You can own as many properties as you want.
There are a few exemptions available for long term Capital Gains, if you:
- Buy or construct a new house: If you build a new house or buy one from the money you receive from selling a property, you are exempted from paying the tax on Capital Gains. However, the new purchase should be done either one year before or within two years of sale and the construction should be completed within three years from the date of transfer. The new property bought or constructed should not be sold within three years from the date of its purchase or date of completion of construction.
- Capital Gain Account Scheme- Through the Capital Gain Account Scheme (CGAS), you can save the received money in designated banks. CGAS helps you in buying time to look for suitable investments as it serves to inform the Income Tax department that you plan to invest the money received; but at a later date.
- Invest in Bonds- You can also invest in financial assets or bonds to save tax. Such bonds are issued by the Rural Electrification Corporation and the National Highway Authority of India and should be bought within six months of transferring the property. You can invest a maximum of Rs 50 lakhs through these bonds.
If the house is held for less than three years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term Capital Gain. There are no tax exemptions for short-term Capital Gains and one needs to pay it according to the applicable tax slab.
However, if the property is sold after holding it for more than three years, it is treated as a long-term capital asset and the gain arising from it is called the long-term Capital Gain. Such gains attract a flat exemption rate of 20%.
Yes. Generally, the stamp duty on the gift deed ranges from 5% to 12% in all states. In few states like Haryana, Rajasthan and Delhi, concession of 1 to 2 per cent is given to female transferors.
Stamp Duty is the tax paid for the legal recognition of property. It is paid by the home buyers. You can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges on a new property purchase or construction of a house. However, these benefits are available for only one self-occupied property.
TDS– 1% on immovable properties (except agricultural land) exceeding Rs 50 lakhs.
Stamp Duty – Depending upon state and municipal laws
Service Tax- It is a central tax paid for the services offered by the developer to you. From April 1, 2015 onwards, if the apartment is worth less than Rs 1 crore, or has a floor area less than 2000 sq ft, the service charge levied is 14% on car parking and preferential location charges (PLC) and 3.50% on the basic sale price. If the apartment is worth over Rs 1 crore, or has a floor area greater than 2000 sq ft, the service tax levied is 14% on car parking and preferential location charges (PLC) and 4.2% on the basic sale price of the flat.
The buyer needs to pay the following taxes:
- TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of property excluding agricultural land.
- Stamp duty
- Service Tax – Applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a `ready to move in’ property is purchased from the seller, service tax is not applicable.
- Value Added Tax (VAT) – If applicable in the concerned state.
The property could be converted from leasehold to freehold if the local laws allow it. For example, properties under DDA can be converted to freehold by executing a Conveyance Deed but the same is not allowed if the property is owned by the Noida Authority.
A buyer could ask you for the original Sale Deed, Title Deed, relevant tax receipts and Encumbrance Certificate.
Only the buyer pays the Stamp Duty.
Yes. But the procedure and forms may vary from state to state depending on the location of the property. Every state in India has formulated its own set of forms under the registration rules. These forms are to be filled up and filed at the time of the registration of Sale Deed/Transfer Deed.
Under the Income Tax Act and rules for a sale transaction, it is mandatory for the buyer and seller to provide their PAN card number and in the event of sale, either the seller and/or the buyer would need to fill up Form 60 of the Income Tax.
If the buyer or the seller is a Non-Resident Indian (NRI) not assessed for t axes in India, the person would not need to file Form 60 of the Income Tax.
Yes. You can get it done at the sub-registrar’s office of the concerned district.
The sale of a residential property is said to have been formalized if the seller has received the entire consideration amount, registration of the documents has been carried out and actual possession of the property has been granted to the buyer.
You can list the properties available for resale through an enquiry form, which is available on the homepage of our website. By registering with us as a broker, you would get associated with a multitude of buyers without paying any extra charges.
You would receive a call back from us within 10-15 minutes of placing your enquiry with us, provided you have posted your requirements between 9am and 10 pm. Otherwise, we would be reaching you the next day.