Residential property and tax implications

Purchase of property is one of the most important and long term decision which holds very important place in our lives.Apart from emotional attachment to our property there are several legal rules and regulations and tax aspects which should be kept in mind for future safety as well as for living comfortable lifestyle.

Here are some key points to be kept in mind:

• If property is purchased more than price of 50 lakhs ,then you need to deduct tax at the rate of 1 percent.

• The second thing to be considered is stamp duty valuation if it is less than your agreement value than the difference will be considered as your income.

• Thirdly, if you have been holding any property more than three years or you sell it out and need to buy new property then you can claim the tax exemption so it can have a lot of tax savings in all the respect.

• Fourthly,If you need to buy any residential property and you make borrowings for the same than you cam claim the interest as deduction upto 1.5 lacs or 1 lacs under section 80 but that would be applicable only if your property is not more than Rs. 40 lakhs.

• Lastly and very important is wealth tax , if own more than one property then wealth tax is applicable under rate of 1 percent but if you hold one property then you can claim tax exemption.

"Stay secure and happy"