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real
view Smaller but affordable The negative sentiment prevailing in property market in Punjab for over two years may improve in the wake of Punjab Government’s proposal for relaxing norms of the Punjab Regional and Town and Development Act, 1995. 
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real
view
The negative sentiment prevailing in property market in Punjab for over two years may improve in the wake of Punjab Government’s proposal for relaxing norms of the Punjab Regional and Town and Development Act, 1995.
Officials of the Department of Local Government, Punjab, after holding meeting with the Punjab Regional and Town Planning and Development Board approved certain amendment in the Act in master plans of Punjab regarding population density, Floor Area Ratio (FAR), ground coverage and other norms. The main objective of the move is to implement the amended notification of the Department of Town and Country Planning is to uniform the density of population and make optimum use of the land apart from encouraging vertical growth. Catalyst for growth The proposed notification will act as a catalyst for real estate growth in cities like Amritsar, Jalandhar, Ludhiana, Patiala, Mohali, Bathinda, Phagwara, Moga, Pathankot and Hoshiarpur districts. With the final approval of the notification, now builders can construct 75 units/flats in one acre against 60 units/flats per acre according to the previous guidelines, claimed N.K Sharma, a realtor-turned-politician and Chief Parliamentary Secretary (Industry and Commerce), Punjab. The final notification in this regard would be released soon. The decision will not only speed up the real estate growth but the buyers will also benefit as they will be getting affordable houses, he said. According to experts the change in norms will bring down the cost for homebuyers in the state. The cost of apartments will come down by over 25 per cent even though the cost of construction will remain almost same. The housing department of the state, however, is already following the plan and now the local bodies department, too, has adopted it to increase population density and to encourage vertical growth as per of the Master Plans (for the development) of these cities, claims, a senior officer in the department. Size vs price Satish Jindal, CMD of Maya Garden, claimed that earlier roughly 60 flats of 1,452 sq ft built up area, each could be built an acre. The cost of the flat was between
Rs 40 and Rs 45 lakh which was beyond the reach of middle class buyers. “Now with 75 flats coming up in one acre, the size has come down to almost 1,150 sq ft per flat and the cost will be between
Rs 30 lakh and Rs 35 lakh which makes these houses affordable for a larger segment of buyers,” claimed Bharat Mittal, director of Sushma Buidtech Limited, Zirakpur. This move thus is going to bring the buyers who have been in the wait and watch mode for the past over 24 months to the realty market to finalise deals. Market watchers are of the view that the move is going to be beneficial for growing satellite towns like Zirakpur, Mohali, Kharar and other towns across the state where most of the new projects will be in the affordable segment. Sunil Bandha, director of Zirakpur-based ONS Builders and Promoters, also claimed that the decision will not only give a boost to the government’s move to provide affordable housing to end users, but also attract more customers thus generating more revenue for the state exchequer. The cut in prices once the projects conforming to the new norms are ready, however, is not without a catch. The built up area of the flats will be less in the new scheme of things. “Earlier when we had to accomodate 60 flats in one acre, there was no scope to reduce the size of a unit, but now with permission for 75 flats in an acre the size of a unit can be reduced by roughly 300 sq ft, so the price of units has gone down automatically”, says Rajesh Bhasin, a Zirakpur-based developer. R.K Mittal, a retired executive officer of the department of local government, Punjab, however, claimed that the government was adopting only two points (increase density and encouraging vertical growth) of the notification of the Department of Town and Country Planning in this regard. The local government should have opted for the entire notification as it is or enforce the PUDA guidelines, he added. Flip side While the builders and buyers are going to make the most of the notification, it is the residents who will face the heat of high density and vertical development of these cities. Neither the government nor the builders and developers have provided the promised facilities to the residents of various housing projects and societies across the state, complained Sandeep Maudgil, a resident of Chandigarh. Moreover, the existing infrastructure that includes roads, streets, water supply, sewerage system and electricity in unable to bear the extra load if the population increases in these cities, he claimed. Vijay Dutta, president of Joint Action Coordination committee, Zirakpur, is of the view that the notification is going to add to the woes of the residents as the state government has already failed to provide proper electricity, drinking water, roads and sewerage for general public. “The rise in density will add to traffic congestion on the roads, crime graph will go up, there will be requirement of more healthcare institutions, schools, community centres, commercial establishments and other basic civil amenities”, claimed Jagdev Sharma, a Chandigarh based
businessman. The government have to develop infrastructure to carry provide basic civic amenities, opined Pradeep Sankhyan, an executive residing in Silver City, a housing colony in Zirakpur. “Strengthening the infrastructure base should have been the first step taken by the state government, before clearing decks for increase in density in urban areas. In the absence of proper civic amenities the basic motive of such a move will be defeated and soon we will be staring at urban slums in the state,” said Rotarian Bhupinder Singh Saini, a resident of Dera
Bassi.
