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area watch: pinjore-kalka urban complex
land acquisition bill
Ground Realty
realty matters
realty bites
10 closet mistakes to avoid
tax tips
Can I claim exemption without registry in my name? loan zone
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area watch: pinjore-kalka urban complex All construction activities had been stopped in the area after a stay had been ordered in a case that had questioned the legality of land acquisition there. The court order had made the investors jittery and many had feared that the area would go the Noida Extension way. But now the clouds of uncertainty looming over the picturesque urban complex area have cleared. With this the project site, which is along the NH-22, is back in the reckoning and the builders as well as buyers are in an upbeat mood. According to experts this may also serve as a shot in the arm for the slackening realty market in the area. A bumpy ride The Haryana Urban Development Authority’s (HUDA) ambitious urban complex project has not had a smooth run since its inception. HUDA was the first to announce its intention to develop the area as urban complex about five years ago. However, the project ran into rough weather with the Union Ministry of Environment and Forests raising objections. The project has remained largely unexploited due to legal and demographic reasons, in spite of vast options for the investors and end users to own a dream house in picturesque surroundings. With the decks cleared for construction activities, HUDA and several big realtors are all set to cash in on the demand of the people wanting to own a house in the urban complex. HUDA, in fact, is the biggest player in the area with the largest land bank and scope of acquiring more land. “The layout plans for three sectors are in the final stages of approval by the Haryana Government following which HUDA’s residential and commercial urban complex would be opened to the public,” says Panchkula’s District Town Planner Hitesh Sharma. Private players like DLF and Ireo have mega integrated township projects planned in Sectors 2 and 3 of the urban complex. Though construction activities are yet to commence fully in Ireo group’s 200-acre “Fiveriver” project that was launched in 2011, it will have premium apartments, villas and penthouses. The DLF group that has 209-acre ‘DLF Valley’ township project was the worst hit by the stay on construction activities as the construction work for its independent floors was in full swing when the court orders were received. According to the group’s Director for North, Rakesh Kerwell, “The construction activities will take some time to gain momentum but with this clearance the property market in the area will soon be back on its feet and sales will pick up in the next few months.” Project view A purview of the upcoming projects reveals that there is something to suit every pocket here with options including freehold residential plots, group housing flats, low rise apartments, villas, commercial space etc. While prices are on a higher side in DLF and Ireo’s integrated projects, the emphasis in both the projects is on offering a complete package comprising residential, commercial and recreational facilities, including clubhouses, schools and hospitals etc to buyers from different parts of the region. While the DLF Valley, Panchkula, is situated on a flat terrain amidst scenic surroundings with river bed, hills and forests ensuring a tranquil and peaceful abode, Ireo’s villas promise a “neighbourhood feel”. Though independent floors was the key focus in DLF Valley initially, the group is planning to launch new products in its project keeping in mind the changed market dynamics, says Kerwell. Mumbai-based realty major Rahejas Group, too, is in the process of launching a project here. Another realty group — Evershine — has been given a licence to develop a nine-acre commercial complex. The existing real estate developers, including Amaravati Developers, are also in the process of expanding their projects. Commenting on the potential of the area along NH-22, Kulbhushan Goyal of Amaravati Enclave, says, “We recognised the potential of the area long back and were the first real estate company to come up with plots and apartments in the area. With the coming up of the big realty players the urban complex would become the most sought-after area in the tricity in the months to come and the Supreme Court judgement on the vacation of stay on construction in the area is an icing on the cake.” Experts feel that the new complex would go a long way in de-congesting Panchkula, which is currently bursting at the seams as major Haryana Government offices have been shifted to this district headquarters. Plus points The strategic location on the Zirakpur-Shimla highway, and the sylvan environs have been the major USP of the area for big realtors. The main plus points of the area are its proximity to Panchkula and good road connectivity because of which more and more prospective buyers are now scouting the periphery areas for buying a house. “It is being seen as one of the major residential markets in the area with Baddi — a hub of over 3,000 industries — just half an hour’s drive away,” says Archana Sanghi, of the Parvati-Durga Global Women’s Society Panchkula. This coupled with the completion of the four-laning project of Zirakpur-Parawanoo highway and Pinjore bypass would ease traffic flow on the NH-22. As currently the area is not densely-populated, the low-rise group housing accommodation will attract the middle and lower middle class hoping to have a home in the region. The current price range for plots in the area is between Rs 32,000 and 40,000 per sq yd, while for apartments and independent floors it is between Rs 3,500 and Rs 5,000 per sq ft. “With property prices being much less than those in Chandigarh and Panchkula and with good connectivity and planned development on the cards, investment here seems to be a good proposition”, says Sanjay Sharma, an IT professional working in IT Park, Chandigarh.
