|
|
|
|
| REAL ESTATE |
|
|
|
Change in fortunes
The realty scene in Patiala is likely to get a forward thrust in the wake of two decisions taken by the civic body recently. The recent decisions of the Patiala Municipal Corporation to clear commercial activity on 12 roads and lifting the ban on sanctioning building plans in 85 unauthorised colonies are being termed as positive steps for a tottering realty market in the city. Both the decisions have been confirmed by the Patiala Mayor Jaspal Singh Pradhan.  The Dispensary Road (box) is among the 12 roads where the municipal body has given clearance to commercial activities. Photos: Rajesh Sachar
realty
matters
decor trends
Green house
realty bites
tax tips • Is the Assessing Officer’s contention correct? • Where should I invest the sale proceeds? • What are the options available to save LTCG tax?
|
|
|
|
Change in fortunes
The realty scene in Patiala is likely to get a forward thrust in the wake of two decisions taken by the civic body recently. The recent decisions of the Patiala Municipal Corporation to clear commercial activity on 12 roads and lifting the ban on sanctioning building plans in 85 unauthorised colonies are being termed as positive steps for a tottering realty market in the city. Both the decisions have been confirmed by the Patiala Mayor Jaspal Singh Pradhan.
While, the new development has given respite to the property owners in these colonies, who were not able to carry out any construction activity, the decision has also brought smiles on the faces of those dealing in the real estate business. According to a majority of real estate agents and consultants, the clearance for commercial activities on 12 roads as will certainly give a boost to the sale-purchase activity, which is at an all time low at present. The realtors also feel that the lifting of the ban will at least allow the end users an opportunity to purchase land to construct residential units. According to the authorities although the nod for the regularising the 85 colonies, spread over hundreds of acres, had been granted by the general house of the Patiala MC two months back, the building plans were not being sanctioned for various reasons. "The colonies under question had come up some three or four decades back and have all civic facilities, including water supply, sewerage, roads and streetlights. Hence, the corporation has decided to regularise these colonies. Now with the lifting of ban on the sanctioning of building plans, the present income of Rs 20 lakh per month is likely to be Rs 1 crore”, said Mayor Jaspal Pradhan, while speaking to the Real Estate. Realtors’ take Though, for the residents, both the decisions have come as good news, what is important is that the main issue of slump in the real estate sector would also be addressed to. Pal Juneja of Juneja Realtors, said, "the declaration of the roads as commercial will lead to appreciation in land prices in all these areas as owners would like to convert their properties for commercial use or sell the land on commercial rates." "Though, it will take some time but now, we expect getting calls from buyers interested in purchasing property on commercial roads from the investment point of view. The commercial property always witnesses appreciation. We are hopeful that at least this year, the real estate business in Patiala will bloom as 2012 was too bad", said Juneja. Speaking to the Real Estate, the chairman of Sara Group Satish Goel said the declaration of the commercial roads is bound to give a push to realty sector and the sanctioning of building plans in 85 colonies is a positive sign - both for the people as well as the real estate agents. "Earlier, the actual buyer, who wanted to construct a house, was not willing to finalise any deal apprehending that building plans will not be passed but now there will be no legal tangles in all this. We are expecting that more end users are going to finalise deals and this may bring the real estate sector in Patiala out from severe recession", asserted Goel. Rajinder Bansal of the Shamsons Colonisers Private Limited, however, was a bit apprehensive about the issue of the sanctioning of building plans. He said that in the past also such decisions had been taken but were revoked later. "If the building plans are sanctioned in 85 colonies and the civic body ensures residential development in a regulated manner, I am sure that the residential sale purchase will pick up", he said. Bansal, however, said that as far as the issue of commercial roads was concerned, the move will be lucrative for the government as the Change of the Land Use fee will fill up its exchequer. He added, "This is a very positive step and was the need of the hour because apart from the residential area, there is requirement for the commercial areas also to meet the day-to-day commercial needs." Easing of norms: A view of the Ekta Vihar (top) and Deep Nagar (right) localities in Patiala where now the building plans will be sanctioned by the Patiala Municipal Corporation. Some of the roads where commercial activities can be carried out now •
Road from Raghomajra Pulley to Ayurveda College •
Road from Gurdwara Dukh Niwaran Sahib (Lamba Flower Shop) •
Railway Crossing Number 23 to Pratap Nagar. •
Pratap Nagar (Street Number 1) to Railway Crossing 24, to Majithia Enclave and from Gurdarsh Nagar to Kohli Drycleaner (Both sides of Nabha Road uptil Industrial Training Institute Pulley). •
Radha Krishan Temple (Model Toan) to Model Town Dispensary. •
Nabha Road to Gurdwara Sahib Ablowal. • Bhupindra Road: In front of Café point to Meeting Point. •