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real
issue The easing of norms for FDI in construction by the government earlier this week will prove to be a firm step towards realising the goals of setting up 100 smart cities besides putting the realty sector on the path of achieving ‘housing for all’. The Cabinet relaxed FDI rules in construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms.
The move has been hailed as a positive one sector, which has been reeling under a slowdown for the past 2-3 years. It will help developers in raising funds to complete projects. Realtors' body NAREDCO said new Foreign Direct Investment (FDI) in the real estate sector could jump over two-fold in the next one year with easing of FDI rules. “Reduction in minimum built-up area to 20,000 sq meters from 50,000 sq meters and reduction in capital investment to $5 million from $10 million has the potential to more than double FDI inflows into housing, commercial real estate, hotels and townships in the next one year,” NAREDCO Chairman Navin Raheja said in a statement. In 2013-14 fiscal, the FDI in construction development, which include housing and township, was
Rs 1.22 billion. During April-August period of this fiscal, the sector has attracted
Rs 446 million worth FDI. Hailing the move, India’s largest realty major DLF Group Executive Director Rajeev Talwar said, “Praise to the Finance Minister for being so prompt in meeting the requirements of this industry in his budget announcement, then approval for Real Estate Investment Trusts and now relaxation in FDI norm. There will be huge amount of FDI inflow in this sector”. Unitech MD Sanjay Chandra said this would “surely provide a boost to the real estate industry and go a long way in fulfilling Prime Minister Narendra Modi’s dream of creating smart cities throughout the country.” Permission to sell completed projects to foreign investors will help Indian developers get much needed liquidity into the system, Chandra added. Terming the decision as a positive development, realty consultant CBRE South Asia CMD Anshuman Magazine said, “Real estate and infrastructure industry is starved of funds. This announcement will widen the base of investors, especially mid-sized financial institutions.” It would also encourage new development projects in prime areas of large cities and in tier II towns, Magazine added. Vinay Jain, CMD, AVJ Group, said, “This is a revolutionary step and developers can increase the development of low-cost and affordable housing after this move by the government. The inflow of foreign investment will trigger growth across various sectors generating employment and thereby giving a boost to the entire economic scenario in the country .”. Abhay Kumar, CMD, Griha Pravesh, said, “The reduction of the minimum built-up area to 20,000 sq. metres will give developers more space to work, particularly in urban areas where there is an issue of area deficiency as well as high cost of area. Also, the absolution of the undertakings which submit 30 per cent of their aggregate expense to moderate lodging is a measure which will give an enormous push to the affordable housing sector.” Rajesh Goyal, MD RG Group, said, “The significant relaxation in the hitherto applicable terms and conditions in the case of FDI in construction is a relief for the subdued scenario in the real estate sector. The reduction in the conditions of already existing minimum 50,000 sqft. area to 20,000 sqft. of area shall prove a breather to the sector as it shall directly boost the affordable housing in the country. Consequently with the influx of the money available to the projects, the progress shall be uninterrupted and shall improve the atmosphere of confidence of the buyer, whose trust has somehow shaken in the industry”. Ajay Kumar , CMD Ace Group, said, “The decision of the govt. regarding the relaxation of terms and conditions in the case of FDI in construction shall help regain the positive market sentiment as the new conditions shall pave the way for the availability of funds to carry-on the projects in time which was otherwise losing ground for one reason or the other. The market shall now become vibrant and full of activity and shall help in realizing the dream of the govt. of providing the affordable housing to the people of the country”. Property consultant Cushman & Wakefield said the move is likely to give fillip to real estate sector. This step would be beneficial for the next phase of urban development. Audit firm KPMG India Partner and Head, Real Estate and Construction Sector Neeraj Bansal said, “Following up with REITs norms, the recent relaxation of FDI norms in construction development is expected to provide an immediate breather to the cash-strapped real estate sector. “The reform would now allow foreign investors to invest in smaller projects spread over land parcel of about 3-4 acres,” he added. KPMG expects the policy to support housing and commercial