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HIGH-RISE TIME
Property prices up in Delhi
REALTY BYTES
tax tips
DLF launches 1,300 plots at Indore
LAUNCH PAD
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HIGH-RISE TIME
Factors that matter
Real Estate in the city has been growing at a rapid pace. Ludhiana has attracted a huge number of real estate investors because it is the economic capital of Punjab. "As it is the commercial capital of the state, people from nearby areas like Bathinda, Batala, Ferozepur, Moga etc, too, park their funds for investment in Ludhiana expecting high returns", observes Deepak Badyal of Badyal Realtors. With people from all around pumping in money the realty market is extremely buoyant. "In the past six months the average return on investment in property in Ludhiana has been 15-20 per cent. The real estate market in Ludhiana is in acceleration mode", says Deepak Bhasin of Rajgadh Estates. Ludhiana is one peculiar market where the demand for actual housing is more, and it is mostly the end users who buy these products. "Ludhiana attracts working population from all around. Seeing the good educational facilities people even from the neighbouring areas move in to the city. So the demand for housing over here is quite genuine and it is one of the major reasons that most of the products get sold off", tells Badyal. As the demand for housing is huge, the projects get sold off quickly and the execution and delivery of projects also happen very fast. "Our Turn Around Time [TAT] for handing over possession has been exactly 18 months from the last sale. Our project is 90 per cent sold out and we are now in the process of getting the land registered in the name of our clients", says Deepak Pandey, GM Vipul World. One of the recent trends in Ludhiana is the transformation of existing residential properties located in the heart of the city into commercial complexes. Pakhowal Road is the area where a number of office-cum-retail projects are coming up. DLF has a huge commercial land bank, but they are not developing it as of now. Mohit Gujral of DLF says, "We bought the land for retail initiative, but the retail scene in Ludhiana is not exactly buoyant at the moment. There is more supply than demand for commercial space here. As a result it is not the appropriate time for us to develop the property because if we develop it now we won't get the expected returns". At times the demand for real estate products in Ludhiana tends to be a bit cyclic, as it is linked with the cycle of hosiery goods manufacturing. So what it means is that in winters there is more trading of properties and summer is usually a lean period.
Pricing and projects
"Our project is spread over an area of 36 acres and we have a wide range of
Even in Vipul World, which is a 109-acre PUDA-approved Integrated Township, plots are available at the rate of Rs 13,000 per sq. yard. "Even our SCO, which is on 56 sq. yd plot with three fully built floors, comes with a price tag of Rs 61 lakh", adds Deepak Pandey, GM of Vipul World. Floors are quite popular with the working class over here. They are easy to rent out as well. "We are offering villas on 295 sq. yd area at Rs 73 lakh. Even our floors built on 295 sq. yd on G+2 structure come in the price range of Rs 44 lakh for ground floor and Rs 35 lakh for the first floor", says Vikram Tangri of Eldeco Mansionz, which is a 78-acre project on Jalandhar road. All these projects are high on features like hi-tech security and fire fighting system, 100% power back up facility, rain water harvesting, high speed elevators, children's play area along with RO water system. Even in the city as such the volumes of resale of properties is quite high. The rate in Sarabha Nagar is around Rs 80,000 per sq. yd while that in BRS Nagar and Agar Nagar is around Rs 65,000 per sq yd and Rs 50,000 per sq yd. In the upcoming areas like Dhanadri Kalan and New Ashok Nagar the rate is around Rs 7,000 per sq yd. "The new destination which has become the preferred address for Ludhianvis is South City or we may call it Greater Ludhiana. Since the area is new, so vehicular movement is less and the existing rate is somewhere around Rs 20,000 per sq yd", says Badyal. Even the commercial property is in for a boom. An SCO in Feroze Gandhi market comes at a cost of around Rs 8 crore and that in Jamalpur is somewhere around Rs 5.5 crore. Rentals, too, are quite steep. Feroze Gandhi market commands a rent of around Rs 80-125 per sq ft, while that on Chandigarh road is around Rs 40-75 per sq ft.
