How to Keep Your Approach While Buying Property

6 things you must check before buying property

While buying property in India, buyers have to comply with a lot of conventions and rules the government has set. Were you or any of your known friends, family and acquaintances faced the same situation of dealing with a property purchase that was very complicated and time taking? Nodding in affirmative means you were not well informed how you can invest in property in Patna. Do not worry any further as residential property in Patna can be yours in the easiest manner when you know how to buy property in Patna. We have got that sorted. So, without any further ado, let’s get started;

Identify the Property Nature

Buyers can buy property in India using either hard cash or via a loan account. The first thing that they must look at is the nature of the property. By nature, it means the use the property can be subjected to. When you want to invest in Patna for example, substantiate between agricultural, residential and commercial real-estate and then make the investment. Agricultural properties will always have lesser cost compensation at the time of sale in comparison to a residential land.

Taxation Policies

Taxation policies are always complex and you need the right solution for the same. It is best to hire a chartered accountant (CA) or a consultant to help you with the tax planning for the property purchase and sale. If you hold a property in India TDS or Tax Deducted at Source must be imposed on the proceeds. For long term capital gain, the TDS is 20.6%, whereas, for short term gain, it is 30.9%. In case, if you fall in the lower tax slab, the excess amount paid in the form of TDS can be refunded to your account.

Home Loan Funding

Buyers can apply for loans as well to buy residential property in Patna. There is provision for that as per RBI guidelines but they can get the money either in the seller’s account or the person creating a separate individual account via which the loan will be applied. Buyers need to consult with the bank for that purpose.

Power of Attorney

Specific decisions are needed at every phase after purchasing the property. While buying property in Patna, when you give someone the POA or Power of Attorney, those individuals can take necessary actions for sales and maintenance proceeds. Such an approach gives them the power to safeguard the property and even look after all details that are needed from time to time.

Also See: Buy Property in Dehradun

Half Cash Half Account

Though it is not a good practice but to evade or skip taxes, you can break the proceeds from the sale-purchase and take the money in breakups. Once that has been done, some amount of taxes can be saved right away.

Conclusion

Buyers face challenges because of lack of knowledge while buying property and the information mentioned in this article can help them in a big way.

Also See: Buying a Property in Patna – Lifetime Achievement

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