projects in metro cities such as Delhi and Mumbai, where project size is generally small, yet requires heavy investment due to expensive land parcels and high construction cost. Echoing similar views, Shriram Properties MD M Murali said, “I would say this is an excellent positive announcement the government has made appreciating the contribution of construction sector to the economy and the nation as well. “Easy and more money to the construction sector would mean — more jobs, more houses. Needless to say the still faster growth of ancillary industries,” he added. Supertech CMD RK Arora said, “With this positive announcement and REITs coming soon, we believe foreign players will not hesitate in investing to India.” Gaursons MD Manoj Gaur said the Centre has taken a big step by relaxing the FDI policy. “These new changes will help to attract money in the sector that will work as soothing breeze in starving sector of real estate.” SARE Homes MD Vineet Relia said the relaxation of the two norms will improve the overall investor sentiments and increase the inflow of investments. Prateek group Chairman and Vice-President, CREDAI NCR, Western UP Division, Prashant Tiwari said the much needed breather for the sector will further entice developers to be more aggressive in the segment and take development beyond metro cities. “With this improved cash flow, developers will now be able to expedite the construction of delayed projects and closing in of the increasing gap between demand and supply,” he added. Industry bodies hailed the government’s decision to ease norms pertaining to foreign direct investment in the construction sector, saying it will help attract investments, generate jobs and facilitate creation of smart cities in line with the government’s vision. “It is going to benefit both the developers and customers by adding more number of projects and highly developed infrastructure such as roads, highways, sewage, water, power, etc. A 100 per cent FDI approval means
more capital can be invested in towns and cities for the development of both residential and commercial spaces. “With this positive announcement by the government and REITs (Real Estate Investment Trusts) coming soon, we believe foreign players will not hesitate in investing to India," realtors' body CREDAI's Vice President R K
Arora said. PHD Chamber President Sharad Jaipuria said the move will not only amount to job creation but also enable India earn foreign direct investment (FDI) in a significant manner. Jaipuria said the proposal will help fulfill Prime Minister Narendra Modi’s dream for creation of 100 smart cities. — PTI
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tax
tips Q. Kindly let me know the tax liability on long term capital gain on the sale of a residential property. I had purchased a house measuring 250 sq yd with covered area of 1900 sq ft in 1984-85, the cost of the plot was Rs. 10,000 and stamp duty was Rs. 1450, the construction cost was Rs. 100 per sq. ft. So the total cost of construction was Rs 1,90,000. I had sold a portion of 100 sq yd with construction area of 800 sq ft. in June 1998 for Rs. 90,000. The remaining portion i.e. 150 sq yd with covered area of 1100 sq ft was sold in Sept. 2014 for Rs. 20,00,000 only. Kindly let me know:
— h.r. mittal The amount of tax on the said basis works out at
Rs 2,14,776. The date of sale has not been indicated in the query. In case the sale was beforeh September 15, 2014, the first installment of 30% of above amount of tax should have been paid on or before September 15,, 2014. In case the sale was after September 15, 2014, it would be advisable to pay the said tax in two installments on December 15, 2014 (60% of tax due) and March 15, 2015 (40% of tax due) to avoid levy of interest under Section 234B & 234C of the Income Tax Act, 1961 (The Act).
Q. I am 73 years old and an Income-tax payer. My wife and I have no son and want to gift our property to our daughters as under:-
I want to know: — prashant gupta A.
Presently gift tax is not chargeable on any gift made by a person. Accordingly, no gift tax would be payable by you in case the properties referred to in the query are gifted to the daughters. Q. I am senior citizen aged 69 years. I had got demand loan for
Rs 3 lakh (payable in 6 years) sanctioned from bank for renovation/addition of house against F.D.R. at an interest rate one per cent higher than F.D.R. (i.e. 10.50%). I had paid
Rs 60,000 as interest during first year towards repayment of demand loan and got above interest certificate issued by bank.
I had given portion of my house (first floor) on rent and was getting Rs
95,000 as rent per year. My C.A. says that I am eligible for deduction of Rs
60,000 interest from the house rent received after “statutory deduction of 30% plus house tax”, however my bank says that I am not entitled for the same.
Kindly clarify the correct position with regard to provisions of Income-tax Laws. — prateek kumar A.