Dhillon Marg (House Number 43 to Right Hand Side Park on the road). •
First roundabout of the Model Town to the Road connecting the State Bank of Patiala and Punjab and Sind Bank. •
Road near Sunny Jewellers in Adalat Bazaar up to the house of Sri Bali. Relief for residents Some of the colonies where the building plans will be sanctioned: New Bishan Nagar, Sunder Nagar, Sheesh Mahal Colony, Sullar Road, Sidhu Colony, Balmiki Colony - Tripri, Anand Nagar-A, Anand Nagar-B, Guru Ram Dass Nagar, Udham Singh Colony, Aman Bagh Colony, Darshana Colony, Chand Colony, Virk Colony, Bajwa Colony, Jagtar Nagar, Ravidass Nagar, Pathak Vihar, Raj Colony, Majithia Enclave, Pathak Vihar, Gurdarshan Nagar, Ajit Nagar, New Basti Badungar, Bhan Colony, Manjit Nagar, Ghumman Nagar, Ekta Nagar, Prem Nagar, Guru Teg Bahadur Colony, Deep Nagar, Teg Colony, Heera Bagh, Gobind Bagh, Khalsa Nagar and Arsh Nagar. Revenue rates Apart from other fee and charges, the development charges which the Patiala MC will charge while sanctioning building plan in these colonies. Up to 50 sq yd Rs
5 per sq yd Between 50-125 sq yd Rs 95.11 per sq yd Between 125-250 sq yd Rs
161 per sq yd 250 sq yd & above Rs 256.12 per sq yd There will be an annual increase of 10 per cent in the development charges.
|
|
|
outlook: 2013
The headwinds of financial crunch, low sale volumes and reluctant investors and buyers due to high prices and home loan interest rates that kept the real estate sector in the region off its growth course in 2012 are not likely to change direction in the New Year also. Property transactions in major Indian cities were down by 20-30 per cent last year and industry watchers maintain that the low sentiment is going to continue over the next few months with prices, especially those in the region, falling by 10 to 15 per cent.
With virtually no investors in the market the developers are facing a severe fund crunch which is reflected in delayed possessions and deferred projects. This is making the buyers uncertain about investing in ongoing projects leading to large inventory overhang leading to the vicious circle of low sales, financial crunch and poor buyer sentiment in the realty market, especially in the residential segment. This trend was witnessed in various cities in Punjab and Haryana in 2012 and the situation is unlikely to change in the next few months. The ground reality is grim even in the much-hyped markets like Mohali where a number of projects are in limbo. Though most of the developers are not openly reducing prices but significant discounts are being offered for down- payment deals. There is also a significant difference in the prices being quoted in projects in the same area. “The very fact that there is a massive difference in prices being offered by different builders in same location is an indicator of the panic that is setting in the market,” says Mohali-based real estate consultant Sandeep Goel while citing the example of two projects by two builders in Sector 66-A where the prices are Rs 3,700 per sq ft and Rs 4,100 per sq ft. “This means that there is a difference of approximately Rs 12 lakh in a unit which is substantial for a buyer and if a builder is offering this much difference then it shows the urgency to sell and lure more and more buyers,” he adds. Commenting on the current scenario in the residential segment, Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India, says, “It became evident in 2012 that homes are not selling at the current price points, and developers do need to re-calibrate their bottom lines while still remaining viable as businesses. It is extremely doubtful that the previously offered freebies and other such incentives will prove to be much of a booster in the current environment. Since the only way to catalyse healthier sales at this point is offering buyers tangible financial relief, we are likely to see drastic trimming of frills in projects to make them more marketable from a pricing point of view, and innovative payment schemes”. Experts, thus see a distinct possibility of developers offering buyers attractive pre-launch benefits in 2013 The key dampeners Although the phenomenon of increase in property prices has been prevailing in the Indian property market since 2009, but it is for the first time that this has been identified as the single biggest hindrance in buying property in 2013. High property prices, poor location and connectivity have been termed as the major dampeners for homebuyers in 2013 as per a property forecast survey conducted by property website makaan.com. Most home buyers are unable to justify or afford the high prices being asked from them. They are also concerned about the poor location and connectivity of the new projects. There is a fear that the infrastructure development around these projects may take far longer than that advertised, making these locations beyond the reach of most buyers. Home buyers are unable to find their dream abode closer to their preferred locations in their limited budget and are forced to compromise with an area 15-20 km away from the main city. However, when it comes to choosing between available options, projects with economical budget and superior location and connectivity will win the race in 2013. As per the research, which covered buyers in cities like Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh, Indore etc, 54 per cent of home buyers have identified high property prices, followed by another 20 per cent who have identified location and connectivity