Area watch: NOIDA-GREATER NOIDA EXPRESSWAY
Express gains
Geetu Vaid

The 23-km stretch along Noida-Greater Noida Expressway is attracting realtors as well as homebuyers. A number of commercial, office and residential projects have made it a promising destination in the NCR

The realty scene in NCR has not only been able to buck the overall slowdown trend that has been gripping the sector in the other parts of the country, but it has also seen the addition of new promising areas over the past couple of years.

So after Gurgaon and Noida Extension, it is the stretch along the Noida-Greater Noida Expressway that is riding the realty wave in NCR. The stretch that connects to the 165-km Yamuna Expressway has a number of residential and commercial projects lined up for homebuyers and investors.

Sectors 92-94, 96-100, 105, 108 and from 124 to 144 constitute Noida-Greater Noida Expressway area which is emerging as the next “go to” location. According to real estate research group DTZ this location has witnessed a high annual (2011-12) growth in take-up of 15 per cent year-on-year, especially in the context of decline in take-up in the already established office hubs of Sectors 15 to 18 and 58 to 63 that have ample vacancy and witnessed a steep fall of 95 and 61 per cent, respectively in the past one year.

Work in progress at supertech’s eco citi project

Noida /Greater Noida Expressway has provided an edge for both residential as well as commercial set ups. It is becoming a hub for the real estate market and the projects in the area have received overwhelming response from potential buyers and investors due to locational advantage. Key developments are taking place around these areas. Being a new settlement, the space crunch is not that much of a concern till now as compared to other destinations around Delhi-NCR. — R.K Arora, CMD, Supertech Ltd

Growth catalysts

Good connectivity and excellent infrastructure are some of the key factors that are driving growth in this area. “Connectivity to South Delhi, 18 km distance from central Delhi, a developing commercial hub, presence of luxury hotels, good employment opportunities, existing and upcoming metro lines, excellent infrastructure are the favourable factors in this area”, says Samir Jasuja, Founder and CEO, PropEquity while talking about the growth positives of this area.

Connectivity, however, is seen as the major factor that has made this a preferred location for commercial as well as residential projects. The travel time for those commuting from Delhi is shorter due to better approach and less traffic congestion. “On any given day, during the peak hours, it easily takes around one hour and 30 minutes to reach Sector 62 from Connaught Place (CP), Delhi, whereas it is just an hour’s drive from CP, Delhi to Noida–Greater Noida Expressway”, says Rohit Kumar, Head of Research, India, DTZ.

One can also reach the business hubs of Delhi like Jasola, Nehru Place and Okhla easily. Moreover, the proposed infrastructure projects are going to improve connectivity in the near future, say experts. The FNG (Faridabad, Noida, Gurgaon) Expressway will make connectivity to Faridabad, Ghaziabad and Gurgaon convenient. Metro connectivity through the proposed metro line which will have 7 stations in Greater Noida will further enhance the accessibility of this corridor.

The focus of the authorities is on complementing the development of infrastructure with economic boosters and this will also benefit the area. Setting up of SEZ in Sectors 144-147 and 164-167 will generate employment. Anil Kumar Sharma, President, CREDAI-NCR, says, “A number of steps like the new master-plan for coordinated and planned development of the area, show the positive mindset of the authorities about the development of this area. The stretch will also emerge as an educational hub of NCR, as there are plans to establish around 40 educational institutes in this area. Besides, the authorities are also taking steps to boost the retail segment and open new shopping malls and complexes in this location.”

Project watch

Some of the major realty players have residential as well as commercial projects lined up here. Jaypee, Supertech, 3C, Assotech, Logix, Ajnara, Unitech Amarpali and Eldeco are some of the main developers here. Between them these developers have more than 30 residential projects under construction. These projects range from the mid-segment affordable to the high-end luxury ones to cater to a broad spectrum of buyers looking to invest between Rs 45 lakh to Rs 1 crore. Making an interesting observation about the demand in this area Samir Jasuja says, “The first half of the Expressway i.e. 10 km from Delhi end, is a premium to luxury property market whereas; the next half of the Expressway (towards Greater Noida) is predominantly mid-end”.