Section 24 of the Act provides that income chargeable under the head “Income from house property” shall be computed after allowing the deduction of any interest payable on the amount borrowed for acquisition, construction, repair, renewal or re-construction of a house. First proviso to the said section limits the deduction to
Rs 30,000 in case of a self occupied house which is constructed before 1.4.1999. However, in case the house is constructed after 1.4.1999 and construction is completed within three years from the end of the financial year in which the amount is borrowed, the limit for deduction of interest stands increased to
Rs 2,00,000 from assessment year 2015-16. No such limit is applicable for allowing deduction in respect of interest paid/payable on borrowed amount utilised for construction etc. of a house property which is not self occupied. Therefore, your Chartered Accountant has correctly advised you that you are entitled to a deduction of
Rs 60,000 while computing the income from house property which has been let out. It seems your banker is not aware of the relevant provisions of the Act and is therefore, has not correctly advised you in respect thereof. Tax liability on sale of agricultural land Q. We are three brothers and have inherited ancestral agricultural land measuring approximately 2 acres in Tehsil Jalandhar. We want to sell this property. The sale proceed of this is likely to be about Rs.2 crore. The above amount will be equally distributed among the brothers. We need to know the tax liability on this amount in case it is taxable. How can we save tax on this?
— nihal singh It may be added that in case the agricultural land is outside the municipal limits as also beyond the distance specified by Section 2(14) of the Act, capital gain arising on the sale of such land would not be exigible to tax. Q. I am a senior citizen and an incom tax assessee. I own a plot that I had purchased in 1990 for
Rs 15 lakh. I entered in Agreement to Sell in February, 2014 for Rs 60 lakh, and received an earnest money of
Rs 10 lakh. The final date of registration was fixed for July 2014. I wanted to use the Capital Gain portion of the consideration, for construction of a house. Therefore, I purchased a residential plot with that earnest money in June 2014. I was hopeful that the buyer will execute the agreement and the final money received in July 2014 will be used for construction of my house. But due to recession etc. the buyer paid me another
Rs 10 lakh in July 2014 and sought extension up to August, 2014. In August, 2014 he wanted another extension and paid further amount of
Rs 5 lakh. I extended the date by another one month i.e. September, 2014. The buyer has started dilly dallying after September. I refused to further extend the time for execution. Till date the agreement has not been executed in spite of legal notices to buyer.
My queries are:
— ravi kumar A.
I assume that the possession of the plot had not been handed over to the buyer. The reply to your query is therefore based on that presumption. The capital gain on the sale of plot would arise as and when the possession thereof is handed over to the buyer. The amount received by you till September 2014 in the form of earnest money would be adjustable against the final consideration. There would be no capital gain tax liability in respect of such earnest money. In case the possession is handed over in December 2014 and the sale deed is also executed in the said month, the capital gain would be exigible for the assessment year 2015-16 i.e. financial year ended March 31, 2015.
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loan
zone Paying back your home loan amount before the agreed upon term expires is a good decision as one is free from the liability of paying EMI every month. In fact, the RBI recently stipulated that banks should not place foreclosure charges or pre-payment penalties on all floating rate term loans. This is for individual borrowers and is already applicable currently.
This has encouraged several borrowers to pay back their home loans even earlier, though interest rates on home loans have remained steady and have not gone up in the past few months. There are a few things that one should remember and do before foreclosing your home loan account. These are: Make sure to take back the original documents When disbursing a home loan almost all the original documents, particularly the important ones are taken by the lender. These include documents such as the title deed, contract, indemnity and guarantor’s letter. Along with these there a few other original documents may also be sought by the lender. While foreclosing the loan account make sure that all of these are collected in original. If the bank says that they will deliver them to your residence, ask it not to bother. Once you have honoured your payment obligation the bank has no business to hold your papers, even for
an hour. Final settlement calculation It’s always a good idea to sit with the officer concerned when he calculates the final settlement amount. See that there are no unwanted charges. These days there are no pre-payment charges on home loans, which is
a good thing. Final payment figure may be slightly more than you anticipated The bank will charge a slightly higher amount then you anticipated. This is on account of the interest charges that will be applicable for the final settlement cheque which might take a few days to clear. The final amount will always be more than you anticipated so be prepared for this. No objection certificate. The bank will give you a No Objection Certificate. This will certify that all of the bank’s or housing finance company’s dues on the homes loan taken by you have been cleared duly by you. Security cheques One of the requirements before sanctioning an home loan by banks is to ask for security cheques. In most cases these cheques would either be two-three. Once you have paid back your loan, make sure that you take back these cheques. Seek advice Seek advice from experts before you close your home loan account. There are some disadvantages of closing your home loan early, including the tax benefits that you get on home loans. Once you pre-pay the home loan you will not be eligible to avail the tax benefit. In any case work on
the pros and cons before you decide to close the home loan. Be a little proactive. Remember, the bank has got back its money and it would not care. You are the one who will have to chase the officials concerned in case any of the documents or other formalities are left pending. Talk to people who have already closed their home loans. This might help in ensuring that you have all the right documents in the end.