as the main dampener for 2013. Other major hindrances are credibility of developer and lack of proper guidance during the property search process. End-user driven market As more transparency has been introduced in real estate transactions and the role of black money has been reduced to a great extent, the speculators and investors who were riding the property market from 2009 to 2012 are lying low making way for end users in 2013. “Curbs on power of attorney deals and higher registration fee are some of the factors that have made property market not so lucrative for speculators and those looking to make a quick buck. This is going to be in the favour of end users as developers will have to rationalise prices soon,” says Goel. According to the findings of the makaan.com survey also a majority (51%) of home buyers want to purchase a property for self use as they are currently staying on rent. Another 20% want to buy property to meet the demand of a growing family. An equivalent number of people want to purchase a home for long-term investment. This is a very positive shift from the earlier years and will bring in the much required stability in the property market. Aditya Verma, EVP & CEO, Makaan.com said on a positive note, “2013 is likely to be the year of stability for the Indian real estate sector. Property prices are likely to remain in check and interest rates are likely to ease over the course of next 12 months. Less supply will hit the market and focus will be to execute and deliver the existing projects. The debate on Real Estate regulatory bill and land acquisition bill will gain momentum. Overall home buyers will have a higher bargaining power in 2013 compared to previous years.” HIGHLIGHTS • Home buyers feel that the residential property prices will appreciate up to 10 per cent • Apartment is the preferred choice of home buyers followed by plot • Preferred budget for home buyers is under Rs 40 lakh • Location and price are the top purchase considerations in 2013
|
|
|
realty
matters
If you are planning to buy your dream house in the near future, there are lurking fears in the realty circles that it may cost you more because of the increase in the cost of construction material. While the cement prices have already seen a considerable hike in the past year, bricks are no far behind as the price of bricks has risen from Rs 3,600 to Rs 6,200 per thousand. Industry experts say that the price rise has happened as the brick kilns have halted production due to the new norms of procuring permission from the Ministry of Environment.
Under the new norms, environment clearance is required even for mining in less than five hectares of land. Following this, all brick kilns are closing down. Brick kiln operators say they should be exempted from obtaining permission from the Ministry of Environment for earth excavation. The State Level Environment Impact Assessment Authority (SEIAA) has written to the Ministry of Environment & Forest suggesting simplification of norms for brick kilns. “We bought the bricks at a rate of Rs 6,200 per thousand. It was Rs 5,800 a couple of weeks ago. Before the new norms were announced, the rate was Rs 3,600. If the brick kilns remain closed, the prices are expected to cross Rs 7,000 in the next fortnight,” said an official of a leading realty firm. “Due to increase in the brick prices, we have decided to slow down our construction work till stability returns to the market. I am sure some amicable solution to this issue will emerge soon,” he concludes. The Noida Building Contractors Association has also written to the district magistrate for an early resolution of the problem. “Contractors have stopped work at the sites as they can’t bear the loss. We have requested the authorities for an early resolution of the problem so that the brick kilns start production. Only then will the prices come down,” said an association representative. It may be recalled that for realty projects having greater than 50 hectares area, a clearance from the ministry is required. For projects less than 50 hectares, the State Environment Impact Assessment Authority is empowered to give clearances. “It is a tough situation for realty companies and they have to find a solution so that the interest of their customers doesn’t suffer. I feel that mostly realty firms will ensure that they do not put pressure on their customers,” says Devinder Gupta, CMD of realty advisory Century 21 DGS. “It is another blow to the already battered Indian realty industry. It has already been jostling with steep and steady rise in prices of cement, steel rods and other input materials, which have gone up steeply during the past four years. Sharp rise in land price, raw material cost and interest rates have also affected the real estate sector adversely. Now with the hike in brick prices, we have to think of increasing the prices our flats,” says Sunil Jindal, CEO of SVP group. However, there are some developers who have come up with a possible solution to this problem, as Ravi Saund, COO, CHD Developers Ltd., says, “We look for innovative options and alternatives to reduce the burden on our customers. We manufacture our own Fly ash bricks in a small factory that we have put up. The cost of the bricks that we manufacture is Rs. 4.20 (Rs 4,200 per thousand bricks) which is lower than the increased cost of the bricks. The fly ash bricks, apart from being cost effective are also environment friendly. Another advantage for us is that the pricing of the bricks is almost stable for the entire duration of the project.”
