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GOING big on potential gains
Tax tips
REALTY GUIDE
Decor trends
Do we actually need an authority to do a realty check?
reality bites
'Special' initiative
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GOING big on potential gains
Strengths Proximity to Chandigarh, which has the third highest per capita income in the country and 68 per cent literacy level are among the main strengths of the region. Factors like strong economy, availability of highly skilled workforce, growing number of regional tourists and spillover from Chandigarh and Delhi have also been highlighted. According to Singapore based Jurong International the total investment in the Greater Mohali area between 2007-2011 was around Rs 40,000 crore.
Big-ticket projects The 1,000-acre Aerocity project adjacent to the Zirakpur-Patiala highway has been a major factor in bringing in a number of private realtors in the area. The area's proximity to the proposed International Airport, clearance for wide roads and other infrastructure support have made it a good investment option. As Neeraj Kansal, Director, Royal Estate Group puts it, “The Patiala road is coming up as a promising realty destination with a number of residential projects coming up here. With a number of educational institutions in the vicinity, there is going to be a robust demand for housing here over the next few years”. The Royal Estate Group has recently launched a 200-acre integrated township project here, which is one of the biggest projects floated by a private developer in this area. The state government, too, is pitching in to boost development in the Greater Mohali area. While laying the foundation stone of the Chandigarh Royale City project recently, the Deputy Chief Minister, Sukhbir Singh Badal, made it clear that the government was serious about providing world class amenities in the Greater Mohali region. On the other side of Greater Mohali region lies Mullanpur that is being projected as New Chandigarh. Envisioned as a “resort centre, low density country living and northern gateway” in its master plan, Mullanpur, the first eco-town of Punjab, has risen as a stable realty playground in the region. Mullanpur Master Plan is spread over 6,000 hectares and will have major projects like Medi City and PCA stadium among others. GMADA’s Eco City project had generated an enthusiastic response from Punjabis wanting to settle near Chandigarh last year. Plots in the 400-acre Phase I have already been allotted, while acquisition process is on for a 370-acre (approx) Phase II, which according to official sources will be launched sometime next year. Construction and development work on the mix-use projects from Omaxe and DLF are already on in Mullanpur. DLF recently launched independent floors at its 200-acre Hyde Park township where plots had already been sold in the first and second phase of the project. Apart from these mega projects the IAS Society is at an advanced stage of developing its residential complex and the Greater Punjab Co-op House Building Society also has plans to develop a residential complex.
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A mega thrust
The Greater Mohali Area Development Authority (GMADA), the development agency of the housing department has so far pumped in a whopping Rs 2,000 crore just for acquiring the land for the project. “All the formalities regarding land acquisition, handing down land compensation and taking land pooling option from the interested land owners have been completed”, said a senior official in the housing department. A lot of deliberation and planning has gone in conceptualising this project. Recently, a team of Punjab Government officials had visited IT parks in Bangalore and Hyderabad to study the concept. The model of Chandigarh IT Park was also
studied.
GMADA Additional Chief Administrator Manjit Brar said a 60-acre expo site would also be developed in the park. The Punjab Infrastructure Development Board (PIDB) has been roped in to work out the modalities of the expo site. The expo park is touted to be first of its kind north of Delhi. While giving 55 per cent component to knowledge-based industry, the commercial component would be around 25 per cent and the remaining would go to the residential areas. Five-star hotels and entertainment sites have also been planned. Officials associated with the planning of the project said a salient feature of the project would be that all minor roads would be 100 ft wide and would have 50 ft green buffer on both sides. Under the residential components, around 3,000 plots of different sizes have been planned. A major chunk of the residential component would go in giving plots to beneficiaries under the land-pooling scheme. HIGHER PRICE BAND As compared to Aerocity where residential plots were allotted at Rs 12,000 per sq yd and in Eco city, Mullanpur where the plots were priced between Rs 15,000 and Rs 19,000 per sq yd, GMADA has fixed the rate of residential plots at Rs 23,500 per sq yd in the Knowledge Park project according to the officials. Any variation in the allotment rates, depending on the plot size has not been disclosed so far. The rate was the out come of higher land compensation of Rs 1.70 crore paid to the landowners. The subsidised land rate to be offered to the IT and bio tech industry would be compensated from the sale of residential plots, measuring 100, 200, 300, 400 and 500 sq yd. Key pointers
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Tax tips
A. Stamp duty is normally payable on the basis of the consideration specified in the Conveyance Deed. However, in case Circle Rate has been fixed for the transfer of property in a particular area and such circle rate is higher than the consideration specified in the conveyance deed, the stamp duty will be payable on the basis of such Circle Rate. Your query does not indicate the amount of consideration which was settled between the original purchasers and the subsequent purchasers. In case the Circle Rate has been notified by a competent authority and the amount of consideration specified in the conveyance deed is less than the Circle Rate, the stamp duty will be payable on the basis of the notified rate as applicable with reference to the date of purchase of property. Therefore, it would not be possible to have parity with regard to stamp duty payable in respect of the conveyance deed executed by the original purchasers as in their case the date of purchase of the property would be relevant. It may be added that stamp duty rates are fixed by the states and thus can be revised by the competent authority as and when such revisions are cleared by the State Assembly.
