emerging destinations: panchkula extension-ii
Extending options
This new mini city is an option which people looking for a good deal in the tricity region may explore
Pradeep Sharma

The aam aadmi, who feels that he has missed the bus in buying ‘out-of-reach’ residential and commercial property in the tricity area, need not despair. A mini township with state-of-the-art facilities that is taking shape in Panchkula’s vicinity along the National Highway-73 on the Panchkula-Yamunanagar road may offer an affordable option to those wanting to own property in the tricity region.

Christened as Panchkula Extension-II, the strategically-located township comprising 24 new sectors is aimed at decongesting Panchkula which is bursting at the seams due to large-scale urbanisation. “There is hardly any land left for planning within Panchkula and that is reason why Panchkula Extension-II has been planned to cater to the ever increasing housing, commercial and recreational needs of the people,” says Hitesh Sharma, District Town Planner, Panchkula.

While sectors 22 to 30 of Panchkula comprise the Panchkula Extension-I, this new phase II spread over approximately 6,700 acres will have an independent identity with sectors 1 to 24 of its own. This has been done to ensure that the area gets civic infrastructure at a fast pace as the external development charges (EDC) collected for these sectors will be utilised for there only and will not be added to the overall Panchkula head. “The main reason for the slow pace of development in Panchkula’s 22-30 sectors was financial constraint as EDC collected for these sectors was included in the Panchkula general pool but this will not be the case in Panchkula Extension-II. So this area will become livable very fast,” says a HUDA official.

In fact, the master plan of the township makes provisions for a balanced lifestyle taking care of the environmental preservation and provision for contemporary lifestyle for the residents. Areas for the wide roads, multi-level parkings, commercial, educational, administrative offices have been earmarked in the master plan besides the provision for rainwater harvesting, storm-water system and greenbelts in all sectors.

The commercial centre in Sector 17 has been modeled on Chandigarh’s Sector 17, while Sector 18 having government and semi-government buildings, secretariat, hospital and district court will cater to the administrative and entertainment needs of the residents.

Given its strategic location, big realty firms have already made a beeline for the area to cash in on the impending boom. While at least a dozen real estate firms have purchased land for developing residential and commercial complexes, at least two licences have already been issued by Haryana’s Town and Country Planning Department to builders.

The Idyllic Group has already kicked off its flagship Panchkula Eco City project on an area of 50 acres in Sector 12. The group has launched a residential complex having plots ranging from 185 to 1,000 sq yd. Another builder — Konark Rajhans — has also reportedly been given a licence to set up a multi-storey group housing complex on an area of 10 acres. The Idyllic Group, too, is planning to launch its multi-storey apartment complex in Sector 14 soon.

Sources said the Haryana Urban Development Authority (HUDA) is also exploring the possibility of developing housing and commercial sectors in the area. “Once we get clarity on the land acquisition Bill, which is being studied by the Central Government, we will begin the process to acquire land for the residential and commercial sectors,” a government official said adding that the HUDA residential and commercial plots were much in demand in almost all urban estates and commanded a handsome premium.

“The Panchkula Extension-II will be shaping up as a futuristic township overlooking the Shivalik foothills, It will be a blend of modern living and old world charm and is targeted at the upwardly mobile people. With emphasis on lot of greenery the self-contained township will boast of roads between 40-80 ft, hospital, primary and play schools, taxi stand, milk and vegetable shops, 24-hour ATMs, modern showroom and shopping arcades and multi-level parkings,” claimed Vishnu Goyal, director of the Panchkula Eco City.

Besides its strategic location, the connectivity to the area is another plus point for the upcoming township, claim observers. The connectivity would be much faster in coming years as the Haryana Government has allotted the four-laning project of the Panchkula-Yamunanagar stretch of the road. “Besides several educational and institutional buildings, the industrial estate of the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) at Barwala is in close proximity of the area giving rise to the demand for the residential accommodation and commercial property,” observed Sanjiv Narang, Chief Executive Officer (CEO) of the Panchkula Eco City project.

