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Delhi bucks the price fall
trend
Green house Launch pad Tax tips
Realty bites
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The dollar boost? Falling value of rupee and drop in property values in a tepid market has increased NRI interest in real estate investments. Will NRIs be able to fire the realty market of Punjab? Thus, if the buzz in the PBD is in any indication, NRIs from Punjab are looking at investing in realty in Punjab or in NCR. “NRIs are seriously considering buying flats for investment purposes at present. Their confidence level is also high as many have already earned huge returns on their earlier investments in property,” says Nikhil Jain, CEO of Ramprastha Developers. After the recent depreciation in value of rupee vis a vis the dollar, NRIs from around the globe have shown interest in real estate investment in India, said a Gurgaon-based real estate developer who had put up a stall at the PBD. “On an average we have been receiving over 20 queries per week from NRIs looking for property in the northern region”, he added. “We have received many queries from NRI customers from UAE, Singapore, UK and the US and the demand from the NRI segment has increased by 25 to 30 per cent in the past few months,” says Gaurav Mittal, Managing Director of CHD Developers. The fall of the rupee against the greenback in the past two years has resulted in the price of real estate falling by almost 25 per cent in notional terms, (assuming that the NRIs are paying in dollars). “If a residential unit was available for
Rs 1 crore before the slide of the rupee, the same is now available for Rs 75 lakh to NRIs,” adds Mittal. Sale volumes have remained dismally low in Punjab over the past one year as there are hardly any investors in the market. “As most of the NRIs buy properties basically for investment purposes, their interest is going to pump in the required money into the sector”, says Surinder Bhatti, a Jalandhar-based consultant. He claims that the last quarter of 2013 has seen an increase in the number of NRI queries, especially in Jalandhar, Ludhiana and Mohali areas as most of the NRIs visit India during this time. “This ‘NRI season’ has breathed in some life into the ‘comatose’ market in Punjab”, says Mohali-based property dealer Sukhjinder Singh. “It goes without saying that NRIs are thinking of investing in realty because of strong dollar. I feel that it is high time that realty firms with swelling inventories should also attract cash-rich NRIs and PIOs so that they buy their flats,” says Alimuddin Rafi Ahmed, MD of ILD Developers. The increasing number of NRIs returning to India is another segment of buyers that is investing in real estate here, says Mahesh Sharma, managing director of NCR-based Veer Hanuman group. Sukhvinder Singh, an NRI based in Dubai, says, “I am going to invest in either Mohali or Zikarpur as it makes a lot of sense to invest in real estate now as appreciation of the investment is far higher here than in other parts of the country. I feel that NCR will also serve my cause.” According to one estimate, there are over two lakh NRIs from Jalandhar, Kapurthala, Nawanshahar, Ludhiana, Hoshiarpur and other parts of Punjab, and they have been important drivers of the property market in the state. Actually, lack of NRI investment in property market during the global recession had
a severe negative impact on overall property business in Punjab. “Only end users prefer to buy property. Investors are missing from property business,” said a PNB official at the PBD. “NRIs prefer projects with low entry level price points when it comes to investments, and premium projects for personal use. I feel that the 20/80 scheme and 10/90 schemes offered to customers has been a major attraction for NRIs,” says Mahesh Sharma, managing director of Mahaveer Hanuman Group, who had also set-up stall at the PBD. Realty consultants say that most of the NRIs prefer to book apartments in projects that provide the latest amenities. “Even if they want to book a flat for investment purposes or for giving on rent their preference is for the projects which have quality flooring, latest and high quality of electrical and sanitary fittings along with gadgets that ensure proper security. NRIs can only buy residential and commercial properties and not agricultural land, plantation property and farmland. However, properties falling under these categories can be inherited. If any NRI has already held properties falling under these categories before becoming an NRI, he can continue holding them. NRIs can buy multiple residential and commercial properties in India. It goes without saying that the realty scene of Punjab will see better days if the mood at the PBD is any indication.