Some of the major projects here are: Jaypee Greens Wish Town, Unitech Grande, Heartbeat City by Amrapali Group. The Supertech group has three projects in the area, including 12.6 acre Eco-Citi in Sector 137 that will have 1,700 units; Emerald Court in Sector 93A; and a retail-cum-office space complex E Square in Sector 96. Assotech Realty has Assotech Business Cresterra, a mixed-land development in Sector 135 which will have office spaces and service residences.

On the commercial front IT/ITES is the primary industry sector driving the demand in the region, contributing on an average more than 70 per cent of the total take-up in the last three years. According to a DTZ report, multinationals based out of the US and UK have dominated the take-up, together contributing more than 60 per cent of the total take-up in the last four years with average deal size of 42,000 sq ft. Some of the key projects that are slated for completion this year are Advant Navis, NSL Techzone and VM Collect.

Although the rentals on Noida-Greater Noida Expressway are 4 to 5 per cent higher than those of Sector 58 to 63, the availability of better quality infrastructure and shorter travel time, has generated a lot of interest among potential occupiers who are looking for quality office space at reasonable and affordable rents.

The commercial activities have accelerated the development of housing sector, cutting across segments, from affordable to mid-segment and up to luxurious residential projects, all of which come with high technology and world-class facilities. The fast developing residential segment has given impetus to the ancillary sectors such as education, healthcare and hospitality. “Several reputed schools and colleges have their presence in this area. Additionally, popular hospitality brands such as Westin Resort, The Lalit Grand, Grand Hyatt and Marriot have planned projects along the expressway”, informs Rohit Kumar.

Prominent developers Jaypee, 3C, Ajnara, Logix, Supertech, Assotech and Unitech Office rental value Rs 50-55 per sq ft/month Distance from International Airport 33 Km (approx) Factors fuelling demand High quality real estate opportunities for all segments with better approach as compared to developed locations such as Sectors 15-18 and Sectors 58-63. Schools in the vicinity Delhi Public School, Ryan International, Jaypee Public School, Somerville International School, The Shriram Millennium School, Genesis Global School, Lotus Valley International School, Mayoor School, JBM Global School Hospitals in the vicinity Kailash Hospital, ITS Dental Hospital, Sharda Hospital Things to watch out for Physical and social infrastructures are still developing though at a fast pace. Source: DTZ Research

The price factor

At present the prices in the affordable segment are in the range of Rs 3,500-5,500 per sq. ft., while high-end or luxury apartments can cost anywhere between Rs 9,000 and Rs 15,000 per sq. ft.

According to market watchers the rates have registered a hike of 28-30 per cent over the past couple of years, which is good for an area that is still developing.

While a majority of the properties are being lapped up by IT professionals who have better job opportunities in the vicinity, investors, too, have shown readiness to park their funds here as the area has already given good returns and prices are likely to consolidate further once people start moving in after the completion of projects.

The projects that were launched a couple of years ago for Rs 2600 per sq ft are now fetching close to Rs 5,000 per sq ft. “Looking at the current slow state of real estate sector, and considering the fact that the property prices near Expressway have already appreciated a lot, one can expect an appreciation of approximately 12-15 per cent in the next couple of years, depending on the market conditions, specific project and developer credentials of the subject investment”, says Samir Jasuja.

This area, thus, is all set to be a lucrative option for long and short term investors and end users. As Rohit Kumar says “This area has a lot of potential, which it has already started leveraging, given the fact that the established micro markets such as Gurgaon and Noida are expanding towards the periphery now”.

Source : Nirmal Infrastructures
Email:nirmalinfrastructures@yahoo.com

Launch pad

Highland Park in Gurgaon

Ansal Housing and Construction Ltd., recently launched Ansals Highland Park in Gurgaon. This new group housing project is to be set up in 11.70 acres of landscaped greenery with almost 70 per cent open area. To be built at a total cost of around Rs 500 crore ,the complex will have about 1 lakh sq. ft. of built-up area comprising 620 flats. “Highland Park will be Gurgaon’s very own Scottish-style residential enclave with modern amenities to enrich the living styles of its residents,” said Kushagr Ansal, Director, Ansal Housing & Construction Ltd.