According to market watchers, the prices of property are the lower when one compares these with the prices in other areas in the tricity region like Mullanpur and Zirakpur where premium has already been added to the original prices. Terming the price to be very competitive here, Goyal says, “Currently we are offering plots for Rs 21,000 per sq yd while the price in Sector 28, which is about 6 km from the new area, is between Rs 50,000 and 60,000 per sq yd. And there the payment has to be made with in 60 to 90 days where as in the new extension the payment has to made in two years which is easier for end users.”

The Supreme Court’s ban on construction in certain areas of the complex at the other end of Panchkula, is set to be a positive factor for the Panchkula Extension II. 

ADVANTAGES

● Strategic location on NH-73 Panchkula-Yamunanagar road.

● Pollution-free living overlooking the Shivalik Hills.

● Four-laning of NH-73 to improve connectivity with towns around.

● Planned development which takes care of the future growth. 

Housing sales set to improve 

Housing sales are expected to improve by about 20 per cent in major cities during the festival season with marginal fall in interest rate on home loans, developers’ body CREDAI said recently.

“Enquiries from customers have gone up in the past one month. Buyers waiting for last two years to buy homes are expected to purchase properties as interest rates on home loans have come down and there is a positive signal that it would reduce further,” Confederation of Real Estate Developers’ Association of India President Lalit Jain told reporters in New Delhi recently. Asked about the expected increase in housing sales during the festival season compared with last year, Jain said: “It should be at least 20 per cent in the major 26 cities of the country.”

Interest rates on home loans have come down by about a percentage point and some banks have also decided to increase the term of loan to 30 years from 20 years, he said, exuding confidence that these factors would boost sales, which have been affected since last 2-3 years on high interest rate.

Jain said the sales were unaffected in small cities in last few years, so there would not be much increase in sales in these locations. Meanwhile, CREDAI has decided to take delay in getting environment clearance as priority issue as this takes maximum time compared with other approvals for real estate projects.

“Sometime, we feel this is a kind of green terror — stopping projects in the name of environment,” Jain said. “The environment department has to take a positive approach and understand that delay in approval can cost nation a great deal.”

Jain said the environment department could prepare a comprehensive check list without compromising on quality aspects of environment and then the plan approving authority could be delegated powers to comply with the check list.

Brys to invest Rs 1,000 cr in Noida project

Real estate firm Brys Group will develop a 300-m tall residential tower in Noida, offering flats for up to Rs 9 crore a unit. The company has earmarked an investment of Rs 1,000 crore to develop 285 premium apartments over the next four years. “This will be the tallest building in NCR. There is a dearth of premium and iconic properties in NCR. With this 300-m high and 81-storey structure, we will try to create a landmark,” Brys Group Chairman Rahul Gaur said. The project will be developed in an area of 10 acres. “We will offer different sizes of flats with 3, 4, 5 and 6-BHK units. There will be some luxury villas also. The prices of the units will start from Rs 3 crore and will go up to Rs 9 crore,” Gaur said. The sizes of the apartments will vary between 3,000 sq ft and 8,650 sq ft, he added.

Talking about investment, Gaur said: “We will invest Rs 1,000 crore in this project. We have already acquired the land and now construction will start.” The company will fund this amount through a mix of internal accruals, cash flows from the sales of flats and bank loans, he added. Gaur said the construction of the project will start from January next year and will be completed by 2016.

JCB to set up plant in Jaipur

JCB India, the global leader in construction equipment, will set up a manufacturing plant in 70 acres within Mahindra World City, Jaipur. An MoU to this effect was signed between the two companies recently.

The total investment for this new manufacturing facility, which will be JCB's fourth factory in India, will be to the tune of Rs 500 crore. JCB India currently operates three factories in the country; one in Ballabgarh, Haryana near New Delhi and two in Pune. Mahindra World City, Jaipur is an integrated business city focused on creating economic centers of development and new urban nodes. It is spread over an area of 3000 acres. 

Citrus Hotels eyes Chandigarh, Shimla market

Citrus Hotels and Resorts, part of diversified conglomerate Mirah Group, plans to invest nearly Rs 500 crore to add 1,500 rooms and take its hotels strength to 18 by 2017. Currently, the hotel chain has 475 rooms spread across eight properties.