Shop with prudence Q. I want to sell a commercial shop that I had purchased in 2003. Please advise whether I have to pay tax on capital gain if I purchase another commercial shop. How much time is allowed? — vishal bhardwaj A. You would be liable to pay tax on the amount of long-term capital gain arising on the sale of a commercial shop. The commercial shop owned by you would be treated as a long-term capital asset since you have held the commercial shop for a period of more than three years. You can save the amount of tax payable on such capital gain only if the net consideration received or accrued on the sale of a commercial shop is utilised for purchase or construction of a residential house within the period specified by the provisions of the Act. Therefore, in case the amount of capital gain arising on the sale of commercial shop is utilised for purchase of another commercial shop, you will be liable to pay tax capital gain, if any, earned on the sale of the shop. Should I pay Wealth Tax? Q.
I have a residential property which has not been let out for more than 300 days in a year. I had not been able to occupy the same as I am employed in another town where I am living in a rented accommodation. I have been advised that the same is exempt from the levy of income tax. However, I have also been advised that the value of such house will have to be included for the purposes of filing the Wealth Tax Return. The value of such house should not be less than Rs 50 lakh. Am I liable to pay Wealth Tax in respect of such a house? A. In accordance with the provisions of Section 5(vi) of the Wealth Tax Act 1957, one house or part of a house or a plot of land belonging to the assessee not exceeding 500 sq. m is exempt from the payment of Wealth Tax. You are, therefore, not liable to pay wealth tax in respect of such property. Capital gains tax exemption on land acquisition Q. I understand that capital gain on the compulsory acquisition of urban agricultural land is exempt from tax. What are the requirements in this regard? — raj singh A. Capital gain on compulsory acquisition of urban agriculture land is exempt if the following conditions are
satisfied:
Can registration charges be included in the cost of home? Q. I am planning to take a home loan jointly with my wife to purchase a flat. Kindly advise me if the stamp duty and registration charges are included in the cost of the house. What is the best way to avail of IT benefit in respect of EMIs as both of us are salaried employees? — a.k. misra A.
Your queries are replied as under:
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REALTY GUIDE Q. I purchased a plot from a registered company in 1982 on a registered sale deed and constructed my house on it after getting due permission from Jammu Municipality. I have been living in the house for the past 30 years . As I am a senior citizen, I want to make a Will regarding this house. But before making it I approached revenue office for mutation (intiqal) of my land but the patwari concerned refused to get the plot mutated on the ground that it had to be got done within a period of 12 years. Kindly clarify:
A. As the Sale Deed (title deed) had been executed in your favour in 1982 after the permission from Jammu Municipality, it means that your name is automatically registered in the municipal records.
Clear title Q. I was the beneficiary of a freehold society flat in Delhi through a registered Will of my issueless and widowed sister. I gifted this flat to one of my sons after paying the stamp duty and getting the same registered. I also got MCD mutation done of the same. I now want to know if any further formality is required in order to make my son the absolute owner of this co-op society flat. Since the flat is a freehold property in the records of the DDA, are there any formalities required to be fulfilled with the DDA? If yes, then what are these? The original conveyance deed is still in the name of my deceased sister. — r. chauhan A. When gift deed (title deed) and mutation in DDA Record is in favour of your son then he has the absolute, undisputed and legally clear title of the property.
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Decor trends
Providing attractive interiors is, no doubt, a daunting task, especially when one encounters certain problem areas. Decorating corners is a tricky deal as in most cases aesthetics and functionality have to be combined keeping in mind the overall décor of a room or home. Playing with contrasts in corners can prove to be suicidal if one is not careful enough. But at the same time it is these little nooks that can make innovative ideas bloom like nowhere else. Well as a person decorating home, you can get “cornered” in your living room, kitchen, dining area, lobby and even in bathroom. When it comes to do something to corners in these areas one generally gets stuck about how to make these more creative and out-of-the-box.
