Ahmedabad Real Estate is changing everyday. Whether you are a buyer, a seller or a broker, you can benefit from knowing the nitty gritty brick by brick. Real Estate Maximum is a unique magazine that brings you Offers from builders, News of the real estate market from experts, Tips on generating income from prudent investments, Valuable information about buying, selling or investing anytime in future.

1. VOL - 2 ISSUE : 3 March 2014
RealEstate
A WOMAN CAN BUILD A MAN’S
WORLD IN MORE WAYS THAN ONE!
Cover Story Page : 10
M a x i m u m

4. 4 March 14 • Real Estate Maximum
Real Estate Maximum
March is known for two main
events – Holi and financial
year ending.
Most people who are above tax
slab have to finish certain tasks
like investments and insurance
else they lose the tax benefits.
Remember you cannot build your wealth without
planning for your taxes. So take some time out and
plan for your future while you save your tax today.
India has been developing at a steady pace.
Here I am not talking about economic growth,
but development in the true sense. A sign
of development is bringing women in the
mainstream work. March 8th is Woman’s Day
and to commemorate the event, our cover story
is on a lady builder who has a debut scheme in
Prahladnagar. This shows that India is not only
building wealth, but is also fast becoming a
developed country.
There is a month left for National elections to start.
All eyes are on Gujarat as the most probable PM
candidate is from this state. The hotel rooms have
already started showing increase in occupancy.
I am sure that in case the predictions come true,
then Gujarat real estate is going to be really busy.
Happy maximising wealth!
Wish you a Happy Holi!
Manan Choksi
email : mgc@mgchoksi.com
website : www.mgchoksi.com
Honorary Editor : Manan Choksi
Published by : Madhuvan Space Management Pvt. Ltd.
Circulation Incharge : Tanmay Mehta
+91 79 71727100
Volume : 2
Issue : 2
Regd. Off. : G5, Block A,
Safal Profitaire, Corporate Road,
Prahladnagar, Ahmedabad -15
www.realestatemaximum.com
info@realestatemaximum.com
Disclaimer: This magazine is for private circulation only. The data published in this
magazine is based on the inputs provided by various sources. The publisher, printer and
the Editor do not guarantee the authenticity of correctness of the data published herein.
Printed and Published by MSMPL at Ahmedabad.
Designed By : Creative Grapes - +91 9913539147
GUJARAT: LAND OF OPPORTUNITIES......... 05
CLASSIFIEDS: BUY - SELL - RENT................... 06
A WOMAN CAN BUILD A MAN’S WORLD IN
MORE WAYS THAN ONE!................................... 08
RE/MAX UPDATES................................... 14
INSURE YOUR HOUSE AGAINST CALAMITIES:
TIPS & CAUTIONS................................................ 17
ANALYSIS OF VARIOUS TAX SAVING
INVESTMENTS...................................................... 21
Editor’s Note
I N D E X

5. 5March 14• Real Estate Maximum
Real Estate Maximum
GUJARAT: LAND OF OPPORTUNITIES
Gujarat has always been fulcrum of Trade
and Activity. From being a favoured port for
seafarers, the nucleus of Business and Industry, a
cradle for Culture and Religion, home of Mahatma
and abode of the Asiatic Lion, Gujarat has had it all.
Gujarat is the fastest growing state of the country. It
had a Growth rate of around 11% vis-à-vis country
growth of 7% in 2012. United Nations awarded
Gujarat the 2nd best state in Asia pacific category
for ‘Improving transparency, accountability and
responsiveness in public service’in the year 2010.
ujarat is known as Water Mouth of India because of
its strategic location. Gujarat due to its connectivity
with ports and skilled labour has attracted
many multi-national companies to setup their
manufacturing plants. Indian Industrial houses
like TATA, Adani and Godrej- have entered Gujarat
many years back. An increase in the investments in
sectors such as Textiles, Chemicals and Agro & Food
processing over the last 20 years has made Gujarat
emerge as a thriving industrial centre in the Country.
Gujarat is also known for Entrepreneur Skills in the
Country. Latest Technology and Infrastructure
has motivated Family run businesses to turn into
modernized corporate businesses.
Moreover, diverse labour force and skill set have
attracted Automobile players likeTATA Nano project,
Ford, Maruti and Peugeot in the western part of
Gujarat. Gujarat is considered to be upcoming Small
Car manufacturing Hub in theWorld.
Government Initiatives
• The government has started vibrant Gujarat
program to attract more foreign investment.
• The state government has executed Bus Rapid
Transport System (BRTS) project successfully for
the convenience of the local people.
• Large no. of SEZ’s are being set up with Investor
friendly Policies.
• No. of private ports are being set up which will
further boost business sentiment
• Sabarmati Riverfront Development to create
quality space for Commercial, Cultural and
recreational activities.
• World Class Educational Institutes
• High Quality Healthcare Infrastructure
• Use of CNG as vehicular fuel for
pollution mitigation
• Development of New Townships and Twin cities
around existing ones.
• Gujarat International Finance Tech-city (GIFT)
– One stop destination for Global Financial
Services and IT Industry
Ecological Balance in State
• In-spite of rapid industrialization the govt.
thrust to ecological balance remains high on
the priority list
• Underground Water table in the state has gone
up over the years
• More land has been covered under cultivation
• The green cover in the state has increased
• Norms for emitting harmful gases have become
stiffer
• Stringent laws put in place by govt. against
pollution
• Solar energy- a big alternate source of energy in
Gujarat
Gujarat has proved emphatically that whatever
it welcomes with open arms, it nurtures,
promotes and develops beyond expectations.
Anupam Tandon
HN Safal
anupam.tandon@hnsafal.com

