The Tribune, Chandigarh, India

	Land of opportunity Fully developed farms down south, where farming operations can be outsourced to get an assured income, are catching the fancy of Punjabis Sanjeev Singh Bariana While rising prices, low appreciation and lack of funds have kept most investors away from the real estate market for almost two years now, the fact remains that the lure of land is difficult to resist as it still remains the best investment vehicle. With the property market in a slowdown mode in Punjab new trends offering lucrative opportunities to those looking to reap a rich harvest of profits from investing in real estate are gaining ground. Realtors have come up with the concept of setting up agro farms in southern states where the price of land is much less than that in Punjab. A number of such projects have been launched in the past few months giving an opportunity to small and medium investors to buy farmland in states like Karnatka and Uttarakhand. Expanding horizons These projects have come as an opportunity for Punjabi farmers to own bigger land holdings outside their state at a much cheaper price and a chance to showcase their skills in converting soil into gold. Punjabis taking to farming outside Punjab comes naturally as was evident from its achievement in the development of the Terai region in earlier Uttar Pradesh during 1950s. A number of farmers have moved to Madhya Pradesh, recently and USA is full of tales of successful Punjabi farmers. The Namdhari Seeds, an organisation inspired by Satguru Jagjit Singh, which is world’s number 3 seed producer, has strong presence of more than 4,000 acres in the farming sector of the Andhra region. Commenting on this trend Manpreet Badal, a farmer and president of the People’s Party of Punjab (PPP), says, “Punjabis have an indomitable spirit to take challenges in new lands. In fact, even the folk song ‘baarhi barseen khattan gaya si’ reflects the adventurous side of the Punjabis. The community has transformed the unviable chunks of land in Uttar Pradesh into pots of gold. I am sure the promised land, down South, will not remain the same after a few years”. “We know farming is in the blood of Punjabis. But the spiraling cost of agriculture land and shrunken land holdings prohibits the progressive farmers and agriculture entrepreneurs from realising their dreams of making it big in Punjab,” says Ashish Mittal, Director of Multi line Infra Pvt Ltd. Buying new land for farming purposes has become unviable in Punjab. “But in these farm projects the cost of land is cheaper and the soil is highly productive enabling one to cultivate two crops in a year,” Baljit Singh, another director of the company adds. What’s on offer The agro farm deals being offered will provide developed farms of different sizes for only Rs 4 lakh per acre against the existing price of at least Rs 25 lakh per acre in interiors of Punjab and more than Rs 50 lakh per acre along the highways. Chandigarh-based Multi Line Group recently launched one such project — Country Farms — offering fully developed cultivable land near Bangalore. The 550-acre farm project is located only two hours from Bangalore International Airport along NH-7 and is 25 km from the district headquarters of Anantapur in Andhra Pradesh. The minimum size of farms being offered by the group is 5 acres. Another realty group WorldWide Immigration Consultancy Services (WWICS) that had sort of pioneered the concept by launching a similar project in December 2012, has got good response in the past four months. The company’s 800- acre Imperial Farms & Orchards Highway, project is an hour-and-a-half away from the Bangalore International Airport and is also near Anantapur or Penukonda, Andhra Pradesh. In yet another project on agriculture-related investment, outside Punjab, the Multi Line Group has given strong indications of launching one in Uttrakhand “very shortly”. Makings of a better deal The average cost of land in interior of Punjab is 25 lakh per acre. It is an accepted fact that average yield per acre, in self cultivation, is Rs 50,000 per acre, for each crop. Under the lease system it is Rs 25,000 to 30,000 per acre. In the area of the farms, under consideration on the Andhra Pradesh border near Bangalore, the cost of land is approximately only Rs 4 lakh per acre and there is not much difference in the production returns from the land. This clearly means that returns based on investment are much higher in the new area. Along with appreciation in the land value, the companies are also offering contract farming solutions. While the WWICS group is offering 8 per cent assured return, the Multi Line group is offering 8.5 per cent return to those outsourcing the farming operations on the land. A word of caution There are few things farmers need to be aware of before investing in land in the southern states. In first place farmers should have clarity about the state government orders regarding the ownership of land. There have been recent incidents in Gujarat where farmers settled there for the past several decades, have raised their voice against being denied the ownership of land. Balbir Singh Rajewal, farmer and president of the Bharti Kisan Union says, “The investors need to be clear about development of their farming areas, particularly on account of availability of water. There have been complaints when farmers have found that they have been sold rocky land with no water in this part of Andhra Pradesh bordering Karnatka”.