|
|
|
decor trends If you are fortunate enough to have a green or open garden area or a park-facing balcony or a hill view lounge then it is important that you take the time out to enjoy it while unwinding in the morning and day time with best of the outdoor furniture.
Outdoor furniture has come a long way from the plain cane and wicker or foldable assorted pieces and technical advancements and fine craftsmanship have lead to sturdy all-weather options that are low on maintenance and high on style. Homeowners now look for exclusive outdoor lifestyle concepts that compliment their interiors especially when it comes to the winter season in India. Be it a family gathering in house, friends' barbeque outdoors, a romantic dinner by the pool side, tea time on the balcony or a roof-top dinner under the star-lit sky, outdoor furniture is a key element to make a style statement. Key features Comfort and functionality are the two key elements of any well-made all-weather outdoor furniture set up. So while choosing the right set of outdoor or garden seating, one should always purchase a perfect range to gel with the existing backyard and make it more appealing. Also style and design is just as important as the design of the rest of the house. Manufacturers are coming out with bold and radical new designs and manufacturing materials. Outdoor furniture is no longer limited to materials and finishes that are bleak in design and abundant on maintenance. Science and new production technology are coming up with new materials and finishes that require less or no care at all and still retain their freshness and are fit for all weather. What’s new Furniture in natural textures and natural looking elements as opposed to fragile and artificial enhancers is the upcoming trend with a lot of options available in teak and wicker. However, natural cane has always been a favorite for outdoor sitting but in winters, rain and extreme summer it hardly retains its original colour, shade and look. R S Rai, COO, Addela Homes that deals in large number of outdoor furniture for their residential and commercial projects in NCR, says, “Apart from natural, nowadays there are a lot of options available in chrome finishes and they are becoming a big hit for the season also”. Depending on the higher functionality for indoor and outdoor both, customers prefer the latest wicker furniture made of high density polymer fiber (a synthetic material) that ensures protection from UV rays, dust and and mildew soiling. Completely hand-woven range supported by steel or aluminum frames for high durability is another favourite with buyers. A wide spectrum The polymer fiber pieces come in a wide variety of colours and designs. Moreover one can also go for Caneline, Whether Dendon, Wave Craft and Vetra brands for outdoor furniture and its range starts from Rs 12,000 and goes higher depending on choice, space and material used in manufacturing. All-weather outdoor furniture includes an extensive range of hand-woven wicker, comprising dining, sitting, living, sun-loungers, deck-chairs, even gazebos and cabanas. The seating option could be 2, 3, 3+1, 3+2 with centre table. Indian craftsmanship and fine work of hand-woven elements have gained a lot of popularity around the world. — With inputs from Rahul Jindal, MD, Loom Crafts Furniture India Pvt. Ltd. Maintenance of outdoor furniture • Invest in covers and keeping your stylish pieces covered when not in use will increase their life span considerably. Covers keep the dust out and can be removed easily when required. •
If you have space then it is better to store your outdoor furniture, especially wicker and wood ones, to save it from the vagaries of weather • Remeber that it is not just water that will damage your outdoor furniture, heat also is a major damaging factor as it makes the pieces dry and brittle. So keep your patio pieces in shade in harsh summer months. • If you have wicker pieces then varnish these properly and get a recoat frequently to keep it looking like new. The evergreen appeal of wicker • High on comfort •
It is lightweight and sturdy • Cheaper than metal or wood
|
|
|
Glad appeal
Amarjeet Singh Baath ... The Gladiolus is a popular cut flower which remains in demand throughout the year. It is a genus of perennial bulbous plant of Iris family and is also called the ‘Sword lily’ as its leaves resemble a sword. The florets that are available in a wide variety of colours are borne on the unbranched stem originating from the corm underneath the ground. The basal floret is the first to bloom and flowering moves upwards. A good single spike may carry florets ranging from 10-20 or even more depending upon the size of the corm and the variety of gladiolus. It takes 2-3 weeks to complete the flowering during the winter months.
