Status statement
Charandeep Singh

While the region is slowly getting used to the concept of living in flats and housing societies because of sky rocketing prices and scarcity of space in most of the cities, the builders are moving a step further by bringing in the concept of classy penthouses for those who want to have a feeling of independent residence in a community setting. The upwardly mobile homebuyers want their homes to have that touch of exclusivity in the neighbourhood. Many have thus found a perfect answer in penthouses. "The concept of penthouses is a rage in the metros all across India and is now gaining ground in the North also. In metros like Mumbai and Bangalore, these are the ultimate in luxury living in gated communities and most of these are sold off on the very day of launch only and that too on a premium most of the times", observes Puneet Gera of mypropertystore.com. The trend is gaining ground in the periphery of tricity as some of the developers are now offering exclusive penthouses in their projects. These come with a terrace and open space which owners can use as per their choice. Privacy, space and the ambience of a bungalow are on offer along with the security and comfort of living in a gated community.

"Penthouses are status symbols. While all other homes are more or less similar in a complex, penthouses are different", says Rahul Mehta Executive Director, DLF.

"In metros there is a sort of class differentiation if you happen to live in penthouse. Usually in Gurgaon if an organisation takes an entire condominium on lease, the executives or the managers occupy the floors but the CEO or other bigwigs of the organisation get the penthouse. That's the difference", adds GPS Waraich of BN Habitat. "There is complete privacy. The terrace is all yours, the elevators are all yours and with people realising the advantages of living in complexes, penthouses have become a much sought after commodity in the real estate market. In Delhi and Gurgaon these sell like premium products, since their number is limited. At times it is a case of more demand and less supply", adds Geetamber Anand of ATS Infrastructure.

But in North India beyond Delhi the rise in demand is yet to be seen. With facilities like elevators, 24-hour power back-up becoming important ingredients of community living people are now generally becoming more aware of the concept. "In the region we have a fixation for huge spaces - large rooms, verandahs and courtyards. This is what one can have in a penthouse to some extent. You don't share the walls of your apartment with any one, plus you have an exclusive terrace. One can convert it into a mini splash pool, or utilise it as a terrace garden. People even use it as an open air bar at times", says Rahul Mehta. The carpet area of a penthouse is usually the same as that of a 250 sq. yd house.

"There are many advantages of living in a penthouse. Firstly, unlike an independent house there are no security concerns since you are living in 'gated community'. Then the view of surroundings is fantastic since you occupy the top floor. Thirdly, penthouses have excellent ventilation mechanisation and good provision of sunlight. Then the most important of all is the privacy that is unhindered", says Vaneet Aggarwal who owns a penthouse in Gurgaon.

Price Factor

"The price per sq ft of the penthouse is the same as for other apartments in a building but since the covered area is large so the ticket size tends to be big, as a result of which the penthouses are costlier than the other apartments in the same complex", observes Mehta. Certain builders do charge Rs 100-200 extra per sq ft as the Preferential Location Charges otherwise the costing remains the same. "Even with these PLC charges it makes sense to buy a penthouse since you get all the facilities of a bungalow that too at one third of the price. A 300 sq yd house in Chandigarh would cost you somewhere around Rs 3.75 crore, but a penthouse with same covered area comes for Rs 1.5 crore", adds Aggarwal. Ansal's API at the Orchid County is constructing penthouses of 4,144 sq ft and 4,187 sq ft area. "Our price is around Rs 2,650 per sq ft which comes out to be Rs 1.10 crore. Our penthouses are duplex situated on the eighth and ninth floors", says Gaurav Mehrota of Ansal API where 50 per cent of the stock has already been sold.

In North the concept of high rise living is not very popular as anything above six or seven floors still gives goose bumps to buyers so one is unlikely to find a 14th or 21st floor penthouse here. Maximum would be eighth or tenth floor at present. Most of the buyers are the ones who have had a taste of penthouse living earlier. "Most of the penthouses being sold in the tricity area are taken up by people from the defence background who have seen the class associated with it before or are taken up by NRIs.", observes Puneet. To spurt their sales further builders at times also give custom-made fittings as per the designs of the client in these. "Usually modifications are done only on the terrace area. Like one of my clients wanted a splash pool instead of a terrace garden, so we did it. At times people even have a barbecue on the terrace", adds Geetamber Anand. Moreover, selling penthouses makes sense to the builders also. "No investor invests in penthouses since it being a niche product the re-sale is hard. So most of the times it is taken up by the end user which is always a good bet for the developer", says GPS Waraich.