The new project located near Dwarka Expressway in Sector 103 of Gurgaon will consist of 8 towers that would include 2 & 3 BHK flats with area ranging between 1361 sq.ft to 2670 sq.ft. The company plans to complete the project in the next four years. The complex will come equipped with amenities like state-of-the-art Club House, Convenient Shopping, Modern elevators and adequate power back- up. The apartments have been priced keeping in mind the mid-range market segment, said the company spokesperson.

Antriksh Golf City

Antriksh Ideal Zeal Group, launched Antriksh Golf City, India's first golf residency with the Green Building concept in golf course living at Sector 150, Noida Expressway. The project is spread over 25 acres and will have 2, 3, 4 and 5 bedroom luxury apartments and penthouses. The apartments in 1050 sq. ft, 1260 sq. ft, 1475 sq. ft and 1665 sq. ft. area cost around Rs 5,000-5,500 per sq ft. The company will invest Rs 1500 crore on this prestigious project and will be completed in 36 months.

Spread over 25 acre of area, Golf city will be developed in different phases. The first phase will have 700 units.

Loft apartments in Bhartiya City

The Bhartiya Group has launched New York style loft apartments in its 125-acre Bhartiya City project in Bengaluru recently. The new apartments will be part of the third phase of Nikoo Homes in the city. Nikoo Homes is a residential development project in Bhartiya City offering studio and 1, 2 and 3 bedroom homes, including duplex and penthouses priced between Rs 34 lakh and Rs 1.6 crore.

Each loft will be located in the same tower as the Black Swan club and will have three large bedrooms. The bedroom on the lower floor can be used as a workplace while the large bedroom on the upper floor can also transform into a multi-use family lounge. All lofts will have a double-height private garden alongside the living area. A variety of amenities, including a rooftop pool and al fresco restaurant, and all other facilities of the Black Swan club are within easy access of these lofts.

— Based on information provided by the developers

Realty bites
Need for land, quick approvals highlighted

Government needs to ensure availability of land and speedy approvals for the effective implementation of low-cost housing projects, real estate developers’ body NARDECO said earlier this week.

“For effective implementation of low-cost housing projects, it is imperative that the government ensures availability of land at subsidised rates, fast approvals, property tax relief, funding support, additional FSI, connectivity to suburbs and creation of special residential zones,” National Real Estate Development Council (NARDECO) President Navin Raheja said in a statement.

Demanding infrastructure status for the sector, he said, “This will help the sector to get government incentives, subsidies and tax benefits. Besides, it will also lead to lower cost of funding and taking loans from financial institutions will become cheaper translating to more supply of affordable houses.” He further said that the upward revision of floor area ratio (FAR), ground coverage and population density norms are required on priority basis.

“In most states, the floor area ratio (FAR) density and ground coverage norms do not support the creation of affordable housing the long approval process is another major problem. In major cities where land cost is high, this is possible only under PPP model,” Raheja added.

— PTI

DTZ expands its South India operations

DTZ expanded its full service real estate operations in South India by inaugurating an office in Chennai earlier this week. The new office will be a part of DTZ's Southern operations and will also serve the peripheral markets of Kochi and Coimbatore. Speaking on the occasion Anshul Jain, Chief Executive, DTZ, India said, “Chennai ranks amongst the top five cities of India in terms of GDP, and has a fair mix of service and manufacturing boasting marquee names in automotive and telecom along with the biggest names in IT and BFSI. This makes Chennai a crucial market for DTZ. We now expect to be better equipped to increase our client service offerings for existing and prospective clients in the region”. — TNS

IGBC award for Tata housing

Tata Housing Development Co. Ltd., has been acknowledged by the Indian Green Building Council (IGBC) for its contribution to eco-friendly construction. The company was recently facilitated, at the GreenCO Summit 2013 organised by the CII (Western Chapter) in Pune.

Dr. APJ Abdul Kalam, Former President of India presented the award to Tata Housing at the ceremony. Tata Housing is one of the major contributors in achieving the 1.51 billion sq.ft of IGCB certified green footprint in the country. They have over 55.4 million sq.ft of registered green building footprint of which 8.8 million sq.ft. have been certified.