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decor
trends Aluminum’s slimness, sleek appearance and colouring ability were well liked and appreciated by modern architecture but it failed to capture the imagination of the retail clientele. This void was filled by the newcomer amongst the frame materials, uPVC, which was able to replicate wooden frames in terms of sight-lines and eliminated the unwanted condensation, a problem associated with none thermally broken steel and aluminum frames. Since its introduction in 1954, uPVC has conquered the construction market and succeeded in virtually all known climatic zones. For example: uPVC fenestration is being employed nowadays in the coldest part of Russia, Siberia but also in Dubai, one of the hottest places in the world. Its unique ability to be formulated to suit any climatic conditions makes this material very attractive for world-wide fenestration applications. The wealth of experience and scientific data, gathered since 1954, makes uPVC the most researched raw material world-wide, being nowadays comprehensively covered by several European (EN) and Internal (ISO) Standards which include also long term performance in subtropical climates like India. Benefits UPVC frames are generally chosen on the basis of merits and convenience. The factual price-performance ratio of uPVC frames is still largely unknown by general public. The benefits over wood are already well known. Durability The oldest, currently installed uPVC frames were found in Germany which approaching now 46 years of service life. The general findings concluded that all uPVC frames were still perfectly acceptable, their appearance was without visible discoloration or blemishes and all frames functioned correctly. The examination of 29 domestic and commercial uPVC frame installation was a great testimony of uPVC’s actual durability. In addition, the BRE (Building Research Establishment - Watford, UK) had attested in an independent study that uPVC frames will achieve a minimum service life of 35 years which is realistic for any uPVC frame; assuming the profiles are extruded from a uPVC compound that conforms to EN 12608 (NOTE for India: EN 513 colorfastness category severe) and the frames utilise hardware conforming to EN 1670 (corrosion resistance) and EN 1191 (life cycle). The subsequent uPVC frame manufacture and installation are extensively covered and documented by official British standards like BS7412 and BS8213-4 and/or alternatively German guidelines like RAL-GZ 716/1 and GKV Montagehandbuch. Cost factor Maintenance tips
Range and finishes available in market
It is surprising that highly visible construction products, like windows, anticipated to last at least 35 years are expected to retail at a lesser price than PVC pipes which are normally buried under ground. There is this wide-spread general perception that uPVC frames are more expensive than aluminum frames but when comparing a 45 mm deep with 1.8 mm wall thickness, white powder coated aluminum casement frame and 5mm single glazing, the material costs are virtually identical. These frames can be tailored to suit any requirement but experience has shown that uPVC frames are normally upgraded and sold with a much higher specification. The required long-term product performance and the fear of premature fenestration failure will eventually lead to increased demands for product standards and product certifications. Selecting the right frames Some main points that should be kept in mind while selecting upvc doors and windows frames are: The biggest issue, currently, is the small number of experienced uPVC fabricators and installers being able to serve a challenging fenestration market almost as big as the original European Union. — The writer is President Research & Development Encraft
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Ground
Realty Basement provision Low-lying plots often make house builders indecisive about having a basement. Many house builders are wary of having a basement in their house and opt for earth filling. However, opting for a basement will be a wise decision in case the plot is low lying involving massive earth filling. When designed properly, provided with sufficient illumination and ventilation and an easy access, a basement can serve as an additional area for storage or office space in case of medical or professional consultants or as an ideal home theatre or a cozy hall for small religious gatherings or kitty parties etc. If expenditure is involved in construction of RCC walls and slab, significant expenditure on brick foundations and earth filling is also saved, resulting in a little net extra expenditure, which looks immaterial in comparison to the benefits that the additional basement area will provide in future. RCC walls of the basement, when treated well, on their outer surface also save the house from termites and dampness besides saving the floors from earth settlement. RCC slab provision However, the right decision is to disregard all these arguments and opt for a properly designed RCC roof slab. RCC slabs, when designed by a competent engineer, don’t develop any cracks. Some hairline cracks sometimes appear due to non-provision of adequate concrete cover to steel or due to the electrical fittings and conduits buried in slab concrete. These can be avoided by taking proper care during construction. In RCC slabs, one doesn’t need to lay steel at a fixed interval of one brick width as is done in RB slab. Here, steel spacing is designed and steel used may be lesser than that used in RB slabs. RCC slabs are stronger and impervious and their choice is certainly a better and wiser decision. Down