Buying or selling a house are both a very big and important decision. Some people sell their house because they are getting a good price in the market, while others sell their old property to meet their needs or to buy a new one. However, whatever the reason, selling a property in a hurry without proper preparation and adequate information can be quite detrimental. Often, people make decisions impulsively, but later they have to face financial losses.

Market experts say that it is very important to understand and consider some crucial points before finalizing the deal, so that you get the right price and don't face any problems later on.

Keep these points in mind:

The government levies tax on the income earned from selling property (such as a house or plot). This is called 'Capital Gains Tax'. If you sell the property within 2 years of purchase, the profit is added to your income and taxed according to your tax bracket. If you sell after 2 years, a tax of 12.5% or as per the old rules applies. Under Section 54 of the Income Tax Act, if you sell a house and buy another one, you can claim tax exemption.

According to income tax rules, if the value of the house is more than Rs. 50 lakh, the buyer has to deduct 1% TDS (Tax Deducted at Source) while making the payment. As a seller, it is your responsibility to ensure that the buyer provides you with a 'TDS Certificate' (Form 16B) so that you can claim it in your ITR (Income Tax Return).

Keep important documents ready when selling a house, such as the title deed, which proves that you are the homeowner. Also, keep the 'No Dues Certificate' (NOC) for house tax, electricity bills, and society maintenance ready. If there is a home loan on the property, discuss the closure process with the bank.

Be sure to find out the circle rate of the property. The value of the sale deed cannot be less than the circle rate. To know the correct market value, find out about recent deals in the surrounding area. When buying a house, you have to pay not only the price of the property but also stamp duty and registration fees. Stamp duty is usually 5-7%, and the registration fee is 1%. Some states offer concessions for women.

Sometimes, there is a discrepancy between the area mentioned in the deed and the actual measurement of the land. To avoid this problem, get the land surveyed by a licensed surveyor and compare the measurements with GPS data or local survey records.

Buying a plot in an approved township is always safer. Unapproved constructions may be subject to demolition later. Therefore, always check for approval from the Town Planning Authority or the local development authority. If it's agricultural land, check for the NA (Non-Agricultural) conversion status.

Land disputes are very common in India. Therefore, before buying, it's crucial to check if there are any court cases or family disputes related to the property. You can check records at the local court and revenue department or request an encumbrance certificate. This document confirms that the property is free from any loans or legal disputes.

Check for basic amenities like water, electricity, and sewage connections. A lack of these facilities can cause significant problems later.

The location of the plot directly impacts its value and future appreciation. Therefore, always check the proximity to essential facilities like schools, hospitals, roads, and public transport.

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