By ResidenceBuy India | 0 comments | 1948 views |
Feb 06 2012
You pay capital
gains tax on sale which is determined by holding time of the property:
Long term capital gain tax: Property
held for more than 3 years are taxed at 20% on the profit made from sell after
indexation (released by tax authority every year). The seller can enjoy tax
exemption if (1) Capital gain is invested in new residential property and (2) Capital
gain is invested in specific capital gain bonds (NHAI Capital Gains Bonds
issued by National Highways Authority Of India and REC Capital Gain Bonds
issued by Rural Electrification Corporation Of India).
Short term capital gain tax: Capital
gains on property held for less than 3 years are added to the income for normal
taxation.
Enhance the home value:Given that you have decided to sell, and have a good pricing strategy based on extensive research and market trend, it is time to make your property attractive.
Setting the right price is the most important aspect of selling a house successfully. Note that a high price will drive the buyer away and a very low price will result in a financial loss for you.