On being asked how the hotels chain plans to raise the finances for expansion, Citrus Hotels and Resorts Chief Operating Officer Gaurav Pallial said: “The money will be raised through internal resources and bank loans.”

The company which recently launched its first property in North India in Gurgaon said it had already started work for construction of hotels at Mumbai, Jodhpur, Pench (MP) and Nagpur. Besides, it is also looking for properties at other locations.

“We are actively looking for hotels in Aurangabad, Chennai, Agra, Shimla and Chandigarh,” Pallial said.

The business model for the upcoming hotels will be a mix of owned, leased and management controlled. But a majority of them will be owned by the company, he added.

The hotel chain is targeting the mid-market segment and is focusing on domestic travellers to boost its business, he said adding the rooms will be priced at roughly $100.

Apart from opening the new properties, the company is also adding rooms to its already operating hotels. “We are in the process of adding the room strength at our hotels at Lonavala, Sriperumbudur and Pune,” he added.

Citrus Hotels and Resorts are part of Mirah group engaged in real estate development, hospitality, travels, wind energy generation, computer 
education and textiles among others. — Agencies

Launch pad

The Leela Palace Noida to open in Supertech project

Real estate developer, Supertech Limited and the world-class award winning hotel chain, The Leela Palaces, Hotels and Resorts have signed an MOU for the iconic luxury hotel — The Leela Palace Noida, at Supernova, Noida. Supertech will construct and develop the property which will be operated and managed by The Leela Group.

The new hotel named The Leela Palace Noida will be situated in one of the five towers of Supernova — India’s tallest and largest mixed use development located in Sector 94, Noida. The property will be an ultra luxurious hotel which will comprise approximately 250 guest rooms and suites. Speaking on the occasion R.K Arora, Chairman and Managing Director, Supertech Limited, said, “Noida is coming up with the best of facilities and infrastructure which is attracting a lot of corporates to set up their businesses here, thereby increasing the demand for hotels in the city. Also with the opening up of Yamuna Expressway, the demand for this sector will witness a further boost.”

Supertech is investing Rs 450 crore in this venture which will be completed within a period of 48 months from its commencement.

Cleo County

ABA Corp, recently launched “Cleo County” project in Sector 121 Noida. The 25-acre project which is based on an Egyptian theme will house premium residential towers, with ultra modern facilities like indoor swimming pool, club, spa and sports facilities etc.

Bhartiya City, Bangalore

The Bhartiya Group recently announced the launch of “Bhartiya City”, integrated city project near Hebbal Flyover in Bangalore. The eight districts of the city will offer homes in different formats, work spaces including a large IT SEZ and Financial District, shopping district and a high street, hotels, a hospital, school etc. The first residential project in this integrated township — Nikoo Homes — was also launched on the occasion. This residential project will have residential units in the price range of Rs 29 lakh to Rs 1.5 crore.

Bhoomi pujan at Sushant Serene Residency

Ansal API performed the bhoomi pujan ceremony at Sushant Serene Residency project in Greater Noida earlier this week. The ceremony marked the commencement of construction of the project located at ETA-II Sector, Greater Noida. Spread over an area of 13 acres, this project will have over 1,500 apartments in 24 to 26-storey towers.

Gold Homes’ new offer

The Kaleshwar Group along with Shubham Builder has launched the phase II of Gold Homes project in Sector 116, Mohali. The new phase will have two high-rise towers housing 2 and 3 BHK apartments in 1320 sq ft, 1625 sq ft area. Giving details of the project Deepak Pahwa, Managing Director of Kaleshwar group of companies said, “There will be a total of 100 apartments in the price range of Rs 30.6 lakh to 36.9 lakh in the new phase and the construction work will be completed in 24 months.” The group had offered independent floors in the phase one of the project which will be completed in the next few months.

Way with vases
Most of us possess flower vases but a few know how to put them to best use. A vase full of creatively arranged flowers can add colour and fragrance that brings to life an otherwise austere room
Nutan Sehgal

They come in a variety of materials: ceramics, brass, bone china and cut glass. They vary in shape: tall and slender, wide mouthed and shapely, flat and shallow. Ranging in colours and designs, they come painted with delicate brush strokes or meticulously carved glass. Though by themselves they make pretty decoration pieces, when complimented with flowers, they instantly brighten up a room with their natural beauty.