House-lifting technique gets popular in Rohtak
Bijendra Ahlawat

Rohtak has joined the league of those cities in the region where the technique of lifting a residential building has caught the fancy of residents. This is perhaps due to the fact that fast development in real estate has left a large number of buildings with low base level in comparison to the rising road level in all residential and commercial areas in the past few decades. More than 48 houses have been lifted with jack technique in the past few years.

“Jack technique has found favour with the residents who have opted for such a lift because it is much cheaper than dismantling and constructing the building afresh,” claims Sushil Sisodia, who has successfully completed several such projects in the city and some other districts of the state.

It not only saves a lot of money of the owner of the building, but also saves the valuable time and effort as it is not possible to lift the base of an old building to the desired level and this could result in various problems.

According to information, lifting could cost between Rs 1.30 lakh and Rs 2.5 lakh depending upon the area and the size of the building, besides the level up to which it is required to be lifted. While the process of lifting a structure could take a period of five to 10 weeks, the other part was the work involving the reconstruction of the floor and repair work of the wall.

“The total cost of lifting my house and getting it renovated could be around Rs 5 lakh to Rs 6 lakh, but if I had opted for reconstruction, it could have been around Rs 20 lakh to Rs 25 lakh in view of the rising cost of construction material and labour charges,” claims a resident of Prem Nagar here.

The building has been lifted by about 4ft, which, he said, was adequate to save the family from the fury of rain water. The house was under 2ft to 3ft water in August last year. Prem Nagar is among those residential colonies in the town which have been located in the low-lying areas and with faulty drainage and choked sewerage network, hundreds of complaints of water entering the houses were reported each year, claimed the sources in the local Municipal Corporation. There were reports of over 40 cases of lifting of houses in the city in the past three to five years, it is revealed.

“Lifting a home is a slow and somewhat challenging proposition, say the experts, adding that it was qualification versus the cost of having a professional lift your home.

Lifting an entire home from its foundation requires several hydraulic house jacks and several steel I-beams that span the length of the home to be raised. Multiple people are required to raise a house and keep it level at all times. “We have effective technology and sufficient manpower and accessories to lift and shift the complex and this technology provides economic solution against problems of uncontrolled urbanisation,” says Sisodia.

Today, residents are facing various problems like entering of sewage water during rains due to the lowering of levels of complexes and in comparison of adjacent roads and buildings. Rain water directly enters into their houses and shops and destroys their property, it is claimed. “Rebuilding involves a huge amount of money, time and materials and this is not possible for everyone,” said Rajvir, who is associated with the contract work of construction here.

“Moreover, people have emotional attachment with their buildings and lifting is perhaps the best and the cheapest alternative,” he added.

Tax tips
S. C. Vasudeva
The writer can be contacted at sc@scvasudeva.com
Owner can claim rebate

Q. My wife has a house which was constructed from her own sources in 1998. There is a proposal to construct an additional floor for which we have already obtained an approval from the municipal authorities. I have the necessary funds for the purpose of constructing the said floor. I am employed in a bank and can also obtain loan from the bank against the construction. Will I be entitled to claim rebate on interest in respect of such loan against my income?

— Rohit

A. The Act contains provision for allowance of:

(a) deduction of interest paid in respect of the amount borrowed fo the construction/acquisition of a house; and

(b) deduction in respect of amount paid towards the repayment of loan borrowed for construction/acquisition of a house within the overall limit of Rs 1,00,000 specified in Section 80C of the Act.

These deductions are, however, allowed to an owner of the house. For the purposes of getting such deduction you will have to get the land leased in your favour or buy the property from your wife.

HRA ISSUES

Q. I am an employee of a Haryana state corporation. My gross salary for the financial year 2011-12 is Rs 3,59,830, including Rs 36,017 HRA. My wife is also a Haryana Government employee and she has built a house by taking a home loan from the bank. I am paying Rs 4,100 per month as house rent to my wife and she is taking the income from house property in her gross income. I submitted the Income-Tax statement to my DDO by taking the benefit of house rent allowance of Rs 36,017 but the DDO is not allowing the benefit of HRA as the same is being paid to my wife. Kindly advise whether I can avail the benefit of HRA being paid to my wife or not.

