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A home in the hills
Sound agreement
Ground Realty
Ceiling statement
Credai’s code for builders
LAUNCH PAD
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A home in the hills
The volume of development in areas around Shimla bears testimony to the lure of hills among people from all walks of life. The pristine Kulu and Manali region too, is not only a hot destination for tourists but for the people in real estate business as well. The Kulu valley with its temples and Manali with its snow-capped peaks and the gushing river water have breathtaking views strewn at every corner making every tourist to fantasise about having a home there. "The spectacular view and location were the main factors that made us decide to start our project in Kulu", says Ranjiv Kalia, Head Sales and Marketing, Ansal Buildwell Ltd.
Up the axis
Property in Kulu Manali is a money-turning affair as it offers various options in the residential segment, commercial property and leased properties as well. The realty market is giving good return and offering lucrative opportunities to invest money. "Though horticulture is the backbone of the local economy, tourism is also as significant as horticulture for the growth and overall development of the district", remarks B.S Nanta (IAS), Deputy Commissioner, Kulu. Rising number of tourists has increased the demand for hotels and guest houses besides ensuring a healthy flow of money in the market. Another factor that has contributed immensely to the growth of the area is the construction of Rohtang tunnel. This tunnel, once completed, would connect Manali with Lahaul Spiti which also has immense tourism potential. "Since the construction is going on and a lot of engineers and workers are involved in the project have moved in here with their families, the demand of housing has gone up and it has also given an upward thrust to rentals here", observes Girimer Maan, who has a resort by the name of Cassa Bella Vista in Manali. With the setting up of various facilities like winter skiing and adventure sports on the outskirts of Manali, a lot of the land which earlier was barren is a prized commodity now. This has significantly contributed to the spurt in property prices. "Another important factor which has caused the growth of real estate in Kulu-Manali is the Section 118. Now this Act says that non-Himachali's cannot buy agricultural lands, but on the contrary they can always invest in commercial property. So all these budgeted hotels, complexes , guest houses which are running in the area have investments by non-Himachalis which has contributed to the boom of real estate and have made land prices go sky high", observes H.P Singh, a local hotelier.
Pricing matrix
In the past 18 months the property prices in the area have increased by almost 40 per cent. In the residential segment not much choice is there in apartments/flats as not many big realtors are in the market here. There were a few units constructed by a private developer about four years ago but these did not generate a good response. A 2BHK apartment costs around Rs 20 lakh. "HIMUDA had invited some applications for flats, which would be allotted in February, 2012. They plan to construct around 100 units in over there", informs Jatin, a real estate Continued on
broker. The Ansals group's Rs 100 crore Kulu project will have 190 fully furnished residential units in 850 sq ft to 1,550 sq ft area in the price range of Rs 38 lakh and is likely to be completed in two years. Gandhi Nagar is the high density commercial area of Kulu where, the ongoing rates are somewhere around Rs 20 lakh per
biswa. With Manali being the hub of tourism and adventure sports, land prices are more than those in Kulu. "Here land is available only on the other side of the Beas at approximately Rs 10 lakh per biswa. There is no rent culture in the main commercial belt. It is all lease based, which is around Rs 5-6 lakh per year depending on the location." reveals Girimer Maan who has a resort in Manali. Manali is expanding towards Shanag and Gurwa, where land is available. In these areas the existing land rate is around Rs 3-5 lakh per biswa.
Fully loaded options
Fully furnished cottages and villas that are ideal as second homes fall in the luxury segment here. "As these are summer homes we are providing all facilities to the buyers who can just relax and enjoy there stay here without having to lose sleep over the nitty gritty of daily routine", says Kalia. The Ansals project will also have premium villas priced at Rs 1.5 crore onwards and the company is offering to maintain the apartments when they are not in use by actual owner. Cottages, too, are popular option here. "A cottage built on approximately one bigha of land costs around Rs 4.5 crore", reveals Mann who is planning to construct 20 fully furnished cottages near Manali.
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Sound agreement
Rate of interest
The rate of interest determines the EMI or equated monthly instalment. The rate of interest, generally, can be of two types - fixed and floating - though the latter is the most common these days. A teaser loan is another addition to this category. These cost less in the first few years.
Changes in base rate
Base rate is determined by an individual bank depending on various internal parameters, including RBI's changes in repo and reverse repo rates. Banks cannot lend at a rate lower than the base rate. The floating interest rate would be the base rate plus a spread. The spread is the premium the banks charge from customers. The base rate is an important tool in a bank's armoury and often makes changes to it in response to the market conditions. The consumer is impacted due to this as interest rate changes with change in the base rate.