	Home sales look up Vivek Shukla Low sale volumes have plagued the lacklustre real estate market over the past few months, but winds of change have started flowing with the onset of summer season as market observers predict a boost in the sales figures in the next few months due to a number of reasons. Navratra offers Navratras are considered to be auspicious for buying homes as many homebuyers time their purchase in this season. “Navratras are considered as the best days for the realty market. Fact of the matter is that summer months are considered very productive for realty market. This is the time when end users finalise their deals and those who look for new rental accomodation also shift. Summer is also the time when the re-sale market picks up nicely”, says Devinder Gupta,managing director of realty advisory DGS Century 21. Cashing in on this positive mood several developers are offering attractive offers and discounts to attract more buyers. NCR-based SVP Group is offering AC in all rooms on every new booking in its Gulmohur Greens, Mohan Nagar project during Navratras. Noida-based real estate developer Panchsheel Buildtech is offering a 32" LCD tv free with every booking of their projects at Noida Extension duringNavratras. Another NCR- based realtor — Krish Infrastructure Pvt. Ltd. is offering an LCD on every booking with possession now and the offer to start paying EMIs after six months in its ready- to-move-in project Krish City, Bhiwadi. Supertech Limited, has also announced various Navratra offers like 5-10 per cent discount on studio apartments at company’s projects located on Yamuna Expressway. The group is also offering various payment plan options like no EMI, subvention scheme and attractive deferred payment plans on all of its luxury and premium apartments. Apart from this there is 5-6 per cent discount on Araluxe, the company’s latest launch in Gurgaon. Summer boost Apart from this, realty scene generally hots up in summer season, say market experts. Summer is the time of transfers and relocation; the time of school admissions and locating a house near the school so that the kid can be comfortable. “It is the education of kids that pumps the resale market during summer. Lot of transaction take place at all levels. Buyers’ give priority to those projects which are close to good schools,” says Sunil Jindal,CEO of SVP group. Those who are closely involved with real estate market say those who get good jobs outside their city or in abroad sell their property within the limited time. Hence, April to June is the time when prospective buyers should remain in touch with real-estate consultants of their areas in order to buy some good property that too at lesser prices. Alimuddin Rafi Ahmed, managing director of ILD Developers, says , “I know for sure that there is a big demand for properties in residential localities around school zones during summer time. If your project is close to good school or schools, then your project would bound to create a mark.” Businessman Manoj Sehgal is shifting to his new home in Ghaziabad even though he had purchased the flat around six months ago. For six months, he was paying fat rent for his rented Rohini flat. He finally shifted as there was no pressure of kids’ studies these days. According to Neeraj Gulati,managing director of Assotech Realty, “Cash rich NRIs too find summer months an ideal time to return to their roots in order to buy some property. Their search for a property also starts during summer. That is the time when they visit here in order to meet their relatives and side by side they also look for nice properties. They do not mindpaying slightly more for good properties.” The realty market is not about new constructions alone, as the resale market for residential properties is equally big and exciting. This is typically the time of the year when the resale market gets widened and plays host to good bargains and even desperate sales. According to Gautam Dhawan of Suraj Realtors, “I have observed that realty market gets new lift in summer months. Even when market was plunged to all time low due to economic slowdown,all was not lost during summer as buyers and sellers hit the market. They have started coming to us since early April and all of them look very serious to seal the deal once they find the home of their choice.” And if you think that during summer months only sale, purchase and rental related work big huge boost, then you are slightly mistaken. This is also the time when many people repaint the house or get some important woodwork or flooring done or redone. So, remember summer is not all about going to some hill station with family to enjoy. This is also the time to seal the deal. Are you planning to either buy or sell property this summer ?