In most of the Indian homes you will find corners occupied with a table, a vase or nothing at all. But there are many more creative things that can be done and make these interesting areas of our house. Display focus area Turn your void house corner into a display focus area that includes a nice huge hanging or standing lamp that has a reflection on to rest of the room or even a nice huge candle stand that can grab attention. Nature's call It's always good to be close to nature and have freshness around. House corners are really good to keep a nice indoor plant which will make you feel more close to nature and also keep the freshness and positive aura around. Utilise the space My space If there is a tricky corner in your bedroom or lobby place a customized rocking chair and a small cabinet/ rack of books or anything that interest you to turn it into a cosy retreat to indulge in your hobbies and relax or read and rejuvenate. Hang around The most common way to showcase the decorative items is to put right angle shelves in the corners and place a decorative piece on it. Let's make it more playful, alive and add newness to it. Time to get out of the rigidness of shelves to more alive and playful options of hanging it. A corner that has a hanging fixture shelf at different height which can hold the items stably and at the same time give the hanging look at one corner of the room showcasing the decorative items. Magic of colours Colour adds a very lively environment to the space. Keeping that in mind create an attractive corner space by using different colours and painting or pouring different colours on the wall which will make you feel lively and happy whenever you will look at it. — The writer is a Delhi-based space designer
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Green
house
With flat culture taking roots in the region and land becoming scarce, terrace and balcony areas are increasingly being utilised for gardening. Terrace or balcony gardens are in effect an extension of interior designing to the space outside the living areas in which plants are used creatively to create the décor effect.
Before planning such a garden or selecting plants for it, the following points should be kept in mind:
Plants suitable for such gardens
However, to establish a proper terrace garden, corrugated sheets can be used and the desired slope for drainage is given. Nylon net is placed over the sheets to avoid compost from getting drained off and further about 3-4 centimetres of small brick-pieces are placed over the net to allow the drainage of any extra water for the well-being of the plants. Finally place 18-22 centimetres of compost and create your own garden. Tips to keep the garden healthy and beautiful
The writer is the President of National Cactus and Succulent Society of India
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Do we actually need an authority to do a realty check?
The Bill, which will be taken up during the
ongoing monsoon session of Parliament, needs to consider the issues faced by
customers as well as developers
The answer obviously is “yes”. And this answer echoes the sentiments of people across all the diverse segments of the realty sector. In India, government agencies like TRAI for telecommunication, UGC for education, IRDA for insurance, RBI for Banking, NABARD for agriculture, SEBI for stock market or any other sector which is open for business, have played an important role over the years in setting up the fundamental rules for successful functioning, while protecting the consumer interests. The booming Indian real estate sector which lacks maturity and transparency is not only suffering monetarily but also image-wise due to the absence of a regulatory boundary. This sector is the prime example of how a basket of apples is termed bad if one apple goes bad. If we need someone who can alter the perception by removing the bad apple from the basket, then so be it. Today, housing is indispensable for everyone but even after 65 years of Independence it has not been made a priority sector unlike the agriculture and industry. The recent RBI decision to keep the key interest rates unchanged has been disappointing for the real estate sector as there is an urgent need to cut rates to boost the housing demand. RBI needs to make affordable housing a priority sector otherwise demand and supply gap will imbalance the economy of India. Since RBI has instructed banks to restrict funding to the real estate sector; there is hardly any viable option left with the real estate developers to source funds for the project apart from the other financial institutions and private investors. Affordable housing should get priority funding and immediate clarity and certain guidelines need to be outlined by the RBI in this regard. The Indian housing industry abounds in all sorts of big, small and new real estate companies. Disputes related to the escalation of costs, delay in the completion of projects, absence of clearance certificates, and non-inclusion of costs for fittings are quite common. Hence, it is high time that reforms in this sector are given a serious thought. The Real Estate (Regulation and Development) Bill will once again be up for scanning in the monsoon session of Parliament. The Bill if passed would boost the confidence of the buyers by ensuring higher transparency and accountability. However, there should be a Single Window Clearance system in all the operations of the real estate sector to do away with procedural delays. With the implementation of an effective Bill applicable to all developers, we can expect and ensure the sale of immovable