Reset clause
In the case of a fixed interest rate, the rate is usually fixed but there is a reset clause which allows banks to reset the fixed interest rate in relation to base rate at particular intervals.
Force majeure
This phrase means 'greater force'. This implies that banks can raise the interest rates in exceptional conditions, even in a fixed rate loan. However, defining such a condition is left to the discretion of the bank.
Pre-payment penalty
The pre-payment clause explains the penalty that is charged if you decide to close the loan early by paying the amount due. Some banks do not impose any penalty while others differentiate this according to circumstances. For instance, when you refinance the loan through another bank opting for a lower interest rate such a pre-payment may involve a different and heavier penalty from the bank where you currently hold your loan.
Defining a fault
For you a 'fault' could simply mean not paying your EMI at some point in your loan tenure. However, some banks specify a fault as a case when the borrower expires, the borrower is divorced and stops paying (in case of more than a single borrower), or the borrower is/are involved in any civil litigation or criminal offence. Therefore, you must be clear about what your lender means by the term 'fault'.
Security cover
This clause states that a bank is eligible to demand additional security when property prices fall. Such a demand could exist even if you are very regular with your EMIs. In such a scenario, if you are unable to provide a security cover in addition to your loan amount chances are that you could be declared a defaulter by the lender.
Interpreting the clauses
Remember that a borrower's goal is to get the loan at the least expensive interest rate while a bank's goal is to lend at a profit. The different clauses mentioned above should, thus, be interpreted keeping this point in mind. Teaser loan features: Teaser loans charge you less interest first and then increase it to the market rate. If you are opting for this, make sure you understand the interest rate you will pay for the life of the loan. Most of the borrowers look at the next one to three years' EMI and decide accordingly. The right way is to see the projected EMI after three to five years when the teaser rates are done with. Floating rate loan: The banks usually increase floating interest rate as soon as RBI raises rates but do not lower it with the same enthusiasm. Fixed rate loan: Though fixed rates are fixed over the period of the loan, banks insert a clause for resetting the fixed rate based on market conditions. Considering this aspect, it could be better to opt for a floating rate as you might get the benefit when market conditions turn favourable for a lower interest rate. Pre-payment penalty: Discuss upfront with your bank about the pre-payment penalty they charge and whether it works differently when you opt to pre-pay and refinance the loan. Make sure everything is in writing. Currently, RBI has already insisted on implementing a measure to do away with prepayment penalty completely. Discuss this with your bank and see if you can avoid paying a pre-payment penalty alltogether.
Points to note
n It is always wise to calculate a rough estimate of the effective interest rate you will need to shell out for your teaser loan and see if that can fit into your long-term budget easily. Teaser loans can work to your advantage if you plan to close the loan in the short-term i.e. five to six years. n Though banks reduce interest rates as per the reduction in base rate, it could still be applicable to new borrowers only. Again the RBI has stressed that the benefits should be passed on to existing customers as well, so figure out with your bank if that could be possible in your case. Last but most important, document the discussion and take everything in writing. A home loan is too important to be taken on the basis of mere verbal assurances.
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Ground Realty
Cost of bricks has risen significantly over the past two years. In 2009, these used to cost Rs 2,800 per thousand. Now, the cost is around Rs 4,400 per thousand. And there is no visible fall in their demand. Good quality brick-stacks get sold as soon as these come out of the kiln. Brick kiln owners have realised that there is no substitute for bricks available. So they are on the look out to give another upward push to the prices.
Future prospects
Indians believe in composite construction done by use of bricks, cement and steel. No other material looks durable and suitable to Indians. Many new concepts have been tried by many companies from time to time. Portable houses built by using steel sheets and fibrous materials are being marketed rigorously by some firms. But to most Indians these can never give the feeling of a sturdy home and are nothing more than temporary shelters. Moreover, brick houses built over centuries have stood the test of time. So the Indian belief in bricks will stay intact till the time some really path-breaking and convincing substitute is found.
Tried alternatives
Hollow and solid concrete blocks have been tried as a substitute for bricks. But these have failed to get an enthusiastic response. Fly ash lime bricks have been produced by the small scale industry. These bricks don't use clay but lime, sand and fly ash. These are not burnt. These are also called FAL G bricks. The lime used in these bricks has to be only C class, hydrated lime as per IS 712. However, these too haven't seen a mass use so far as their production volumes are small and these are generally prescribed for buildings having less than two storeys.