	market pulse New launches, discounts bolster sales New launches and discounts offered by real estate developers have resulted in pick-up of sales volumes across cities during January-March, a report by US financial major Merrill Lynch has said. “New project launches at attractive prices, discounts and schemes on offer to attract buyers and launches by renowned developer brands resulted in pick-up in sales during the period,” it said in a statement. However, it pointed out that the demand in Gurgaon is slowing, mainly on the back of slowdown in new launches as developers are focusing on execution and inventory clearance. Also, rising prices is impacting the demand. Merrill Lynch said that property prices in Mumbai, that have appreciated at CAGR of 14 per cent over last 10 years, will have to correct in the coming years. “We believe this trend (price appreciation) is unsustainable and prices will have to correct and remain subdued over next 2-3 years. This will allow improvement in affordability as income levels catch-up with residential prices. Most of new launches during January-March have been at a discount to average market prices,” the firm’s Research Analyst Abhishek Gupta said. According to the report, Bangalore witnessed highest number of residential sales in a quarter since 2008, mainly led by flurry of new launches in run-up towards the local new year (Ugadi) in April and affordability, as property prices here have risen by CAGR of 8.5 per cent in last 10 years. Despite being the most affordable city among Tier-I cities, Noida’s absorption rate has remained subdued and unsold inventory continues to rise since 2010, the report said. “We maintain a negative outlook on Noida/ Greater Noida as we believe developers will struggle more in terms of timely execution than sales. We reiterate that timely execution will be the differentiating factor in this region in near future,” Gupta added.
	realty bites Punjab government clears housing policy The Punjab government recently approved a housing and urban development policy which has a major thrust on ensuring affordable housing to the weaker sections of the society. The Housing and Urban Development, Punjab-2013' was approved at a meeting of the state cabinet chaired by Punjab Chief Minister Parkash Singh Badal earlier this week. The new policy would also focus on rationalisation of norms for the housing projects thereby making the procedures far simpler and time bound. The policy incorporates the issues of rationalised development controls, common buildings rules, incentives for construction of affordable houses and green buildings, procedures and time lines of approval of various projects and rationalisation of potential zones, density and charges. The policy emphasised on the need to evolve a mechanism by including a two new policies of ‘Land Pooling’ and ‘Land Owners become Partner in Development’ to avoid any inordinate delay due to cumbersome process of land acquisition. “These policies were aimed at acquiring land easily for the urban development projects for the benefit of both government as well as the land owners,” the spokesman said. Exclusive portal MagicBricks.com has launched a luxury section (http://www.luxury.magicbricks.com) to cater to the needs of the uber elite and HNIs. Only a select list of premium properties, that pass a strict moderation/curation process, would be showcased in the luxury section. A luxury buyer can choose from a exclusive assortment of iconic lifestyle addresses from the most select high-end residential properties costing Rs 15 million (1.5 crore) upwards. Another personalised service is the exclusive “human-interface” with dedicated customer service support for the HNIs registered as elite users of the Luxury site (http://www.luxury.magicbricks.com). It is interesting to note that, while the past few years have been challenging for the real estate sector in general, demands for high-end luxury living spaces have actually increased. Macroeconomic trends such as rapid globalization, changing demographics, heightened aspirations, higher income levels, and superior financing options are some of the factors leading to this growth in demand. These factors have contributed to luxury real estate in India witnessing high demand and constant increase in prices.