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Delhi bucks the price fall
trend Housing sales in Chennai dropped 33 per cent to 18,200 units in 2013 due to slowdown in the realty market and high interest rates, according to a report by property consultant Knight Frank. However, housing prices in New Delhi increased by 5-7 per cent last year despite a decline in sales volume as developers restricted supply by offering fewer homes in the market. Launch of new homes fell by 35 per cent to 20,100 units in 2013 compared to the previous year, when it was 30,900 units. “The year 2013 has not been very kind to the Chennai market and like all the other major cities in the country even Chennai has suffered the onslaught of the current slowdown in the real estate sector,” said the report. Chennai saw drop in sales volume to the tune of 33 per cent during 2013 making it as one of the worst performing years for the residential sector in the history of the city, it added. It noted that since January 2013 absorption levels have been gradually declining with each passing quarter reporting a lower level than the previous quarter. “Sales volume has dipped from 27,000 units in 2012 to 18,200 units in 2013 resulting in a fall of 33 per cent. The latest quarter, that is October–December 2013, has been one of the worst quarters in terms of sales and has recorded its lowest volume since 2008-09,” the Knight Frank report said. Factors such as slowing economic growth, rising interest rates by banks, high inflation and the weak rupee among others have contributed towards building a negative sentiment among home buyers, it said. They have delayed their purchasing decision and are waiting for some sort of positive signal on these fronts. “Poor sentiment among home buyers has resulted in a decelerating trend in terms of sales over last four quarters. However, developers in Chennai have been smart enough to take cognizance of such a trend and have cautiously reduced the number of new launches in the preceding 12 months,” it said.
— PTI
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Green house Garden beauties Plants with different trunk structures and having varied leaf textures, shapes and colours add a pleasant variety to your home garden. Caudiciforms or plants with thick or swollen base, both underground or over ground, are an excellent choice for adding an exotic touch to your garden. The recent spurt in interest in these plants can be attributed to their easy availability in the region now. The swollen portion of the plant is called caudex. The formation of caudex and its character varies from species to species. Seed-grown plants generate a much better caudex than those grown from cuttings. The beauty of the caudex increases as it ages. Most of the caudiciforms are adapted to arid conditions and have the ability to store water and nutrients in their caudices. They need comparatively less watering and maintenance than other plants. These plants are suitable for those who often remain out of their homes and also have less time for gardening. Some of adeniums, adenias, bombax, dioscoreas, euphorbias, fockias, pachypodiums, dorstenia foetida, ornithogalum caudatum and jatropha berlandieri have amazing caudices and are popular plants. Here are two species that grow well and look beautiful in Indian conditions. With proper care and maintenance, these lend a unique aura and colour to the garden for a long time. Dorstenia foetida Dorstenia foetida is an Arabian mini caudex forming perennial succulent plant which has a tendency to branch off from the base to form a caudex upto 12-15 cm diameter for the plant height of up to 30-40 cm.
The leaves are wavy and dark green in colour, but vary in size and tend to fall off after turning brown during winters. For the foliage to remain green and the plant to exude its over-all beauty, it should be placed in a shady location or under filtered light conditions. Under full sun, the leaves turn brownish and the growth of the plant gets retarded. It is a natural bonsai that needs no pruning and no pinching. It can be made an eye-catching bonsai specimen within a period of three years by just following the growing tips. False Sea Onion Ornithogalum caudatum, a South African caudex-forming succulent plant commonly known as false sea onion has a swollen glossy green base. It resembles a spring onion but unlike onion, the bulb is exposed above the ground. The beauty of its ornamental caudex which grows upto the size of 8-10 cm is enhanced with its paper-thin epidermis. On removal of its epidermis the appearance of its fresh and glossy light-green caudex is clear. It is hardy and an easy to grow plant and grows well in Indian conditions. It can accept neglect, but for its good growth, it requires well-drained compost and filtered bright light to some direct sunlight; with excess of direct sunlight it is likely to get sun scorched. These plants adapt to pot culture very well and should be ideally grown in a 15 centimetre clay pot or a bowl and needs repotting once in about three years. For the plant to reflect full beauty, the caudex should be placed just above the soil with roots in the soil at the time of repotting. The leaves are strap-shaped and grow upto 70 cm in length when in cultivation. The leaves emerging from the apex spread outwards and normally turn brown at the tips. To ensure leaves to remain beautiful throughout; the tips should be cut with a pair of sharp scissors by giving the leaf a natural tip. The plant is basically grown for its caudex; small white flowers are formed on a stalk which may reach as long as one meter in length. During summers these can be watered as any other house plant, but during winters, water only when the top soil gets dry. Propagation is through seeds or small bulblets which are formed under the skin of the main caudex and fall after growing larger and then sprout.