Clay fly ash bricks
While the normally used bricks are burnt clay bricks manufactured with clay only, burnt clay fly ash bricks have been tried and found to be having much better strength and other properties than normal bricks. In these bricks, 25 to 30 per cent of fly ash is mixed in the clay before moulding it into bricks. All test results of these bricks are better than those of normal bricks. The only bottleneck in their production is that machinery is required for proper blending of fly ash with clay. The brick kiln owners are reluctant to invest in machinery as their normal production of clay bricks is already in demand.
The new concept
Now, under a new concept, South India is witnessing the production of hollow clay bricks. Known as Porotherm bricks, these bricks are fast gaining popularity in South that may soon spread to North India also. Size: Hollow clay bricks are being produced in three sizes: 16"x8"x8", 16"x6"x8" and 16"x4"x8". As can be seen from these sizes, while the lengths and thickness of the bricks remain the same i.e. 16 inch and 8 inch respectively, the width varies from 8 inches to 4 inches. Volume wise, a 16x8x8 inch brick is equivalent to 8 bricks of 9"x4 ½" x3", we use today. Similarly, the other two sizes of hollow clay bricks are equivalent to 6 and 4 normal bricks, respectively. Weight: The weight of the biggest size hollow clay brick with 8" width is 11 kg. The weight of 6" wide brick is 9 kg and that of 4" wide brick is 6 kg. A normal solid brick weighs around 3 kg and weight of 8 bricks works out as 24 kg. Thus a hollow clay brick that occupies the same volume as 8 normal brick shall weigh only 11 kg. This is significantly less than 24 kg. This means lesser load on the beams, columns and foundations which will result in significant reduction in their dimensions and cost saving. Water absorption: Clay bricks are porous. Yet these should ideally have a minimum possible water absorption property. Lesser water absorption of bricks means better resistance to dampness. As per IS guidelines, bricks should have a water absorption of less than 20 per cent when immersed in a bucket full of water for 24 hours. Hollow clay bricks fulfill this criterion for water absorption also. Strength: Being hollow, the strength of hollow clay bricks is about 35 kg/cm2. These are, therefore, best suited for non-load bearing walls or in RCC-framed structure buildings. After the Bhuj earthquake, everybody wants to have a quake-resistant house. RCC-framed structures are thus becoming popular in housing also. For such structures, hollow clay bricks are ideally suited. When the beams are 8 to 9 inch thick, single hollow bricks of 8" width or 2 bricks of 4" width can be used. For 10" wide beams, a combination of 6" and 4" wide bricks can be used and so on. Size variation: When we use conventional clay bricks, it is an important to check that there is no variation in their size. Such variations cause lots of problems to the masons who find difficulty in maintaining the lines and levels in masonry work. There is extra consumption of mortar in plaster work also. Hollow clay bricks are machine moulded and have no variation in size, thus eliminating this problem. Efflorescence: Complaints of shora appearing on the walls of the houses and damaging the costly finishing work are common. This happens when the bricks contain free lime which erupts after sometime when the moisture soaked by the bricks during rainy season begins to dry. It evaporates, leaving the shora on the surface of walls. This can be avoided by selecting efflorescence free bricks. Hollow clay bricks are free of efflorescence. Their hollowness also helps in restraining the eruption of efflorescence, if any, on the walls. Burnt or not? Like conventional clay bricks, hollow clay bricks are also burnt bricks. These are burnt at a high temperature of 900 C. This, in a way, makes them fire safe. In case of fire, these don't burn. In fire protection terms, these have a value of F90/F120 which means that the user gets a time of 90 to 120 minutes to escape before the fire harms these bricks. Cost comparison: The cost of 8 normal bricks at the present market rate works out as about Rs 32 to 35. One hollow clay brick costs about Rs 32 at production site. Depending upon the lead involved, the cost of hollow bricks at site can be worked out and compared with that of normal bricks. There is less consumption of cement mortar when hollow clay bricks are used because of their bigger size. So these are not too expensive. Colour: Hollow clay bricks are also reddish in colour like the normal bricks. While there is a colour variation in conventional bricks, hollow clay bricks have a strikingly uniform colour. Thermal insulation: A major plus point of hollow clay bricks is their thermal insulation property. Perforations in these bricks act as air cavities and there can't be a better way of having thermal insulation than creating an air cavity. During summers, these help in keeping the house cool and cut AC bills. What is desirable: Presently available hollow clay bricks are horizontally perforated. These need to be made vertically perforated. Once that is done, these bricks shall become load bearing and can even help in eliminating some RCC beams and columns in houses. (This column appears
fortnightly)
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Ceiling statement
Attractive colours or patterns, decorative wall panels, furniture, show pieces, indoor plants all are elements that are usually considered important in defining the internal ambience and the overall environment of a home or a work place. The use of designer flooring, natural stone, and carpets has made the floors, too, enter the set of design considerations. Ceilings, too, play a vital role within an interior space. They offer the maximum unobstructed view in a room and thus never fail to catch the eye.