	launch pad 1,000 crore township in Mullanpur Alpha G:Corp, a partner of Morgan Stanley and an FDI-funded real estate developer has joined hands with the Chennai-based Rattha Group to develop a Rs 1,000-crore integrated residential township in Mullanpur. Spread over an area of 150 acres in close proximity to Chandigarh, the township would fall within the Master Plan of Mullanpur drawn up by Greater Mohali Area Development Authority (GMADA), Punjab. The project would be Rattha Group's maiden foray in northern India. The Chennai-based conglomerate has interests in exports, infrastructure and residential development. The group has substantial investment in manufacturing and partners Ascott of Singapore in the hospitality segment. Located just 2.5 km from the Chandigarh border, the project would be one-of-the-closest private residential developments in the immediate vicinity of Chandigarh. Adjacent to the proposed Metro line, the development would be well connected to the upcoming GMADA Expressway and to Baddi, a regional industrial hub. The state-of-the-art project would be a part of Punjab Government's larger plan to create infrastructure of international standards across all real estate verticals and address the shortage of quality housing in Punjab. As per data available with National Building Organisation and PUDA, urban housing shortage in Punjab had grown to 12 lakh units in 2011 from 6.90 lakh units in 2007. By encouraging development of new projects by quality-focused and delivery-oriented realty players, the government plans to address this shortage and focus on development. Godrej Summit phase III Godrej Properties Ltd. (GPL) recently announced the launch of Phase III of its residential project, Godrej Summit, near Dwarka Expressway, in Sector 104, Gurgaon. The new phase consists of a total saleable area of approximately 2 lakh sq. ft. Customers can choose from 3 BHK, 4 BHK, and penthouse apartments ranging in size from 1,712 sq. ft. to 4,925 sq. ft. The location is close to the proposed 150- meter wide Dwarka Expressway, which is currently under construction. The site is s located in the high growth corridor of Gurgaon urban area and is also well connected to the Airport, Railway Station, NH8 and Gurgaon Central Business District. The project will offer various amenities, including a modern community centre, a well-equipped gymnasium, swimming pools, meditation/yoga areas and a café. Sports facilities such as an indoor squash court, a tennis court, a badminton court, a multipurpose court, a jogging track and a skating rink will also be part of the project. — Based on information provided by the developers Business centre in Zirakpur The N.K.Sharma group of companies recently announced the launch of a business centre was in Zirakpur. Raksha Business Centre (RBC) is located on the Chandigarh Ambala Higway, which is among the fastest growing business locations in the region. “RBC is a multipurpose office and shopping complex spread over an area of 2.5 acres and a built up area of 370495 sq ft”, said Dhiraj Bishnoi, marketing head of the group. The price range for showrooms and retail outlets varies from Rs 8,000 to Rs 17,000 per sq ft depending on the location and floor.
	decor trends Wow walls Being the largest space in a room, walls can actually make or break the way your home looks Rubina chadha The first thing that grabs attention as one enters a room is the wall. Accessories, furniture, lighting and overall decor are noticed much later. Bare and neglected walls can really destroy the complete look and feel of a room no matter how meticulously you have planned all other things. Therefore, you must always take time and decide what to do with them. If you think that walls are only about good paints and cleanliness, then think again! May be it’s time to change your perception as walls actually have the power to change the entire look of your personal space. However, even after knowing the importance of decorating the walls, most of us fail to create the ‘wow’ look for our walls. Therefore, whatever is the reason now’s the time to take the plunge and enliven those barren barriers with an assortment of wall arrangements. In fact, you need to decide about so many things at one go so that once everything done looks coordinated with each other in respect of the following: Choosing a colour scheme One of the most important aspects of decorating your walls is the choice of colours. You can actually do a lot of things to highlight the walls of your rooms, but the most tried and tested way is through colours. Wall colours play an essential role in your home décor. Using the right shades of colour with appropriate intensities can add sophistication to the room design and appearance. Wall panels If you are bored with the plain old-look walls in your home, then you can try out some innovative décor. This does not mean spending a fortune on many things like panes, alluring showpieces or plaster (though they are all worth the money). If you are looking for a profound change then it’s time to think about decorating your walls with wall panels made of ply board/wood or combinations of ply board/wood and plaster of paris. These wall panels are used both for decorative and functional purposes. Using wallpapers If you are someone who does not like cluttering the wall with objects, then wallpaper is the perfect idea for you. These are easy to install and easy to remove. Wallpapers are available in a variety of colours and designs. Walls look like an art canvas in themselves once wallpaper is installed. It adds a look of richness and class to the overall décor of the house. Giving