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Property prices up in Delhi
Property prices in the national capital have increased by up to 28.02 per cent in the January-March period this year in comparison to the year-ago period as per the report of real estate portal 99acres.com.
"Capital values in Delhi continue to move upward even though the market seems to be in a phase of stagnation and (there is) lots of talk about imminent price reduction," 99acres.com Business Head Vineet Singh said in a statement. According to the study, prices went up by 28.02 per cent in Dwarka Sector 11 to Rs 7,100 per sq ft during the quarter ended March 31, 2011, from Rs 5,546 per sq ft in the same period last year. Other locations such as Dwarka Sector 2, Sarita Vihar and Rohini also witnessed property prices climbing by over 25 per cent in the first quarter of this year compared to the corresponding period of 2010. The survey said the most important factor fuelling the land rate hikes in Dwarka is Delhi Metro connectivity, which has "emerged as the turning point for real estate prices" in this region. The lowest price growth happened in Uttam Nagar, where rates grew by 8.01 per cent to Rs 2,846 per sq ft from Rs 2,635 a sq ft in the January-March period last year. Talking about the future, Singh said the growth has moderated to an average of 15 per cent, which is about 5 per cent lower than the market sentiment. "So, if the present trend continues, we'll see price stability in Delhi going forward. But, as of now, I do not see any price reduction happening. At its best, the rates will stabilise," he added. Property prices jumped by up to 19.94 per cent in Noida to Rs 3,372 per sq ft, while they soared by 41.93 per cent in Gurgaon during the first three months of the 2011 calendar year vis-a-vis the year-ago period, the statement said.
— PTI
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Ground Realty
Meticulous maintenance of papers and records during the construction of your house can go a long way in helping you to keep things under control. Construction period normally spans over one to two years. One tends to lose track of quantities of materials purchased, payments made to different labour gangs, dates on which the machinery, scaffolding or shuttering was hired and many other things. Your papers help in retrieving the forgotten points, avoiding over purchases as well as over payments. And by the time the construction work is completed you will have an invaluable store of information that may be of help to relatives and friends. Let's have a look at the papers and records that should be maintained by you:
Records: The most important record is the sanctioned plan and other drawings of your house. Have a number of sets as one or two sets often get damaged or torn due to repeated referring to them by the working gangs. Get very light thin muslin like cloth affixed behind these drawings for their longer life. Keep the original sanctioned copies safely. Keep the plot purchase and possession papers, copies of papers for getting various types of connections and all fee deposit receipts safe and secure. Contact records: Your mobile phone may be having the contact numbers of the material suppliers and labour contractors for immediate contact by you but note their addresses, landline and mobile phone numbers in a diary also. In case of suppliers, note the names of materials that were supplied by them against each supplier's name as each supplier may be supplying many types of materials. Keep the visiting cards in a separate visiting card diary. Record of material quantities: Maintain a complete record of each and every material purchased by you for the construction of house. Assign one page of the diary or register to one material; number the pages and make an index of all in the beginning. As and when a new material is purchased, assign a new page to it and add it to the index also. Make the columns: Date, Source, Quantity, Cumulative quantity, rate, amount, cumulative amount on each page. In the end, you will know the exact quantity used of each material along with the amount spent on it. Sometimes, some materials become surplus and are returned to the suppliers. Make minus entries for them. Expenses record: Many people are jittery about maintaining a cash book as they don't know the method of maintaining it. In that case, devise your own system. Keep a complete record of all the payments made by you. Assign separate portions of the diary or register for the payments made for purchase of materials, labour, hire charges and other miscellaneous payments. Under each portion, make the columns: Date, Paid to, On account of, Mode, Amount, Cumulative amount. Under the mode, mention the cheque or DD details or cash, as the case is. The diary will help in avoiding over payments and a complete picture of the total amount spent on the house. In the end, even a technical data can be worked out of it i.e. percentage of total expenditure on materials, labor, cement, steel, woodwork, etc. Feel wiser and guide others. Item-wise expenses record: The above expenses record won't readily give you the total payment made to each supplier or each labour gang. For this, an item-wise simultaneous record is also needed to be kept. In this record, assign a page to each supplier or labour contractor and keep making date-wise entries under each head. Certain materials like cement, steel, bricks keep arriving throughout the construction period. This record helps you in squaring up the final bill of each supplier or labour contractor. Labour contractors are often erratic and tend to forget some payments made by you. As and when an expenditure is made by you, make entries in both the expenses-diaries. Making