Ceiling décor is an important aspect of interior design and can play a vital role in defining the look and the feel of a room. Having a false ceiling is just one way to enhance a room's aesthetics. It is no surprise that false ceilings are slowly forming an integral part of any interior design for new and old constructions. False ceilings are suspended a few inches below the structural ceiling on a metal framework. Though having a false ceiling may appear as a slightly expensive proposition at first, it has distinct functional as well as aesthetic advantages which make them well worth the money.
Why go for a false ceiling
On a functional note, false ceilings offer excellent insulation against heat due to the air gap between the two ceiling layers. Also due to a smaller air volume, your power bills due to air-conditioning will be reduced significantly. On the aesthetics front, all your services like wiring, ducting and insulation can be concealed within the false ceilings. Lights can be inset into a false ceiling, which prevents having to dust them while providing you with a clean, level surface below. False ceilings also offer a smooth finish, which improves the light reflectance off the ceilings. This is turn makes better use of natural lighting by day and the need for artificial light sources. Easy on maintenance, functional and aesthetic appeal makes false ceilings the most practical ceiling décor.
Building a good false ceiling
Both gypsum plasterboards and POP boards have been used in the construction of false ceilings in India. In most of office and commercial interiors, gypsum plasterboard based false ceilings are used as these are faster to construct and are stronger than the traditional POP ceilings. Gyproc gypsum plaster board ceilings can support light fixtures as these are not brittle like POP ceilings.
Cost
A plain false ceiling with genuine Gyproc metal framing and accessories will cost approximately Rs 65-70 per sq ft installed while a designer ceiling variant with patterns will cost about Rs 90-100 per sq ft installed depending on the design variations. The writer is MD, Saint Gobain Gyproc
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Credai’s code for builders
Apex realtors body Credai has made mandatory for all members of the association to mention carpet area in their brochures and sale agreement, aiming to bring in transparency in the sector.
Confederation of Real Estate Developers’ Association of India (Credai), which has over 10,000 builders as member across the country, has decided that in the next six months all the members would individually sign a Code of Conduct. The major highlight of Credai’s Code of Conduct are — mentioning the actual usage area to buyers (Carpet area), compensation in case of project delay and honouring of the agreement between the two parties. “We will ensure that all the Credai members sign the Code of Conduct within six months. In Code of Conduct, we have made mandatory for members to mention Carpet area along with super area,” Credai Chairman Pradeep Jain told reporters. Generally in North India, developers sell on the basis of super area, which comprises the entire built up area and markup for common spaces like lifts and stairs. Credai President Lalit Kumar Jain said the association would not compromise on transparency and discipline. The industry body also decided to set up consumer redressal forum across the country to resolve disputes. “If we find somebody engaging in malpractices then we will terminate the membership of that particular builder,” he said. The industry body has planned to expand to smaller cities in Assam, Orissa, Jharkhand and Rajasthan in the next three months, he added. Jain said the Credai has sought time from Prime Minister Manmohan Singh to make a presentation on solution to issue related to transparency in the real estate sector. Last month, Singh had said stamp duty needed to be reduced in order to check flow of black money into real estate sector, aiming to bring in more transparency. “There is no black money in primary transaction, it is basically there in the secondary transactions... To reduce the usage of black money, single window clearance is important,” Jain said.
— PTI
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Tax Tips
My queries are as follows:
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Is it necessary to buy a residential property in exchange of the house sold Or Can we buy a plot also?
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I and my daughter should have a joint account to get DD from the buyer or should we take separate DDs in separate accounts? Is it necessary to buy new property jointly or can I buy it solely in my daughter's name? n
If we don't spend all the money what are the tax liabilities of remaining money?