a freedom of choice to select a colour and design that you prefer, wallpapers have become an economical substitute to wall paints. In order to create that ‘wow’ look in the room, you don’t even need to cover an entire wall with wallpaper. Just get creative and cut a few squares of wallpapers in different patterns and get them framed using the same kind of frame. You can create a collage of these framed decorative articles and deck up the wall beautifully and much differently from all others. You can put glossy or metallic wallpaper in the background of the shelves or the display area and then put decorative articles in bright metallic shades in front. Wooden/glass shelves: Shelves are a great idea for walls. Their geometric shapes make the walls look lively and there is a variety with which you can decorate your walls. Placing small knick-knacks, photo frames, decorative candles, books, the options are just endless. Contemporary decor These days contemporary home decor is in vogue and to go with this theme, a minimalist look has to be maintained. Instead of cluttering your wall, one main art work can be over emphasised with appropriate lighting. A big wall art can add a sense of character and elegance to your living space. A large framed mural or painting not only makes a statement but can actually carry a room’s design. From paintings and wall murals to sculptures and statuettes, the options in artwork are wide and varied. Mirror on the wall An artistic mirror instantly lights up a wall. Depending on your taste you can choose a very ornate and stylish frame or keep it sleek and simple. A traditional carved frame goes very well with an ethnic décor and a modern frame design complements a contemporary décor really well. Wall mirrors help you transform your house into a home. They boost your creative instincts, and most importantly, they adorn you walls and are an excellent way to open up any room. You can use mirrors beautifully to perfect the imperfections like a cracks or blemishes on your walls. One can also use mirrors to enlarge any space by putting mirrors on opposite walls. Mirrors are available in different shapes and you can create a theme by choosing the right kind of mirrors. Make it Victorian, Indian, stylish and sleek, contemporary and modern. — The writer is a Panchkula-based interior designer and founder of Homeworks Decals When it comes to decorating the house, especially for the little ones, one is always on the lookout for a unique and interesting idea. One wants their space to stand out and be appreciated by one and all. That’s what wall decals are for as they make heads turn. Lately introduced in India, wall decals, a European concept originally, have created a buzz in the field of interior decoration be it for home or work places. Wondering what a decal is? Basically it is a design of your choice cut into micro thin films and pasted with utmost care on your walls. You can have the designs customised. A decal would turn your idea or imagination into reality making your walls come alive. Decals can be anything from shapes to figures going with a certain theme. Lights: Lights can also highlight your walls in a great way. You can install modern lighting fixtures, which not only look aesthetic but are also equally functional. Lights can be selected according to the need and can be kept soft and comforting or bright and focused accordingly. More adventurous ones can also check out to ‘dancing lights’ that add a dramatic effect to the space. Picture gallery: Create an artistic look on the main wall by creating a medley of small framed pictures and paintings. You can make use of symmetrical patterns and use paintings and pictures that match the colour of the remaining articles of the room. This will create a classic masterpiece on the wall and give an art gallery look to the living area which is sure to fetch you compliments. All above or choice of a few of the above concepts would add glamour and beauty to your walls and once these wall concepts are coordinated with furniture, window dressings, furnishings and decorative accessories, you are sure to get a whole lt of compliments.
	Office space absorption up The prime office space segment across key cities in India is witnessing an improvement in sentiment since the last year. According to CBRE’s latest report, India Office Market View Q1 2013, prime office space absorption across key cities in India witnessed a 37 per cent increase in Q1, 2013 as compared to Q1, 2012. Transaction activity during Q1, 2013 was dominated by Mumbai, Bangalore, Chennai and NCR (National Capital Region), representing about 90 per cent of the total transacted space during the quarter. Commenting on the findings of the report, Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia Pvt. Ltd, said, “This is a positive sign for the Indian economy reflecting business expansion along with consolidation. This also indicates that the downward trajectory should be plateauing in the near future. However, the Indian office market will continue to take cues from the existing economic sentiment globally and within the country and it is too early in the year to take a position on the market performance.” Meanwhile rental values continued to witness downward pressures across most micro-markets as occupier expansion faced cost pressures and consolidation continued to be the key theme. Rents were stable in suburban office markets such as Gurgaon, Noida, Outer Ring Road, Whitefield, Hitec City and Gachibowli, among others. It is anticipated that downward pressure will continue to persist in most markets in the country in a short to medium term.