— A.K. Singh

A. In accordance with the provisions of Section 10(13A) of the Income-Tax Act, 1961 (the Act) an exemption is not allowable in case the residential accommodation occupied by the assessee is owned by him or the assessee has not actually incurred expenditure on payment of rent in respect of the residential accommodation occupied by him. In your case one of the conditions is complied with as you do not own the house. You have also stated that you are paying rent to your wife. The problem in your case would be to satisfy the tax authorities that the house has been let out by wife to a husband and the payment of rent is being actually made to her by you. The DDO will have to be, therefore convinced that legally you are not the owner of the house and that the house has been let out to you by your wife and the rent has actually been paid to her by you. The following clarification has been issued by the Board for deduction of tax from salaries:

“Under Section 10(13A) of the Income-Tax Act, 1961, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income Tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to rule 2A of the Income-Tax Rules, 1962, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be:

* The actual amount of such allowance received by an employer in respect of the relevant period; or

* The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or

* Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50 per cent of the salary due to the employee for the relevant period; or

* Where such accommodation is situated in any other place, 40 per cent of the salary due to the employee for the relevant period, whichever is the least.

For this purpose, “Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites. It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.”

In case you meet the conditions specified in the aforesaid circular (which in my opinion would be difficult), the DDO should allow the exemption in respect of HRA which will be computed in the manner laid down in the aforesaid circular.

Share in grandfather's property

Q. I am an unmarried woman living along with my four married brothers. The house in which we are staying was the self-acquired property of my grandfather. My father did not have any residential property in his name and he expired in 2002. My grandfather had willed this house in name of my all four brothers only. I need to know that according to recent amendments in the Hindu Succession Act, can I claim for my share in this house or not? I have sought opinion from some legal consultants and I got to know from them that I cannot claim share from this property as it is my grandfather's property and not my father's. Does this Act apply only on ancestral property and not on self-acquired property? Am I not entitled to live in this house even? Even if law does not debar me from living in this house until it is sold, can my brothers claim any kind of charges from me in the form of sharing electricity and water bills?

My brothers have not been successful in getting this house transferred in their names as they have been told that there is no registry of the house in the name of my grandfather and also that they would require some affidavits of no objection from me, my elder sister and children of my paternal aunts (father's sisters). Do they really need these affidavits?

— Neena

A. You have indicated in the query that your grandfather had made a Will in respect of his self acquired property which is in the nature of a residential house in favour of his four grandsons. The provisions of the Hindu Succession Act, 1956 would come into force if a Hindu male had not made a Will and had died intestate. In case there is in existence a validly executed Will by your grandfather, the residential property would be inherited by your four brothers.

The requirement of the consent of various relations mentioned in the query for the mutation of property in the name of four brothers seems to have arisen on account of non-availability of the sale deed in favour of your grandfather and possibly due to non-availability of a probate in favour of your four brothers. As to your right to live in the said house and payment of electricity and water charges to your brothers, you should consult a legal advisor on the issue.

Son's right

Q. I have some inherited agriculture land. One residential house was purchased by me from my savings. I have a son and two daughters. After me, I want that both of my properties should go to my son. I will compensate my daughters in some other way. Is it sufficient to make just a Will in my son's name or any other legal formalities have to be completed?

— Dev Prakash

A. You have the right to make a Will in respect of residential house acquired with your personal savings. The facts in the query do not clearly indicate the nature of inherited agricultural land. If the said agricultural land is joint family property, you would be able to make a Will in respect of your share in such property. This is in accordance with the provisions of the Hindu Succession Act 1956. According to the amendments carried out recently in the said Act, the daughters are to be taken as co-parceners in a joint family property and they have an equal share in such a property. It may, therefore, not be possible for you to make a Will in favour of your son in respect of the entire joint family property. However, in case such inherited agricultural land is not a joint family property, you can make a Will in favour of your son.

Loan from kin

Q I plan to purchase property and have a few queries and seek your advice on the same:

a) I want to take loan from relatives to purchase property. What process should I follow? And would this count for my Home Loan interest subsidy?

b) Can such a loan be taken for property which I purchase on General Power of Attorney {as Administration has currently stopped transfer of property in our city}?

c) The seller wants a portion of premium to be paid in cash. As my source of money would be clean, is there any implication for the buyer in such a case?