entry in one but keeping that pending in the other may jeopardise your accounts. Receipts record: In the same diary, keep a separate record of all sources of money utilised to make payments for the house. You may have spent from your deposits, savings, bank loan, loans from relatives etc. Note all receipts date wise with full details. Let the columns be: Date, Source, Mode, Amount, Cumulative amount. Event calendar: Maintain an events calendar. Dates of all important milestones should be noted in it. Dates of bhoomi poojan, start and completion of the excavation work, completion of foundation, laying of DPC, laying of RCC slab, laying of first floor slab, removal of shuttering under each, start of plastering and flooring and so on should be noted in it. Continue updating this calendar till the completion of job in all respects. Daily Diary: Maintain a daily diary. Everyday, make an entry in it. Note the work done or other notes. If there is rain and no work could be done, make the entry, 'Rain, no work today' for that date and so on. Note the visits paid by the architect also. Voucher Record: Keep a date-wise record of all vouchers. Let there be separate files of vouchers for supply of materials and labour payments. As and when you make payments to labour contractors, you must prepare a receipt, affix revenue stamp on it and get it signed after satisfying him that the amount entered on the receipt is the same as paid to him. This effort of yours will hold the labour contractors from demanding unnecessary claims from you that you have made lesser payments to them. Conduit and line drawings: As and when the works of laying electricity conduits, water supply lines and sanitary lines are in progress, note their exact running locations in the walls and mark the three lines in different colours on a drawing sheet. Later, you'll know the exact position of these concealed conduits and lines for maintenance work, if ever to be done. It is simple: It is simple to maintain above record and paperwork. Once you initiate the files and diaries or registers and make all the columns in them, only a few minutes are required every day to make the entries or to file the papers. If your papers are complete and updated, a complete picture of all consumptions and expenditure will remain in your mind. So go ahead. Happy recording! (This column appears
fortnightly)
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Awarded
Jones Lang LaSalle has been named 'Best Property Consultancy' in Asia Pacific at The Asia Pacific Property Awards 2011 in association with Bloomberg Television event held in Shanghai earlier this week. The firm dominated the award categories across 10 countries in the region, winning the 'Best Property Consultancy' awards (five-star) in Australia, China, Japan, New Zealand, the Philippines and Singapore, and Highly Commendable awards in Hong Kong, India, Taiwan and Thailand. The firm also won 'Best Residential Development Marketing' for Meridian Hill, 81 Broadcast Drive, Kowloon Tong, Hong Kong. Three other mentions were received for the following: l Property Consultancy Website - Thailand l Residential Development Marketing - No. 35 Barker Road, The Peak in Hong Kong l Property Consultancy Marketing - 420 George Street in Australia "This is certainly among the most satisfying in a spate of recognitions acknowledging our superior services and market leadership in the real estate consultancy domain," says Anuj Puri, Chairman and Country Head, Jones Lang Lasalle India. "The Asia Pacific region is certainly the global 'boom town' for the property market, and we are gratified at receiving an award that is focused on this region." As the regional winner, Jones Lang LaSalle will move forward to compete against other winning companies from Europe, Africa, the Americas and Arabia for the World's Best Property Consultancy category, to be announced later this year. Godrej Properties launches YouTube channel
Godrej Properties, the real estate development arm of Godrej Group, recently launched its YouTube Channel with an aim to offer viewers an easy access to videos of its upcoming and ongoing projects pan-India. Walkthroughs of projects, including apartments will be posted to highlight various amenities and facilities that the project would provide thus giving viewers a chance to get an actual feel of the property. The company will be updating the bulletin board to notify viewers on any new videos uploaded on the channel and will gradually allow viewers to post any queries with the company thus making it an interactive experience, the company said in a statement in Mumbai. "YouTube is an interactive portal and is all about sharing videos. This platform will help viewers and customers connect with us easily and in an interactive manner," Godrej Properties' Vice President(Sales & Marketing) Girish Shah said. — PTI
New project for Acron Infra
Acron Infra Projects of Mumbai has been awarded the work of constructing a large residential complex in Pune. Acron Infra Projects will construct four residential buildings comprising of 25-storey each encompassing a large area of 600,000 sq ft. "Acron Infra is fully geared to take on interesting and challenging projects like hotels, hospitals, stadiums and public buildings, residential and commercial structures. Acron Infra is an EPC company of repute providing its considerable execution skills to clients", said Amar J. Britto, Director, Acron Group. The company had recently been awarded the work of constructing a large residential complex in Electronic City, Bangalore. Acron Infra Projects will construct seven multi-storey residential towers each comprising stilt plus twelve floors with a total area of over half a million square feet.
