Khan Mar­ket costli­est re­tail spot in In­dia

Khan Mar­ket is the most ex­pen­sive re­tail space fol­lowed by Con­naught Place and DLF Gal­le­ria in NCR

HT Estates - - HTESTATES - HT Es­tates Co­re­spon­dent

the date of trans­fer of LTCA or within two years from the date of trans­fer of LTCA. the en­tire net sale con­sid­er­a­tion for the pur­pose of pur­chase/con­struc­tion of new house within the due date for fil­ing the tax re­turn, then the unutilised amount has to be de­posited in a sep­a­rate ac­count with any au­tho­rised bank under the Cap­i­tal Gains Ac­count Scheme (CGAS) to avail the de­duc­tion. This de­posit has to be made within the due date for fil­ing the re­turn of in­come of the year in which cap­i­tal gains have ac­crued. Funds can be with­drawn from CGAS ac­count only for pur­chase or con­struc­tion of house.

Fur­ther, no loan fa­cil­ity is al­lowed on the CGAS ac­count. If the tax payer is un­able to utilise the de­posited sum wholly or partly within the spec­i­fied two or three years pe­riod, then the de­duc­tion availed ear­lier would be charge­able to tax. It is also im­por­tant to note that in­ter­est earned on CGAS de­posit is tax­able.

Quan­tum of de­duc­tion avail­able

Net sale con­sid­er­a­tion (ie full value sale con­sid­er­a­tion mi­nus in­dexed cost of ac­qui­si­tion mi­nus ex­penses on trans­fer), if fully utilised for pur­chase/con­struc­tion of new as­set, en­tire cap­i­tal gains would be ex­empt. How­ever, if the same is partly used, only the pro­por­tion­ate cap­i­tal gains would be taxed, ie de­duc­tion would be avail­able in the same ra­tio that the amount rein­vested bears to the net sale con­sid­er­a­tion.

Cau­tion: Re­ver­sal of de­duc­tion

De­duc­tion claimed ear­lier would be re­voked and brought under tax net:

If an­other res­i­den­tial prop­erty is pur­chased within one year or con­structed within three years from the date of trans­fer of the LTCA, or Where the new house, in which the sale con­sid­er­a­tion is rein­vested, is trans­ferred within three years from the date of pur­chase/con­struc­tion.

So, sav­ing gains from the tax chop­pers is our own re­spon­si­bil­ity and to make pru­dent in­vest­ment in the prop­erty within spec­i­fied time­frame is one’s sense of duty to avoid big bucks blows. As in­vest­ing in house prop­erty is one of the best in­vest­ment op­tions, tax l aw is en­cour­ag­ing tax pay­ers to rein­vest their sale pro­ceeds in res­i­den­tial prop­erty and aid them build up their wealth wal­let. It’s time to avail the tax sops and make the ad­dress of your next house lucky.

Khan Mar­ket has so­lid­i­fied its global rank­ing by two places to the world’s 24th most ex­pen­sive re­tail lo­ca­tion glob­ally, ac­cord­ing to Cush­man & Wake­field an­nual re­port Main Streets Across the World. The top spot has been re­tained by New York’s Up­per 5th Av­enue fol­lowed by Hong Kong’s Cause­way Bay on sec­ond spot and Av­enue de Champs El­y­sess in Paris com­plet­ing the top three.

Khan mar­ket, which is the most ex­pen­sive re­tail lo­ca­tion in In­dia, wit­nessed no change in the rental val­ues. The mi­cro mar­ket has been on the most ex­pen­sive mar­ket in In­dia for more than five years as de­mand for re­tail space has re­mained steady on ac­count of its lo­ca­tion and cur­rent oc­cu­pier pro­file. Within the APAC re­gion, Khan Mar­ket was the 10th most ex­pen­sive re­tail lo­ca­tion.

Within the In­dian mar­kets, New Delhi and NCR ac­counted for the top four most ex­pen­sive lo­ca­tions with Con­naught Place be­ing sec­ond, DLF Gal­le­ria in Gur­gaon be­ing third and South Ex­ten­sion in New Delhi be­ing fourth most ex­pen­sive. All th­ese three mar­kets recorded a yearon-year growth due to a steady in­crease in re­tail ac­tiv­i­ties in th­ese lo­ca­tions.

En­try of new brands in the mar­ket and ex­pan­sion of ex­ist­ing brands have con­trib­uted to the growth in rental val­ues of th­ese lo­ca­tions giv­ing them a fil­lip. Th­ese are es­tab­lished mar­kets with long stand­ing in­ter­est from oc­cu­piers as well as con­sumers on ac­count of ten­ant mix, ac­ces­si­bil­ity and legacy.

Con­trary to the New Del­hiNCR story of growth, es­tab­lished Mum­bai re­tail lo­ca­tions of Link­ing Road and Co­laba Cause­way, did not see a very bright year. Kolkata’s Park Street and Ca­mac Street made to the top ten of the In­dian ranks de­spite record­ing no changes in rental val­ues on ac­count of ro­bust re­tailer in­ter­est in the mar­ket and a reg­u­lar in­flow of brands to the lo­ca­tion.



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