Flower vases. We are all familiar with them and most of us possess them too. Yet only a few put them to their best use. A vase full of flowers with creative arrangements adds cheer to the house. Flower vases that often grace entrances of homes not only enhance the beauty of the foyer but add to the welcome. In the drawing room, they splash colour and fragrance that brings to life an otherwise austere room full of furniture.

Dining

Dining in the presence of flowers say dieticians, can stimulate flow of natural digestive juices helping the body to assimilate food better. Even the dullest menu can be turned into a feast with pretty flower vases gracing the table. Dreary hospital rooms, when brightened with simple vases and a stem of a single flower are said to hasten recovery. Austere offices tend to become friendly with that subtle touch of a vase on the side of the mahogany table.

Kitchen

Kitchen windows can suddenly brighten up when herbs are placed inside a shallow flower vase, keeping the cooks in good humour. Food prepared in such a congenial environment, say the Shastras, has a cooling effect on people who eat.

Bathrooms

No room need be without flowers and their containers. Bathrooms thus far deemed to be merely essential features in a house are no longer expected to be drab and colourless. Flowers can bring in that touch of elegance and glamour.

Huge vases in ceramics have caught the fancy of many homemakers. Designer pottery vases in earthy hues are the rage in homes. Exhibitions of flower vases are often well attended and few mind opening the purse strings for a piece of attractive ceramic vase.

Brass vases have been used as table bases peering through glass tops. A huge brass urn filled with water hyacinths, shells and gold fish, when topped with planed thick glass can serve as a most unconventional dining table. Crystal vases, mounted on antique brass stands are unique and eye catching.

Imaginative Arrangements

Conventional designs can be replaced by a more imaginative blending of fresh cut flowers and berries, herbs and fruits. A potted narangi bonsai can become the centre of attraction in a room.

But while decorating a vase with flowers, remember some simple principles which will enhance the life of flowers and keep your room fresh for days on end.

Before arranging flowers in a vase snip off half an inch of the stem to do away with the dirt that might be accumulated at the end. Then immerse in lukewarm water for five minutes. Since stems absorb warm water more easily any air bubbles inside them would be washed away resulting in higher vase life for flowers. Change water one in two days and each time add half a teaspoon of sugar to the water this will help flowers bloom and live longer.

Once you have mastered these simple steps let your imagination run wild with the flowers and vases. They'll add the kind of magic to your house that even the most expensive piece of furniture cannot do.

Green house
Let the leafy glory bloom in your garden
Maj Gen C.S. Bewli ...

Echeveria laui and Graptopetallum bellum are the two most beautiful leaf succulents. These are foliage plants that can store extra water in their leaves and hold on to it to release only when needed. This feature makes these look unique and beautiful with their leaves having thick, fleshy and juicy appearance as compared to other plants. These plants with their striking forms and easy maintenance aare much sought after by the collectors.

They do well in pots and when placed in suitable designer trays, these can take a place of pride on the window sill or any other suitable location. Dish garden created with these plants adds to the ambience of your home during special occasions and also make an excellent gift for special friends.

Echeveria laui

Echeveria laui, the most stunning of all echeverias is a slow-growing Mexican succulent which normally remains solitary and forms a beautiful stemless rosette having bluish leaves. The bluish tinge on the leaves which is due to the powdery coating on them always gives the plant a fresh look. The temptation to touch the leaves of this unique plant should be resisted as excessive touching can deface the plant.

This species does not normally offset but plants grown from leaf cuttings may have more than one head. It is easy to propagate from seeds, but such plants remain single-headed.

Compost used should be porous and freely draining; fertilise with NPK (nitrogen, phosphorous, potash) twice in growing season. The plant is sensitive to over watering. So during summer months water only when the top one centimetre of the soil becomes dry, and there is no need to water these during winters.

The short cut to generate a mature plant is to behead the stem of the old plant; remove the old leaves that have lost their sheen and root it in sand.