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land acquisition bill
The Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill, has been deferred to the Budget Session but the debate over the various aspects covered by this Bill has not died down. The Bill, which will replace the outdated British era laws regarding the acquisition of land from farmers, is of significance not only for the realty sector but for the entire infrastructure sector and will chart the future growth of the country. Once passed, the provisions of the new law will also have long ranging effects on the housing sector and on home prices. Here are some of the focus areas covered by this Bill which will be the game changers for the realty sector over the next few years: Rehabilitation and resettlement Land is both scarce and unequally distributed. Fragmentation of small plots has prevailed over redistribution of larger ones, pushing an increasing number of households into landlessness. Alternative opportunities rarely exist for farmers who lack the skills required for other avenues of income generation. These systemic constraints result in dysfunctional and opaque land-markets, where sales are few and often unreported. The Bill was originally introduced in Parliament in September 2011 and tries to address this issue of fair compensation and rehabitation. The new Bill ensures rehabilitation and resettlement of families of all farmers, landless and livelihood losers who resided in the area acquired for five years or more with a house or one-time financial grant in lieu thereof, and an annuity of Rs 2,000 per month per family for 20 years, adjustable to inflation, or employment and if employment is not forthcoming, each family will get a one-time grant of Rs 5 lakh. The final award has to include damage to any standing crops which might have been harmed due to the process of acquisition, including the preliminary inspection. In case agricultural land is acquired for urbanisation purposes 20 per cent of the developed land will be reserved and offered to the farmers in proportion to the area of their land acquired and at a price equal to the cost of acquisition and the cost of development. Landowners’ consent The Bill seeks to stipulate that a consensus of at least 80 per cent of the land owners is required for any private project. The percentage becomes 70 per cent if the land is to be developed under public-private partnership. Any government-undertaken project does not require such a consensus. “These are certainly positives and in line with the larger purposes that the Bill seeks to address”, says Mayank Saksena, Managing Director - Kolkata and Head, Land Services, Jones Lang LaSalle India. However, while voicing his doubts over the loopholes in this provision, Saksena says, “One point of doubt would be that the proposed Bill says that the provisions would be applied retrospectively if the award of compensation has not yet been made. By award of compensation, one would assume that the land owner has actually received the funds into his bank account. If the land owner in question has not accepted or otherwise received payment, it does not count as award of compensation. The implication is that if the land owner has not received compensation for any reason at all, he can bargain for a higher price and thereby hold up the process and also contribute to further land inflation”. Irrigated multi -crop Though the Bill discourages acquisition of irrigated multi-crop or agricultural land, it is for the states to earmark how much land should be reserved for protection. There is no capping on restrictions on irrigated multi crop land or net sown area unlike the original Bill capping it to 5 per cent. The blanket ban on multi-crop also looks impractical, especially in the cities located on the plains of the heavily irrigated northern India. Any land available in these cities is multi-crop and cultivable and since these cities have the highest trends of urbanisation and population growth, from where will these people find shelter? Impact on Industry Some concessions will be given for acquiring land under PPP for public purpose. The concessions will be decided by the state governments. If land is acquired for Special Economic Zones (SEZs), the state governments will decide on the issue. Industry Captains feel that it would adversely affect Industry, particularly those in manufacturing. Rather than addressing concerns of the Industry over the provisions of compensation and consent required for land acquisition, the recommendations do not seem to be taking into account the need of the Industry, thereby, leaving it to fend for itself. Builders feel that once they get the consent from the landowners, one should get it hassle free. Even for an industrialist acquiring land is cumbersome as titles are not clear and it is difficult to get land in tribal areas. Implementation could be difficult. Under the proposed law, developers will have to submit project details like approved layout plan, timeline, cost, sale agreement to the regulator before launching projects. Failure to do so will entail a penalty of 10 per cent of the project cost on the developers or jail for a maximum of three years. In extreme cases, they could even lose their