— The writer is the President of National Cactus and Succulent Society of India. Online carbon calculator As part of its regular sustainability initiatives geared towards improving the ecological balance and minimising the impact on the environment, Lotus Greens has launched a Green App in the form of an online calculator that can track and measure your carbon footprint and suggest ways to reduce it. A carbon footprint is the measurement of carbon dioxide that we put into the atmosphere while going about our daily routine. The carbon calculator can be accessed online at www.lotusgreenability.com. , and can also be downloaded from Google play store on android phone. The Lotus Greens carbon footprint calculator will help people to understand how different aspects of their lifestyle and consumption habits affect their personal carbon emissions. By helping users to measure the amount of carbon dioxide they create in the course of performing everyday chores — commuting, driving, cooking, cooling or heating homes — the Lotus Green carbon footprint calculator will make it easier to understand and evaluate the environmental impacts of their actions.
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Launch pad Talking about the new project Jaideep Aggrawal, Director of Vardhman group said, “The changing lifestyle of metros make us to create something new for the buyer/investor to appeal , their investment should be beneficial and something unique which can fulfill their needs also. In KP III there are many commercial project even we have ITES project Alpha Square, According to company spokesperson, the project will be completed in four years’ time. The intorductory price is
Rs 5,000/sq.ft.
Urban Young in Greater Noida The Cosmic Group recently launched an innovative residential project — Urban Young — at Yamuna Expressway. It will offer serviced residences for the young urban generation. The project is strategically located at Yamuna Expressway and is surrounded by various other international sports and recreational destinations like Knight Safari, FI Racing Track, up-coming amusement park and provides an excellent connectivity to Delhi NCR and other important destinations. The area has also the advantage of having an international GautamBudha University and has institutional area near by having various institutes and colleges. Urban Young offers variety of 4BHK+ study to 2BHK which ranges from ~27 lakh to
Rs50 lakh per unit. The price for the serviced residences will be Rs 5400 per sq ft. and the minimum investment starts with
Rs 5.4 lakh with a space of 100 sq ft. The serviced apartments served with well-trained hospitality staff for day-to-day household jobs like washing, cleaning, dusting, house-keeping, laundry and maid services.
Brys Buzz in Noida Giving details of the project Navneet Bhadla, Director, Brys Group, said, “The prominent features of the building include six levels at the top for all social activity needs, wide sundecks, terraces and balconies attached to living spaces, private plunge pools and terrace garden available in all residences with luxurious low-density complex.”
Tata Housing Development Co. Ltd, launched its first project ‘Gateway Towers’ in Mumbai earlier this week. The project is an 8.5 -acre gated community situated in one of Mumbai’s greenest suburbs, Mulund, and is designed by world-renowned architects, Callison LLC. Gateway Towers is the first project that offers Condominium for its consumers. The group is going to invest
Rs 2,000 crore on this project that will have six residential towers, which vary in height from 31 storeys to 41 storeys, with the highest point at 159 meters. Speaking on the occasion Brotin Banerjee, MD & CEO, Tata Housing Development Co. Ltd., said, “Over the past few years, Mulund has witnessed an increasing demand for luxury housing from consumers and investors alike because of its proximity to South Mumbai and fast growing CBD of Thane.” The project will have 2 bedroom to 4 bedroom condominium and 4 and 5 BHK duplexes, triplex and penthouses. It will have a clubhouse which will be spread across 65,000 sq. ft. and five swimming pools of different sizes. — Based on information provided by the developers
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Tax tips Can I claim rebate on EMIs paid for flat in joint names? Q. I’ve purchased a flat in Mohali Sector 107. For this I have raised a loan of Rs 22,80,000 from LICHFL Ltd. jointly in the name of me and my wife. The ownership of this flat is also in the name of me and my wife. This flat is under construction. Can I claim income tax rebate on the entire amount of interest part of the EMI under Section 24 of the Act, as I pay EMI from my salary bank account individually and am not taking any amount from my wife for this purpose. The possession of flat is with the firm yet, sale deed hasn’t materialised as yet. — Rajeev Sharma A. The amount of interest paid/payable on the amount borrowed for acquisition or construction of a house is allowable as deduction from income from house property. However, the amount of interest paid/payable for the construction period is deductible in equal installments for the previous year in which the income from property arises and for each of the four immediately succeeding previous years. The amount of interest during construction period would thus be allowable in five equal installments beginning from the year in which the construction is completed as the income from house property will be computed in the year of completion of the house. How much tax will I have to pay on inherited property? a) Capital gain tax account in bank is offering about 9 per cent interest for three years’ FD. After this three year period will I be free to use this money as per my wish or not? b) Should I purchase a residential property by utilising the complete amount or just a part of it? I own a flat in Jalandhar jointly with my wife. I want to purchase a flat in my name in Mohali or Panchkula. Is it possible to buy flat within the period of three years or after three years (after the banks a/c maturity of three years)? c) How much tax on this inherited property (not bought by me) is payable now or after three years of bank a/c maturity? d) Capital gain tax bonds are equal to bank a/c or not? Interest earned on bond and bank account is taxable or not? e) Kindly guide me to use this inherited value properly to save tax, to purchase residential property, and to use the value as per my requirements in the family for education of children etc.