Graptopetallum bellum

It is a Mexican perennial succulent plant and the most ornamental Graptopetallum species. It forms compact rosettes up to 10 cm in diameter. The low-growing rosette almost touches the ground and falls flat on it. The thick greyish green triangular leaves have fine reddish margins. The beauty of the plant lies in its stunning bright pink flowers that last for about two weeks. Use porous compost for its healthy growth and apply NPK fertiliser once in summer during its growth season. The plant accepts shady locations happily, but some filtered sunlight will give bright shine and reddish margin to the rosette. It is a perfect container plant and does well throughout the year if the soil is allowed to dry between two waterings. Propagation is by division of offshoots, rooting of individual leaves and seed.

The columnist is the President of National Cactus and Succulent Society of India.

decor tIPS
Perfect paint job

In the festive season everyone wants to give a new look to his or her house and give it a jovial, colourful look matching the festive spirit and set the right mood.

Nowadays the selection of paints is definitely not the sole responsibility of a painter/contractor as more and more buyers are taking the onus of picking the right shades and brands for their homes. As end-consumers are becoming more sensitive to their needs, paint companies are also now focusing on providing paints that propagate healthy living.

A good painting job can add a new dimension to your home. Here are some points that you should keep in mind while going in for a paint job for your home this festival season:

Before painting

One must check for areas that need to be mended before starting the painting work. Any sort of plastering, waterproofing and repairing must be completed before painting. You can also ask your contractor to use a moisture meter to scan wall surfaces and detect dampness left over after the rains.

It is imperative to check wall surfaces for instances of water seepage/leakage and the same should be rectified at source by repairing leaking pipes or cracks in the exterior walls. All structural cracks must be opened in V-shape and filled with crack fill before painting.

All loose plaster must be removed from the wall. This can be done by tapping on the walls as a hollow sound is an indicator of loose plaster. One should ensure proper curing time post repairs so that when re-plastering is done the cracks are bridged and the surface is smooth for painting.

Remove loose particles and paint flakes. Scrape with sandpaper to ensure that the surface is dry and free from dust, dirt or grease.

Fungus-affected areas need a separate treatment. Make a 5-10 per cent solution of bleach powder in water and apply on affected areas with brush or sponge. Wash the walls with clean water after an interval of 8-10 hours. Allow the surface to dry sufficiently.

It is extremely essential to use paints that are ‘Lead Free’ or ‘Low’ or ‘Zero VOC’ which would help maintain indoor air quality and keep your family away from the harmful effects of VOC.

While painting

Before the first coat all the wall surfaces should be evened using a quality primer/putty.

For best outcome, apply 2-3 coats of paints, rather than one thick coat. 

COLOUR CODE

To add the sparkle and shine to you homes this Diwali, you can pick any of the following colours:

Bedroom: A tint bright fuchsia pink with a combination of dusky violet will add warmth to a bedroom. The shades of pink and violet bring higher level of thought, even into the realm of spiritual values. Blue resembles cool and refreshment, while green denotes relaxation and reassured. White creates the airy and clean feeling.

Living Room: The gateway to a home is the place that creates the feel of an instant welcome. A luminous orange or a right shade of yellow adds to the hallway to really enhance and uplift the space. The glowing quality of the shades helps capture attention and adds to the existing tenderness.

Kitchen: Kitchen being the most used place in a house can be painted in shades of blue, green, or yellow plus soothing neutrals and whites as there are a lot of opportunities in a kitchen to add a punch with different shades.

Bathroom: Natural and neutral shades with undertone of grey create the perfect look of sophistication. Shades of blue like a tropical pastel blue is highly recommended for a bathroom as blue emphasises the bath experience.

Maintenance tips

Most wall paints are washable and can be cleaned periodically with mild soap-water solution. For distempered walls, minimum pressure should be applied while cleaning. Cleaning can be done at least two weeks after application of finished coat for removing the dust collected on the surface.

Never use water for spot cleaning unless the wall is totally free from extraneous dust. In case of severe staining clean the walls immediately before the stain dries up. 

Inputs from Sukhpreet Singh, Vice-President of Marketing and Sales (Decorative) Kansai Nerolac

tax tips
S. C. Vasudeva ...
Is it possible to ignore the valuation report?