IGBC Green Homes is the first rating programme developed in India exclusively for the residential sector and is based on the accepted energy environmental principles. The evaluation process of the IGBC certification is based on parameters such as site selection and planning, water efficiency, energy efficiency, materials, internal environment quality and innovation and design process; and we are glad to have accomplished several projects based on these tenets.

Ground Realty
Small steps to a big impact
Jagvir Goyal

Whatever may be his budget, each house builder tries to provide the best possible in his house and besides the functional effect there is always that burning desire to 'wow' the first-time visitor. However, just pumping in endless amounts won't add 'wow' factor to a house. Sometimes, unique but economical features can be enough to dazzle the visitors to your home. Here is a list of a few of these that will not burn a hole in your pocket:

The front elevation

The first feature to impress a visitor is of course the front elevation of the house. One should devote enough time and attention to the front elevation, examine its 3D alternatives, choose innovative projections, angles, offsets, curves and railings to make it attractive. Even 100 sq yd houses, when provided with artistic elevations, make the owners of even palatial bungalows to have a second look and appreciate the house and the elevation.

Cover moulding

Providing cover moulding to door frames is not required technically or functionally but aesthetically it makes the doorways look beautiful. Often a 2-inch wide and about half-inch thick tapered moulding when provided around door frames, adds elegance and beauty to the house. Provision of moulding is costlier as it should be provided in the same wood as used in door frames and doors. Its cost varies from Rs 35 to Rs 85 per running foot. Readymade mouldings available in the market should not be chosen. These have common designs and wood quality is not good. It is better to ask the architect to design the moulding and ask your carpenter to make it and fix it.

Flooring designs Simple laying of marble and tiles in flooring work doesn't make a strong impact that some good designs provided in it can make. Earlier, floral designs were used in the flooring, especially in lobby and drawing room portion. These days, geometrical designs are preferred. Contrast colours like brown, red, black, mustard and green are preferred for design work. Tile manufacturing companies suggest many floor designs and even provide readymade tiles for design work. However, you should know that flooring work gangs charge extra for doing design work in floors. Stair railing These days, providing double ceiling height to the lobby portion has almost become a universal phenomenon. The stairs to the first floor are located in the lobby and a suitable railing is provided to the stairs and the well periphery created at first floor level. The choice of stair railing matters a lot in adding the 'wow' factor to the house. Stainless steel and glass railing once so popular have begun losing charm as these lend a commercial look to a home. The trend is to have a railing in wood and stainless steel. The pillar design, the top rail and the intermediate runners when provided with carving or geometric designs make the railing the most attractive feature of the lobby.

Special effects in paint

Once the colour scheme for different rooms of the house is finalised, the painters get into action. Choosing uniform off white colour for the whole of the house or different pastel colors for different rooms is entirely the house builder's choice. These days, plastic emulsion is the most common paint used for the interiors and the house done in plastic emulsion looks beautiful. However, when one wall of each room is chosen to be provided with special-effect paints or wallpaper, the complexion of the house undergoes a total change in its appearance. The special-effect paints or wall papers should, however, be chosen very carefully. These days, only light colours with subdued designs are preferred.

Glass work

While the windows may have the normal, plain toughened glass panes, many provisions in the house may have designs or patterns on glass provided in them. The kitchen cabinets, the crockery cabinet, the pooja cabinet, the door panels, the partitions when provided for the drawing room or kitchen or elsewhere may have floral or geometrical designs in glass. One may go for patchwork in glass, texture, plain milky patterns, and fusion and so on. The choice is endless and the effect mesmerising.

Water pressure

Often, the guests need to use a washroom or wash basin and a full, fast and milky white stream of water from the quarter-turn faucets impresses them a lot. Use of aerators on the faucets helps in building this milky flow provided enough water pressure is available. One should choose the CP fittings carefully and ensure that provisions like pressure pump have been made in the house to make sufficient water pressure available. The diverters used for showers should be high-flow type to have enough pressure in showers. It is better to have a basic and cheap shower with a high pressure than a costly and trendy rain shower with negligible pressure.