• While growing these in flower beds, select a location full of sunlight. • Purchase a healthy flowering grade corm (Bulb) with a diameter ranging from one inch and more. These corms can be planted from August to Feb in the plains of northern India. • The early-cut flower varieties start blooming from 60 days of planting and late blooming varieties take 85-90 days after planting. • Corms planted during December-January take longer time to bloom. • Larger corm of the same variety comes to bloom earlier than small sized corm. A large size corm may also produce more than one spike. Preparing the flower bed • Mix about 2-3 Kg of well decomposed Farm Yard Manure (FYM), and DAP @ 40 gm per sq m along with 30 gm of Potash. • Drench the corms in Bavistin @ 2 gm in one liter of water for 15 minutes as a preventative treatment against fungal attack. • Apply Urea @ 60 grams per sq meter at two and six leaves stage. • The ground should be kept moist as excessive water causes rotting of bulbs. • During December-January, Gladiolus is prone to fungal attack. Therefore a fortnightly spray of Bavistin @ 2 gm/ltr is desirable. Propagation Individuals can produce gladiolus bulbs for their own use, for this the when the bloom is over, the leaves must be allowed to die down naturally before lifting and storing the corms. Corms are propagated either from small corm-lets produced as offsets by the parent corms. Flowering spikes should be cut after the completion of the flowering or even earlier leaving four leaves intact with the plant which helps in the development of the new corm under the ground which should be taken out along with cormlets when leaves have dried out. New corms produce underneath from the plantation done in Sept-Oct would be ready for harvest during February.
Time continuous flowering When the first bloom is over, replace the spent corm with another set of corm and the process carry on. Change the flower-bed location once the bloom period is over.
|
|
|
realty bites Delhi-based real estate player Ashiana Housing Ltd., has won the best affordable housing in India and the best affordable housing in NCR awards. The awards have been presented by CNBC Awaz Real Estate. Ashiana Aangan, Bhiwadi, has won the accolades in both these categories.
The award focused on ground performance of real estate projects as major criteria. Scientifically graded features and amenities offered in a project was another important aspect, while construction progress, timely delivery, inhabitability and customers satisfaction was considered paramount for being adjudged as “best project”. Ashiana Angan is a 22-acre residential project having 2 and 3 bedroom exclusive apartments with all the modern amenities. It is located on Kalwar Bypass Road, 2 km off the NH8 (Delhi Jaipur Highway). Windchants, Gurgaon The Experion group recently launched its flagship project Windchants in Sector 112, Gurgaon. Claimed to be Asia’s largest 1.4 km-long residential skywalk and with an estimated project cost of more than Rs 1,000 crore, Windchants has been conceptualised by consultants like Arcop Associates for architectural design and Concept and Site Concepts International (Singapore) for landscape planning. Windchants is approximately 3 million sq ft of built-up residential development for 600 families. Put together as an offering of apartments, duplexes, penthouses and villas, besides well-appointed and convenient common areas, the development shall have over 2,50,000 sq ft of activity and leisure spaces. As ‘design & build’ partner, L&T construction's scope goes beyond civil construction to include providing design construction drawings for architecture, structure and all services coordinated under a dedicated project team right up to occupational status.
|
|
|
tax tips
A.Section 54 of the Income-tax Act 1961 (the Act) provides that where a long-term capital gain arises on the transfer of a residential house, and the assessee has, within a period of one year before or two years after the date, on which the transfer took place, purchased a residential house then the capital gains arising on such sale would be exempt to the extent of investment in the purchase of the new residential house. In my opinion, therefore, the term 'purchase' should include other necessary expenditure to make the residential house habitable and therefore should be taken as part of the cost of the new house. The Hon’ble Tribunal Mumbai Bench in the case of Mrs. Gushan Banoo R. Mukhi vs. Joint Commissioner of Income Tax (83 ITD 649) has held that if a residential house is in a state of general disrepair and is not habitable, necessary repairs carried out to make the same habitable, would constitute part of the cost of the new house for the purpose of claiming exemption under section 54 of the Act.
|
|
|
Where should I invest the sale proceeds? Q.I purchased a 10-marla residential plot for Rs 10,000 @ Rs 1,000 marla in 1984. It is lying as such. Now I want to sell it off. I am likely to get Rs 15 lakh per marla less brokerage and other miscellaneous expenses.