Q. I own an over 500 sq m plot in the heart of the city. It is valued over Rs 30 lakh. The Wealth Tax return was filed on the basis of a valuer’s report. The Assessing Officer has, however, suggested that the matter be sent to Valuation Officer. Is it possible to ignore the valuation report of the registered valuer and refer the matter to department’s Valuation Officer? — Rajender

A.In accordance with the provisions of the Wealth Tax Act, 1957, the value of the assets which are includible in the wealth for the purpose of the levy of the Wealth Tax is to be determined in accordance with Section 7 read with Schedule III to the said Act. Schedule III does not prescribe any method of valuation in respect of the urban land. In the residuary clause of schedule III, it has, however, been provided that value of any asset other than cash being an asset which is not covered by Rules 3 to 19, shall be estimated to be the price which, in the opinion of the Assessing Officer, would fetch if sold in the open market on the valuation date. The said Act also provides where the valuation of any asset is referred by the Assessing Officer to a Valuation Officer, the value of the asset shall be that which is determined by the Valuation Officer to whom reference has been made by the Assessing Officer.

In view of the above provisions, it is the Assessing Officer who has to determine the value of an asset for which specific provisions of the schedule III are not applicable. Section 16A of the aforesaid Act provides that where Assessing Officer is of the opinion that the value determined by the Registered Valuer is less than the fair market value, he may refer the matter relating to such valuation to the Valuation Officer. In my opinion, therefore, the Assessing Officer can make a reference to the valuation. 

Can I spend sale proceeds on under-construction house?

Q.I plan to sell my flat in Panchkula for Rs 80 lakh. The capital gain after indexation of the purchase amount works out as Rs 30 lakh. Out of the amount received, I want to buy a flat in Faridabad or Noida for Rs 40 lakh for my son and invest the balance in my house which is currently under construction. For my under-construction house, I have already spent Rs 16 lakh from my sources in the past 10 months. The balance Rs 40 lakh will also be utilised in constructing this house. Will I be liable to pay any capital gains tax if I utilise the sale proceeds in this manner? —Rajinder Kumar

A.You are supposed to utilise the amount of capital gain for the purposes of availing exemption under Section 54 of the Income-Tax Act 1961. In other words, you should utilise Rs 30 lakh for the construction of your house within three years after the date of sale of the flat. The buying of flat in Faridabad or Noida in the name of your son would not enable you to claim exemption from the taxability of the capital gain of Rs 30 lakh.

As pointed out hereinabove, you should utilise the amount of capital gain of Rs 30 lakh towards the construction of a residential house which should be completed within three years after the date of sale of the flat at Panchkula.

Please note that the reply to your query is based on the presumption that the flat owned by you at Panchkula was a residential flat.

Am I entitled to a deduction of house rent?

Q. I am getting a salary of Rs 60,000 p.m. (all inclusive) and am not entitled to HRA. Am I entitled to a deduction of house rent of Rs 8,000 p.m.? I have my own house at Amritsar which I am unable to occupy because I am working in Gurgaon. — Prem Prakash

A.The Section 80GG of the Act provides that in computing the total income of an assessee not being an assessee who is in receipt of house rent allowance, there shall be deducted any expenditure incurred by the assessee in excess of 10 per cent of his total income towards the payment of rent used for his own residence to the extent to which such excess expenditure does not exceed Rs 2000 per month. This deduction is, however, subject to the following conditions: The assessee or his spouse or his minor child or where such assessee is a member of a HUF, does not own a residential house at the place where the assessee ordinarily resides or performs duties of his office of employment.

The residential house owned by the assessee at any other place than the above, though in his occupation for his own residence, cannot be occupied owing to his employment, business or occupation carried on at any other place and the assessee has to reside at that other place in house not belonging to him.

The deduction is limited to a maximum amount of Rs 2,000 or 25 per cent of the total income, whichever of the two is less. A declaration in Form 10BA is filed along with the return of income. You would thus be entitled to get a deduction of house rent paid in Gurgaon but as the maximum allowable deduction is Rs 2000, the amount of deduction would be limited to Rs 24,000.

Compensation of acquired land not taxable

Q.My agricultural land in a village situated near Sonepat (Haryana) has been acquired recently by the state government. I would like to know the following:

● Is capital gain tax to be paid on the amount received as compensation?