licence. Effect and concerns
For the consumer the benefit would be in the form of faster completion of highway and other road projects. Litigation would come down if higher rates were to be given to the land owners. And if land can be allotted to the developers on time, then the completion time would also improve drastically. If this Bill becomes an Act then it will be tough for the developers to build townships. Not just this, the developer will have to transfer the cost burden to the end consumer. Thus, one feels that the developers should be kept out of the ambit of the Bill and it should be applicable only to the government bodies. When land prices go up, it will push up project cost by many times over. We might not see big projects now as not many developers can afford resettlement and rehabilitation. Thus the dream of owning a affordable house would stand shattered for the middle income and lower middle income families specially those who are living in or around the big cities. Higher cost of land on outskirts of cities may hurt low-margin affordable housing projects. Under the proposed set of rehabilitation and resettlement guidelines, the developers' cost of acquiring land greater than 100 acres is likely to increase by 20%-25% depending on the location and existing costs. Voicing these concerns Ravi
Saund, COO, CHD Developers Ltd., says, “This may lead to an increase in the cost of land and thus the property prices will go up. This will put a big question mark on affordable housing projects. The bill is a good attempt at answering the problems of land owners and bringing the much awaited relief to them but it fails to keep in mind end consumer's interest. We believe the bill needs to be tweaked to ensure smooth functioning and that the interests of the three parties (landowners, developers and end users) are not conflicting”. While the cost will increase manifold for large-scale developers, it is a fact that if implemented, the Bill will ensure housing for the urban poor by making it compulsory for developers to provide some portion of project townships for the lower income group. The Bill will help streamline the clearances process for all developments; developers cite approvals and clearances process as the main reason for project delays. It will also prevent the hoarding of land by deep-pocketed realtors. The Bill further states that the entire process of land acquisition and award of compensation needs to be completed within five years of date of proposal, else the transaction stands cancelled. While it all seems positive on the surface, the fact is that there is also potential for even more uncertainty in the process of land acquisition. “The Bill will have far reaching consequences for the growth of economy, for safeguarding the interest of the farmers and for affordable housing for the poor, hence implementation of the same may not be a easy task, though if handled correctly it would only bring more transparency and would lead to sustained and organised growth of Real Estate sector where only the fair, genuine and honest developers shall grow”, says Neeraj
Gulati, of Assotech Realty Pvt Ltd.
— The writer is former Vice-President Centurion Bank of Punjab
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How to speed up construction work Constructing one's own house is not a cakewalk as the process may get stretched leading to considerable increase in cost. It is generally seen that the construction work is commenced with much enthusiasm but as time passes the impatience starts building up. By the time 18 months have passed, the homeowner and his family are on the edge as their long cherished dream is so close to become a reality yet the work seems to go on and on. Such a situation can be avoided if a few factors are kept in mind right at the initial stages and loss of time on their account is eliminated. Here are a few tips to speed up the completion of construction work: Bricks supply tie up Bricks are the first building blocks required at the commencement of the construction of the house. Irrespective of large variation in their prices, bricks are mostly available in plenty in the market and many representatives of brick kiln owners begin visiting the construction site when the excavation work is in progress. However, a house owner should survey the nearby brick kilns and tie up with one that produces good quality bricks for their regular supply to his site. It is always preferable to use bricks from the same kiln for whole of the structure. One shouldn't rely on traders and should do one's own recce for this. Frequent change of source of bricks used in super structure (structure above plinth level) causes problems in masonry work. A house builder should, therefore, save time normally wasted in finalising the brick supply source when the work is in progress by carrying out this exercise beforehand. Basement construction Construction of basement in the right manner by raising RCC walls and columns and then finishing the activities to be completed later on add a minimum period