	Steps to go green The new generation, more conscious about the environment, is willing to spend a little extra money upfront to enjoy years of lower energy bills. In the Indian real estate sector, builders and developers are promoting “Go Green” concept with premium projects that are eco friendly. Everyone understands it’s time to live by the principle of 3 Rs; Refuse, Reuse and Recycle. Property owners and property buyers can make their homes green homes just by following these simple steps: 1Install solar panels. Solar panels can be placed on the rooftop, by hooking up the wires one can collect power without adding any fuel or replacing worn-out parts. 2Replace all standard light bulbs in your home with compact fluorescent ones. These energy-smart bulbs use 70-75 per cent less energy than the incandescent kind and last up to ten times longer. 3Colour the roof. Research indicates that roof colour and the type of material used can help to lower attic temperatures. Light coloured tile roofs outperform the shingle ones when it comes to decreasing temperatures. 4Use low energy bulbs for outdoor lighting. One can switch these off after some time. 5Check the house for leakages. During home buying, a home buyer can check for bathroom fittings that are long lasting and also ask for fixing low flow shower-heads, to cut water wastage. 6Invest in energy efficient equipment with BEE (Bureau of Energy Efficiency) label. This will greatly reduce the amount of greenhouse gasses emitted. It will also save the utility bill enough. 7Install more fans. Exhaust fans serve a very specific purpose. They can pull unwanted heat and humidity from bathroom and kitchen spaces during the summer months. Ceiling fans can help reduce family’s dependence on air conditioning during the summer and they are also helpful in the winter as they can push heat down from the ceiling. 8Window tinting can be used to keep the house cool. This reduces the glare of the sun. This has several beneficial and energy-saving effects. First of all, it will reduce heat loss in winter and heat gain in summer. Tinting will also eliminate up to 99 per cent of damaging UV rays and reduce the fading of your fine fabrics.
	Green house Emerald carpet Amarjeet Singh Baath A weed-free, rich green cover adds grace and elegance to the garden. Though grass is the spine of any lawn, very few have the knowledge about its planting and upkeep. Here are a few pointers to help you maintain the velvet touch in your garden all through the year. Root out the weeds Grass can be sown almost round the year except during extreme hot and cold weather., May-June is the best time to sterilise the soil and make them free from weeds, especially Motha/ Deela’ Cyperus rotundus a worst weed. This weed needs specialised elimination technique. It becomes tricky to take this weed out once it dominates the lawns. When the weed is pulled its roots break, leaving tubers in the soil which grow back quickly into new plants. Even a cut tuber can grow into a new plant. Therefore, ensure that the soil is soft enough and weed is dug deep to ensure that tuber is uprooted. Solar sterilisation is done by digging the soil and exposing it to the sun for a week or two and then watering it and re-digging. This exercise is repeated three to four times so that the tubers germinate and surface out and are then uprooted manually. FYM can be added at this stage and the seeds of the weed in it will germinate and will be eliminated in this process. Ground work June end when pre monsoon showers are expected, is the time to prepare ground for sowing of grass. Gradient is very important in order to avoid water logging during rains. The lawn should be able to discharge the excess water without causing water logging. Add Vermi composed manure @ 50 kg bag in 300 sq ft area. Just prior to laying of the grass apply two kg of DAP in 500 aq meter area. ‘Selection No 1’ grass is the right choice for formal gardens. Once the grass is sown irrigation with sprinklers is beneficial. The slow absorption of water helps the roots to go deep and improves the drought tolerance. The simple mantra for managing weed growth in your lawn is “spot a weed and uproot it”. Perfect manicure Lawn needs regular mowing to maintain a desired level of grass. However, do not put a basket in front of the lawn mower and let the grass clipping fall on the grass as this can become green manure full of nutrients. After each cutting apply a light dose of urea flowed by light water shower. Urea can also be applied by dissolving 2 grams in one litre of water. The ground can also be made free from weeds by spraying herbicide ‘Round-Up’. Add half kg of Urea in one tank of 20 litres. Spray on a calm day as wind drift will damage the plantation in the close vicinity. Accordingly the spray nozzle should be slightly above the ground level so that the spread is concentrated on the affected area. Grass should not be grown for 45-60 days in order to reduce the effect of the spray.