I am not interested in constructing a house. Please let me know where should I invest it to avoid income tax. Earlier you had advised to invest capital gains in NHAI or REC. Recently in reply to a query you have suggested that the amount can deposited in a bank under the capital gains scheme. Such a deposit would suit me if applicable in any case. Please let me know the capital gain in my case and whether or not I can deposit the same in a scheduled bank under the capital gains scheme. A.The reply to your queries is as under: •
he capital gain arising on the transfer of a long-term capital asset will not be taxable if the assessee has, at any time within a period of six months after the date of such transfer, invested the whole or any part of the capital gain in the long-term specified asset. The term ‘long-term specified asset’ has been defined to mean any bond, redeemable after three years issued after the first day of April 2007 by the National Highway Authority of India or Rural Electrification Corporation Limited. Accordingly, in case you want to save capital gains tax arising on the transfer of the residential plot, you will have to invest the amount of capital gain arising on the transfer in such bonds within the specified period. In case only a part of the amount is utilised for purchase of bonds, the exemption would be allowed proportionately. Please note that the bonds can be purchased up to a sum of Rs 50,00,000 within a financial year. These bonds have a lock in period of three years and carry interest @ 6% p.a. • The deposit in the capital gains scheme with a bank is to be made where the assessee is not able to utilise the amount of the capital gain or the net consideration as the case may be, towards the purchase or construction of a residential house before the due date of filing the return under Section 139 of the Act for the year in which the capital gain has arisen. The money deposited in such an account is required to be utilised for purchase or construction of a residential house within the specified period. The deposit under this scheme would not entitle you to claim any exemption from the leviability of capital gains tax on the transfer of the plot of land. • The amount of long term capital gain in your case will be Rs 1,49,31,840 before considering the brokerage and other expenditure in connection with the sale of land which will go to reduce the amount of capital gain.
|
|
|
What are the options available to save LTCG tax? Q.I had purchased a plot in 1980 for Rs 30,000 and spent another Rs 70,000 to build a house on it. Since then the house is on rent and I have spent approximately Rs 3 lakh on maintenance/renovation. I now want to sell this house for Rs 2 crore. Kindly let me know the following:
• What will be my long-term capital gain tax liability? • Options available to save the long-term capital gain tax. —
Jatinder Singh The amount of long-term capital gain on the basis of above figures will be Rs 1,91,48,000 (Rs 2,00,00,000 - 8,52,000). Tax on the above capital gain will be payable @ 20% plus education cess of 3% thereon. The amount of tax liability would work out at Rs 39,44,488. You can save the amount of tax payable on the above long-term capital gain by utilising the long-term capital gain for purchase or construction of a new residential house. The purchase of a residential house is required to be made within one year before or two years after the date of sale of the old residential house. The construction is required to be completed within three years after the date of sale of the old residential house. You also have an option to invest the amount of capital gain towards the purchase of tax-saving bonds. Such bonds have to be purchased within six months of the date of sale of the old residential house. Such bonds can be purchased up to a sum of Rs 50,00,000 within a financial year. Such bonds have a lock-in period of three years and carry interest @ 6% p.a. You can also utilise the amount of capital gain partly for purchase of bonds and partly towards the purchase/construction of a new residential house within the period specified herein above.