— Radhey Shyam

A. Your queries are replied hereunder:

(i) A loan from a near relative should be taken by an account payee cheque. A letter confirming the grant of loan indicating the Permanent Account Number of the person from whom loan has been taken should be obtained. If the loan is interest bearing, the letter should specify the rate of interest and terms of interest payment. The interest paid/payable on such a loan would be allowable as a deduction against the income from house property provided evidence in this regard is available and if so required, can be provided to the tax department.

(ii) The interest on loan taken for purchasing a property on Power of Attorney basis should be admissible as deduction under Section 24 of the Income-tax Act 1961 (the Act) against the income from house property provided the possession of the property has been taken by paying part consideration towards the purchase of the property.

(iii) It would be advisable to make the entire payment by an account payee cheque for the purchase of the property. Even if the payment has to be made in cash by you, it should be recorded in the documents executed for the purchase of the property so as to form part of the total consideration payable for the purchase of the property.

Ground Realty
RIGHT WAY TO POLISH!
Jagvir Goyal

Woodwork is the most time-consuming activity in the construction of a house with painting and polishing taking a lot of extra time as it is a slow-progressing work. But now, with the availability of a variety of readymade polishes in the market, not only can the activity-time be cut short but the desired results can also be achieved.

Paints vs Polish

The house builder has the choice of painting or polishing the woodwork in his house. Between painting and polishing, the latter is really a slow and a long drawn activity. Yet polished woodwork looks much attractive and stylish than the painted one and is generally preferred. Unless there are cost compulsions, choice should always be for polished woodwork.

Prepared polish

Earlier, the polish material used to be prepared at site. For it, pure Shellac used to be kept dissolved in methylated spirit in ratio of 1 kg to 7 litres for days together. The polish work is really time consuming, labour intensive and cumbersome. Muslin cloth was used to apply it. The more it was rubbed, more shine was achieved. But now the scene has undergone a change.

Types

Three types of polishes are available in the market. These are called French polish, melamine polish and polyurethane polish. Polyurethane polish is popularly called PU polish also. French polish is the cheapest and PU polish is the costliest. As the cost speaks, French polish doesn’t last long and loses shine quickly. Melamine and PU polish survive for many years if done in the right manner. These resist stains and scratches also while French polish fails on this front.

External vs Internal

The manufacturers produce different grades of polish for exteriors and interiors. All outer doors and all windows should be polished with exterior grade polish. Internal doors and other woodwork such as cupboards, crockery cabinets etc can be finished with interior grade polish. Exterior grade polish stands the weathering effect and the doors don’t fade or lose shine for a long time. Exterior grade polish is costlier than interior grade polish by about Rs 60 per litre.

Three components

Whenever the polish work is to be carried out, we need three things: Sealers, Thinners and Polish. The thinners are used to dilute the sealers and polish. The sealers are applied initially followed by polish coats. Normally, two coats of sealer are applied followed by two coats of polish for a satisfactory job.

Dilution

Dilution of the sealers and polish should be done with thinners produced by the same manufacturer whose sealers and polish are being used. The quantity of thinner should be between 20 to 30 per cent of the sealer or polish by volume. Different types of thinners are used for brush and spray work. So always tell the supplier whether you want to brush the woodwork or spray the polish on it. Whenever the thinner is added, the solution should be left to mature for about half an hour before its use on the surface.

Sanding of woodwork

It is very important to sand the wooden surfaces before the application of sealers and polish on them. Generally, the sanding done is an eyewash and results in unsatisfactory finish of the polishing work. For sanding of wooden surfaces, sand papers of 180, 320 and 400 number should be used. Before application of first coat of sealer, sanding should be done with 180 number sand paper. After first coat of sealer, 320 number paper should be used. After second coat of sealer, 400 number paper should be used. Care should be taken that the sanding is done along the grains of the wood and not across them.

Application

Sealers: Sealers can be applied on wooden surface either by brushing or by spraying. Sprayed surfaces dry fast. However, expertise is required for even spray of sealer or polish on the surfaces. A drying time of at least 10 hours should be allowed in case of application by brush and six hours in case spraying method is adopted. The thinner to be used for dilution is different for brushing and spraying of sealers. During spraying work, it is essential that right air pressure is maintained in the spray machine for proper sticking of sealer or polish to the surface. The pressure required is mentioned on the machine and also guided by the manufacturer. Normally, the air pressure is about 2.5 kg per sq. cm.