	Revamp your balcony The balcony of a home is an extension where everyone looks for elements of calmness, relaxation, greenery and a break from the tensions of the daily grind. If proper attention is given to this space then balconies can look magnificent and stylish. Listed below are the additions that can bring the required appealing look to your balcony: Traditional plants: With more and more high-rise buildings and lack of garden spaces, the only open space left is a balcony; however, there is no reason that we cannot have greenery there. The only difference is that instead of bushes the balconies have to be adorned with potted plants, flowers and vines. It can have hanging baskets of vegetables and fruits that don’t require much space. Accessories: Along with the plants, the home décor shops provide various types of accessories that do not take up much space and can also be hung up on the wall. Try out metallic scarecrows and ceramic creatures like frogs, butterflies, and birds etc. to enjoy an ambience filled with flora and fauna. Lighting: An all-weather rope lighting is everyone’s first choice today because it provides a much required outline to the balcony. Put these around the railing or the base. Apart from being a visual treat, balconies also serve the purpose of providing protection and security; therefore, make sure that the railing of the balcony is at a safe height, the material used for it is metal and there is regular maintenance of the same in terms of being coated and rust free. — Inputs from MakaanIQ
	tax tips Is the demand of service tax justified? S. C. Vasudeva Q.My wife had booked an independent floor with a developer in Mohali in December, 2010. Initially, the booking amount had been paid and the remaining amount to the extent of 80 per cent of the cost of the floor was meant to be paid to the developer in a construction-linked plan. After signing an agreement, the developer asked us to deposit the payment of service tax in full despite of the fact that he had not even started any construction of the floor which had been booked by us. In his demand notice, the builder had advised to deposit the said amount (approximately Rs 72000) by the due date failing which he was to charge interest @ 18 per cent for the delay in payment. I talked to the builder on phone and tried to convince him not to demand service tax in lump sum as the same was required to be deposited based upon the progress of construction. But my plea was not considered by them. Fearing penalty, the entire payment of service tax was deposited with them in 2010-2011. The service tax rate had, however, been revised thereafter in the next financial year. The possession of the floor is likely to be delivered in 2014. My query is as to whether the developer can ask me to deposit the additional amount of service tax, in view of the enhanced rate of service tax, at the time of giving possession of the floor. If so, what legal remedy will be available to me to defend my case. Kindly advise. My second query is that I had booked a plot with the same builder in 2007 and got possession in 2012 in Mohali. After almost two years, the builder has not asked me for completion of formalities relating to conveyance/sale deed of the plot. I have been reminding the builder to arrange for the execution of conveyance/sale deed on phone, but of no avail. Kindly advise me whether the conveyance/sale deed be registered even without the presence of the builder. If so, then how should I go about it? — v.d. pathak A. Your queries are replied hereunder: Service tax is payable by the service provider. However, the provisions of law relating to service tax permit that the service tax payable by the service provider can be recovered from the receiver of the service. In case the agreement with the builder provides that the buyer would be liable to pay service tax, if any, leviable by the government then the buyer would be liable to pay such service tax. In case the agreement is silent on this aspect then you can refuse to pay service tax as the agreement does not provide for such a payment. It seems the agreement entered into with you did provide for such payment otherwise the builder would not have threatened for the charge of penal interest. You should, therefore, look into the agreement entered into with the builder to determine the consequences of non-payment of the amount of service tax. It is not possible to get a conveyance deed registered without the presence of the owner of the land. It would be advisable to keep on reminding the developer for the execution of the conveyance deed in your favour. In case he does not come forward, the only alternative would be to approach the court for the needful. Family dispute over land Q.I live in Malerkotla and I have a house on a 175 sq yd plot. My home comes under the lal lakeer. My father is alive and he has two younger brothers, who also have 175 sq yd plots. The land is recorded in municipal committee in the name of my grandmother. I want to sell this land. The water supply and electricity bills are in my name. But my uncles create problems every time I try to sell it. They also don't want to do paper formality. I don't know what they want. What steps can I take in such a situation? — Dharminder Sharma A. You have