existing 100 acres to a more reasonable 25 acres.” Mohali Oceanic, an exclusive colony for Mariners.
MAHAGUN MODERNE
New Delhi: Mahagun Real Estate Pvt. Ltd., has launched Mahagun Moderne, an exclusive residential project in Sector 78, Noida. The project is being developed on 25 acres with total residential saleable area of 13 acres, and 12 acres of total green area. The Project is designed to cater to the aspirations of a huge and fast expanding middle class. Involving a capital outlay of around Rs 1,000 crore, this definitely adds to Mahagun’s repertoire of initiating and successfully implementing biggest projects of recent past. The international class residential project will have 2,200 apartments with specifications of 3BHK, 4BHK and 5BHK with respective area of 1250 sq ft to 3825 sq ft along with state-of-the-art Leander Paes Tennis Academy, Dance and Music Academy, 100,000 sq ft of Mydriad Club with Restaurants, Gym & fitness center and Banquet Hall. To be built over a time period of next 3 years. The project has been designed by renowned international architect Hafeez Contractor. — TNS
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In what is being billed as the largest housing project launched by any government agency in the past decade, the Aerocity, which is being launched formally by the Greater Mohali Area Development Authority (GMADA) on June 7, is set to give the housing projects by private realtors in the area a run for their money. The scheme would close a month later on July 6.
Strategically located east of the Mohali city and in the vicinity of the upcoming international airport here, in the Aerocity GMADA is offering 4,000 residential plots, ranging between 125 square yards (5
marla) to 500 square yards (1 kanal).
Contrary to the expectations of the people in this part of the region, the Jalandhar-Ludhiana stretch of the GT Road has not proved to be a hot destination with the realtors.
Following the six-laning of this road, the real estate developers were upbeat that this development would ensure world-class facilities and connectivity from different parts of the state. But it has proved to be otherwise.
A. In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets which are includible in the wealth for the purpose of the levy of the Wealth Tax is to be determined in accordance with Section 7, read with Schedule III to the said Act. Schedule III does not prescribe any method of valuation in respect of the urban land. In the residuary clause of Schedule III, it has, however, been provided that the value of any asset, other than cash, being an asset which is not covered by Rules 3 to 19, shall be estimated to be the price, which in the opinion of the Assessing Officer would fetch if sold in the open market on the valuation date. The said Act also provides where valuation of any asset is referred by the Assessing Officer to a
Valuation Officer, the value of the asset shall be that which is determined by the Valuation Officer to whom reference
has been made by the Assessing Officer. 
My father has an ancestral house measuring about 3 kanal with a boundary wall around it. He has an approved map of it (dated l960).We are six brothers (four alive) and three sisters (two alive). My eldest brother is living 50 km away from my parents. The second and the third had constructed their houses on the land as allowed by my father. My fourth brother is living in the house constructed by our father over this land. I am the fifth one, and I had also constructed a two-room set over a piece of land with the consent of my father. My parents are living separately with the widow of my youngest brother, who has two school going children and is being supported by me. None of my brothers have supported my parents in any manner for the past 25 years. I have emotional attachment with my parents and serving them for the last 25 years in all respects. Now my father wants that since my children have grown up and I have my own responsibilities, so a portion of the land where he is living should be sold. Please advise me whether he can do so; and if yes, then can he sell this piece of land to a relative or blood relative? My father also wants that after selling a portion of it, the remaining be willed in favour of all brothers except my married sisters, who have no objection over this.
Q. I have sold my property for Rs 40 lakh and have booked a flat with a private builder. The cost of the flat is Rs 46 lakh, and I will pay the whole amount in lump sum. I have included two names (not haing any taxable income and don’t file IT returns) in the ownership of the flat. Thus the flat is in the name of three persons but major share (Rs 40 lakh) is mine, the balance amount (Rs 6 lakh) will be shared by the other two. The builder will give the possession by mid 2013. The property which I have sold not completed three years also purchaser has not registered the property yet. It will complete three years on June 25, 2010. 
At a time when we are wary of the artificially ripened fruits, we want to have as many fruit plants in our garden as the space permits. Most of the time one gets to hear the complaint that the new plant is not making good growth. The main reason for this may be not following the proper procedure of planting. The pit that is to receive the plant should be made at least one month in advance. For this, one metre deep and one metre round pit should be dug. 
In the dull and damp rainy season it is ideal to decorate your house in bright colours to liven up to your mood. Put away the blue and greens for the summer heat, they don’t go well with the monsoons. The monsoon season calls for lively bright and warm colours such as yellows, oranges and red to brighten up your rooms. Ideally dark colours should be avoided as the skies are generally overcast and you want whatever light that enters your house to be maximised by light colours and other reflective surfaces. At the same time, avoid very light colours such as white and cream. These are the colours which are very difficult to keep clean during the muddy rainy season. 
With the onslaught of the monsoon, it is the ideal time to keep your plants out in the rain to get watered naturally. So use outdoor planters made out of clay / ceramic / white cement and artificial plants/flowers in the same places indoors.
Roll away that expensive carpet for the monsoon. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open. 
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