Parsvnath and Unitech ’s net down
Parsvnath Developers have reported decline in its consolidated net profit at Rs 28.09 crore for the quarter ended March as the company did not launch any new projects. It had posted Rs 34.71 crore in the year-ago period. Revenue fell by nearly 30 per cent at Rs 251.96 crore in the fourth quarter of 2010-11 against Rs 358.49 crore in the same period of 2009-10, the company said in a statement. During the entire 2010-11 fiscal, the net profit rose by 4.58 per cent to Rs 141.05 crore against Rs 134.86 crore in the previous fiscal. The revenue fell to Rs 931.35 crore as against 952.15 crore in the review period. When contacted, Parsvnath Chairman Pradeep Jain said: “Our net profit and revenue declined in the fourth quarter as we did not launch any new projects”. Country’s second largest realty firm Unitech has reported nearly 16 per cent decline in its consolidated net profit at Rs 567.66 crore in 2010-11 fiscal due to higher return from assets sales in the previous year. The company had posted a net profit of Rs 675.05 crore in 2009-10 fiscal. Net sales, however, rose by 8.7 per cent at Rs 3,187.09 crore in the last fiscal against Rs 2,931.33 crore in 2009-10, the company said. In the statement, the company said it had sold 9.16 million sq ft worth Rs 4,323 crore in 2010-11 fiscal and is targeting to achieve Rs 5,000 crore this fiscal (FY’12). Unitech also clarified that “the ongoing telecom matter pertains to Unitech Wireless Tamilnadu Ltd (Uninor), which is a separate legal entity engaged in the telecom business, and will not impact Unitech Ltd (the real estate company)”. —
PTI
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tax tips
No tax liability
Thereafter, I purchased a new flat on March 4, 2011 at a cost of Rs 50.3 lakh in the joint names of me, my wife and my son also joined and contributed a sum of Rs 5 lakh. The conveyance deed was executed in the names of me, my wife and my son. The rest of money was arranged as shown in the table(See below) Kindly advise whether any capital gain is required to be paid particularly when my son has joined in the conveyance deed of the new flat. His name did not appear in the flat (DDA) sold by us. Please advise on how to file the calculated paper with Income Tax return. — P.K. Bansal A. On the basis of figures indicated in the query, long-term capital gain of Rs 7,17, 232 arises on the sale of the residential house. This has been computed by taking into consideration the applicable cost inflation index in respect of the cost of the flat and improvement effected on April 6, 2006. Your share of investment in the new residential house purchased within two months of the date of sale being more than the amount of capital gain, no tax will be leviable on the amount of Rs 7,17,232. The relevant computations are as under:
Get possession in time
Q. My wife sold a flat in Delhi for Rs 50 lakh for which full value of consideration calculated by our tax consultant is Rs 47.76 lakh. After deducting the relevant cost of acquisition of Rs 18.37 lakh after indexation, the net amount to be invested for purchase or construction of new property within three years works out to Rs 29.39 lakh. From this said investable value, around the time of flat's sale, she has purchased a builder's flat (independent floor) due for construction, worth a builder's consideration amount of Rs 27.32 lakh in NCR, Haryana. So far an amount of Rs 25.95 lakh has already been paid to the builder on down payment basis. My queries are as hereunder: n Is it imperative that the possession of the NCR flat, be obtained within a maximum of three years from the date of sale of the older flat (which means latest by May, 2012). It seems unlikely as the buyer's agreement