Concealed lights

Concealed lights, when provided in false ceiling or coffers and caskets in the walls produce enticing effect. These days, cheap Chinese LED lights are available in the market in 5 m long rolls in different colours. When used as concealed lights in ceiling, steps, foot lights etc, these enthrall the user and visitor alike. A choke should be provided with each light length for its longevity. Often, you may find use of these lights behind the glass shelves in showrooms, making the front edges of shelves sparkle like diamonds.

False ceiling and POP work

The latest trend is to provide simple POP designs or false ceiling work. As false ceiling is costlier, it is mostly chosen for the lobby and drawing room portion while simple POP work is done in the bedrooms and other areas. Use of wood and lights in false ceiling make it look highly attractive. Architects evolve unique designs to add wood to the false ceiling. Such ceilings look classic and add style and grace to the interiors of the house.

LCD panels

No one wants to see loose electric wires dangling on the walls of his house. Many wires are required in the LCD area to connect the LCD, the dish, the DVD and the power plugs. To hide all these wires, LCD panels are provided in the rooms to hang the LCD on it and to conceal the wires behind the panel and the LCD. Get these LCD panels designed beautifully, not only to hang the LCD but to display a showpiece or to contain the DVDs, a couple of books or a vase. Let these LCD panels also become an attractive feature of your house.

— This column is published fortnightly

Decor trends
Delightful dining
Rajan Vashisht

We live in a fast moving world where everyone is busy chasing his dreams. People rarely get time to connect with each other due to their hectic schedules. Despite the frantic routine, there is still one place which brings us together to share a few moments with loved ones. Well, it is the magic of dining rooms that allows the entire family to get-together and enjoy a scrumptious meal.

Dining rooms have now become a space for family re-union, chit-chat, relaxed Sunday lunches and much more. In fact, dining rooms are often accessible from the living room and are used for entertaining guests as well.

As a dining room provides space where family and friends can come together and chat over a delicious meal, it is arguably one of the most important areas in a home. Therefore, dining rooms should be designed with immense care and detail. In fact, a well-designed dining room can make any meal a treat and bring everyone together for some well-deserved quality time.

One can design the dining area as per one’s preference without taking away the attention from the overall aesthetics of one’s home. Some people like to dine in a calm and soft ambience, whereas others fancy a vibrant dining space. The major ingredients that one can play with while designing a dining room are spacing and seating arrangement, dining table set and light fittings.

There are certain trends one can follow while choosing furniture and lights. A recent fad that is gaining momentum is the return of scaled-back, simplified living. Most home-owners are leaning towards basic styles with cleaner lines. This direction lends itself perfectly to an eclectic combination of contemporary, traditional and even country designs. Comfort and space constraints are the primary motivators behind the move towards greater simplicity.

Light matters

Lighting is one aspect that can enhance the overall feel of a dining space and can ruin it as well. To get the best balance of illumination in the dining room opt for layers of light. When choosing dining room lighting combine chandelier with accent lights. Accent lights, either recessed or tract-mounted, on either side of the chandelier and between the ends of the table, add a festive sparkle. One can also opt for rustic hanging lamps. They beautifully complement rough-hewn wood table and add a relaxed vibe to an otherwise formal dining room, creating an inviting and warm space that encourages gatherings.

Also, if there is a TV set in the dining room it should not be positioned opposite a window as the screen will reflect the light coming from outside.

Colour contours

Colours also play a vital role in defining the ambience of a dining room. Pick colours based on the décor and architecture style of the dining room. Choose shades like burgundy, gray and deep brown for a traditional look. Neutral colours like white, beige and tan are a great pick for a modern feel. One can also add a hint of the metallic for creating a shining effect in the room.

These days dining room has moved beyond just a place to eat. Now it is a space to rejuvenate, recreate and recharge with the loved ones.

Dining area is the centre stage for all your weekend parties and holiday meals. So, go ahead experiment with furniture, colours and lighting to make the dining room a trendy hang-out. Let’s not just serve food, but create an ambience.

Fancy and functional

The first thing that should be considered while choosing furniture for the dining area is the style. Irrespective of the space available, it should complement the architecture and décor of the home.