POLISH: Like application of sealers, polish can also be done either by brushing or by spraying. After first coat of polish, 400 number sand paper should be again applied on the surfaces for their smooth sanding. Care should be taken that after every sanding, the surface is fully wiped clean of all loose dust and particles before application of sealers or polish.

Precautions

Care should be taken that the edges of door and window shutters are not left unpolished. Generally, the top and side edges are polished but the bottom edge is left unpolished due to lack of space. Bottom edges of such shutters can, therefore, be polished before hanging. The glass panes should be protected from any polish or sealer stains by fixing paper on them or by using masking tape.

Shades

In case a particular shade of polish is desired, then wood stains should be used. Wood stains are transparent materials produced by polish manufacturers. These can either be mixed with the polish or applied separately before application of polish. In case applied separately, these should be allowed to dry for a minimum period of half an hour. Almost any polish shade can be achieved by use of wood stains.

(This column appears fortnightly) 

GUEST COLUMN
The vital code
Getamber Anand

Real Estate has been one of the key growth drivers in India. From being the largest employment provider to unskilled labour, the sector holds the key to the problems of housing shortage and urbanisation. From being a sector that had been marked by fragmentation, disorganisation and poor governance, Indian real estate has transformed into an organised industry with global standards and best practices. Real estate players in India today are emerging as professional, customer-focused, reform oriented and committed to quality construction.

CREDAI, the apex body of organised real estate developers, is playing a key role in driving growth of the industry and enforcing governance through the code of conduct that has enhanced the transparency of the real estate sector in India. In a recent development it has been made mandatory for all CREDAI members to mention carpet area in their brochures and sale agreement. This measure has been initiated to ensure that all CREDAI members across India individually sign the Code of Conduct, the major highlight of which is mentioning the actual usage area to buyers (Carpet area), compensation in case of project delay and honouring of the agreement between the two parties.

By signing this code of conduct developers will commit to the sale agreement they sign with buyers, specify the carpet area of dwelling and also provide detailed break-up of the room sizes, specify when they will deliver the project, spell out the penalty for the developer for delays as well as for the customer if he defaults on payments.

It has been observed that customers are generally wary about the issue of carpet area and super-built area. The main cause of concern has been that most developers do not mention the carpet area in their brochures and other documents and there are, at times, a huge difference of 35-40 per cent between the super built-up area and the carpet area in projects. The homebuyers have to pay not only for the area within the four walls of the apartment but for the staircase or lobby area also. Lack of transparency and consistency in computation of the actual cost causes immense heartburn amongst the customers.

Enforcement of this code of conduct I feel will go a long way in starting a relationship of trust and mutual faith between the developers' and their customers'. Clarity in communication will help dispel doubt and set the expectations of the customers' right. The developer on the other hand will be bound to deliver what has been promised to the customer.

I feel that customers hold the key to the fast evolving real estate sector, and we can progress as an industry only when our buyers are confident that developers are as good as their word. I am certain that developers across India will come forward and embrace this code of conduct, as this will go a long way in enhancing the transparency of the sector, and thus give impetus to growth by attracting customers' and investors' to the sector.

The writer is Vice-President, CREDAI & MD, ATS Group

launch PAD
Marine Plaza

Ashiana Housing recently announced the launch of an integrated commercial retail complex "Marine Plaza" in Jamshedpur. The project will ensure world-class shopping, leisure and entertainment, all under one roof. A one stop shop solution with all well known brands, this complex will be a debut venture of Ashiana Housing in retail segment in Jamshedpur.

Spread over 80,000 sq ft, this ground and first floor complex will house 81 outlets and will offer different premium brands, including anchor tenants.

Plots in Golf Links, Mohali

The project is a truly international self-sufficient township spread over 38 acres aggregating to saleable area of 1.7 mn.sq.ft. It is located in Sector-116 on Kharar-Landran road well connected to Airport road and close to proposed Mohali Golf Course as well as neighboring 'Grid Sectors' of Mohali.

The residential plots have been launched in the range of Rs. 21,900 per sq.yd. to Rs 24,900 per sq.yd. depending on the sizes of plots ranging from 165 sq.yd. to 800 sq.yd. while the commercial plots have been launched at Rs. 57,250 sq.yd. with an average plot size of 161 sq.yd.

Golf Links II encompasses all of life's needs with elite Club House, a school and a hospital.