beams provision It has become almost universal to provide inverted beams in the RCC slabs instead of providing down beams. So much so that the architects don’t even find it necessary to take the house owner’s opinion on this aspect. Mere reason behind such universal provision of inverted beams that project above the RCC slab is that these beams are not visible from the rooms and get hidden in the flooring above. It has been seen that the labour deployed on house construction is not aware of the importance of dimensions of projected portion of inverted beams nor do they understand that these beams are to be concreted along with slab concrete to avoid a joint in slab portion of beams and projected portion of beams. Such construction method defeats the very purpose of provision of beams and leads to faulty construction. Often, the beam dimensions are not adhered to and beam projections are almost rounded off by the labour. In such a scenario, the right decision for a house owner would be to opt for down beams. Such beams are economical also in comparison to inverted beams. These down beams can be hidden in the false ceiling if some house builder doesn’t want them to be seen from the rooms below. However, down beams, even if visible from the rooms, don’t look odd and can be artistically treated by the architects by provision of designs on them or by creating a light and shade effect on the ceiling. No use of girders It has also become universal to use girders in slab shuttering instead of using steel pipes or wooden supports for the slab plates or planks. House owners are not aware of the disadvantages of use of such girders in slab shuttering and allow their use. In order to support these girders, the labour contractors leave big holes in freshly constructed brick walls. These holes are filled later on after the casting of RCC slab and after removal of girders. The brickwork done in these holes after the removal of girders remains weak and doesn’t develop proper joint with brickwork done earlier. As a result the brick work done is weak in the most crucial top-level brick courses of walls. The wise decision is to opt for pipe supports or wooden supports for the slab shuttering and not allow the labour contractor to use girders for shuttering support. In fact, the house owner should clear this point to the labour contractor at the time of hiring him. Tiles in face work Many materials are now available for the face work of the house. These include tiles, stones, wood, synthetic wood, composite materials, glass, paints and so on. The architect and the house builder always aspire to create a unique and most attractive front elevation of the house that makes the passers by to stop to look at it. While making a choice of the combination of materials, right decision would be to opt for sleek brick tiles in some portions of the elevation. The biggest advantage of these tiles is that these are maintenance free. Now, these tiles are available in many colours, thicknesses and widths and can be combined with plastered and painted surfaces or other materials to create a strikingly fine looking elevation. Bigger washrooms At the initial stages, when the house plan is under finalisation, right location and proportioning of the room sizes is often a challenging task for the architect whose expertise lies in meeting the house owner’s demands without compromising on the room sizes. Often, the area of washrooms becomes a casualty and washrooms keep shrinking while the area requirement of other rooms is fulfilled. Trends have changed now and bigger washrooms are not only a place of joy but have become a luxury factor. The right decision in such a case would be to opt for big-size washrooms and to look for adjusting the room sizes without encroaching upon the washroom area. Grills provision These days, large sized windows with fixed toughened glass glazing are provided in the houses and provision of mild steel grills in the windows is avoided. Architects advise against provision of grills in the windows as these dilute the beauty of large windows. Their argument is that there is no need of grills when toughened glass is provided. However, right decision is to opt for window grills even if toughened glass is provided in the windows. Grills lend a feeling of safety and security to the house owner, especially when he has to go lock the house for a longer duration. Moreover, a panic situation gets avoided in case the glass gets broken or crumbles due to some impact and it becomes impossible to get a new glass fitted immediately. Wallpaper provision Providing one of the four walls of each room with special effects adds glitz to the house and visitors are often impressed with the aesthetic sense of the house owner. House builders, too, feel elated over having made some special provision. The special effects can be created either by providing texture paints or by pasting wallpaper on the wall. Right decision is to opt for wallpaper. Countless designs, textures and surface finishes are available in wallpapers. The quality of wallpaper has also improved immensely. In texture paint, there is limited choice and often you find that the designs offered by paint companies have already been seen by you. However, in case a water or drainage pipe is passing through the wall on which special effects are to be provided, then one may opt for texture paint. —This column is published fortnightly
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market
pulse Even as the overall sentiment in the real estate sector has improved, buyers feel property prices across top 10 cities are likely to remain stable for the next six months, according to a recent survey.