For a contemporary look, consider sleek, glass furniture, whereas for a traditional setting pick antique pieces with similar tones.

Lack of storage is one of the biggest problems when it comes to decorating a dining room. Traditional sideboard is a must-have piece of furniture that can be used to conveniently store crockery, tablecloths etc.

Choose the dining table wisely since it is the centerpiece. Be sure to select a table that accentuates the room, rather than one that clashes with it. Also, pick a dining table that leaves at least two ft. between the edge of the table and the wall to leave room for walking and pulling out chairs. Round tables are space-efficient and fit nicely in small dining rooms. They allow everyone to face one another and pass food around easily. Oversized square tables are best suited for large rooms, giving the dining area a formal semblance. Another trend in dining is elevated counter-height tables with surrounding stools for a casual lounge-like feel at home. As far as the dining chairs are concerned, their width should be at least 1.5 ft. for comfortable seating.

— The writer is a consultant with Emaar MGF group

RBI’s financial stability report
House prices rising despite low demand
S.C. Dhall

Despite a steep fall in bank credit to the housing sector, which in turn brought down demand, prices of residential units in some of the major urban centres have been on the rise, the Reserve Bank of India said in its financial stability report released in June. According to the report, bank credit to the housing sector came down to 9.5 per cent in FY13, from a high 13.3 per cent in FY08,

It said this was despite the fact that house prices in some metropolitan cities had witnessed a significant hike in the recent past. Calling for better and closer monitoring of the sector to stem any possible bubbles,

On the positive side, the report notes that NPAs in home loan category have also fallen in the past three years.

It observed there was a growing tendency of completely up-fronting of construction finance by home buyers to developers in some cases and availability of construction finance to developers at rates on par with those for home buyers.

Indicating that the housing sector needs to be monitored closely since there are indications that price to annual rent ratios in some parts of metros like Mumbai are as high as 50.

“In addition, there is also a need to develop indicators other than price and volume indices and credit to the housing sector to gauge the trends in and the overall health of the sector,” the report said.

There is an urgent need to evolve new indicators like — the house price to household disposable income ratio, household financial obligations to household disposable income ratio, land price indices, index of construction costs, price to rent ratio and information on ownership of houses, among others.

Calling for more transparency in real estate transactions, the report said, such a step could help protect the interest of consumers and prevent money laundering.

New norms for housing finance companies and builders

Reserve Bank of India (RBI) also eased fund-raising norms through external commercial borrowing (ECB) route for the low-cost affordable housing projects. Both housing finance companies (HFCs) and developers are the direct beneficiaries while home buyers, too, will enjoy their share in terms of concessional interest rates and better availablity of low-cost homes.

HFCs can now mop up cheap funds to lend at concessional rates. Developers/builders, too, can avail such funds via ECB route and will be encouraged to promote low-cost housing. Millions of low-income Indian families still struggle to buy their own homes due to the lack of affordability.

Developers/builders should have a minimum of three years experience in undertaking residential projects as against five years prescribed earlier and should have a good track record in terms of quality and delivery. The central bank also revoked the benchmark of minimum paid-up capital of HFCs to get ECB funding.

Despite moderation in bank credit to the real estate sector, the RBI said it was concerned about easy finance options available to developers. Some of the concerns are complete up-fronting of construction finance by home buyers to developers in some cases and the availability of construction finance to developers at rates on a par with those for home buyers,

Typically, real estate developers depend on pre-sales to home buyers and bank finance, for their projects; bank finance is usually between 11 and 14 per cent. In complete up-fronting, the builder takes a huge amount upfront from the home buyer, in cash. This usually happens with potential home buyers who don’t take a loan. Therefore, it would be difficult for RBI to regulate this category. RBI there was a need to develop indicators other than price and volume indices and an indicator of credit to the sector in order to gauge trends in the hgousing sector.

Tax tips
How can I get a refund of service tax?
S. C. Vasudeva

Q. I have purchased a constructed house at Sushant City-1 Mansa Road, Bathinda, worth Rs 16 lakh from Mittal group. They charged me service tax at 12.36 per cent at the time of possession which I paid though I also took a loan of Rs 6.34 lakh from IndiaBulls, but liability of service tax was passed on me.