— Mrs Shashi A. Your queries are replied hereunder: n
The capital gains tax would be exempt from tax only if you construct a residential house within the period of three years from the date of sale of the old house or buy a residential house within one year before or two years after the date of sale of the old residential house. If you have intentions to construct a new house, buying of the plot can be a process towards the same purpose. However, land must be purchased before the date of filing of the Income Tax Return or the capital gain arising on the sale of the house will have to be deposited in a designated bank account under capital gains scheme. You will have to withdraw the money from the said account for acquisition of the plot and for constructing a new residential house thereon. n
It will be advisable to take a separate demand draft in your name as well as in the name of your daughter because the capital gain will be assessable in your hands as well as in your daughter's hand separately. Each one of you can invest the capital gain so earned separately in the acquisition of a new house or buying of infrastructure bonds for the purposes of saving capital gains tax. The bonds have to be purchased within six months of the date of sale of the residential house. n
The capital gains would be taxable in your hands as well as in your daughter’s hand @ 20% thereof plus applicable education cess thereon.
Mortgage & inheritance
A. The Supreme Court has held that where a mortgage was created by the previous owner during his life time and the same is subsisting on the date of his death, the successor obtains only the mortgagor's interest in the property. Thus by discharging the mortgage debt he acquires the mortgagee's interest in the property and, therefore, the amount paid to clear off the mortgage is the cost of acquisition of the mortgagee's interest in the property which is deductible as cost of acquisition under Section 48 of the Income-tax Act, 1961 (The Act) - (VSMR Jagdishchandran v. CIT) [1997] 93 Taxman 389 (SC).
Is plot with construction a residential house?
A. You have not clarified in the query whether the “pucca two-room structure” is a residential house. The term residential house has not been defined in the Income Tax Act, 1961 (The Act), but the courts have held that a residential house referred to in Section 54 and 54F of the Act should be such as is habitable. Therefore, in case such a structure is a residential house and you intend to seek exemption from the taxability of the capital gain arising on the sale of such residential house, you would be required to utilise the amount of capital gain only for the purchase or construction of a new residential house. However, in case the pucca structure referred to in the query is not a residential house, the entire amount of ‘Net Consideration’ would be required to be utilised for the purchase or construction of a residential house. ‘Net consideration’ for this purpose means the consideration for the sale of the capital asset received or accruing less expenditure incurred wholly and exclusively in connection with the sale of the capital asset. It may be added that for the purpose of seeking exemption, the purchase of a new residential house is required to be effected within one year before or two years after the date of sale of capital asset and the construction is to be effected within three years after the date of sale of the capital asset. Further, if the amount of capital gain or net consideration, as the case may be, is not utilised towards the above purpose before the due of date of filing income-tax return, it is required to be deposited in a designated account with a bank under capital gain scheme account. The amount so deposited can be utilised for the purchase or construction of a new residential house within the period as aforesaid.
The writer can be contacted at sc@scvasudeva.com
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LAUNCH PAD
Taneja Developers and Infrastructures Ltd. (TDI) group that is coming up with two township projects in Mohali recently launched its housing project “Tuscan Residency” in TDI City in Sector 110-111, Mohali on Landran-Banur road. The real estate major is entailing an investment of Rs 750-800 crore in its two township projects in Mohali. One of the township projects is spread across 300 acres and the other over 150 acres. The company is looking at an investment of Rs 500 crore in its first project (Sectors 117-119) over the next three years and might expand this township to an area of 500 acres.
Tuscan Residency will offer ergonomically designed individual floors as G+2 on a plot size of 200 sq yards. Strategically located at the entrance of TDI City, this will host an array of international standard amenities and features. “The advantage of these houses is affordability, with no EMI, no interest till offer of possession is given. The customers will have to pay only 20 per cent and the remaining amount is to be paid after offer of possession,” said Sanyam Dudeja, COO, TDI. Besides, Mohali, the realtor is also coming up with a mall in Sector 17, Chandigarh. “This mall is now complete and we hope to open it by August this year,” said Dudeja. Dudeja said that they were also looking at developing a commercial project in Jalandhar. We have a one acre prime piece of land in Jalandhar, and we are proposing to come up with a mall-cum-hotel there,” he said.