which company asked us to sign in October, 2010 (during midway of construction) indicates that the possession will be handed over within 24 months of the signing of the sale agreement, with six months grace period if required by the company. The current status of construction indicates nearly 60 per cent completion only. n Even though the balance sum of Rs 1.37 lakh remains to be paid at possession, can we pay this amount if the builder agrees to comply with the requirement of maximum utilisation of net amount of sale. Even if we do this, the balance amount remaining unutilised would be Rs 2.07 lakh (29.39-(25.95+1.37) which we were estimating for the registration of the. sale deed, interior fitouts etc. n I would also inform that in October, 2009, an amount of Rs 7.5 lakh was kept aside and put in for Capital Gain Fixed deposit for one year with a nationalised bank and renewed in October, 2010 for one year again. I request for your necessary guidance on the implications of capital gain, and necessary suggestions in view of the situation we are faced with. — Balraj Kumar As mentioned above, a period of three years is applicable to construction of a residential house. The relaxation in respect of allotment of flats under self-financing scheme of DDA to be treated as a construction of flat has been extended to co-operative societies and other institutions whose schemes of allotment and construction are similar to those of DDA. However, such relaxation may not be applicable to a builder's flat. It would, therefore, be advisable to look into the agreement with the builder and if it is in the nature of a buyer's agreement, you should approach the builder and get the possession of the flat within a period of two years after the date of sale of the old flat so as to avoid the taxability of capital gain arising on the sale of flat.
Take loan from wife
— Sumit Singh A. Your queries replied hereunder:
No tax on gift to son
Q. My uncle is 62 years old and his son is working with an MNC who is running a home loan from a nationalised bank to the tune of Rs 30 lakh. The current outstanding on the home loan is 27 lakh. My uncle has sold of his property which was constructed in 2003 and had cost him 12 lakh + 1 lakh interest, which he had paid towards servicing the loan. Now the loan amount has been repaid and he has sold that property for Rs 40 lakh. He now wants to help his son with the repayment of his home loan and wants to gift these Rs 40 lakh to his son who, in turn, intends close his home loan and invest the remaining amount in purchasing a plot. I want to know the tax liability of my uncle as well as his son and how much tax, if any, will have to be paid in such a scenario if a father wants to gift money to his son. — Tanmay A. Your uncle would be liable to pay tax on capital gain arising on the sale of property. On the basis of figures given in the query long-term capital gain of Rs 21,57,235 would arise on the sale of the property. Your uncle will be liable to tax @ 20 per cent plus education cess of 3 per cent thereon. The above computation is based on the presumption that the property was sold in financial year 2010-11. Your uncle can gift the amount of Rs 40 lakh to his son. There would not be any tax liability on the transaction of gift. Your uncle will, however, be liable to pay tax on capital gain arising on the sale of property from his own sources in case the entire amount of Rs 40 lakh is gifted to his son.
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DLF launches 1,300 plots at Indore
As part of the company's strategy to focus on plotted development, the country's largest realty firm DLF today launched 1,300 plots at Indore, expecting a sales realisation of about Rs 300 crore from it.