It has come to my notice that purchase of house below Rs 20 lakh is exempted from service tax. If it is true then how should I proceed to get it back? — Sukhraj Singh

A. Service tax is payable in respect of construction services provided by a builder. The scope of taxability of construction services is as under:

• Service must be by way of construction of a complex, building or civil structure.
• The expression 'construction' includes additions, alterations, replacement or remodeling.
• It includes complex or building intended for sale to a buyer.

A receipt of loan for buying a house has no implication with regard to chargeability of service tax. You should, therefore, ascertain whether the completion certificate has been obtained by the builder and in such a case you should claim the refund of service tax from the builder. To my knowledge there is no exemption for a house costing below Rs 20,00,000. However, there is a threshold limit of Rs 10 lakh which is applicable to a service provider.

Can we claim tax rebate on short-term gain?

Q. One of my friends was allotted a 500 sq. yd plot in Panchkula, the payment of which was to be made in instalments. Because of some financial problems he transferred the plot to me through a Power of Attorney empowering me to pay dues, installments, sell or gift in any manner. On the basis of this HUDA accepted me as a transferee and I made payments of instalments towards the cost of plot. Thereafter, I sold this plot to my wife for Rs 40 lakh premium plus the arrears payable towards the installments.

My wife is intending to sell this plot for about Rs 2 crore. With this amount, which will be considered as short-term capital gain, she plans to construct a new house in Ambala City on another plot which is owned by her. Kindly clarify the following points:

• Will my wife have to spend the entire amount of the short-term capital gain on the new house construction or the entire Rs 2 crore to avoid any tax liability? Also it is my understanding that the construction needs to be completed in three-year timeframe.
• My wife already owns a house in Panchkula. Can she construct another house from the sale proceed of the plot as mentioned above or are there any legal restrictions to construct second house in the same city?
• If my wife does not construct a new house will she have to invest STG of Rs.20 lakh from item 1 in REC or NHAI bonds? Or the entire sale proceeds of Rs 2 crore will have to be invested in bonds? What is the rate of taxes for STG? — Dhan Raj

• Your wife can construct one more residential house in spite of her owning one residential house as on the date of construction of a new residential house.
• However, in view of the fact that short-term capital gain cannot be considered for allowability of exemption, the buying of capital gains tax saving bonds or constructing a residential house within the specified period would not entitle her to claim any exemption from the taxability of the short-term capital gain.
• As explained herein above such an amount of the short-term capital gain will be added to her other income and taxed at the prevailing slab rate applicable to her.

Do I need to pay tax on long-term capital gain?

Q. I sold a flat in 2005 on GPA basis and sale consideration received was Rs 3.69 lakh. There was no capital gain as it was sold at the allotment price of the flat. Now, the purchaser has requested to execute sale deed in 2013 which will be at government notified rate i.e. Rs10 lakh. Is there any liability for capital gain tax? 
— Nityanand

A. It is assumed that the possession of the property was also handed over in 2005 when a General Power of Attorney in respect of the sale was executed. Section 50C of the Income-Tax Act 1961 (The Act) provides that where the consideration received or accruing as a result of the transfer on the capital gain being land or building or both is less than the value adopted or assessed or assessable by any authority of state government for the purposes of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of Section 48, deemed to be full value of consideration received or accruing as a result of such transfer. Therefore, the information given to you is correct and the capital gains on the sale of your house will have to be computed on the basis of the circle rate, if any, notified by the state government in case the consideration received by you is less than the value adopted or assessed for the purposes of the payment of stamp duty. The above Section, however, also provides that in case an assessee claims that the value adopted, assessed or assessable by stamp valuation authority exceeds the fair market value of the house and such assessable value by stamp valuation authority has not been contested in any forum, the Assessing Officer may refer the valuation of property to valuation officer. In case the value adopted for the purpose of stamp duty valuation exceeds the fair value determined by the valuation officer, the value so determined by the valuation officer shall be adopted for the purpose of computing the amount of capital gain.

How can I get property transferred if the Will is unregistered?