● Should the compensation amount be invested in purchasing agricultural land only? What are the other options, if any?

● What is the time frame in which the amount has to be invested to avoid payment of capital gains tax? — Dhan Singh

A.The facts given in the query are not complete. You have neither indicated the situation of the agricultural land nor the date of receipt of the compensation. The reply to your queries is, thus, based on the presumption that the agricultural land has been acquired in the year 2012 and was situated within the jurisdiction of the municipal authority or was within such distance of the municipal authority as has been notified by the government.

● In such a case the amount of capital gain arising in respect of compensation would not be exigible to income tax provided:

● The land during the period of two years immediately proceeding the date of transfer was being used for agricultural purposes by you or your parents.

● The land was compulsorily acquired under any law, or the consideration for the transfer of land will be determined or approved by the Central Government or the Reserve Bank of India.

● The capital gain has arisen from compulsory acquisition or consideration for such transfer is received by the assessee on or after 1st day of 
April 2004.

● If the amount of capital gain is not taxable, you can use the amount of compensation in any manner that you want to.

● This question would not arise in view of the reply given in (a) above.

Who pays if builder does not deliver on time

Q. I sold some land in July 2009 and earned capital gain of Rs 3 crore and invested Rs 2.5 crore in an under-construction flat with a builder in July 2009 to gain exemption under Section 54 F. I paid proportionate tax on the balance Rs 50 lakh. The allotment letter was issued on July 20, 2009. Now three years have passed since I paid the amount and got allotment of the flat but the builder has not completed the project in time and may take two more years. The builder is willing to refund the money in installments. What are my options since the delay had been caused by the builder. Please advise about the status of the money returned? Can I re-invest part in another residential property? — Sanjeev Sharma

A.The Income-tax Appellant Tribunal Mumbai Bench has recently held in Kishore H. Galaiya vs. I.T.O. ITA No.7326/Mumbai/2010 that in case the assessee has paid full amount to the builder and the builder has not given the possession of the flat within the period of three years, the assessee will not be liable to pay tax on the capital gain arising on the sale of a capital asset. Thus, in case the amount of net consideration has been utilised by you towards the construction of residential house within three years after the sale of plot, you should not liable to pay tax on capital gain even if the possession of the flat is not given by the builder within the said period of three years. The Hon'ble ITAT for the above conclusion relied on the decision of Bombay High Court in the case of CIT vs Mrs. Hilla J.B. Wadia (216 ITR 376). Though above referred decision is under Section 54 of the Act, yet you should be able to claim the benefit allowable to you under Section 54F of the Act as the provisions of sections 54 & 54F of the Act are almost on similar lines.

REALTY GUIDE
B K Sanghi ...
Make the right choice 

Q.I am a Noida-based businessman. I have to visit Punjab and Chandigarh frequently for my business. I want to buy a 2 BHK apartment in Zirakpur for my stay while on tour for a week per month.What precautions should I take while buying an apartment in Zirakpur? — Satish Mishra

A.Zirakpur is strategically-located town at the entrance of Chandigarh, Haryana and Punjab. When you buy an apartment, look out for facilities like shops, public transport, parks, hospitals, schools and gyms to suit your requirements. Besides, the reputation of promoters is also of paramount importance. You should go in for ready to move in property after verifying that the project is not mired in legal complications of any sorts.

See that the apartment complex is little removed from the three major highways passing through township to save you from vehicular noise and pollution. Inspection of the building during rush hours, particularly during evening hours would be the best idea to decide on buying a property.

The age of the building is another criteria. You should insist on obtaining an architect or engineer’s report on the building before deciding to buy. Security, particularly the gated security, is another reason that must be considered while investing in property in Zirakpur. Balcony, should not blocked by nearby multi-storeyed complex is another incentive for you to enjoy the outer view. Since, you have to live only for a few days in a month, maintenance charges are also important. Also find if there are separate charges for car parking and security.

Lastly, you should consult a legal expert to make sure that all legal formalities by the builders or the buyers from whom you want to buy the property have been completed in a proper way.