The Housing Sentiment Index (HSI) assessed by IIM Bangalore and real estate portal Magicbricks home buyers across 10 cities — Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune —suggests that real estate prices are likely to remain stable over the next six months. The aggregate HSI measured across the cities dropped marginally by four per cent during July-September quarter to 114 compared to April-June period, indicating property prices would remain static. “The Indian real estate consumer is still in the wait-and -watch mode. While there is active interest in the market, evinced by the time spent by consumers on Magicbricks searching for houses, the consumer still expects prices to hold for at least six months and is willing to wait to buy,” Magicbricks Business Head Sudhir Pai said. According to the survey, sentiment in Ahmedabad soared by 30 per cent and can be attributed to the progressive policies and intelligent governance that led to mushrooming of various industries, the report said. “The fact that the current reform-focused Prime Minister Narendra Modi hails from Ahmedabad has assisted in the heightened positive atmosphere in the city,” Pai said. Pune was the only city beside Ahmedabad to register higher sentiments this quarter, while Hyderabad posted an HSI of 104, a drop of 12 per cent as compared to the previous quarter. Bangalore, however, registered a drop in sentiments. “Although all cities posted positive sentiments, consumers expect prices to remain stable or rise marginally. With the economy expected to perform better, effective policies in the housing sector will ensure that positive sentiments translate into actual purchase,” IIMB-Century Real Estate Research Initiative (CRERI) lead researcher Uma Sitaraman said. — PTI
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launch pad
Leading real estate developer DAMAC Properties has opened a 211 deluxe hotel suites tower in the Burj Area of Dubai.
‘Canal Views’ is the company’s second project in the popular shopping and tourism district, following the successful launch of DAMAC Maison – Dubai Mall Street at the end of 2013. The premium tower will be managed and serviced by it hospitality division, DAMAC Maison. “Canal Views offers a different ambience and style to DAMAC Maison – Dubai Mall Street, but with the same exemplary service standards our guests have come to expect from DAMAC Maison,” said Niall McLoughlin, Senior Vice President, DAMAC Properties. Canal Views has a variety of deluxe rooms of one-, two and three-bedroom suites to suit every need. Each unit comes complete with complimentary internet access, a fully-fitted kitchen, and cable TV. Operating under two hospitality brands, DAMAC Maison and NAIA by DAMAC, DAMAC Properties will offer bespoke services to residents in more than 11,000 serviced hotel apartments by the end of 2018. The company will be one of the largest Hotel Apartment operators and developers in the world. Second Phase RG Luxury Homes at Greater Noida West. The RG Group recently launched three new towers in its RG Luxury Homes project at Greater Noida West (Sector 16B),. The Group offers a total of 720 flats and an option to choose between 2BHK and 3 BHK in the 18-acre second phase of the project. flats will have modern conveniences and utilities like attached balcony with each room, various world class sports and recreational facilities, open air theatre, and a separate children's play area, etc. The flats are being offered at the cost of built-up area only. The BSP for this phase is
Rs 4000 per sq ft. with an inaugural discount of Rs 200 per sq. ft. The possession of first phase at RG Luxury Homes is scheduled for September 2015. Prime Street in Bhopal Bhopal-based Aakriti Group recently launched a plotted project, Prime Street, at Gram Salaiyya along Hoshangabad road, Bhopal. Giving details of the project Hemant Kumar, CMD, of the group said, “Major USP of the project is the proposed 200 ft. road coming from DB Mall & another 80 ft. road coming from Kolar. This location has high commercial viability. These plots will give one an opportunity to build their dream homes within the periphery of the integrated township with top of the line amenities setting up new standards for the masses”. This project offers options for residential and commercial spaces that cater to varied needs. — Based on information provided by the developers
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Realty firm Emaar MGF has tied up with payment gateway firm PayU India for providing an online payment facility to its customers. “Emaar MGF customers can now pay EMIs for their properties through PayUMoney,” the developer said in a statement recently.
