General Elections 2014 - A Great Hope for Real Estate

As General Elections are the flavor of the season going in India, everybody has been speculating about Real Estate scenario post elections. This is the only time which will tell us whether real estate market will witness boom or bane or remain intact. Real Estate Professionals are unanimous on one prediction that things will start looking up for the sector only in the second half of 2014 when clarity on the new government will emerge and businesses start investing.

2013 was not a good phase for real estate, when all properties including residential, office and retail barring some cities such as Bangalore saw a steady decline in absorption. In 2014, situation might be changed as the general election of 2014 is anticipated to have positive bearing impact on real estate.

Scenarios after General Election: There can only be following 2 scenarios after general elections.

· Existing Government is re-elected

· New Government is elected

In both the scenarios there ought to be some changes in the existing market, both economic & financial. Of course the change would be more apparent changes in case the government is upturned. It is a known fact that Property market is highly affected by the health of economy & finance in the country.

Financial Impact: With a change in the politics, definitely there will be changes in the foreign investment policies of India and that will impact the way investments are made thereafter. Even if the Government remains intact, this market is in for changes. This is because; currently the policies are being formulated keeping in mind the vote-bank. Once the elections are over, policies will be reformulated and that will affect how investments are made in Real Estate.

Economic Impact: A change in politics will not have any direct or visible impact on the economic markets as it is controlled by an independent body, RBI. But yes, indirectly there will be a lot of effect here as economic policies have to be synchronized with financial markets. Any non-synchronization would lead to halted growth and inappropriate levels of inflation in the country.

Real estate will also get affected in this case also.

For those sitting on the barrier to purchase house or waiting to sell at a decent profit, the outcomes of this year’s general elections is expected to be a game changer. From the end-uses issue of view, it is probably the best time to purchase. One can aim on buying from resale market. As proposed earlier, there is powerful prospect that distress sales will increase and it presents end-users with an opportunity to purchase at lesser rates. However, buying in secondary market means, one has to pay huge money of property value in cash.

Reference URL: http://www.realthorizon.com/2013/11/effects-of-general-elections-2014-on.html

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Residential Real Estate & Income Tax Deductions

It is that time of the year when you are in hurry to review all your investments and insurance to ensure you have availed all possible income-tax deductions. If you have missed any then you still have more than a week to make your financial decisions and avail them. Talking about income-tax deductions, here is a list of deductions/exemptions that an investor can use for her investments in real-estate.

Under Section 80(C): A tax-payer gets to deduct any repayment of housing loan done to the home loan service provider up to Rs.1 Lac for a self-occupied property.

Under Section 24 (a) & 24 (b): A tax payer u/s 24(a) gets a standard deduction of 30% of the net annual value towards repairs, calculated on the basis of rent received and fair market value of the property. A tax payer, u/s 24(b), gets a deduction towards interest paid up to Rs.1.5 Lacs on home-loan taken for a self-occupied property per FY. If you have a second house and if it is a let-out property, you can deduct the full interest (i.e. No Limit) from your rental income. You also get to claim deduction towards municipal taxes paid during the relevant FY. Furthermore, interest payable for the pre-construction period, i.e. prior to the year when possession was taken is deductible in five equal annual instalments commencing from the financial year in which the house was acquired or constructed.

The loss, if any, from the house property after considering the aforesaid deductions can be offset against income in any other head of the current FY. The loss, if any, which cannot be set off against the current FY’s income can be carried forward to subsequent FYs subject to a maximum of eight FYs for set off against the income from house property of subsequent FYs.

Under Section 54: Any long term capital gains arising on the transfer of a residential house (including self-occupied house) to an individual or HUF, is exempt from tax if the assesse has within a period of one year before or two years after the date of such transfer purchased, or within a period of three years constructed, a residential house.

For availing this exemption, the assesse must not transfer the new house within a period of three years from the date of its purchase or construction, as the case may be. Otherwise the exemption allowed under this section shall be reduced from the cost of the new house, in computing the capital gains arising therefrom.