|
|
|
Q.After the death of my mother, the ownership of the house owned by her was transferred in the name of her three children (me and my two sisters). After three years, my elder sister, who was married and had two sons, passed away. One of her sons also died after two years of her death. He is survived by his wife and two children. Four years later my younger sister, who was unmarried, also expired. My queries are as under:
• Can one sell or donate his/her share in the house which cannot be partitioned or has not been partitioned and under which Rule? —
R.Kumar A.Your queries are replied hereunder: • According to provisions of Section 15 of the Hindu Succession Act 1956, in case of a female intestate dying without issue, the property inherited by her from her father or mother reverts to the heirs of the father or mother alive at the time of her death. In view thereof, the share of your unmarried sister shall devolve on yourself and the son of your elder sister as both you and your sister's son are class-I heirs as per the provisions of Section 8 read with schedule to the aforesaid Act. This being a civil matter, I would suggest that you should also consult a civil lawyer before taking any action on the lines indicated hereinabove. • There is no bar or prohibition for a person to sell his/her share in the ownership of house which has not been partitioned but is capable of being partitioned. However, it would be difficult to find a buyer for such a property in case the other co-owners are not interested in selling their share. In case of a property that cannot be partitioned, no buyer would venture to buy a share in such a property.
|
|
|
Q.I am a senior citizen and my income is below the taxable limit. I inherited a residential house in March 2012. It is situated within municipal limits. It is self-occupied and there is no rental income from it. I have no other property of any kind in my name. I seek your expert advice on the following:
•
Is it compulsory for me to file IT return for assessment year 2012-13. • If yes, on which form number. • What is the penalty for delay in filing the return, and how to avoid it? —
Mahesh Prasad A.In accordance with the provisions of Section 23 of the Act, the annual value of a self- occupied property is taken as nil. Therefore, in case your total income is below the taxable limit you need not file the return. I may add that in case your total taxable income becomes below taxable limit on account of the deductions(s) allowable under Section 80C of the Act, it will be obligatory for you to file the return in view of the proviso to Section 139 of the Act. In case you are required to file the return on account of the above reason, the applicable form number would be ITR-I. There would be no penalty in case you file the return by March 31, 2013.
|
|
|
Realty guide
A.Yes, you have full equal right on father’s property. A Supreme Court ruling of September, 2005 accords equal property rights to a Hindu woman along with other male relatives for any partition made in intestate succession. A bench of Justices R.M. Lodha and Jagdish Singh Kehehar in a judgment said that under the Hindu Succession (Amendment) Act, 2005, daughters are entitled to equal inheritance rights along with other male siblings, which was not available to them prior to the amendment. The apex court said the female inheritors would not only have the succession rights but also the same liabilities fastened on the property along with the male inheritors. The apex court passed the ruling while upholding the appeal filed in a case, challenging the Andhra Pradesh High Court's decision not to recognise equal property rights of women along with those of their male siblings. I would suggest you to consult a good advocate dealing in property matters in this case.
Q. I had bought a plot in Pinjore-Kalka urban complex a
couple of years back and am worried about my investment. What are the
prospects of this area near Panchkula after the stay on construction in the
area has been vacated by the Supreme Court? — D.S . Bedi A.The Pinjore-Kalka area in the vicinity of Panchkula along the Zirakpur-Shimla highway holds good promise in the long term. The construction activities in the area recently picked up momentum with the Supreme Court vacating the stay on construction in the area. Already major real estate players, including DLF, Ireo and Amravati, are offering several plotted and apartment options to investors and end-users. Moreover, (HUDA) Haryana Urban Development Authority is also in the process launching its residential and commercial projects here. Since HUDA enjoys a good reputation of developing townships in several urban estates in Haryana, the area would be much sought-after in the next few years. Meanwhile, several other major realty players have also bought land in the area and would be launching their projects in the near future. After tricity of Chandigarh, Panchkula and Mohali, mini townships like Pinjore-Kalka complex would be a major habitation in the region.