properties in an efficient and planned manner apart from protecting the interests of the customers. The realty regulatory authority can be a competent body to control and regulate the real-estate related concerns like taming the prices, discouraging monopoly and other unfair practices prevalent in the business. The Indian real estate sector, if channelised properly, can catapult the growth of several other sectors in India through its backward and forward linkages. The demand for housing has been growing tremendously with the growing population. According to UN World urbanisation prospectus, 914 million Indians will be living in cities by 2050. In view of the current scenario of unplanned development in the sector, the government needs to form a regulatory body to bring efficiency, well planned approach to development and transparency to protect the interests of the customers. Developers, too, have been facing tough challenges due to economic crunch, delays in official sanctions, rising cost of construction and raw material, soaring interest rates, sources of funds that are getting dearer and scarce — be it from financial institutions or private investors, etc. The delay in sanctions of the project escalates the cost of the project and the burden is subsequently passed on to the end-customers. Cutting the long story short, the government must pay immediate attention to stabilising the real estate sector through the formation of a regulatory authority and granting industry status to the sector on priority basis. A friendly Real Estate Housing Policy is inevitable for addressing the irregularities in the sector. The government should create a corpus fund like the Real Estate Mutual Funds for a well -regulated and systematic inflow of funds in the projects whenever required. Our dependence on foreign funds should be lowered. Pre-selling of the project (approximately 20%) should be allowed to reassess the market. A regulatory body should be there to provide a 360 degree solution to developers and end-customers. Operating arms should be created by the regulatory body — Execution Arm and Funding Arm — under which all procedures should be cleared through a single window mechanism. This will push the real estate market in the right direction. Despite the corporate existence in the country, real estate still is among the unorganised sectors due to the absence of a code of conduct in the business. Once a realty check is established and industry status is granted, consumers will have their homes, offices, shops ready in time and the builders' credibility will be unsullied. It would finally be time for a golden handshake. — The writer is
CMD, Falcon Realty Services Pvt. Ltd.
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Funky designs
Qboid Design House, a brand founded by Entrepreneur and Interior Designer, Dimple Kohli, which has recently joined hands with fashion and art designer duo Rahul Jain and Gunjan Arora has come up with a new collection of designs. The customers who believe in living in style with lots of comfort, impeccable choice of exclusive and customised designs can savour the new collection of the trio — Dimple, Rahul & Gunjan. The line of furniture is a collection of stand-alone pieces. The inspirations behind these works are varied but they all have an emotion to invoke. They try to strike a sense of balance between visual design and practicality, so living around these pieces becomes a pleasure.
FABLES This reading and rocking chaise is a happy chair. A bright sight, invoking memories with colourful artwork, this chair is exquisitely detailed, and is meant to start conversations.
FLUENCE CONSOLE TOFFEE TABLE Besides looking like chocolate ribbons, the multi-tiered side table is a functional piece of furniture that can hold books and collectables.
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reality bites The foundation-stone laying ceremony was performed at the Chandigarh Royal City earlier this week. The Deputy Chief Minister of Punjab Sukhbir Badal laid the foundation stone of the project which is being promoted by the Royale Estate Group. The group already has projects like Royale Estate on Chandigarh-Delhi Highway in Zirakpur and Royale Estate-II in Peer Mushalla in the tricity region. This 200-acre integrated township project coming up on the Chandigarh-Patiala highway will have plots and apartments options for home buyers along with commercial areas, hotels and educational institutions. Speaking on the occasion Neeraj Kansal, Director, Royale Estate Group, said, “Chandigarh Royale City is a Rs 500-crore project and the possessions of plots will be handed over within 15 months. Our endeavour is not just to bring a home in beautiful surroundings but also to give home buyers a great place to live in. The homes will have the new age persona and world class amenities.” Apart from plots in sizes between 200 and 1,000 sq yd, the township will also offer independent floors, villas and apartments. The initial cost of plots being offered by the group is Rs 14,000 per sq yd (excluding EDC). Tree House Residency in Bhiwadi Ashiana Housing launched exclusive luxury apartments, Tree House Residency, in Bhiwadi recently. The project will consist of 36 luxury apartments that will be in four nine-storey towers spread over an area of 1 acre. These high-end apartments with a choice of 34 4BHK apartments in the area of 3255 sq. ft. and two 5BHK apartments in the area of 3755 sq. ft. will have a number of facilities nearby. Ashiana Housing already has a number of projects like organised group housing, hotel and club, retirement resorts in Bhiwadi.