Under Section 54EC: Any long term capital gain arising on the transfer of a residential house is exempt if the entire amount of such capital gain is invested in long-term specified asset i.e. bonds issued by National Highway Authority of India (NHAI) or by the Rural Electrification Corporation Ltd. (REC) within a period of six months from the date of transfer. However the amount of investment in long-term bonds by the assesse, during any financial year, shall not exceed Rs.50 Lacs.

If only a part of the capital gain is invested in the specified bonds the amount of capital gain exempt shall be equal to the amount invested in them. Such bonds shall be redeemable after three years.

Under Section 54F: If you make long term capital gains by selling other capital assets like shares, government bonds, land or gold then such gains are exempt if the entire net consideration is used to buy a residential house within a period of one year before or two years after the date of transfer. If, however, only a part of net consideration is so utilised the amount of exemption is calculated using a formula based on capital gains, net consideration and cost of new residential house.

If a tax-payer transfers the newly acquired residential house within a period of three years of its purchase or construction, then the amount of capital gains arising from the transfer of the original asset that was not charged to tax, shall become taxable as long term capital gains for the year in which the new asset is transferred.

Exemption from Wealth Tax: Any property which is given out on rent for a minimum period of 300 days in the previous year is not considered as an asset as per wealth tax provisions. Such a property i.e. let out for 300 or more days, is excluded from net wealth and not subject to wealth tax as per the prescribed provisions of the wealth tax law. Also any house occupied by the assesse for the purpose of his business or profession is excluded from net wealth and not subject to wealth tax.

Reference URL: http://sites.ndtv.com/property/residential-real-estate-income-tax-deductions/

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Sikka Karnam Greens – 1/2/3/4 Apartments Sector 143B Noida Expressway

Sikka Karnam Greens is a 10 acre FNG facing project located at Sector 143B, Noida Expressway. The project offers 1, 2, 3 and 4BHK apartments. The landscape is beautiful with spacious houses. The project has various modern amenities like swimming pool, play area, and gymnasium etc.

Sikka Karnam Greens Noida would definitely be that place where you can find the ideal stability between family, leisure, health & pleasure. It is simply that place for which you have been dreaming of.

Sikka Karnam Greens Sector 143B is a unique destination in the heart of Noida, Presenting an unrivalled collection of living, health and lifestyle, the best the world and the region has to offer. Whether its health, greenery, or Lifestyle, you will find its most refined expression at this residential project.

Indulge in a unique living experience, the project offering the world’s most original, revered and influential living experience, many of which are exclusive. The whole family may enjoy the lifestyle weaving through the beautifully landscaped gardens on Noida Expressway & FNG.

This high level of social entertainment and interaction is a reflection of the creative choreography that has made Sikka Karnam Greens uniquely original among flats in Noida.

Location Advantage:

§  Stone throw distance away from upcoming Metro Station, facing Wi-Fi FNG Expressway and Taj Expressway

§  5 minutes’ drive from Mahamaya Flyover.

§  7 minutes from Sec- 37 Metro Station, City centre and Kalindikunj Flyover

§  10 minutes’ drive from DND Flyover & Sec-18 Atta Mkt.

§ 20 minutes’ drive from Akshardham temple/CWG village & upcoming proposed International Airport Gr. Noida.

§  Strict zoning of brands as per the floors

Type & Sizes:

Type —————————- Area

1 Bedrooms + 1Toilets 590 sqft

2 Bedrooms + 2 Toilets 840 sqft

2 Bedrooms + 2 Toilets 940 sqft

2 Bedrooms + 3 Toilets 1150 sqft

3 Bedrooms + 2 Toilets 1255 sq-ft

3 Bedrooms + 4 Toilets 1480 sqft

4 Bedrooms + 5 Toilets 1920 sqft

About Sikka

The Sikka was founded by Sh. Gurinder Singh Sikka in the year 1986. The Sikka Team has risen with time and expanded their boundaries with experience engulfing in it a lot of expertise, allocates, masterpiece, partners and sister concern and today our margins are literally endless. Sikka is not only engaged in real estate’s but also in Automobiles, Hospitality, Education, Outdoor Advertising Media Business and Filling Stations.

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