Lengthy hearing process

Q. My agricultural land had been acquired by the NHAI under a road-widening process on NH-15 from Pathankot-Amritsar around three years back. The NHAI provided full and final compensaion cheque which was encashed by us. But due to low compensation compared to the market rate we filled a case in Commissioner, Jalandhar’s division after evaluation from government- approved valuator, but have not the hearing dates for the past two-and-a-half years. How can we move ahead in such a scenario? — Manu

A.The best course for you would be to send a fresh application to the Commissioner, Jalandhar division, for the early hearing of the case. Besides, the state government, particularly the office of the Financial Commissioner Revenue (FCR), can be moved for an early hearing of your case. After exhausting all official channels, you reserve the right to move the court of law. Since the bureaucray is not ready to hear you case, a direction from the court for the early hearing of the case seems to be the only alternative for you in this case. Besides, you also have the right to challenge the low compensation for your land in the court of law. 

Realty bites
Punj Lloyd bags Rs 664-crore residential projects

Infrastructure major Punj Lloyd has recently won contracts worth Rs 664 crore to build residential complexes in India and Singapore. “In Singapore, Sembawang Engineers and Constructors Pte Ltd, a Punj Lloyd company, won a major contract from the Housing and Development Board of Singapore (HDB) to build McNair Towers, a public-housing development of four residential blocks,” it said in a statement. The McNair Towers, launched in May by HDB, would have 861 premium apartments. The contract will complete in fourth quarter of 2016.

In India, the company bagged an order from TRIF Real Estate and Development Pvt Ltd, a special purpose vehicle (SPV) of Tata Realty and Infrastructure Limited, for construction of integrated residential and retail complex titled Capitol Heights in Nagpur, it added. The project is scheduled for completion in 27 months, the statement further said.

“Both these orders reflect a cautious change in global sentiments. As a global entity, we will remain focused on executing challenging projects both in India and abroad,” Punj Lloyd Chairman Atul Punj said in the statement. With these contracts, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs 26,870 crore. 

Pick of the week

Curves and oomph

It’s time to revamp your living room with some curvalicious sofas from Streamlined by IPE Cavalli. Handcrafted and made in Italy, these curved sofas will definitely add an oomph to the living room. A curved sofa can be a boon when arranging furniture to create space for circulation in comparision to a straight one.

Price: on request

Swish exteriors

Loom Crafts that specialises in luxury lifestyle has launched Loom Clad — the first of its kind exterior aluminum cladding solution. Manufactured from extruded aluminum it acts as an active insulator and has environment friendly features. Available in an array of textures and colours, Loom Clad offers pure polyester powder coats and finishes in a range of 20 solid hues and natural wooden finish palate in 8 options. According to Rahul Jindal, MD, Loom Crafts Furniture (I) Pvt. Ltd., “Loom Clad is the most contemporary aluminum based permanent cladding that saves both time and money. Owing to its lightweight, it is easy to install and can even be customised.”

Quick takes

Check out Steelcase’s latest offering SOTO II Worktools for mobile workers. Mobile workers want to connect quickly and get working fast. Connectivity, privacy, access to personal items and quick access to power are equally important to making a mobile worker feel comfortable. SOTO II worktools are designed to help mobile workers to get set up, organised and productive quickly and efficiently. The collection includes work tools designed to be multi-functional, optimising space, boundaries and storage. Mobile Caddy anticipates user’s needs for a place to stow their personal items and work bag. Launch Pad gives users a desktop area to conveniently hold power and mobile devices or other personal items. Launch Pad Divider Screen, allows the Launch Pad to be easily divided giving user's individual space and privacy between workstations.

Love your sleep the Italian way!

Italian mattress master Magniflaex has introduced Duoform XS Firm mattress in the Indian market. The core of mattress consists of an inner layer of Memoform Magnifoam and Eliosoft. While Memoform aids in the comfort, contouring and cushioning of the natural curvature of the back that relaxes the body and improves blood circulation, Eliosft has excellent breathability and gives density to improve the mattress’ rigidity and deformability. It is embroidered by artisans with heart patterns denoting the love for sleep. The entire mattress is anti-allergenic and 100 per cent natural. The mattress comes at a height of 15cm/6 inch.

Price Range- The price of the Duoform XS mattress is ~49,000