The company is developing an integrated township, Garden City, spread over 192 acres. In the first phase, it had launched 500 plots and 117 houses, generating Rs 180 crore. "We consider Indore as an important market for us and we are happy to launch the second phase of Garden City, which is part of integrated township," DLF Managing Director T.C Goyal said in a statement. In the second phase, the company has launched 1,300 plots. It would build two schools, a hospital, three convenience shopping centres and a mall in the township. Sources said DLF is expecting a sales realisation of about Rs 300 crore from the second phase of the project. DLF had recently announced that the company would focus more on plotted development in this fiscal as it generates faster cash-flow compared to group housing. The company plans to launch 12 million sq ft of area this fiscal, out of which 10 million sq ft will be plotted development, while the rest will be group housing projects. "Product mix skewed towards plotted development in order to reduce execution risks and negate inflationary pressures," DLF had said in a presentation. Giving detail about the Indore project, the company said it has all approvals and compliances in place, the development work has already started in the second phase II and target date of completion is May 2012. The company is offering plots in various sizes of 4,000 sq ft, 2,400 sq ft, 2,100 sq ft, 1,800 sq ft, 1,550 sq ft and 1,264 sq ft The statement did not mention about the price of the plots. — PTI
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LAUNCH PAD
Speaking on the occasion Sanyam Dudeja, COO-Punjab, TDI Ltd. said, "These floors are especially designed for the new global Indian." He said independent floors offered a good option to the home buyers who are looking for something more exclusive than flats. "In residential segments there are three options for a buyer. These include villas, independent floors and apartments. As far as villas are concerned the price range is pretty steep and thus these don't fit everyone's pocket. And for flats and apartments people in the region are still a bit hesitant to try high-rise living and higher floors will take some more time to be accepted fully by a buyer from this region. In places like Delhi, Gurgaon higher floors fetch higher price as these ensure more ventilation and light penetration and less pollution but this is not the case in the tricity area, so the only choice that remains is the independent floors as these are just two or three levels and one is not going to be handicapped in case of lift failure or power breakdowns. Along with this the price, too, is in the affordable range", he added. The price in Tuscan Residency Exclusive will be Rs 48 lakh for a 1490 sq ft ground floor unit, Rs 43 lakh for 1478 sq ft first floor and Rs 42 lakh for 1432 sq ft area second floor unit. Giving more advantages of independent floors Dudeja said, "While in apartments one has to a number of charges like parking charges, maintenance charges etc over and above the original cost and then one also has to have a power back up and other facilities, but it is not the case in independent floors as there are no additional charges like for parking as each floor has a designated parking area and each owner can go in for individual invertor etc to ensure power back up. Apart from this independent floors take lesser time to build, he added while informing that the project would be completed within 18 to 24 months. The no-EMI till possession scheme is another sop offered to customers. Giving details of this offer Dudeja said the customers would initially have to pay only 20 per cent of the total cost at the time of booking a floor and then as per an agreement between the builder and the bank the customer will have to pay nothing till the construction work is over. “So after paying the initial amount for practically two years the buyer has to pay nothing while being owner of a property worth Rs 40 lakh. After getting the possession the buyer can either settle the loan amount with the bank or continue paying the EMIs. This plan keeps the buyer in a comfort zone. Firstly, he is not worried about the delay in a project as it will have no financial ramifications for him. Secondly, by investing a small amount like Rs 9 lakh he will be the owner of a property worth Rs 50 lakh whose price will appreciate further by the time he gets the possession”. As told to Geetu Vaid
Vipul GREENS
Vipul limited has announced the launch of Vipul Greens, an integrated complex in Ranasinghpur, Bhubaneswar. Having an investment of Rs. 130 crore, the project will be built under a Public Private Partnership model with Orissa State Housing Board. After Vipul Gardens this is the company’s second project in Bhubaneswar. Spread over an area of 4.65 acres, this meticulously planned modern infrastructure will provide a mix-use development with the provision of residential, office and retail spaces. It will have 3-4 BHK apartments and penthouses on offer. Commenting on the launch Punit Beriwala, Managing Director, Vipul Ltd said, “We are pleased to partner with the Orissa State Housing Board for another world-class project in the city of Bhubaneswar. The need for a highly comfortable, contemporary and secure living environment has always been there and we are pleased that the state housing board has given an opportunity to Vipul Ltd. for a partnership in this elite project”. Vipul Greens is located on National Highway-5 and will offer an array of recreational and health facilities such as modern health club with swimming pool, steam, jacuzzi, basketball court, table tennis room, billiards room and party lawn. In addition to these facilities, the project would also facilitate residents with round-the-clock efficient power and water supply and 24-hour security to all residents.