Astaire
Real estate developer BPTP Ltd has launched its second premium township Astaire Gardens at upcoming Sector 70 A, off NH-8 in Gurgaon. ”Spread across 102 acres, Astaire Gardens is an eclectic mix of contemporary design comprising plots, independent floors and villas, large plot sizes, 24x7 facilities, security, a state-of-the-art health centre, schools, a creche, sanctuary and the club,” BPTP Ltd Director (Strategy & Systems) Sandeep Bedi said. “We are the first real estate player to launch two unique townships in Gurgaon in such a short span of time. We are very enthused by the success of our first township, Amstoria, and we are confident Astaire Gardens will get similar response,” he said. ”Astaire Gardens comprise 45 per cent open and green areas and is ideally located off the NH-8 and Golf Course Extension Road with a panoramic view of the Aravallis,” the company’s Senior Vice-President (Marketing) Amit Raj Jain said. With an entry threshold of Rs 60 lakh, the property is most competitively priced, Jain added.
— PTI
Empire Estate
The Logix Group has launched its residential project - Empire Estate - at Yamuna Expressway, Greater Noida. Spread over 200 acres, Empire Estate will be an exclusive gated community offering residential plots ranging from 100 to 500 sq. yd. The plots measuring 100, 200, 300 & 500 sq yards have been priced Rs 14.85 lakh onwards. Speaking on the occasion, Shaktinath, MD, Logix Group said, "After creating landmarks in IT commercial projects, Logix group is catering to the rising demand of residential plots, especially in the NCR. The demand for plots is high here due to better infrastructure, job opportunities, high disposal income and better connectivity. Moreover, Yamuna Expressway has high potential to generate traffic and economic development." The community will have amenities like club house with recreational facilities, 3 tier security, kids play area, school, nursing homes, high-end resort, swanky shopping malls and healthcare facilities.
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The realty scene in Himachal Pradesh by and large remains as cool as its climate, barring a few pockets. Strict land ownership rules and a fragile ecology are generally big barriers for over ambitious developers. Over the years many of the over-zealous projects have landed in soup for messing with environment and for threatening the 'green balance' of the hills.
The realty scene in Himachal Pradesh by and large remains as cool as its climate, barring a few pockets. Strict land ownership rules and a fragile ecology are generally big barriers for over ambitious developers. Over the years many of the over-zealous projects have landed in soup for messing with environment and for threatening the 'green balance' of the hills. But the changing lifestyle of the local population as well as the ever burning desire of the jet setters to have a "summer home" in the hills have kept the traffic of builders and new projects on a steady keel in the state.
The group recently launched its project "Meadows" at Arun Hills in Kulu. With tourists thronging Kulu-Manali throughout the year now there has been rapid development in the area. As a fall out of this people from different areas are attracted to this area and over the past few months the prices too have shown an upward trend making it a sound investment to have a house here. "Even former Prime Minister Vajpayee has his summer retreat here. I have a second home here to enjoy the peace of nature and it has been a good investment also as the property has shown considerable appreciation in the past 18 months", says Vijay Kundu, a Delhi-based businessman, who has his summer cottage in Manali.
Easy availability of home loans has made the dream of buying a home an achievable one for many. But remember to go over the paperwork thoroughly as your home loan may eat up a lion's share of your salary over many years. Scan your loan agreement thoroughly to understand what each clause implies before you sign on the dotted line.
The bricks that a common user knows about are the ones that we see everywhere - red coloured, 9 inch long, 3 inch thick, 4 ½ inch wide and can be bought from a brick kiln. These are an essential building component and among the first materials that arrive at site whenever construction is about to begin. Constructing a house without bricks is unthinkable, at least in India.
Q. My husband bought a plot on which we constructed a house in 2000 by taking loan from his department. He died in 2006 leaving me and my daughter (major) as the legal heirs of the property. We have sold the house for Rs 50 lakh.
Q. My father had mortgaged his house during his lifetime for obtaining funds for the marriage of my sister. The house has been inherited by me with the mortgage. What would be the position of the mortgage amount? Will it be treated as part of the cost of acquisition for the purpose of computing capital gains tax?
— Ashmeet
Q. I am going to sell a plot having a pucca two-room structure for which I have received commitment money (byana). But there is no mention of the structure in the byana agreement. The agreement includes a clause to execute a sale deed within six months from the date of agreement. Please clarify if I can include the two-room structure in the sale deed to enable me to purchase a flat in Panchkula with the amount of money received from the sale of the plot. Will I get exemption from capital gains tax liability as a result of the sale of the plot?
— Rajesh Jasra