Negative outlook The real estate sector faces a negative outlook in the second half of the year mainly due to sluggish demand, high construction costs and liquidity pressures, a report by Fitch Ratings has said. “The domestic real estate sector continues to be negative for H2 of 2012, due to persistent sluggish demand, high construction costs and liquidity pressures,” Fitch Ratings said in its report. The agency observed that RBI’s caution on interest rate cuts and high EMIs will continue to be a deterrent for potential home buyers. “This, together with high property prices and elevated inflation, will keep demand sluggish,” it said, adding however, the y-o-y growth of home loans by banks, which had been slowing since the past 12 months till April, picked up markedly in May and June 2012 and if continued, may help spur the sector. It further opined that the general slowdown and subdued job growth in the IT sector, which was at its lowest quarterly level so far, will hold back demand for commercial and retail properties. Fitch also said real estate companies will continue to face margin compression from high construction costs for both building materials and labour. — As per information provided
by the developers
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Realtors’ body CREDAI will fund construction of houses for families of 31 differently-abled persons in the national capital region. As part of its corporate social responsibility, CREDAI NCR would help Habitat for Humanity India and Madok Foundation in developing these houses at Mundka and Bahadurgarh area. “The project involves building low cost and disabled friendly houses for 31 identified families. As one member in each family is differently-abled, special care has been taken to incorporate differently-abled-friendly features in the construction process,” CREDAI-NCR said in a statement.
Each house comprises a living room, a kitchen and an attached toilet with underground septic tank providing good living conditions to the underprivileged. “The project is in association with Habitat for Humanity India (HFHI) wherein HFHI is the implementing partner for constructing the houses and CREDAI NCR the primary donor for funding the project,” it added.
— TNS
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While sluggishness and low sales volume have remained the dominating factors of the realty market all over Punjab in 2012 so far, there are certain pockets that have kept the buyer and investor interest alive. A befitting example of this is the Greater Mohali area whose growth potential has kept the buyers, investors as well as developers in high spirits. The Greater Mohali Area Development Authority (GMADA) has played a big role in keeping the hopes of realty players high with its mega projects which have given impetus to the real estate sector in the area. In the past two years two of its projects —Aerocity and Eco City, near the proposed international airport and in Mullanpur, respectively — not only got an overwhelming response from buyers, but have also played a major role in setting up a buoyant price threshold in the nearby areas. Patiala Road, Mullanpur and Kharar-Landran Road have emerged as the main hubs of real estate growth as country’s top developers like DLF, Omaxe, TDI, Ansals, Emaar MGF, JLPL etc have residential and integrated township projects here.
In what could boost the sluggish real estate market in the state and especially in the Greater Mohali area, Punjab’s Housing and Urban Development Department is all set to offer its largest mega project till date — Knowledge Park — planned over 1700 acres acquired near the upcoming International Airport in Mohali. Billed as the first of its kind attempt by any government agency to blend IT and bio technology-related infrastructure with residential and commercial components, the ambitious projects could give other projects being developed (though on a lesser scale) by private realtors in the area a run for their money.
Following tours and several rounds of meetings, the government, in a significant decision, has decided to develop the Knowledge Park accordance to the guidelines of the mega project policy of the state. Biotechnology and data processing have been included in the IT component to suit the interests of industry. The present IT policy framed in 2009-2010 by Punjab Infotech would be followed while developing the park.
Q. A residential complex comprising 62 dwelling units was constructed by a builder over 10 years ago in two phases. Phase 1 has 32 two-BHK units while Phase 2 has 29 three- BHK units and one five BHK unit. All the units were allotted/sold to various persons against full payment of Rs 4-5 lakh for two-BHK units and Rs 9-12 lakh for three- BHK units. Now the apartments are being registered at the paid price in case of original purchasers who are in living in the complex at present, while the collector's rate which is Rs 2500 per sq.ft. is being demanded in case of those who purchased units subsequently from initial owners. My question is whether this partiality in registration amount is tenable in law? or the current collector's rate should be charged in case of all units. — k.l. malhotra
Storage is a major problem in flats and apartments and corners can be used to mitigate your storage concerns. Angular book shelves or wall-mounted trendy cabinets with ornate front panels can be picked up to store knick knacks. 
Those who neither have enough space nor the time to establish a reasonably good terrace or a balcony garden, there is an option to have a container garden.
The Z shaped console is inspired by the fine line between the straight and fluid lines. Deep down it celebrates the balance inside a human mind and how it allows us to coexist with different personalities. The textured wood representing still waters giving life to the lotus furthers the symbiotic balance we see in nature.