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Ludhiana is the "crown jewel" of the real estate market of Punjab. Being the fulcrum of the economy of the region, the dynamics of real estate market over here have a cascading effect on the entire Punjab. The market is plush and the denizens have a lot of surplus money which gets invested in real estate. "The city is experimenting with new metropolitan style of living — high-rise luxury apartment living. Homebuyers today are going in for apartments which come with all modern infrastructure and facilities.
Property prices in the national capital have increased by up to 28.02 per cent in the January-March period this year in comparison to the year-ago period as per the report of real estate portal 99acres.com.
"Capital values in Delhi continue to move upward even though the market seems to be in a phase of stagnation and (there is) lots of talk about imminent price reduction," 99acres.com Business Head Vineet Singh said in a statement.
Ground Realty
Ludhiana is the "crown jewel" of the real estate market of Punjab. Being the fulcrum of the economy of the region, the dynamics of real estate market over here have a cascading effect on the entire Punjab. The market is plush and the denizens have a lot of surplus money which gets invested in real estate. "The city is experimenting with new metropolitan style of living — high-rise luxury apartment living. Homebuyers today are going in for apartments which come with all modern infrastructure and facilities. With our project 'Omaxe Residency' we wanted to introduce in Ludhiana a new era of lifestyle living packed with all international class amenities to make it completely luxurious and special", says the official spokesperson of Omaxe. The size of the market is humungous and each product has a shelf life. Let us study the factors in detail which makes the Ludhiana market so vibrant.
Q. I was allotted a DDA flat on August 31, 2004 against my application money of Rs 50,000 at a cost of Rs 8, 11, 210. I paid balance amount of Rs 7, 61, 210 on November 18, 2004 after raising loan from a bank. I got conveyance deed executed on March 7, 2005 in the names of my wife and myself. The cost of stamp duty etc was Rs 64,940. Possession was given on July 15, 2005 and thereafter I again raised a loan of Rs 5,00,000 on April 6, 2006 for its top up as it was virtually a raw flat. On January 28, 2011 I sold it for Rs 27,00,000 and kept the proceeds in my account.
A. It has been mentioned by you in the query that three-year period is allowed for the investment of capital gain after the sale of a residential house in the purchase or construction of a residential house so as to avail the exemption of the taxability of capital gain arising on such a sale. Section 54 of the Act provides a period of two years for purchase of a residential house after the sale of a residential house. A three-year period is allowed for the construction of a residential house. In case, therefore, the agreement with the builder is that construction is being done on behalf of your wife, it may be possible to claim three years' period. Otherwise in my opinion the acquisition of builders' flat will be in the nature of 'purchase' and therefore the possession should be given to your wife within two years after the date of the sale of the old flat. 
Q. I am purchasing a plot to build a house. I have taken a combined housing loan (plot purchase+construction) from the bank. The bank has sanctioned the loan in the housing loan category and not land loan. The bank has disbursed a loan of Rs 25 lakh for the purchase of plot and Rs 15 lakh for the construction of house will be disbursed in three equal installments. The construction on the plot will be completed within six months of the purchase of the plot. My queries are:
The real estate market in the tricity is buoyant and booming not only as far as prices and new launches are concerned, but also in assimilating and offering the latest trends in housing. With a growing number of home buyers preferring independent floors a number of builders are now offering these in their upcoming projects. Taneja Developers and Infrastructures Ltd. (TDI) became the latest entrant in this segment this week by unveiling 'Tuscan Residency Exclusive', a part of TDI City Mohali-II, Sector 110 and 111, Mohali. Tuscan Exclusive is part of the group's 150-acre integrated township and will comprise 60 ergonomically designed individual floors as G+2 on a plot size of 250 sq yd with modular kitchen. Strategically located at the entrance of TDI City Mohali-II, Tuscan Exclusive has all the features with rich specifications and modular design and will be ready-to-move-in 3 BHK houses/floors.