of four months to the overall time of completion of the house. Therefore, the decision for construction of basement should be taken by keeping this time factor in view. In case you are in a hurry to complete the house at the earliest then the construction of basement can be avoided. However, in certain cases of low-lying plots, the construction of basement is a technical necessity. Wood procurement It is always wiser to procure the required quantity of wood at the start of work, getting it cut to size and storing it for its natural seasoning. More is the time given to the wood to dry up, the less it will warp later. Some people prefer to buy logs of much in advance and store them for their seasoning. Wood work consumes the maximum time in construction of the house and a delay in procurement of wood directly affects the completion of the house. In general, the time to be given to the wood for drying up is not correctly visualised by the house owner. In the absence of good and reliable wood seasoning plants, wood needs time to dry up. Therefore, the procurement of wood even before the start of construction is a great time-saving idea. Marble & granite work House builders are often in a dilemma whether to visit Rajasthan to buy marble and granite or to purchase these from the local market. Quantities required should be worked out at the earliest and accordingly, the decision to procure them should be taken. For smaller quantities, it is wiser to survey the local markets and procure the required quantity from there itself as large marble and granite markets have now come up in and around Chandigarh and the rates are quite competitive. One important aspect towards saving time is an accurate assessment of quantities and to buy them in bulk instead of making repeated visits to the market to meet the shortages later on. POP finishing Once the plastering work is over, POP work in the house should begin at the earliest. Many activities are dependent on the completion of POP work. First two grindings of the floor can be done only when POP work is over as lots of POP drops on the floor and it is not possible to carry out both the activities simultaneously. Painting work, too, can be started only when the POP work is over. Woodwork in cupboards and kitchen is also started after completion of POP work. In case some false ceiling is to be done in some rooms like living room and drawing room, more time is required for the POP activity. Therefore, the house owner should see that the POP work should begin soon after completion of plaster and laying of floors. Plastering repairs After the flooring gang completes its job, many plaster repairs need to be applied, especially along the wall skirting. A skilled mason should be immediately put to work to carry out these repairs before the painters take over. Repetitive application of water to these repairs is important for proper curing and for repairs to gain strength. If this small but important activity is ignored or delayed, painting work gets delayed accordingly causing overall slippage. Painting work Painting of house is another highly time-consuming activity. Interiors, exteriors and woodwork polishing normally take five months or more. Interior walls are to be sanded many times, given coats of primer, then coated with readymade or self made putty till all undulations are eliminated and thereafter, given the final finishes. Wood work needs sanding, filling, application of sealer and polish coats. This work needs lots of time for final finish. The painting gang should be finalised by the time POP work gets over and this gang should immediately be put into action. Painter should be made to agree to deploy room-wise manpower. Entire get up of the interiors and exterior of the house depends on its painting work. The painting gang should, therefore, be finalised very carefully. It is preferable to finalise painting work rates on per sq ft basis instead of lump sum amount to get better results. This column is published fortnightly
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realty matters
Being euphoric about one's residential real estate investments may sound fairly justified. While intending buyers decry the rapid rise in real estate prices, investors are on Cloud Nine. It’s actually quite interesting to note how the same people who first complain about how expensive homes in India have become go on to exult about how nicely their properties are appreciating once they have bought them. This fact is quite interesting from a human psychology point of view — however, we are not discussing psychology but real estate. The simple fact is that investment into residential real estate is today the wisest route that a retail investor can take. Most people do not ask for relevant statistics or a comparative analysis of real estate against other asset classes. Nobody denies that hope, faith and belief are our ultimate assets, but investment into assets such as gold, silver, real estate, equity, bonds and mutual funds should be done with the head as well as the heart. Show me the data When it comes to equities, bonds, commodities and currencies, one can rely on