In India, the people are fond of buying real estate irrespective of income. It is considered as one of the best investment for the future and can make it as getting a good profit. If you buy or sell properties in cities you can make a good asset from that if you consider some simple but worth benefit tips before buying or selling a property or flats you can reduce tax outgo.
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Most of the people buying a home with the help of a home loan. The government of India has allowed an income tax deduction if the flat or property bought on loan. The borrower can claim a deduction of Rs. 1.5 Lakh under section 80 C.
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Couples can take joint loans to claim a tax deduction. It is also applicable to a parent and child
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There is no taxation if it is the only house and self-occupied. Otherwise, you will need to take a notional rent value and pay tax on it.
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If in the case of selling a property within three years of acquisition, the seller needs to pay Short Term Capital Gain Tax. If in the case of more than 3 years the seller has to pay Long-term capital gain tax. To overcome this the seller uses proceeds equivalent to long-term capital gains for buying a new house located in India within 1 year prior to the sale date or 2 years from the sale date. If the property is under construction the period permitted is 3 years.