stated in the query that your house stands erected on land measuring 175 sq yd. You have also stated that your uncles are also in possession of 175 sq.yd. land. It is not clear from the facts given in the query that the entire land on which your house as well as your uncles' house stands erected are in the name of your grandmother. Assuming that the entire land is in your grandmother's name and she is not alive, it would not be possible for you to sell the land as your uncles are also the legal heirs of your grandmother in accordance with the provisions of the Hindu Succession Act 1956. You will, therefore, have to settle the issue with your uncles before making any arrangement of the sale of land which is not legally owned by you. It would, therefore, be advisable to get mediation done through an elder in the family and enter into a family arrangement so as to settle the family dispute. You can approach a court of law in case you do not succeed in settling the issue. Can I use capital gain for construction on a plot? Q.I have purchased a plot in resale in urban estate Bathinda on January 20, 2012 after paying for three installments to the original allottee. The rest of the installments are to be paid by me. Meanwhile on May 20, 2012, I sold a residential plot and earned long-term capital gain of Rs 30 lakh. I want to construct a house on the new plot by utilising capital gain. My question is: Whether installments paid to prior and after the purchase of abovementioned plot are liable to be adjusted against the capital gain or not? The construction will be completed in three years from May 20, 2012. I already own one house. — sham lal bansal A. Long-term capital gain arising on the sale of capital asset other than the residential house can be utilised for the purchase of a residential house within one year before or two years after the date of the sale of capital asset so as to seek the exemption from the leviability of tax on such capital gain. Section 54F of the Income-tax Act 1961 (The Act) dealing with the allowability of such exemption provides that such long-term capital gain should be utilised for the purchase of a residential house within one year before or two years after the date of sale or towards the construction of a residential house within three years after the date of sale of the capital asset. The installments paid by you for the purchase of a plot before the sale of the capital asset may not be treated as having been paid for the purchase of a residential house. In my opinion, therefore, the payment of such installments may not enable you to claim exemption under Section 54F of the Act. It would, therefore, be advisable to deposit the amount of capital gain of Rs 30 lakh in the capital gain scheme account before the due date of filing tax return for the year in which the capital gain was earned and start paying installments for the purchase of the plot by making withdrawal from the said account and thereafter utilise the balance in the said account for the construction of a residential house within the period of three years after the date of sale of the capital asset. This procedure may enable you to claim the exemption in respect of the entire amount of capital gain under Section 54F of the Act. The ownership of another house would not effect the claim of exemption under Section 54F of the Act. Tax rebate on stamp duty Q.I already own one house and have purchased one residential plot. I have paid Rs1,10,000 as a stamp duty on it. Is there any exemption allowed in income tax and if yes then up to what amount? — P.s. gill A. Section 80C of the Act allows a deduction to an assessee (individual or HUF) against the total income for the amount of stamp duty, registration fee and other expenses incurred by him for the purpose of transfer of a residential house property purchased by him. This deduction is allowable within the overall limit of Rs 1,00,000 specified under the said Section. Stamp duty paid for the purchase of a plot of land would form part of the cost of land. The amount of stamp duty paid for the purchase of plot is not allowable as deduction under any provision of the Act. How can I gift money to daughter in US? Q. I am planning to sell my row house in Pune. I want to gift the money to my two daughters in US. How can I do this? — Ashvani A. The sale of house in Pune may result in capital gain. Such capital gain would be in the nature of long-term capital gain in case the house that you intend selling has been held by you for a period of more than three years. Such long-term capital gain is chargeable to tax @20.6 per cent (20 per cent plus education cess of 3 per cent thereon). In case the house has not been held by you for a period of more than three years, the resultant gain, if any, would be taxable as a short-term capital gain. Short-term capital gain is taxable at the normal slab rates applicable to your total income. The amount of sale proceeds less the tax leviable thereon can be gifted to your daughters in US without any approval from Reserve Bank of India subject to the remittance of $ 2,00,000 in a financial year. In case the amount of gift involved is more than the aforesaid sum, you will have to seek the permission from RBI for this. email your queries to realestate@tribunemail.com