global trends and domestic data to take investment decisions. Decoding data and trends into an investment strategy is the very basis of success in all asset classes. However, when it comes to real estate - the largest and most preferred investment asset class in India — smaller investors seem to rely almost exclusively on hope, faith and belief. The information available to such buyers in India is usually fragmented, and its reliability for providing indications on ROI comparable to that of a satellite's monsoon predictions. Data points are crucial, but they become relevant only when they are backed by ground intelligence and based on multiple parameters. For instance, an interesting picture emerges when one considers how India’s young population is driving the consumption story. Two faces of consumption There are striking points of comparison between the automobile and real estate sectors. Volumes, features and price points are key similarities in both. Sales in both sectors depend on the right sizes, configurations and price tags of the products. A reduction in the cost of borrowing — read interest rates on loans — has a direct impact on the buying patterns and trends in both sectors. Back to real estate Most research reports highlight factors such as over-supply and low absorption. Many find this worrying and take a cautious approach. Volume and supply trends differ from location to location, and market trends vary between cities. In other words, there is no way to generalise when it comes to property investment viability. Cities with a high level of job creation continue to see high volumes of real estate supply and absorption. Cities with few or no economic drivers to spur the growth of employment fall behind, no matter what other factors seem to work in their favour. Earlier, Mumbai and Delhi attracted the most talent from rural areas. Today, cities like Bangalore, Hyderabad, Chennai, Pune and Gurgaon have taken lead positions and are all set to overtake Mumbai and Delhi. IT-centric cities like Bangalore, Hyderabad, Pune — and to an extent Chennai — are now emerging as whole new real estate propositions. IT companies there are expanding their campuses dramatically. Recently, WIPRO announced the imminent launch of their new facility and headquarters of approximately 2.5 million sq ft in Bangalore. This facility will augment their existing campus, which already employs over 31,000 people. Trends and data points suggest that dynamics in these cities will be very different in the next few years. With inflation and construction costs moving northwards, the price trends are changing dramatically. The supply trends in real estate have are in a state of flux. The supply of products priced below Rs 3000/sq.ft. is reducing markedly. From 43% in Q4 of 2009, supply in this segment will come down to 8% in Q4 2013. Meanwhile, supply in the price range of Rs 5000-10000/sq.ft. is expanding. On the surface, aspirational and affordability levels are driving such trends. However, smart residential property investors will identify the right products priced below Rs 4000/sq.ft. in key growth cities as a best options. In cities like Bangalore, Hyderabad, Chennai, Pune and Gurgaon, one can still find good projects in this price segment for long-term investments and appreciation. The time-related value of money and inflation are two key parameters that one needs to take into consideration. —
The writer is CEO,Residential Services, Jones Lang LaSalle India
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realty bites
LIC Housing Finance Limited, promoted by state-run insurance giant LIC, is mulling raising Rs 700-1,000 crore through External Commercial Borrowings (ECB), said Chief Executive V.K Sharma. Last month, the Reserve Bank of India (RBI) allowed real estate developers and housing finance companies to raise up to $ 1 billion through external commercial borrowings (ECBs) in the current fiscal to promote low-cost housing projects. Sharma said a committee comprising senior officials of the company has been formed which is in touch with the apex bank on the ECB issue. “We expect that we will be in that segment which has been permitted by the RBI. We expect to raise somewhere around Rs 700-1,000 crore. We will apply for that,” Sharma said on the sidelines of a two-day property exhibition in Hyderabad reecently. ECBs are considered attractive as cost of raising the loan overseas is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amount of funds from global financial markets. To a query on when the company would raise ECBs, Sharma said: “I cannot comment on that. Board resolution is there in place. We have created a committee at company level and they are in touch with RBI.” He said LIC Housing Finance Limited (LICHFL) is expected to complete the institutional placement offer by fiscal end. The QIP (Qualified Institutional Placement) was delayed due to variety of reasons, including volatility in the markets, he added. Though he did not mention the exact amount being raised through QIP, a senior official earlier told PTI it is hoping to raise up to Rs 1,200 crore through the proposed issue of new shares.