PayUMoney would help customers to pay anytime and any amount with no restrictions of NEFT or RTGS, it added. PayU is one of the world’s largest consumer payment processors. PayUMoney is a payment solution developed by PayU India. Talking about the development Emaar MGF Land Ltd Chief Services Officer Ajay Nambiar said, “Considering the intense penetration of online services in the country, we realised it is the right time that the real estate industry integrates online connectivity to the plethora of its services.” “Incorporating the online payment services for our customers brings us at par with the Internet evolution and has eased a lot of our operational functions,” he added. Emaar MGF is a joint venture between MGF Developments Ltd and Dubai-based Emaar Properties. Delhi-based company started operations in India in mid-2005 and is engaged in residential, commercial, retail and hospitality projects across India. PayUMoney, developed by Gurgaon-based PayU India, serves more than 40,000 businesses
Safety award for DLF Real estate developer DLF has been conferred “Sword of Honour” by British Safety Council for 17 DLF office complexes in Gurgaon. The group has been conferred with this Safety Excellence Award for maintaining the highest standard in occupational health and safety. DLF has become the first and only real estate organization in the world (in office complex infrastructure development and operation) to earn this honour. The British Safety Council is a global body working for enhancing safety of individuals, space and lives at work. Their role is to help organisations achieve the highest Health and Safety standards set by law, to protect their staff and future of the business. This award was announced after DLF received a five star grading in the Five-Star Occupational Health and Safety Audit from British Safety Council in July this year. DLF will receive the award on November 28, 2014 in the award ceremony, to be held in the UK.
Appointment RICS, the global professional body for chartered qualifications and standards in real estate and construction, announced the appointment of Sachin Sandhir as Global Managing Director – Emerging Business. He will retain his current role as Managing Director, South Asia, but will be taking on additional responsibility for evaluating growth avenues and developing new emerging business opportunities across the globe in standards, qualifications and training. — Agencies and TNS
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Q. Kindly let me know the tax liability on long term capital gain on the sale of a residential property. I had purchased a house measuring 250 sq yd with covered area of 1900 sq ft in 1984-85, the cost of the plot was Rs. 10,000 and stamp duty was Rs. 1450, the construction cost was Rs. 100 per sq. ft. So the total cost of construction was Rs 1,90,000. I had sold a portion of 100 sq yd with construction area of 800 sq ft. in June 1998 for Rs. 90,000. The remaining portion i.e. 150 sq yd with covered area of 1100 sq ft was sold in Sept. 2014 for Rs. 20,00,000 only. Kindly let me know:
The amount of long term capital gain on this transaction made in September, 2014.
A. The cost of plot in respect of the portion of the house sold in June 1998 works out at Rs. 84,580 after taking into consideration the proportionate stamp duty charges. The balance cost for the portion which has been sold in September, 2014 would work out at Rs. 1,16,870 after taking into account the proportionate stamp duty charges of Rs. 870 (1450 – 580). The indexed cost thereof would work out at
Rs 9,57,399. Accordingly, the amount of capital gain would work out at Rs
10,42,601 (20,00,000 – 9,57,399). You would be liable to pay tax on such long term capital gain @20% plus education cess of 3% thereon. 
A.
The facts in the query are not complete for the purpose of computing the capital gains tax liability. It is essential to know the following for the purpose of computing such liability:
Wood, the most traditional frame material, serving generations over centuries came into short supply in the aftermath of World War II. In order to rehouse millions, painted softwood frames were quickly manufactured and installed throughout Europe, failing few years later. Aluminum, a framing alternative to wood, had become the first choice to replace, rotten softwood fenestration offering in addition a unique, new glazing method, double glazing!
Every frame material has its benefits; uPVC’s excellent price-performance ratio and its green credentials will sway retail customers and architects alike towards this modern material. The inherent price-performance ratio will be further amplified when India introduces in years to come, energy rating schemes covering complete fenestration elements.
One the oldest uPVC frames, originally installed in 1955 in Hamburg was replaced in 2009 and is now permanently displayed in a German museum. I was assisting the BPF (British Plastic Federation - London, UK) in gathering, genuine lifespan data which generated some interesting results and findings. 
Whether one has made the right and wise decision or not is the most common dilemma that one faces while constructing a house. The house owner has to weigh the pros and cons of each decison from three angles — his own requirements in the house; prevalent trends and the cost factor. Here are some of the crucial decisions that need to be taken:
Often, the masons suggest that reinforced brick roof slabs should be provided in the house. Their main argument is that such slabs don’t develop cracks that often appear in RCC slabs. They advocate that such slabs are cheaper also.