1. What are the taxes you have to pay while purchasing property?
If you are buying a new property, you have to pay Service Tax, VAT and Stamp Duty on the total amount of purchase. If you buy re-sale property, then you do not have to pay any of these taxes.
2. When is the transaction of sale considered complete?
The transaction of sale is considered complete when either the possession is given or Conveyance Deed is registered.
3. When are capital gains applicable and how can capital gain tax be saved / reduces ?
Capital gain is applicable when:
The sold property has been withheld by a person for a period of more than three years from the date of purchase / possession.
The sale proceeds are invested in a residential property which is bought one year before the sale of property or two years after the sale of first property.
The new property is bought after the sale of the first propety.
Capital Gains Tax can also be saved by investing the sale proceeds in Capital Gain Bonds.
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