— PTI
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10 closet mistakes to avoid
1.Too much stuff: A cramped closet is just too frustrating. Store just the clothes which you wear and give away the old aged clothes. This option would give you more space. 2.Wasted space: Hanging short and long clothes together wastes the space below the short items. Group similar items together then place a rod wherever there is a big enough gap. 3.Hanging storage: Shelves and drawers are as important as shelves for casual lifestyle and wardrobe. Maintain 6 inch unused space in hanging rods. 4.Wire hangers: The drycleaners give away these to us for free and clothing stores avoid them, these hangers bend, leave marks and can't hold much weight. Thus avoid using these. 5.Shelves without dividers: The long shelf above most closet rods invites messy piles of clothing or handbags that tangle or topple over. Add clip on shelf dividers or add a row of bins or boxes to create order. 6.No floor strategy: Don't store shoes or floors because it might get damaged by vacuum cleaners and moreover it looks very messy. Add shoe cabinets for shoes, use low boards to keep things organised. 7.Use strong shelving of wood than wire shelves leaving lines on the clothes. 8.Adjustable shelves: These are better than the fixed ones as one can adjust the height anytime. 9.No lights above closets-Avoid this! Add a ceiling light or LED shelves in closet for proper lit up closet. 10.Keep a His and her section in closet. Make divisions rather than stacking all clothes together. With inputs from Shivika Bhasin, Huelsta
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Terms of distribution of capital asset S. C. Vasudeva ... A. According to the provisions of Section 45(4) of the Income-Tax Act 1961 (The Act) the profits and gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of the firm shall be chargeable as income of the firm of the previous year in which the said transfer takes place and for the purposes of such transfer fair value of the asset as on the date of transfer shall be deemed to be the full value of consideration, received or accruing as a result of the transfer. The following conditions must be satisfied for being covered under the provisions of Section 45(4) of the Act: *
The assessee is a firm; * There is a distribution of capital asset on the dissolution of the firm; *
The distribution may be of a long term or a short term capital asset. In view of the above provisions of Section 45(4) of the Act, the distribution of the capital asset (i.e. a factory building) as specified in the query would be covered within the term “distribution of capital assets on the dissolution of the firm” and, therefore, the firm would be liable to pay capital gains tax. The fair market value of the factory building on the date of transfer/ (dissolution) would be taken as full value of the consideration.
What is the tax liability for subletting a shop? Q. I am occupying a shop of very large area near the railway station. The shop was taken on rent about 30 years back for a very low sum. I need just a part of the shop for my business so I have further rented out a portion to another party. I had declared the rent received from this portion as rental income but the Assessing Officer has not accepted my claim. Is the contention of the Assessing Officer correct? —
Aman A. Income under head “income from house property” is taxable under the said head only if the assessee is the owner of the house property. Thus the income from sub letting is not taxable under Section 22 of the Act. Such an income would become taxable as income from other sources under Section 56 of the Act. Accordingly in your case, the income of subletting will be assessed as income from other sources and you would not be entitled to a statutory deduction of 30 per cent against such income. The stand taken by the Assessing Officer is correct and is in accordance with the provisions of the Act.
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Can I claim exemption without registry in my name? A. The provisions of Section 54 of the Act are very clear in this respect. In case the possession of the house has been taken by the assessee, the exemption from the taxability of capital gains earned on the sale of a residential house which is invested within the specified period in the acquisition of the new house cannot be denied. In this connection you may refer to a decision of the Bombay High Court in the case of CIT vs. Dr. L.N. Nagda (211 ITR 804) (1991). It has been held in the said case that the exemption under Section 54 of the Act cannot be denied in case the possession of the house has been taken but the sale deed is yet to be registered. Further the definition of the word "transfer" in the Act having been changed to take into the account the parting of possession for consideration as a transfer, there is no reason that the exemption should be denied to you.
Part payment will not affect capital gain tax
A. The capital gain is attracted the moment a person acquires the right to receive the consideration on the transfer of a capital asset. It is not necessary that the consideration should have actually been received. Therefore, even if the full value of consideration agreed upon is received in instalments in different years/months, the entire value of consideration accruing to you will have to be taken into account for computing the capital gain. Such capital gain becomes chargeable to tax in the year of transfer. Accordingly, in your case, you will have to compute capital gains by taking into account the entire consideration. The capital gains tax would thus be exigible to tax for assessment year 2013-14. Inheriting a mortgaged house
A.
The Supreme Court in the case of R.N. Arunachalam vs Commissioner of Income-Tax (227 ITR 222) has held that where a property has been mortgaged by the previous owner during his lifetime and the assessee, after inheriting the same, has discharged the mortgaged debt, the amount paid by him for making the payment towards the mortgage amount should be regarded as cost of acquisition under Section 48 read with Section 55(2) of the Act. You would thus be able to claim the deduction of amount paid to the bank against the amount due under the mortgage and the amount so paid shall be treated as part of the cost of acquisition of the property.