6. 6 March 14 • Real Estate Maximum
CLASSIFIEDS: BUY - SELL - RENT
Apartment
Kasturi 3,
4 BHK
Sindhubhuvan road
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
on rent
Residential Appartments
Dev Aurum
Newly Constructed,
1934 sqft, 3 BHK
Prahlad nagar
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
Forsale
Flat for sale
Opp. Super Plaza, ground floor
185 sq.yrd, 3 BHK
Sandesh press road
Rs. 85 Lakhs
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
Forsale
Residential Appartments
Godrej Garden City
Newly Constructed,
1064 - 1729 sq ft
Off SG Road, B/h Nirma Uni
Sandeep Sabnani
9099031221
Remax Advantage
ssabnani@remax.in
Forsale
Luxurious Appartments
612, Appartments
Newly Constructed,
2150 builtup sqft, 4 BHK
Prahlad nagar
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
Forsale
Plot For sell
129 Weekend villa
Swimming Pool,
Club House
Rancharda
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
Forsale
Plot For Sale
Showroom on rent
3300 sqft, Rs. 120 per sqft
Shopper plaza C.G. Road
Navarangpura
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
on rent
Shop on rent
507 sq ft
Super plaza ground floor
Sandesh press road
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
on rent
Showroom on rent
2285 sqft,
C G Road
Navarangpura
Ankit J Patel
9825333907
RE/MAX Metro
apatel1@remax.in
On rent
Office on Rent
2618 sqft, Fully Furnished
C G Road
Navarangpura
Chintan J Parikh
7600010530
RE/MAX Metro
cjparikh@remax.in
On rent
Bunglow on rent
Safal Vihaan
5 BHK
Prahlad nagar
Jigar Pandya
9099115000
Corporate Services
jpandya@remax.in
On rent
Flat on rent
Kasturi niwas
3 BHK
Science city
Jigar Pandya
9099115000
Corporate Services
jpandya@remax.in
On rent
Bunglow on rent
Satyen crystal
B/h Rajpath club
Rent: 27000/-
Jigar Pandya
9099115000
Corporate Services
jpandya@remax.in
On rent
Flat on rent
Sun embark
4 BHK Sola road
Jigar Pandya
9099115000
Corporate Services
jpandya@remax.in
On rent
Office on rent/lease
7th floor 25000 sqft,
Corporate road
Prahladnagar
Jigar Pandya
9099115000
RE/MAX
Corporate Services
jpandya@remax.in
on rent

8. 8 March 14 • Real Estate Maximum
Being a lady in the world o f developers is not easy is a hackneyed thought. According to Ms. Deval Soparkar, an
enthusiastic mother, wife and a meticulous real estate developer, who fulfils all three roles with amazing grace, there
are many advantages to it. Read on about this lady who believes that honesty and transparency about the product is the key
to success. Interesting paradoxes are revealed in this talk between Ms. Deval Soparkar of Green Blossom fame of Meghmani
Group and Real Estate Maximum correspondent
Real Estate Maximum
A WOMAN CAN BUILD A MAN’S
WORLD IN MORE WAYS THAN ONE!

9. 9March 14• Real Estate Maximum
1. Today you are a builder of repute in
Ahmedabad. We would like you to tell
us what prompted you to take up real
estate as a career?
Taking up real estate as a career was an
impromptu decision. We had a plot at Prahlad
Nagar at a very strategic location and we
wanted to construct Meghmani corporate
house there. When I looked at the calculation
I thought that if we don’t construct another
building we will be losing on the FSI which
we will be getting on that plot. After internal
discussion, we decided to put up a high end
residential apartment building. The decision
was taken when real estate in Ahmedabad
was booming all time high, and we thought
that it would be a good line to diversify into.
Obviously, I was more interested in doing
Meghmani’s corporate house because that
was the need of an our at that time but when I
started looking at Panchratna corporation as a
whole project thought that it’s a very good line
and this is what really prompted me to take this
as a serious career option.
I believe that a woman can always do
houses better. So, I started getting myself
involved seriously and so far it has been a
very enriching experience.
2. Who has been your guiding force
or role model?
When we started, we had no guiding force or
role model as it was not a planned decision
but there are a couple of people or groups
whom I really respect in Ahmedabad. I like
what Goyal does in terms of taking the
scalability and introducing new concepts
in residential buildings. I like Synthesis and
Bakeri Group for its transparency and the
design aspect. I like Shaan zaveri’s Schemes
for its maintainance and elevation.
3. What is your educational background?
I did Bachelors from KS School of Business
Management, Ahmedabad, and MBA from
Long Island University, New York, USA. I
believe that actual experience is the real
education for me.
4. In what ways do you think education
helped you in becoming a successful
builder?
Education does bring a lot of character in you.
You can understand and analyse the thing,
giving good product at the right place and
maximization of profit be it chemicals, be it
even your real estate development. I personally
believe that had I been a civil engineer or
architect it would have been an advantage but
nevertheless I believe that my understanding
about delivering the product at the right price
is the biggest help that education has given me.
5. Please share with us excerpts of your
success story. How many homes or sq.ft.
constructions have you built?
Panchratna Corporation has done two
projects. One is a corporate house for
Meghnani Group and the second is Green
Blossom which is a high end 4 BHK luxurious
apartment. Total square feet construction area
is 185,000 square feet.
6. How do you make a house into a home
when you construct a building?
I pay special attention to the details, such as
what kind of railing gathers more dust, disuse
of a particular stone for buildings as women in
high heels cannot walk comfortably on such
floors or what colour of kitchen platform or
bathroom sink would make cleaning easier or
the particular stone which would be good for
the parking area, and so on. Men look at the
finances and women at the practical details.
Being a woman is an advantage as you can
visualize certain things better. For example,
I prefer a square kitchen so that when you
have somebody else helping you out, then
you have some space. Regarding privacy we
have observed that having all bedrooms on
one side is preferred by most as one additional
door makes all the bedrooms secure. Service
elevator has been introduced so that drivers,
plumbers and other helps can use them and
the residents and their visitors can use diffrent
elevators.
7. In life attitude is of utmost importance.
What is your view on this?
I completely agree, I feel attitude is beyond
gender too. If being a woman restricts my
thoughts then I wouldn’t be able to deal with
workers, government officials and contractors.
I believe a woman can construct and market
houses better than anyone else. So, we need
more women to bring grace in this industry.
Also attitude determines your altitude.
You have to be very determined otherwise
people will start taking you lightly.
8. Can you tell us about the challenges you
faced when you took up real estate as a
business?
Initially people around me were surprised
and more conscious. Incidents like labourers
drinking and coming to the site gets minimised
when a lady is there.
We tied up with an NGO and started a school
for the laboure’s kids when the construction
work was going on. So, kids from three to
twelve years were coming and learning there.
We also would get them items like toothbrush,
toothpaste, comb, undergarments and so on.
The school was almost our play area; like a
Real Estate Maximum

10. 10 March 14 • Real Estate Maximum
daycare. The teacher used to come from 9:00 to
11:30 in the morning. from 11:30 to 5:00 there
wasfreeplaywithbooks,toysandgames.Wetied
up with Savera who run schools at construction
sites.
We started off with about 11 kids and then went
to 45 and then on average we got 30 kids from all
sites; it was a good experience.The children were
very happy. I don’t have challenges probably as I
have selected a good team to work with.
9. There are few women in the world of
real estate. Please share with us the
challenges that you face owing to your
being a woman.
I have seen women in the marketing side,
architects and interior designers but I have not
seen a woman developer.
A developer has a much larger role to play from
getting architects and all the contractors on the
board, managing labourers, finances and also
the market. Being the first woman builder or
being among the very few you get lot of special
treatment wherever you go. You get special
attention. I am very happy that Industry has
accepted me and my company and in case of
problems, although we are competitors, others
have come forward and helped.
I have got help from Synthesis, Deep builders,
Ganesh housing and Vivan group. All these
people have come forward, stood by me at the
opening time when I was apprehensive to show
my work.
I think being a woman is actually a good thing.
You can convert a house into a home. So I don’t
think it’s a challenge.
10. Tell us something about your group.
Our Panchratna corporation is a real estate
venture in which I am also a partner. And this is
altogether a new line of business for us. And as I
said in the first project we need two things one
is a commercial space and one is the residential
that we created. Going forward we have land
banks available in strategic locations in and
around Ahmedabad. I don’t want to rush in for
my second project right after the first one for
the simple reason that for eighteen months, I
have the maintenance of Green Blossom on my
shoulder. I don’t want to rush into the other
scheme, pay attention there and ignore the
scheme that is already here. Since it’s the first
scheme you have no experience about how the
maintenance will go and that maintenance cycle
will go on for about 18 months. So I don’t want
to divert my attention and resources. But we will
be doing two more projects and we’ve already
identified the projects, which will be announced
in the next eight or nine months.
11. Real estate is going through turmoil now
with plenty of ups and downs. How do
you as a real estate builder deal with the
changing situations?
I always believe that if you have a right product
at the right price then you can sell. The location
of the project is very important. Second is that
we have never compromised on the quality
aspect of it. I always visualize that if I have to
stay myself what will I do for this? So which
kind of a marble I’ll put, which kind of amenities
I’ll use what kind of air conditioning I will use,
what kind of kitchen design and the modular
kitchen type I want? We always want the best
for ourselves and this helps us to put ourselves
in our customer’s shoes and think like them.I
think the market also appreciates a good
product at good price.
12. What are your hobbies and interests?
I like to travel, read, music and workout.
I tell all fitness freaks to buy here because the
gym will always be the best at Green Blossom
as I will be using it myself.
13. Holidays and vacations have become
very important to get away from the
daily stress. What kind of holidays do
you like to take? Also share with us
about your last holiday homes.
When you work seven days a week you need
more vacations or holidays. However small
a vacation, you need it because they are very
important. And that gives me a chance to be
a full time wife and mom. So, we try to fit in a
small trip to somewhere like Goa to refresh
ourselves. As I take such 8-9 short breaks I
prefer to go to places where there is a direct
flight like Dubai.
14. What is your advice to new beginners in
the field of real estate?
I am a beginner myself so I cannot give
advice to anyone but I believe that
one should be honest and transparent.
Ialwaysbelievewhenyouaresellingsomeone
a house it’s a huge emotional investment
Real Estate Maximum
Ms. Deval Soparkar at Green Blossom Site

11. 11March 14• Real Estate Maximum
Real Estate Maximum
people are making. I am very clear that
whatever I write in my specification I
will deliver. Whenever people say why
you’re not giving swimming pool or raise
such issues, I respond that I want to give
you the amenities that members can
maintain for a long time. If space is there
then I would rather give extra parking to
the members, because that is what the
need of the hour is.
15. Please share your views for owning
property for vacation home out of India
or different part of India.
I would never own anything in a vacation place
only for staying there during holidays. For Goa if
I am looking at a property which is accessible or
closer to beach and is a 2 bedroom unit, I would
be paying about 60 - 70 lakhs for that. And if
I invest that 60 - 70 lakhs @ interest at 10%,
would be 7 lakhs. For 7 lakhs I could probably
go and stay for a month in Goa in the best of
properties. Why should I take the headache of
maintaining a property?
I don’t want a vacation home anywhere in India.
If it is my house I have to take care of it even
during a holiday. Plus why stick to one place for
a vacation? If I want to go to Sri Lanka and not
to Goa, I can take the flight and reach in three to
four hours or so. Dubai just takes two and a half
hours so I can go there easily. So, why should I
limit myself to going to one place only?
A farmhouse in Ahmedabad for a weekend
getaway is alright with me as I can simply go
there when I need a change.
16. What do you feel is the future
of real estate in India?
Real estate has a fantastic future in India!
People would like to upgrade to a better thing
because the disposable income is going up.
Another shift that I have seen in real estate is
that people are now thinking that either your
office or your kid’s school should be near to
your house. So I have seen maximum people
shifting to Prahlad Nagar. In our scheme I
have 60% of the people who are from Prahlad
Nagar area. So either they all set their offices
nearby or their kid’s school. That’s why I believe
location is very important. In the last five, six
years developers have really done a good job in
constructing good buildings, good amenities,
and good maintenance; the foyer where you
enter is also well designed. People are also
conscious about it because now they are
staying in communities in four BHK luxurious
apartments whereas earlier they were in
bungalows. So they want open space, they
want garden, they want kids area, they want sit
out area, they want plantation area. It is a B2C
industry so if three customers come and tell me
that this is what I am missing at Green Blossom
probably in the next scheme, we would like
to incorporate that. A direct feedback from
customer is very helpful for us.
Fantastic buildings have come up in Prahlad
Nagar in the last few years; builders have
used the best of materials and provide good
maintenance even afterwards. So I think real
estate has a good future.
We have a long way to go
and we should see and learn
from buildings in Hong Kong,
Singapore and Gurgaon as
they are much better than
Ahmedabad. So if as long as there
is land, money in the bank and
population booming, real estate
has a good future.

14. 14 March 14 • Real Estate Maximum
ADVT
ARVIND INFRASTRUCTURE A BUDDING REAL ESTATE DEVELOPERS IN AHMEDABAD AND BANGLAORE
INVITES BROKER OWNERS OF RE/MAX MGM TO DISCUSS ITS VARIOUS UPCOMING PROJECTS AND TIE-
UP WITH RE/MAX MGM. MR. AASHIL PATEL REGIONAL OWNER AND MR. PRANAV PANDYA , FRANCHISE
DEVELOPMENT MANGER WITH ALL BROKER OWNERS OF AHMEDABAD ATTENDED THE SAME AND GOT THE
DETAILS OF PROJECTS BEING DEVELOPED BY ARVIND INFRASTRUCTURE.
RE/MAX GUJARAT
LISTING HIT STATISTICS
THE BELOW STATISTIC OF GUJARAT REGION
SPEAKS A VOLUME. THE MORE LISTING, THE
MORE HITS RESULTING IN MORE DEALS. SO LIST
MORE PROPERTIES ON ICONNECT AND REACH TO
MORE CUSTOMERS.
GLOBAL.REMAX.COM NOW IN GUJARATI, HINDI AND OTHER LOCAL LANGUAGES
RE/MAX UPDATES

15. 15March 14• Real Estate Maximum
ADVT
REGIONAL OWNERS AT RE/MAX
INDIA DURING 5TH ANNIVERSARY
CELEBRATION AND REGIONAL
OWNERS’REVIEW MEET WITH NEW
RE/MAX BRANDED
WINTER JACKET.
TEAM RE/MAX MGM ENJOYING 5TH YEAR
CELEBRATION OF RE/MAX INDIA WITH
PARUL CHAUDHARY ACCOMPANYING!
Do we need to pay service tax on under construction property? YES
How many current projects are there of HN safal group? 15
Iscon platinum project is located in which area? BOPAL
Green blossom apartment is having how many bedrooms? 4
Toyota Liva . Built on…. QDR
Name the company who have launched project 31IVY ? ORIENTAL
Nobody in the world sell more _______ then RE/MAX REALESTATE
ANSWERS OF LAST MONTH’S QUIZ COMPETITION
CONGRATULATIONS TO MR. VIVEK PARIKH
LUCKY WINNER WHO WON I-POD SHUFFLE -

16. Seminar on Business Opportunities in Real Estate Brokerage
Topics to be covered
•
•
•
Changing Trends in Real Estate
Business Opportunity with RE/MAX
How to do Business Nationally & Globally with RE/MAX
Date:
Venue:
th
12 April
Hotel Courtyard Marriot,
Ramdev Nagar Cross Road, Ahmedabad.
For registration call: 8238097782 / 8238150244
Log on: www.whatisremax.com

17. 17March 14• Real Estate Maximum
Real Estate Maximum
A home insurance policy is vital in the age we
are living in with sudden calamities happening
all around. Every day we hear reports of floods,
snowstorms, fire, earthquakes and cloud bursts.
Insurance will definitely help to protect the
structure of your house against these acts of
God.
But how does it help you?
In the case of a house owner:
In case of loss due to risks listed in the
document, the insurer will pay on the basis
of the house’s reconstruction cost. The re-
establishment value is calculated on the basis
of the built-up area and the construction cost,
generally fixed by the company.
The terms are therefore straight if the house is on
your own land.You just have to estimate the cost
of rebuilding ‘which should be the sum insured’
and the insurance company will pay accordingly
in case of loss.
In the case of an apartment owner:
Ifyouownanapartment,thefollowingquestions
will arise in your mind.
As the policy covers the reconstruction cost,
how is the sum insured calculated for a single
apartment in a building? Can I buy insurance
for such a property at an individual level or
do I have to approach the insurer along with
other apartment owners? How will the insurer
compensate, since there will be more than one
claimant in case of damage to the building?
Generally, housing societies get the structure
of the building insured. This means you have to
insure only the contents of the house such as
jewellery, electronics and furniture. If the society
hasn’t insured the building, you have to buy a
cover individually.
The insurance plan for an apartment has the
same underwriting principles and sets of
inclusions and exclusions as a policy for an
independent house, irrespective of the floor of
the apartment.
The insurance is done considering the built-
up area and the cost of reconstruction. If the
society’s insurance is inadequate, buy an
individual policy as a top-up cover.
The society not having any insurance or having
inadequate cover will in no way prejudice the
claims of an individual flat owner.
You cannot buy a cover for an individual
apartment in the course of its construction since
it is part of the entire building structure. While a
building is under construction, it should ideally
be covered under a project insurance policy
taken by the builder.
This would be in place until the construction is
completed as per the approved plan. After the
completion of the project, either individual flat
owners or all of them together, as a society, can
buy the insurance cover.
In case it is a private bungalow or an
independent house which the customer himself
or a builder is constructing, then the owner
can take a cover for the same and change it
to a regular home insurance cover after the
completion of construction.
An insurer can reject your claim if any
commercial activity is being carried out from
your house. But if the flat is covered under a
common policy taken by the society as a whole
and if the neighbor violates the policy terms it
does not lead to the rejection of your claim.
INSURE YOUR HOUSE AGAINST
CALAMITIES: TIPS & CAUTIONS- Pranav Pandya

18. 18 March 14 • Real Estate Maximum
Real Estate Maximum
Even if the insurance has been taken through
an association, each flat owner gets a separate
cover. An insurance contract is concluded based
on declaration by a proposer wherein occupancy
is also declared. So, if your declared occupancy
has not changed, for example from residence
to a shop, the policy will continue and the claim
will not be affected even if your neighbour has
breached the contract.
The only difference between buying a cover for
an independent house and an apartment relates
to common areas such as compound walls,
staircase, etc.
The whole apartment, including the
common area, can be insured only by
the residents’association on behalf of
allflatowners.Insuchacase,acopyof
the policy is given to each flat owner
with details of the sum insured for
individual flats. If an owner feels the
sum is insufficient, it can be increased
through the association only,
If a single apartment in a building
has been insured the cost of
reconstruction of the apartment is
payable to the apartment owner up
to the sum insured. However, if the
association takes up reconstruction,
the amount will be paid to the association only.
By and large, the covers and premium rates with
various insurers are the same. Therefore, buying
home insurance is not very difficult.
Few things you should keep in mind while
buying a Home insurance Policy:
1. Since sum insured is the basis of
compensation, it is important that it reflects
the correct property value. Most people
make the mistake of choosing the sum
insured equal to the market value of the
house. However, the company pays on a
reinstatement basis, which keeps fluctuating
with construction costs. On an average, one
can take a 10-15% increase in the cost of
construction (this differs from city to city)
every year. One can check construction
rates from the municipal corporation or
real estate websites. However, arriving at an
exact figure is difficult. A customer can also
opt for an escalation clause for increasing
the sum insured every year. “The escalation
can be up to 25% of the sum insured.
2. You can either go for an annual cover or
choose a multi-year policy. While the annual
policy will give you the option to revisit the
sum insured’s adequacy every year, a long-
term policy offers discounts which can be as
high as 50%, depending on the tenure.
3. Though most products look alike, the quality
of service may differ. So, it will be wise to
check the claim settlement record of the
insurer. A customer-friendly approach to
reporting and handling of claims will be of
immense help in the event of a loss.
4. While most people choose the best of
appliances for their home, there is a
perceptible apathy towards home insurance,
with very few understanding the need to
buy it. You have installed sophisticated
locks, electronic alarms, fire extinguishers,
carried out a thorough police verification
of the domestic help and done your best
to protect your dwelling. However, we all
know that despite the best security and fire
protection measures, the risk of thefts and
damagesduetofirecanneverbecompletely
eliminated. Also, the recurrent earthquakes
and tsunami in Japan are good reminders of
how vulnerable and exposed our houses are
to natural calamities.
5. Compared with the
measures taken by you to protect your
haven, a home insurance policy would
prove to be a much more concrete
step in covering such risks. Sadly,
apart from a steady demand from the
high networth individuals living in
expensive homes where the risks are
bigger, the factor that is driving the
sales of home insurance products is it
being bundled along with home loans.
The cost of securing your home and
its contents is as low as Rs20 per day
for a sum assured of Rs35 lakh. But this
policy will play a vital role to make good your
financial losses in case a disaster strikes. Yet,
unfortunately, home insurance policies are
the least priority for most and is hardly ever
a part of one’s financial planning.
The sum assured for a standard home insurance
policy which covers your house against
perils such as thefts, floods, fire, earthquakes,
malicious damage, etc., has two basic parts. The
first part covers the structure while the second
part is to insure its content. Keep in mind that
insurance policies cover your home for its

19. 19March 14• Real Estate Maximum
Real Estate Maximum
reconstruction cost and not for its market value.
The reinstatement value is calculated on the
basis of the built-up area and the construction
rate decided by your insurer. For example, if the
built-up area of your home is 1,500 sq. ft and the
construction rate determined by the insurer is Rs
1,500 per sq. ft, the sum insured for your home
structure will be Rs22,50,000.
The idea is to get a cover which will be
sufficient to rebuild your house in case any
harm comes to the structure.
Another important factor on which the re-
establishment value depends is where the
property is located. Premium rates are standard.
However, the actual sum assured may differ
from location to location due to difference in the
cost of construction. Those who do not own the
property need
not protect the
structure, but
must consider
the content’s
cover.
Therefore, if you
live in a seismic or
flood prone zone you might have to pay a higher
premium to get the property insured.
Moreover, if you have a basement floor, it might
be difficult for you to get an insurer to cover it.
Sometimes insurers are not willing to include
basements in the purview of the policy as the
degree of risk in insuring a basement is much
higher. Also, the maximum cover amount will
differ from one company to the other.
However, ‘depreciation’ is the word to look out
for in this section.“The cost of replacing the lost
item will be settled after deducting appropriate
depreciation on the basis of the age of the item.
There are sub-limits to the claim one can make
in various sections of the home contents cover
segment, though they differ from one insurer to
the other. Jewellery is one item which generally
has a sub-limit of approximately 10% of the total
asset cover.” So, if your total content cover is for
Rs 1,00,000, in all you can claim is Rs 10,000 for
loss of jewellery.
To ensure that you have enough for paying
rent in case of total loss, opt for an alternate
accommodation cover.
The exclusion list for this segment is pretty
extensive as well.
Important items like cash, stocks or bonds,
antique items, collections and other property
documents are never insured by any insurance
company. Also, do not expect to get the claim
payment in case the damage or loss is caused
by your domestic help. None of the companies
cover losses where the insured’s domestic staff
is involved, directly or indirectly. Moreover, if you
are working out of your home, the policy won’t
cover the section being used for commercial
purposes and you would need a merchant’s
policy to insure it.
Buying a basic home insurance policy ensures
that the building and its contents are protected.
However, if you read the policy wordings
carefully, you might feel a need to extend
the scope of coverage beyond the standard
protection it gives and fill up the gaps.
The insurance company has fixed the
construction rates according to the location
of your property. However, do not forget to
revise this value appropriately in case expensive
materials like marble or flooring, wooden work,
etc., have been used in your home. This will also
apply when you do some renovation after you
have bought the policy.
“Most of the insurers provide an optional cover
for an alternate accommodation cover for a
limited period, which is usually restricted to
30 days.” Some policies also offer riders like the
architect’s fee, cost of removing debris, public
liability, personal accident, terrorism attacks,
etc., by paying some additional premium. Select
these covers only if you need them.
The best way to compare and shop for a home
insurance cover is to ascertain the types and
amounts of coverage you want and then see
what different insurers have to offer. This will
help you do an
apple-to-apple
c o m p a r i s o n
of the price
quotes. Opting
for a long-term
policy of, say, 10
years not only
saves you from the hassle of renewing the policy
again and again but can get you a discount
on the premium, sometimes as high as 50%.
“Ideally, one can go for a long-tenure cover and
avail of discounts. Do ensure that you get your
sum insured increased if the valuation of your
property, based on construction rate, increases.
Else, it will become highly inappropriate to be at
a lower cover,”
“Also, home insurance policies cease to exist
when the premises are left unoccupied for more
than a specified time period (usually 30 to 60
days). One should choose a plan which offers
maximum protection,”he adds.
WHAT’S COVERED
Fire, burglary and theft
Riot, strike and malicious damage
Explosion and implosion
Earthquake, flood, lightning, landslides, etc.
Missile testing operation and aircraft damage
Bursting or overflowing water tanks, apparatus
and pipes, leakage from sprinklers
WHAT’S NOT COVERED
Loss or damage by the insured or his employee
Cash, cards, stock or other documents
Painting, works of art and antiques
Loss or damage to any illegally acquired property
Loss or damage occurring when the home remains
unoccupied, for a long period (usually 30 days)
Section of the house used for commercial purposes

20. Needs of property are more than one
But trustable name is only one.
Block A, G-5 Safal Proftaire,
Corporate Road, Prahladnagar,
Ahmedabad - 380 015
Call : 1800 121 7100
www.remax.in/guj_rcs
E : guj_rcs@remax.in

21. 21March 14• Real Estate Maximum
The financial year is coming to an end and
so must determine where to invest so as to
get optimum return and tax benefits. Even
though the primary objective is to save taxes
you also want that your investments earn
good returns. This article is an attempt to
analyze the various tax saving investments
available and the annual returns that it earns.
1. EPF
Employee provident fund (EPF) is the most
common tax saving investment. Most of the
employeescontribute to EPF. EPF investment
is eligible for deduction up to Rs.1 lakh.
Return on investment: 8.75% p.a.
Point to remember: You should note
down the yearly contribution to your EPF
account so that you know how much more
is to be invested for claiming the Rs.1 lakh
exemption under section 80C.
2. PPF
You can invest up to Rs.1 lakh in Public
provident fund (PPF) and the entire amount
can be claimed as deduction under section
80C. Even the interest received and the
maturity amount are totally exempt from
tax. Tenure of PPF investment is 15 years.
Return on investment: 8.7% p.a.
Point to remember: PPF interest is
calculated by 5th of every month. So, if you
want to receive interest for the entire month,
invest before that date.
3. NSC
Investment in National Savings Certificate
(NSC) is also tax deductible under
section 80C subject to the maximum
limit of Rs.1 lakh. The tenure of NSC is
- CA Rahil Mehta, Choksi Tax Services
Real Estate Maximum
ANALYSIS OF
VARIOUS TAX SAVING
INVESTMENTS

22. 22 March 14 • Real Estate Maximum
5 year or 10 year and you can invest in
either of the two.
Return on investment: 8.5% p.a.
for 5 year investment & 8.8% p.a. for
10 years investment.
Point to remember: The entire interest
on NSC is received on maturity, but
the yearly interest has to be declared
every year in your income tax returns
and tax has to be paid on it. Carefully
evaluate the lock-in period and the
taxabilitybefore opting for investment
in NSC
4. RGESS
RGESS (Rajiv Gandhi Equity Savings
Scheme) is the latest tax saving option.
It offers tax saving over and above
80C limit. This investment is available
only to first time equity investors
having income up to Rs.12 lakh p.a.
The maximum that can be investedis
Rs.50,000 and the tax deduction is up
to Rs.25,000.
Return on investment: 10-12% p.a.
Point to remember: RGESS is not so
easy to understand as the fixed deposit.
For first time investors, it is advisable
to invest in simpleschemes rather than
investing in theequity market.
5. NPS
New pension system is considered one
of the cheapest retirement products.
The tax benefits on NPS are – 1) Own
contribution under 80CCD (1) up to Rs.1
lakh p.a. and 2) Employer contribution
under 80CCD (2) with no upper limit.
Return on investment: 8-12% p.a.
Point to remember: Those who are
already investing in EPF should not
consider investing in NPS if it is just
for tax saving. Also note that it has an
equity investment limit of 50%.
6. Fixed deposits
Fixed deposits (FD’s) with investment
tenure of 5 years of more are eligible
for tax deduction under section 80C.
It is preferred my many as it is simple
to understand and is hassle free for
investment.
Return on investment: 8.5-9.5% p.a.
Point to remember: To avail tax benefit
on FD investmentthere is a lock-in
period of 5 years. So you must evaluate
your decision carefully before investing
as your interest rate remains fixed for
the entire tenure and you cannot take
the benefit of if interest rates increase
later on.
7. ELSS
Equity Linked Savings Scheme are also
deductible under the 80C limit. There
is a lock-in period of 3 years and you
cannot withdraw your money earlier.
These are diversified equity mutual
funds which also offer tax benefits.
Return on investment: 8-10% p.a.
Point to remember: It is better to
avoid investing in ELSS if you don’t have
knowledge about investment in mutual
funds. Investing in ELSS without proper
research can even erode your capital.
8. SCSS
Senior citizens savings scheme is also
a part of section 80C. It is available to
senior citizens i.e. citizens above 60 years.
This post office product has a maturity
period of 5 years which can be further
extended by 3 years after maturity.
Return on investment: 9% p.a.
Point to remember: You cannot
withdraw from SCSS before 5 years and
the only option is premature closure of
the account after 3 years.
9. Insurance
Life insurance and health insurance
offer tax benefits under section 80C
and section 80D respectively. The
premium amount of all life insurance
policies can be claimed under 80C while
premium paid for health insurance is to
be claimed under 80D.The maximum
deduction for Health Insurance
premiumis Rs.15,000 p.a. for citizen
below 60 years and Rs.20,000 for senior
citizen. Premium for health insurance of
your parents can be claimed over and
above this limit.
Return on investment: 5-6% p.a.
Point to remember:For claiming tax
benefit under insurance there is a
condition that the premium amount
should not exceed 10% of the sum
assured to be eligible for this deduction.
Avoid investing in life insurance policies
which mix insurance and investment
as the higher charges and other
restrictions will result in lower returns
on investment.
Conclusion
These various tax saving instruments
are available.But before choosing
amongst them, remember that these
are also long term investments and so
should optimize your tax saving and
return on investment.
Real Estate Maximum

23. FRANCHISE INQUIRIES SOLICITED
Ground Floor A/5, Safal Profitaire, Opp Prahladnagar Garden, Corporate Road, Prahladnagar,
Ahmedabad - 380 015, Gujarat, India | info@choksitax.com
Our Toll Free No. : 1800 – 123 – 2100
www.choksitax.com www.facebook.com/choksitax
Our Proficiency
Book Keeping Services Income Tax Returns TDS Returns
Service Tax Legal & Compliance Gujarat VAT
Tax Counseling Business Startup Services Taxation Services
Dynamic Accountants
for Competitive World