Q. My real brother died recently. He was issueless and had no wife. He had a built house of his own. He wrote a Will in his own handwriting on May 10, 2005 mentioning "after my death my brother and sister will be the owners of my moveable and immoveable property". This Will has been signed by two witnesses but it is unregistered. Because of this fact the municipal authorities are reluctant to transfer the house at my name and my sister. Kindly guide me how can I get the property transferred according to the wishes of my deceased brother? — Ramesh

A. In my opinion the best course open to you is to obtain a probate of the Will from the court. The municipal authorities will not be able to refuse the transfer in the name of the beneficiaries specified in the probated Will. However, I would suggest you to consult a civil lawyer on the subject as the issue involved has civil law implications and has no bearing with the Direct Tax Laws. 

Can a father buy agricultural land in NRI son’s name?

Q. My father owns some agricultural land, which is ancestral and is in a village in Punjab. We live in another village. Now my father wants to sell this land as he is about 80 years old. He wants to buy agricultural land in my name. I already own some agricultural land. Now I am NRI, can my father buy agricultural land in my name after selling his land? He wants to have the agricultural land at one village, as it is easy to cultivate and manage.

My question is as under:

Can my father buy land in my name after selling that agricultural land as I am the only son and his heir or he has two grandsons, who are also NRIs?

Can he also buy agricultural land in their names? They don't own any agricultural land in their names. Please advise on this matter. — J. S. Dhillon

A. Your queries are replied hereunder:

I presume that the agricultural land owned by your father, which he intends to sell, is not situated in any area within the distance, measured aerially-

• not being more than two km, from the local limits of any municipality or cantonment board and which has a population of more than 10,000 but not exceeding 1,00,000; or
• not being more than six km, from the local limits of any municipality or cantonment board and which has a population of more than 1,00,000 but not exceeding 10 lakh; or
• not being more than eight km, from the local limits of any municipality or cantonment board and which has a population of more than 10 lakh.

In accordance with the provisions of Master Circular (dated July 1, 2013) issued under Foreign Exchange Management Act 1999 (FEMA) on acquisition and transfer of immovable property in India by an NRI, it has been clarified that NRI can acquire by way of purchase any immoveable property other than the agricultural land/plantation property /farmhouse in India. In view of the above requirements of FEMA, it would not be possible for your father to buy the agricultural land in your name or in the name of your children who are also NRIs. The alternative available to your father would be to buy the agricultural land in his own name.

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Realty guide
B K Sanghi

Q. My grandfather had purchased two houses in his lifetime but he died intestate in 1942. He was survived by three sons. His youngest son also died in 1943 and was survived by his widow (issueless). Later on his two surviving sons got the houses transferred in their name as is also shown in the revenue record of MC.

The widow of the third son was given some amount as monthly maintenance and a portion of one of the house to reside only. She was not given any share in the property. No partition of the property has ever taken place.

I am the only daughter of one of the survivng sons. Over the years one of the grandsons of my uncle managed to get a ‘registered Will’ from my father in favour of his wife, bequeathing the house in 1994. My father was 88 years old at that time. Another grandson of my uncle also managed to get a ‘registered Will’ in his favour from the widow of my uncle in 1988, according to which she bequeathed the portion of the house occupied by her to him. There is a mention of “aapsi batwara ke anusar” in both the Wills, where as no ‘batwara’ had ever been taken place between both the coparceners which can be proved.

My father died in 1998. I want to challenge both the “Wills”, on the ground that both the testators of these “Wills” had no title to the property in the absence of any registered partition deed. Please advise in the matter. — Alok Jain

A. You have full right to challenge the ‘Wills’ as these seem to have been drafted poorly. There are two important things to be seen in a Will to get a clear and transparent title:

• Drafting of the Will.
• Execution of the Will after death. (Probate of will)
• In your case both the things will favour you. Whosoever had manipulated the Wills (as hinted by you), had intermingled the partition and Will.
• You will also get the benefit that other parties have not got the Will probated. The title has not become clear and transparent in absence of the probation of Will.

As per the law, you will get full benefit out of this. 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. Under this Act female inheritors would not only have the succession rights but also the liabilities as the male inheritors.