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Can I claim compensation for lapses by the lender? S. C Dhall ... Actually my sanctioned loan amount was Rs 26 lakh, but I had got a cheque for Rs 22 lakh as the balance amount was for construction, which I never started, and informed them also. For the first three months they charged me EMI for a loan of Rs 30 lakh, then I wrote to the Regional Manager and he adjusted the extra charged amount in my outstanding loan amount but again without any interest paid to me. Please suggest if I can sue them for this lapse on their part?
— Subhash Juneja A. Your queries appear to be correct and you should be entitled to compensation for the delay in refunding/adjusting the excess amount from you. Please work out the ‘materiality’ of the amounts involved. If the amounts are material enough, then you can take up the matter further by complaining to the top officials of the HFC concerned and if no action is taken then you can also file a complaint with the National Housing Bank which the regulator for HFC. You can also file a case in the consumer court. Another aspect of the query, however, is that if you read the agreement carefully you will find that you have violated the terms and conditions on which the loan was given to you by not carrying out the construction within the indicated time frame and the HFC can declare you in default of the loan agreement and ask you to repay the entire outstanding loan amount immediately. Please take this into account before you take any action in this matter.
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Constructing one's own house is not a cakewalk as the process may get stretched leading to considerable increase in cost. It is generally seen that the construction work is commenced with much enthusiasm but as time passes the impatience starts building up. By the time 18 months have passed, the homeowner and his family are on the edge as their long cherished dream is so close to become a reality yet the work seems to go on and on.
Homebuyers and investors who had set their eyes on owning a piece of property in the much-hyped Pinjore-Kalka Urban Complex area have heaved a sigh of relief as the stay on construction activities here was vacated recently. 
Right pitch for big game
Four more materials required at the start of construction work are cement, steel, sand and coarse aggregate
(bajri). Brands of cement and steel should be finalised beforehand in consultation with the architect or a consulting engineer and dealers concerned should be located and contacted or visited. 
Bedrooms in most apartments are no longer very spacious huge rooms as would have been in our ancestral houses and closets too have shrunk accordingly. Small space calls for 'big' organised effort to keep your closets tidy and organised. The solution is to avoid few mistakes which people generally commit:
Q.A partnership firm comprising four partners is owner of a building in which the business of the firm is being carried on. The business which has been carried on by the partnership for the past few years has not been very successful and it has been mutually decided by the partners to dissolve the partnership. What would be the consequences of such dissolution?
—Raj Kumar
Q. I own a residential house which was constructed about 15 years back. I have purchased a bigger house in a better area and have invested the capital gain earned on the sale of the earlier residential house within the specified period of two years. I have already shifted to the new house but the sale deed in my favour is yet to be registered. Will the capital gain so invested in the new house be exempt from tax though the sale deed is yet to be registered in my
favour? — Naveen
Q. I had sold a plot to one of my relations in June 2012. The buyer has agreed to pay the consideration in 15 equal half-yearly instalments. Proper documentation has been made in this regard and I would be receiving eight instalments by March 31, 2013. Am I supposed to pay capital gain on the sale computed on the basis of each instalments or the capital gain will have to be computed by taking the total amount into consideration?
— Mela singh
Q. I being the only son have inherited a residential house in Jalandhar from my father who had mortgaged the same to a bank for meeting the cost of construction of such house. As on the date of his death, a sum of approximately Rs 20 lakh was due to the bank. I am employed in Mumbai and am not likely to shift from there. The house in Jalandhar is, therefore, not likely to be used by me. I am also not interested in letting out the house and would like to sell the same after taking due permission from the bank. Would I be entitled to the deduction of the amount of loan due to the bank for the purposes of computing the capital gains?
— Rikinder
Q. I had taken loan of Rs 22 lakh from LICHF for a tenure of 20 years. They are
charging me EMI of Rs 22,425. What is the interest rate? Some three months back this EMI was 23,900, I had issued them cheques for the new amount but they had presented in one month both (old & new) cheques. After a long follow up the lender has returned the extra charged EMI to me but without any interest. Am I not eligible for getting interest for that period?