— Kuldeep Saini A. Your queries are replied hereunder: a) You have not indicated the cost of the agricultural land of your share which is a pre-requisite for computing the amount of capital gain. In case the agricultural land was acquired prior to April 1, 1981, an assessee has an option to substitute fair market value as on April 1, 1981 if the same is higher than the cost. In absence of these particulars, it is not possible to compute the amount of capital gain on the sale of your share of agricultural land. b) The requirement to deposit the amount of capital gain or net consideration, as the case may be, under the capital gain scheme arises in case the amount of capital gain or net consideration or any part thereof has not been utilised for the purchase or construction of a residential house before the due date of filing the income-tax return for the assessment year in which the capital gain arose. In case the amount deposited under the capital gain scheme is not utilised within one year before or two years after the date of sale in case of purchase of a residential house or three years after the date of sale in case of construction of a residential house, the amount of long-term capital gain arising on the sale of agricultural land would be taxable as such in the year in which the said period expires. The balance amount after payment of such tax can be utilised in the manner you may like to utilise. c) On the basis of the facts given in the query, you are supposed to utilise the amount of net consideration for purchase or construction of a residential house within the period specified in (b) above. Net consideration for this purpose means the amount of consideration realised or accruing on sale of capital asset less expenditure incurred wholly and exclusively in connection with the sale of capital asset. In case part amount of net consideration is utilised for the aforesaid purpose, you will be entitled to claim proportionate exemption from the taxability of the long-term capital gain. You can purchase a residential flat in your name even if you own a flat as on the date of purchase of a new flat. The exemption allowable under Section 54F of the Act would not be denied in such a case. d) As stated above, it is not possible to compute the amount of capital gain in the absence of availability of the cost or fair market value of your share of agricultural land sold by you. e) The amount required to be deposited under the capital gain scheme is to ensure that the amount of capital gain or net consideration as the case may be, is utilised for the purchase or construction of a residential house within the period specified above so as to enable the assessee to claim the exemption from taxability in respect of the long- term capital gain. The investment in tax-saving bonds is required to be made within six months of the date of transfer of the capital asset so as to claim the exemption from taxability of the amount of long-term capital gain. These two schemes cannot be equated. The amount of interest earned on bonds as well as on the amount deposited under capital gain scheme is taxable. f) The issue as to whether the amount of sale proceeds should be utilised for purchase/construction of a residential house or otherwise would normally depend upon your requirements. However, in my opinion, it would be advisable for you to invest the amount of capital gain in tax-saving bonds that have a lock-in period of three years. Thus the amount of indexed cost or indexed fair market value of your share of agricultural land out of the sale proceeds thereof can be utilised for the education of your children. Norms for exchanging commercial property
A. According to the provisions of Section 45 of the Income Tax Act, 1961 (The Act), any profits or gains arising from the transfer of the capital asset effected in the previous year shall be chargeable to income-tax under the head ‘capital gain’ and shall be deemed to the income of the previous year in which transfer took place. Section 48 of the Act provides that the income chargeable under the head ‘capital gain’ shall be computed by deducting the following amounts from the full value of consideration received or accruing as a result of the transfer of the capital asset; Expenditure incurred wholly and exclusively in connection with the transfer a) The cost of acquisition of the asset, and the cost of any improvement thereon. Section 2(47) of the Act defines the term ‘transfer’ and one of the limbs of such definition includes ‘sale, exchange or relinquishment of asset’. On the basis of the above provisions of the Act, in case full value of consideration of the two properties which are proposed to be exchanged remains the same, there should not be any income chargeable to tax under the head ‘capital gain’ and as provisions of Section 48 of the Act would not be attracted since full value of consideration for sale would be equivalent to the cost of purchase of the exchanged property. Tax liability on not investing capital gain in property
A. Your queries are replied hereunder:
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Brigade Group pays 69 cr for 2.25 acre plot Realty firm Brigade Enterprises has bought 2.25 acres of land in Bangalore from Hindustan Coca-Cola Beverages for almost
Rs 69 crore. The Bangalore-based company plans to develop a premium real-estate project on this land. The company “purchased a prime property measuring 2.25 acres at Hebbal, Bangalore, from Hindustan Coca-Cola Beverages Pvt Ltd for a consideration of
Rs 68.83 crore for developing a prime real estate project,” Brigade Enterprises said in a filing to the BSE. Brigade Enterprises has completed 67 housing, commercial, retail and hospitality projects, covering over 6.74 million sq ft, and is working on a number of projects in south India. In the first half of this financial year, the company sold housing and commercial space aggregating 0.7 million sq ft for
Rs 358.2 crore.
— PTI
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Housing sales in Chennai dropped 33 per cent to 18,200 units in 2013 due to slowdown in the realty market and high interest rates, according to a report by property consultant Knight Frank.
However, housing prices in New Delhi increased by 5-7 per cent last year despite a decline in sales volume as developers restricted supply by offering fewer homes in the market.
Launch of new homes fell by 35 per cent to 20,100 units in 2013 compared to the previous year, when it was 30,900 units. “The year 2013 has not been very kind to the Chennai market and like all the other major cities in the country even Chennai has suffered the onslaught of the current slowdown in the real estate sector,” said the report.
Chennai saw drop in sales volume to the tune of 33 per cent during 2013 making it as one of the worst performing years for the residential sector in the history of the city, it added.
Looking for a property deal was an important agenda for Amarjeet Virdi, 47, a Sydney-based NRI, who was in Delhi recently to attend Pravasi Bhartiya Divas (PBD) conference. Keen on investing in his home state Punjab, Virdi met a number of people at the stalls of real-estate firms and banks outside the PBD venue. And this was not an isolated case as a large number of NRIs from the land of five rivers attending the PBD utilised this opportunity to book their flat/plot or villa in Punjab, Haryana or NCR. Like Virdi, Ashok Bhalla, a Hong-Kong based NRI, was also looking for a spacious apartment to have a ready place to move into after returning to India two-three years down the line. 
The plants enjoy generous watering during summer months by allowing the compost to dry slightly between waterings. However, during winters watering should be reduced considerably failing which the plant will rot. The plant bears abundance of unique greenish flowers in the shape of star-shaped discs facing upwards. The seeds eject from these flowers as they ripen and disperse around a radius of about a metre and a half. This can be made out when small saplings start sprouting in the surrounding pots. Propagation is generally carried out by planting these saplings.
Vardhman Estate and Developer (P) Ltd launched its much awaited project Vedic Suites at Plot No 12, Knowledge Park 3, near Pari Chowk, Greater Noida recently. This is a luxury fully furnished studio apartment project targeted at independent individuals, young couples, business travelers and MNCs. The new project will have 250 units of 550 sq ft area with living room, bedroom, pantry & balcony, fully furnished with modern gadgets and kitchen accessories.
The Brys Group has launched its landmark project 'Brys Buzz'in Sector 150, Noida. Claimed to be North India's tallest residential tower, it will be 300 m tall with 81 storeys. The interior designing of the project will be done by world famous Tonino Lamborghini CASA of Italy. Spread over an area of 7.5 acres, the iconic tower will have 2 BHK + Study, 3 BHK Gold, 3 BHK Platinum, 3 BHK Villa, 3 BHK Duplex Platinum, 4 BHK, 4BHK Duplex, 5 BHK Duplex, 6 BHK and 6 BHK Duplex. The size of the apartments ranges from 3000 sq. ft. to 8250 sq. ft and the price of apartments starts from
Rs 17,000 per sq ft. 
Q. I had inherited some property from my grandmother. This agricultural land was sold to a coloniser near Kharar (Mohali). My share is approximate
Rs 50 lakh to be received in cash. What will be the capital gain tax on this amount.
Q. I own a commercial property in Chandigarh. I am planning to exchange this within my sector. The Collector Rate for both the properties is the same. Would this evoke any capital gain tax? If yes, then kindly tell me how to reduce the amount of capital gain tax.
— Gurnam Singh
Q. I purchased a flat for
Rs 14.5 lakh in June 1997, and got the interiors done spending about Rs 2 lakh (I don’t possess any receipts). I sold this flat for
Rs 75 lakh in November, 2013. My queries are: What will be the capital gain amount?