|
|
|
Policy initiatives are the key
“2013 will definitely see an increased sale in tier II and III cities. Reason being the considerable difference in prices. While in tier I cities prices have hit the roof, tier II and III cities are enjoying attention because of good pricing. Bhiwadi which is not very far from Delhi is expected to reach rewards because of ease of travelling and so does places like
Meerut." “FDI in multi-brand retail will boost the retail and commercial market of India. Overall the Indian commercial real estate market has seen 72.5 per cent growth in 2012. In terms of investment potential Delhi NCR will continue to be of highest interest to big-ticket investors focused in 2013. This year is likely to bring a large number of NRI investors into the commercial property arena. In terms of the residential market Delhi NCR is going to win the race. Noida market would be vibrant as projects in Greater Noida West will see huge turnout. New sectors in Noida are also expected to see good turnout as also projects near Ghaziabad highways.” Setting house in order “It is unlikely that we will see a spurt in growth in 2013 given the existing inflationary pressures and large fiscal deficit which could adversely impact the scope for policy stimulus in the country. Specifically in the real estate sector, despite the opportunities, the prevailing global and local market conditions have affected investor sentiment. As we step into the New Year, it is advisable that industry players focus on achieving operational efficiencies to improve construction productivity, delivery of projects in hand with the help of technological advances and commitment to improve delivery capabilities including up-skilling of the existing manpower. Therefore, efficiency, innovation and cutting-edge technology such as BIM and assembly line mass housing solutions may well be the keys to success, in addition to improved project delivery and execution skills and addressing the rampant capacity constraints across the built environment." Hopes and expectations •
Finance ministry and RBI should to work together to strengthen the demand and supply side by a special housing development policy. •
Housing Ministry should work with Finance ministry to work out acceleration in affordable housing construction through various measures in Finance Bill •
Housing Ministry should work with state governments as well as Environment, Aviation ministry to find solution to single window clearances of Projects. •
Land Acquisition Bill should be development friendly •
RERA bill should be recast to avoid corruption and control all the stake holders of development and assist quicker processes •
Effective and simplified development rules and FAR policies to increase supply , make infrastructure feasible and save green and agriculture lands “ The key expectations will be the grant of infrastructure status to the sector, instituting a regulatory body and a transparent policy pertaining to the issue of land acquisition for developing real estate establishment. Relaxation in the monetary policy by the RBI which will play a crucial role in leveraging the liquidity in the market for the developers as well as the consumers which is expected in the forth coming monetary policy review. Neeraj Gulati, Managing Director, Assotech Realty Pvt. Ltd
|
If you are planning to buy your dream house in the near future, there are lurking fears in the realty circles that it may cost you more because of the increase in the cost of construction material. While the cement prices have already seen a considerable hike in the past year, bricks are no far behind as the price of bricks has risen from Rs 3,600 to Rs 6,200 per thousand. Industry experts say that the price rise has happened as the brick kilns have halted production due to the new norms of procuring permission from the Ministry of Environment.
Gladiolus is a favourite of garden lovers and can be grown easily in home gardens. Some of the points that you should keep in mind while growing these include:
To have a continuous flowering the corms should be planted 2"- 4" deep in the soil at a 10" x 10" distance. After 30 days, plant another corm in between the 10' x 10' so that when the first bloom is over the second bloom is ready for bloom. 
Q.I have purchased a new flat in Gurgaon and have incurred renovation expenditure to bring the flat in a habitable condition. I have included the cost of such expenditure for claiming exemption under Section 54 of the Act. The Assessing Officer, however, is of the opinion that the said amount is not part of the cost of the house property but it is the cost of improvement such cost of improvement, according to him, cannot be taken as the cost of residential house for claiming exemption under Section 54 of the Act. Please advise whether the action of the Assessing Officer is correct?
— Vijay Paul
A.You have not indicated the year of construction, and therefore, the reply to your query is based on the presumption that the construction was completed in 1980-81 since the land was purchased in 1980. You have an option to adopt the fair market value of the land as on April 1, 1981 for the purpose of computing the amount of long-term capital gain. The amount of long-term capital gain has been computed on the presumption that fair market value of the land as on April 1, 1981 was Rs 30,000. The total cost for the house has been taken as Rs 1,00,000 for the purpose of indexation and the amount of capital gain has been computed accordingly.
•
Who will inherit the share in the house of the unmarried sister? Me, who is the first blood relation; or the son of the elder sister and her two grandchildren, and under which Rule?
Q.My father died in May, 2007 without leaving any Will. He had a four-kanal house in Chandigarh. My husband also died in 2009 without leaving any property. Recently my three brothers partitioned my father’s property on their own without considering my share in it. I would like to know whether I have any right on this property. —
Poonam Sharma
“Residential real estate market in 2013 will depend on the policy initiatives taken by the government and efforts by developers to ensure that the market remains affordable for the buyers. One very important step is to bring down the home loan interest rates as these are hampering the decision of many homebuyers. The market for luxury offerings is likely to remain stable and with many high-end projects announced recently it might pick up some pace.”
It is time that this business is respected in the interest of country. MPs should build required pressure on government to get respect to the business in the interest of the country and promote policies that encourage honest business and plug loopholes that lead to corruption For the real estate sector to come back on the track the government will have to take the following initiatives in 2013: