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area watch: baddi
market pulse
Residential prices soften in Delhi-NCR
Designer Dens Green house
real talk
reality bites
launch pad tax tips My question is, is it necessary to directly deposit the sum into this account, or can it be held in a fixed deposit briefly before being deposited into this account? —
Radha Krishna
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area watch: baddi
While there are very few areas in the vicinity of tricity that have not been affected by the slowdown in the real estate sector, the situation has been particularly dismal in the Baddi-Barotiwala-Nalagarh (BBN) belt over the past couple of years. The area that was seen as a potential realty goldmine a few years ago when the Himachal Pradesh government’s tax sops had brought several big industrial units here, has failed miserably to live up to its potential. A number of builders came up with residential projects here anticipating a spurt in demand due to the influx of workforce of different industries. But over the years though one can see a huge inventory of ready and under-construction residential apartments, there are very few people who have actually moved to Baddi and nearby areas to live there. A majority of residential units are lying vacant and are unsold. Those who had invested initially here expecting price appreciation are finding it difficult to exit now. With the realty market failing to give adequate returns to the investors here even a decade after industrial boom, it is the rental market that is being explored by the developers as well as investors to get some return from their investment. While over the years demand for homes from end users and investors dropped considerably, it was seen that the industrial houses were looking for reasonable rental accomodation for their staff in the vicinity of the industrial units. “Companies are looking for bulk rented accomodation for their staff as well as for visiting executives and this has opened new avenues for developers as well as buyers here”, says J.S Ahlawat of Ahlawat Buiders whose group has projects in the Baddi area. His group had got such a “rental” deal wherein as many as 300 apartments (80 three BHK and 220 two BHK) were offered on rent to a company. The developer will provide fully furnished residences that industrial houses can provide to their executives. “The units will have LCDs, ACs and proper woodwork etc”, adds Ahlawat. The trend which began a few years ago is gathering steam as it promises assured returns of at least 6 to 7 per cent to those who have already invested in flats here or are planning to buy in the near future. The industrial hub comprises about 300 pharmaceutical companies with major ones including Pancea Biotech, Ranbaxy, Cipla, Zydus Cadila, Torrent, Alkem, Dr Reddy, etc., A number of such pharma units, especially export oriented units, have either taken flats on rent or lease to accommodate their executives who either work here or frequently visit Baddi-Barotiwala-Nalagarh area. Some industrial groups have taken several blocks of flats in a bid to ensure that their senior executives stay back in Baddi and contribute more to the company. With rentals in the range of ~8,000 to ~15,000, this practice has become a saving grace for the realtors who have failed to sell flats despite investing heavily on land and creating infrastructure. The rising EMIs, shrinking job security and devaluation of the rupee were other factors have also discouraged industry executives to buy flats and prefer rental accommodation provided by the companies. While the price appreciation has been eluding this belt, the rental returns are much better here than those in the tricity areas. As Ahlawat says, “An investment of ~20 lakh here (to buy a two BHK unit) can get you a rental return of up to ~9,000, while in Chandigarh, and Panchkula areas there is hardly anything that you can buy for ~20 lakh and the rental returns are much less in comparison to the amount invested. This is a novel factor that makes Baddi not a losing proposition for property investment”. Low prices but no buyers Though the BBN offers flats at rates much lower than those in the surrounding areas, the buyers are missing here. A two-bedroom flat is priced between
Rs 18 lakh and Rs 23 lakh here as against Rs 75 lakh to Rs 85 lakh in Panchkula, Chandigarh, Mohali and Zirakpur where several housing projects have come up in the last one decade. The appalling state of affairs in the BBN could, however, be gauged from the fact that a single bedroom flat measuring 430 sq feet is now available for ~ 6.85 lakh, lowest price in the region. In the neighbouring Chandigarh and Mohali a two-bedroom flat can cost anywhere between
Rs 41 lakh and Rs 75 lakh. Little has been done by the successive state governments to transform BBN into a decent township offering facilities like quality schools, hospitals, recreational facilities, etc., which planned cities like Chandigarh, Panchkula and Mohali offer to the people. Though a mall has come up in Baddi, it has failed to attract buyers for the thousands of unsold flats which have been constructed by various developers like Rishi Apartments, Hillview, Amaravati, Monal, Suncity , etc. Interestingly, though the coming up of the Baddi-Siswan Road has reduced travelling time between the tricity and BBN, it has only helped industry executives living in Chandigarh and its periphery to cut down commuting time. Faster connectivity has not motivated more people to shift to Baddi and start living there. The percentage of those living here is still abysmally low as a majority of company executives prefer to keep their families in the well-planned and organised nearby areas. Paying a heavy price for poor infrastructure Failure of the government to carry out planned development of the BBN has been its major woe and this has acted as an impediment for the realty sector to boom to its optimum. With nearly 2.5 lakh migrant labourers residing in the area scores, of jhuggis have sprung up in the precincts of various housing societies. This has also discouraged a number of buyers because of security concerns. Dileep Moudgil from Omaxe Parkwoods, says “all efforts to get the jhuggis shifted have failed to have any impact thus adversely effecting the sale of flats”. He added that though developed plots have been sold readily there were lesser buyers for the flats though 70 per cent of them have been sold out. The lapse of the central industrial package in March 2010 has also created an uncertain situation where industries have started winding up their operations. With major groups like the Asian Paints India Limited shutting down their plants and pharmaceutical investors shifting their key products to their sister plants in other states where the industrial package was still available, the industrial boom in Baddi appears to have faded away. “The recessionary trend in the industry was also manifest in the sale of flats and interestingly those who have the capital to buy property here are living in the neighbouring states while those living here are unsure about their jobs hence prefer to stay in rented flats” quips SL Singla whose group is coming up with a project offering villas here. He added that the situation will worsen once all incentives of the central industrial package are exhausted by 2017 industries will shift to other incentive states thus creating a huge volume of unemployed workforce here.
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market pulse
Hyderabad has become the world’s most affordable office location due to rupee depreciation and fall in rentals amid political instability over Telangana, according to global realty consultant
DTZ. Four other Indian cities —Chennai, Pune, Bangalore and Kolkata — figure in the DTZ’s list of top 10 least expensive office space market in the world. “Devaluation of the Indian rupee in combination with declining rents led to Hyderabad overtaking Surabaya (Indonesia)
as the least expensive market in 2013,” DTZ said in a report. The consultant has released the 17th edition of the Global Occupancy Costs – Offices, which presents outlook and analysis of the costs of occupying prime office space across 138 markets worldwide. Chennai retains its position as the world’s third least expensive office space market. Pune and Bangalore occupy fourth and fifth position respectively. “At occupancy costs below $3,000 per workstation per year in 2013, our list of the ten least expensive markets consists solely of tier II markets in India and China,” DTZ said. The total cost of occupancy in Hyderabad stood at $1,250 per workstation per annum. DTZ India Research Head Rohit Kumar said, “Hyderabad has been stricken by political instability and hence it has suffered lack of office demand leading to drop in rentals”. Office rentals have declined in Hyderabad to ~45 per sq ft per month in 2013 from ~58 per sq ft a month in 2012, he added.
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Residential prices soften in Delhi-NCR Housing prices have declined by an average 8 per cent in Delhi-NCR during 2013 compared with the year-ago period due to slowdown in property market amid economic and political uncertainties, a study said. The quarter on quarter comparison shows a decline of 2 per cent in Q4-13 as compared to Q3-13 of this year. “Annual comparison (Q4-13 with Q4-12) however shows a decline of 8 per cent in 2013,” the portal said in a statement. The average rentals for 3BHK flats have dipped by 6 per cent during the fourth quarter of 2013 against the previous quarter. Rentals have fallen by 7 per cent during 2013. Commenting on the report, 99acres.com Business Head Vineet Singh said: “Delhi –NCR region is witnessing a decline in transactions which is underlined by a combination of factors like slackened demand for real estate, high costs of borrowing and rising inventory of projects by real estate developers.” However, he added that certain pockets in the region have shown a spike in prices like Noida extension, Yamuna Express way and Bhiwadi area near Gurgaon due to the presence of affordable range of new projects. Removal of toll and launch of schemes by developers like construction-linked schemes would shore up the prospects of real estate in the region. “Also, the upcoming general elections in April will also ameliorate the situation with lots of policy issues likely to move out of limbo,” Singh said. In the western region, the capital prices have remained stable in Mumbai showing a rise of 1 per cent during Q4-13 over Q3-13, while Pune saw no change in capital prices. “The annual comparison shows Mumbai and Pune showing a double digit growth of 16 per cent and 12 per cent in Q4-13 over Q4-12,” the statement said. — PTI
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Designer Dens Fluidity of space while ensuring its optimum use and doing away with the traditional space-constricting elements like walls is what makes this Delhi home stand out. A fusion of the distinct design sensibilities of two architects is amply visible in the subtle details and unique elements here. Vijay Kulkarni and Anjali Tiwari Kulkarni, the architect couple from Pune, moved into their 200-sq-yd home in Greater Kailash almost three years back. The house has three floors along with a basement with parking on stilts. When they started designing, they were clear that they both wanted neat and clean space without much moulding. Vijay is an architect and Urban Designer while Anjali's work goes into the landscapes. Both are avid travellers and Anjali is particularly fond of picking up art pieces from her various trips and thus she needed lot of nooks, corners and niches to showcase her collection. When asked about having any creative differences during designing their house, Anjali says, “creative clashes are bound to happen but we both were very clear about what we wanted and how we wanted it”. Architecture The house is designed along a visual axis that binds the exterior and the interiors. Walls are kept for the private areas like the bedroom and rest of the spaces are left open to emphasise the relationship between each space and to break the boundary between the built-up part and nature. Vijay says that he interchanged the position of the guest bedroom and the living room so that he could make the tree outside a part of the interiors by using a huge glass window. He also calls this placing anti-vaastu. But he believes that "we have to value our surrounding more than the written word". The deciduous tree sheds leaves in winters which allow the sunlight to enter the space and its thick foliage cover in summers protects from the harsh summer sun. The first floor is a family area where the couple's and their kids' bedroom, kitchen, living and dining areas are there. A small study is also provided for on the parking floor. The basement with its lounge, bar and a home theatre is an ideal space for entertaining guests. Though all the floors are connected through a common lift and a staircase, the couple wanted an exclusive connection between the floors. For this purpose a small home elevator connecting the three floors has been installed. Decor The palette for the walls is limited to neutrals. This is done to accentuate the various objects like the artworks, paintings, upholstery etc. Since Anjali is a landscape architect, she loves to add a dash of green to the interiors. The balcony in the front of the house is the best place to experience her love for plants. A planter has been used in place of a railing for some part of the balcony and the rest of the railing is in glass to merge the indoor and the outdoor. Most of the paintings in the house are in bold and bright colours and grab attention immediately. In the lounge on the basement, the colourful abstract carpet by a French designer stands out against the all-white walls and furniture. The couple has also played with different textures in the interiors. The house also displays some very interesting sculptures. A huge life size sculpture adorns the sunken court in the basement which was drawn out by Vijay himself and is built in mild steel. Lighting and ventilation All the rooms get ample daylight throughout the day which minimises the use of artificial lighting during day time, but the couple has done great detailing in accentuating the furnishings with artificial lighting. The use of light palette for walls makes the space appear larger and there are no dingy corners in the house. Apart from mechanised cooling and ventilation, the architect has also incorporated natural ventilation technique in the house on all the floors. Vijay says that providing natural light and ventilation to the basement was a major challenge. He used a sunken court in the basement for which they also had to fight with the authorities. The authorities were doubtful that an open to sky sunken court might be fully covered later and the new bylaws do not leave room for such practices anymore. But Vijay stood his ground and got it approved eventually.
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Foliage beauty C S Bewli ... Foliage is the mainstay of any garden and includes all plants that are grown for their attractive leaves rather than for flowers or fruits. These plants enhance the visual appeal of the garden through their eye-catching foliage that offers a variety of colours, abundance of texture and designs like any flowering plant. It is a challenge to pep up the gardens that are north facing and the gardens that fall in the shadow area of trees or buildings. There are plenty of foliage plants that thrive in shade. These include numerous succulents that can dramatically transform the existing set up to add grandeur to the garden. However to avoid all-around monotonous look of green foliage, the shady surroundings can be enriched and brightened up by using these tips to reflect light: * Paint boundary walls
or fences with light colour paint. * Make pathways with light colour gravel or stones. *
Create a water feature that also generates a gentle trickling sound to add another dimension. *
Use variegated plants that have splashes of cream, yellow or white. * Prune the lower branches of the trees to allow more light. Foliage plants that render beauty to the garden are some of the species of caladium, calathea, croton, dieffenbachia, epiphytic cactus, fern, hosta, marantha, monstera, peperomia, philodendron, pothos, syngonium, begonia, bromeliads, hybrids etc. For a big garden, tropical large-leafed foliage plants mixed with plants having smaller foliage bring nature closer and look stunning. Calathea ornate, Epipremnum aureum, Monstera delicosa, Philodendron bipinnatifidum and some more are suitable big-leaved plants that thrive in our region. These are also an important base to give special shape effects to beautify the garden with borders. Foliage lasts much more than flowers do, evergreen border plants that retain their foliage throughout the year should be picked up in order to lend beauty to the garden all year round. Generating ground cover with foliage plants is an excellent aid in landscaping design and is an alternative to lawn in reflecting greenery under the trees or in shaded areas. It also helps in preventing the growth of weeds and make a garden low maintenance. Cuphea hyssopifolia and alternanthera dentate as flowering ground cover plants and Ajuga spp and ivy as non-flowering ground cover plants do well here. The writer is the President of National Cactus and Succulent Society of India.
Coleus Coleus is an indoor as well an outdoor plant. Potted coleus plants are often kept in apartments and flats to add colour and natural beauty to the otherwise enclosed areas. To add an instant colour to the garden, these plants in different combination of hues make an excellent component and accent. It is easily propagated both by seeds as well as by cuttings. It is easy to produce a plant from cutting. About 10 cm-long cuttings are taken and rooted in sand or any soil mix. All leaves of cuttings should be removed except 2-3 at the apex for better success. Due to its availability in a wide range of colours, it adds an ornamental touch to the garden more so at a time when other flowering plants are not in bloom. Coleus has been hybridised again and again to create amazing colours and strange leaf shapes.
Growing tips * Do not allow the soil to dry. *
These plants love humidity and hence need plenty of watering. For better results, keeps the soil moist by placing a tray having pebbles and water below the pot. *
Plant tends to assume a spindly look in insufficient light. * Repeated pinching of shoots encourages dense mass of foliage and bushy growth. *
Grow in bright light or partial shade; avoid harsh sunlight for brighter
colours. * Fertilise during summers with a tablespoon of bone meal every month.
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real talk
There is a huge shortage of housing in India how can smaller centres be explored to deal with this shortage? The shortage of housing in our country is huge, and it is not going to decline unless immediate implementation of policies is carried out. The argument that affordable housing units should be built in metros has few takers. As land prices there are exorbitant so it is difficult to keep the prices at the affordable level. You can’t get land there at a price which could reduce the cost of a unit by half or more from the current level. You can’t force cement companies, brick producers or labourers to reduce their prices or wages. In such conditions how is it possible to build housing units which could be affordable to a person who is earning say ~10,000 per month salary in Delhi or Bangalore? The solution lies in smaller cities because all the cost elements are cheaper there. Land, too, is available in plenty. The only hiccup is the low availability of job opportunities there. Why are Tier II and III cities still the best bet for realty growth? There are three reasons for this — low rates, ample scope for infrastructure growth and government’s policy to push economic activities towards smaller cities. Metros have exhausted their potential due to the paucity of land, so delay or no delay the next phase of growth will come from Tier II and III cities only. How has the buyer profile and preferences changed in these centres over the past few years and how has this impacted the sector? Buyers’ profile as well as preferences in smaller centres have changed drastically over the past few years. Earlier, people close to the retirement age used to buy property in smaller cities, but now youngsters, who are doing fine in their career in metros or abroad, are buying property in these cities to connect with their roots. Even people from villages are investing in these cities. Your group recently announced the launch of two concept-based townships in Tier II areas. Are people of these areas receptive to such ideas? Absolutely. People of our country are too attached to sports and history to miss these opportunities. While, Cricket County in Lucknow has attracted buyers who want to live in sporty environment, buyers with taste for ancient architecture and history have flocked to Vedic City adjoining Greater Noida. On a broader level, I think that people have been receptive to new ideas. Has the slowdown percolated to Tier II and III cities? There is a mix trend in these cities. As per Residex the property prices have increased in Nagpur, Guwahati, Patna and Pune, while some cities like Jaipur and Chandigarh have experienced decline. In the case of Lucknow, though it witnessed decline in this quarter, prices have appreciated in previous quarter. Even in metro cities, it's a mixed bag. So, it is difficult to decipher uniformity in trends. The RBI is back to high interest rates. Given the financial vulnerability in smaller cities, will it not be a hard run for developers? Well such decisions have to be seen in the larger context. So more than this hike, we should go by the intention of the RBI. The apex bank took decision to hold on the policy rates when all experts were expecting a hike in policy rates amidst 11 per cent retail inflation. But, the RBI board defied the wind. The present regime at the RBI is pro-growth, so we expect positive news next time. As for the impact of this (rise) on smaller cities, yes, it will temporarily hit the buyer sentiment. But people will come back to the market as this will have impact on inflation too, resulting in more savings. — TNS
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reality bites Realty firm CHD Developers Ltd will invest ~300 crore for the development of a group housing project in Sector 71, Gurgaon. This parcel of land which is about 10.54 acres in size is licensed and has all approvals in place. Giving more information about the project Ravi Saund, COO, CHD Developers Ltd. said, “We will develop a multi-storey group housing project comprising 600 units on this land. We will target mid-income segment. The cost for this project will be funded from internal accruals and debt financing for which we have already tied up”. CHD is currently developing a housing project in Dwarka Expressway which is six months ahead of schedule, its iconic tower in Sector 109, Dwarka Expressway, Studio apartments in Sohna and a 250 -acre township in Karnal. Godrej Properties to develop new project in Vikhroli Godrej Properties Limited, the real estate development arm of the Godrej Group, has finalised a tie-up with Godrej & Boyce (G&B) to develop a new project on the latter’s property on the Eastern Express Highway, Vikhroli, Mumbai. The potential saleable area in this project will be up to 800,000 sq. ft. and is likely to comprise premium residences as well as a small component of convenience retail. Godrej Properties will act as development manager and will work with G&B on the conceptualisation, design, sales, and marketing of the project. The development will have a mixed-use character. The first project under this agreement was Godrej Platinum, a residential development of approximately 600,000 sq. ft. across four towers. Three of these towers have been sold and are at an advanced stage of construction. The last of the four towers will be launched in the next few months. Godrej Platinum is one of the first residential projects in the country to receive a LEED-Platinum precertification, which is the highest available certification for green buildings. In addition to Godrej Platinum and this new project, Godrej Properties is also developing a 35 acre mixed-use development in Vikhroli called The Trees. Road ministry explores financing options
for Delhi-Jaipur Expressway The Road Transport and Highways (RTH) Ministry is exploring options like real estate development along the Delhi-Jaipur Expressway to finance it as land cost alone has trebled after the new land acquisition law came into force. The cost of ~11,750 project that included provision for land acquisition is likely to shoot up by at least ~30,000 crore as the land cost has trebled after the new law . “The National Highways Authority of India (NHAI) has informed us that the cost of land alone for 272 km expressway would be about ~18,000 crore from the estimated ~6,000 crore,” a ministry official informed. The development comes barely a month after the Prime Minister's Office asked the RTH Ministry to move a Cabinet note for the project saying it would be the first such highway to be built by the central government. "The Delhi-Jaipur Expressway is one of the announcements of the Prime Minister in November, 2013 which has been taken up as a priority project of the government. As on date, there is no expressway built by central government and Delhi-Jaipur Expressway would be the first," a PMO statement had said. The official said the Ministry is exploring ways for financing the project which may include development of real estate along the stretch or building it around the existing highway. The Ministry has sought advise on possible financing modes from stake-holder states - Delhi, Rajasthan and Haryana, before proceeding on the project, the official added. The Road Ministry has estimated the project cost for the Delhi-Jaipur Expressway at ~11,750 crore, including land acquisition and pre-construction activities. RTH Minister Oscar Fernandes had earlier said that unless a major portion of the land is handed over in the construction of the proposed Delhi-Jaipur expressway, financial institutions could shy away from funding the project. — PTI
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launch pad Real estate developer Silverglades recently announced the launch of Delhi NCR’s first premium senior living community — Melia-First Citizen. Located at the foothills of the picturesque Aravallis, First Citizen is part of The Melia which is spread over 17.5 acres. Strategically located at Sector 35, Gurgaon Extension, Sohna, the project is quiet, safe and easily accessible from all parts of Gurgaon. It is just a 10-minute drive from Golf Course Extension Road and is near GD Goenka World School and KR Mangalam University. Silverglades is one of India's leading boutique developers, specialising in residential housing, commercial, township projects and golf-based leisure developments. Platina on Dwarka Expressway Delhi-NCR-based realty developer Satya Group recently launched its premium, luxurious residential apartments -Platina- at The Hermitage, located on the Dwarka Expressway. The project is strategically located in sector 103, Gurgaon and surrounded by premium residential complexes, business hubs, and high rise condominiums.It comprises of premium air-conditioned 3 / 4 BHK apartments and penthouses ,which are energy-efficient with power back-up. The structures are earthquake resistant, equipped with intercom, CCTV in entrance lobby at ground floor, access control entry and lift lobbies in basement. The apartments are priced at ~1.5 crore onwards. Social media network for realty industry Trigonometry, an IT Solution company from Mumbai, launched its maiden social media networking portal Realtypapa.com last week. It is a distinctive portal for real estate industry for social networking and business interest where anybody and everybody from the industry can join and interact with the real estate fraternity at one platform and get all sorts of real estate information.It is primarily a social networking website for the real estate industry which intends to connect different parties related to Real Estate Industry to share their interests, experience, profile and businesses. Based on information provided by the developers
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Is it must to deposit sale proceeds in capital gain account? S. C. Vasudeva email your queries to realestate@tribunemail.com My question is, is it necessary to directly deposit the sum into this account, or can it be held in a fixed deposit briefly before being deposited into this account? —
Radha Krishna
A. Section 54F of the Income-Tax Act 1961(The Act) provides that in case the net consideration realised on the sale of a long-term capital asset is not utilsed by the assessee towards the purchase or construction of a residential house before the due date of furnishing the return of income as provided under Section 139 of the Act, the same shall be deposited in an account with any bank under the capital gain scheme account. It may be possible to keep such sale proceeds in a Fixed Deposit Account under the said scheme till the date by which the amount is likely to be utilised for the purpose of construction or purchase of a residential house within the specified period. Will my NRI son have to pay tax on sale proceeds in India? Q. My son is working in USA at present and has savings which he wishes to invest in India either in real estate or in fixed deposits. Subsequently, if he decides to settle in USA, the property/fixed deposits will have to be liquidated and money sent to him in foreign currency. Please advise if the profit / interest earned will be taxed in India. If so then at what rate and whether we can send the money in free foreign currency? — ravi mohan
A. Your son can invest in India to acquire a property. In case such investment is made by withdrawing money from his foreign currency account (Non-Resident External Account), he will not have problem in repatriating the amount realised on sale of the property, provided due taxes on capital gain arising on such a sale have been paid. The investments in fixed deposit made out of NRE Account can be repatriated without any problem. In case the investment is made by withdrawals from a Non Resident ordinary account, the remittance thereof to USA can be made in accordance with the Master Circular issued by RBI (dated 1st July 2013). The circular permits the remittance of an amount not exceeding $1 million per financial year out of the balance held in NRO account. The interest on NRE deposits is not taxable in India. The capital gain arising on the sale of real estate property would be taxable in India at the specified rates depending upon the period for which the same is held. The interest earned on NRO accounts is also taxable in India at the normal slab rate. In case the property is held for a period of more than three years, the gain arising on sale thereof is taxable @ 20 per cent plus applicable surcharge and education cess of 3 per cent thereon. In case it is held for less than the aforesaid period, the gain would be taxable at the normal slab rate which varies between 10 to 30 per cent depending upon the quantum of income. The taxes can be paid out of the income earned in India. There may not be any necessity to send foreign currency from abroad in case funds are available in NRO account. House tax calculations Q. I own 600 sq yd house (300 built + 300 unbuilt ground) in MT Service Chowk YNR. I have to pay house tax @4/50 sq.yd for 600 sq. yd. ~ 2,700 per year 2010-11, 2011-12, 2012-13, 2013-14. A sum of ~6,905 was paid on 9.12.2013 (vide receipt no. 1490/5 of 14/11/11) for 2010-11. ~6,905 paid (vide receipt no. 3119/10 of 9.12.2013) in survey and to save myself from too much rate. I think I have paid
RS 695 excess. a) The excess money is refundable or adjustable in coming year 2014-15. b) Is the above calculation right or not? c) How can I save house tax in 2014-15? I want to gift 300 sq. yd. to my sons. The collector rate of our side is ~35,000 per sq yd. Please advise and suggest the right path to save. —
Mohinder Singh
A. It seems the rebate for the years 2010-11, 2011-12 and 2012-13 has been allowed @3.33 per cent instead of 10 per cent as computed by you. It is a possibility that the rebate allowable up to year 2012-13 was to the extent of 3.33 per cent only. I would, therefore, advise you not to get into any debate with the house tax authorities for a sum of ~695 which would involve needless correspondence and personal visits to the corporation/municipality office. The house tax involved being nominal, it would be advisable to make a Will in respect of the unbuilt portion to your sons instead of gifting the said land to them. This is because the stamp duty involved for a gift would be very heavy as the same would be payable on the market value of the land and would be computed after taking into account the circle rate of ~35,000 per sq. yd.
Is there a lock in period for selling a house? Q. My son has a flat that he had purchased in March 2006. He had taken a home loan for it. He now wishes to sell it off and invest the proceeds in a flat/house in another city. What are the repercussions of selling the flat at this point of time in terms of tax to be paid? Is there a lock in period for selling a house or property? The flat is self-occupied. Will my son have to be capitalk gain tax if he invest s the proceeds in a flat/house in another city within a few months? — Raj Kumar A. The replies to your queries given hereunder are based on the premise that the flat acquired by your son was a residential house/flat: nIn case the flat purchased in March 2006 is sold within a period of three years of the date of its acquisition, the capital gain arising on such sale will be a short-term capital gain. The short-term capital gain will be added to the other income of your son and the income tax would be payable on his aggregate income calculated on slab rate basis plus applicable surcharge and education cess. nThe benefit of exemption from chargeability of income tax on capital gain is available if a residential flat is held for a period of more than three years and is sold thereafter. The capital gain arising on the sale of such a flat is required to be utilised for the purchase of a new residential house within one year before or two years after the date of sale. In case of construction the amount of capital gain is required to be utilised within three years after the date of sale for claiming exemption from the taxability of the capital gain. anNo tax is payable on capital gain arising on the sale of a flat/house even if such flat/house is purchased in a city other than the city where the flat/house which has been sold was situated.
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While there are very few areas in the vicinity of tricity that have not been affected by the slowdown in the real estate sector, the situation has been particularly dismal in the Baddi-Barotiwala-Nalagarh
(BBN) belt over the past couple of years. The area that was seen as a potential realty goldmine a few years ago when the Himachal Pradesh government’s tax sops had brought several big industrial units here, has failed miserably to live up to its potential. A number of builders came up with residential projects here anticipating a spurt in demand due to the influx of workforce of different industries.
“Delhi-NCR is one of the most sought after property destinations in India. However, the present economic and political uncertainty is getting reflected in capital prices in the region,” property portal 99acres.com said in a report that covers trends on property prices for the housing segment.
The genus Coleus comprises hardy perennial plants with succulent stems that are sometimes treated as annuals in this region due to extreme winters. These easy to maintain plants grow well in bright light and are primarily grown for their textured and colourful foliage that comes in intricate patterns. Tiny flowers of coleus have insignificant decorative value and are also short lived. These flowers should normally be removed as soon as they appear for the plant to further branch and become bushy.
According to figures released in Residex (an index release every quarter by the National Housing Bank) for the quarter ending December 2013, it is the smaller centres i.e. Tier II and III cities that have shown a positive trend f price appreciation rather than the big metros and Tier I cities. With a large number of developers moving towards the smaller centres over the past few years, it seems that these small cities will be next real estate destinations once the overall market sentiment improves by 2014 end. Manoj Dwivedi, CMD, Shri Infratech, whose group has a number of projects in smaller cities, talks about this trend and the potential of these towns over the next few years. Excerpts:
Q.
The sale proceeds of a property have to be deposited in a capital gain account before being utilised for the purchase of another house property. 
I also come to know that the rate for unconcerned area is -/75 & -/75 upto 300 sq.yd, 300 sq.yd to 500 sq.yd. 3/50 & above from 500 sq. yd Rs. 4/50 per sq. yd. which has been charged from me.