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Source: Moneycontrol.com

Just sold a home? Here's what to do next

Kishor Pate of Amit Enterprises Housing elaborates on steps to be taken once the sale proceedings of a house has taken place.

Kishor Pate
Amit Enterprises Housing

Selling one's home is never a very easy thing to do. Usually, the four walls one is putting on the market are the frame for many fond memories, and one needs to say goodbye to the neighbours and familiar sights that have often defined many years of residence.

But over and above the emotional upset of selling a home, not keeping a record of the actual sale transaction can lead to problems later on.
 
Maintain a file of all documents pertaining to the property sale. This will ensure that you are able to address all future queries by the buyer, the bank involved and the municipal or tax authorities.

Also read: Why Land Bill is giving sleepless nights to developers

You will especially need a seamless financial record while filing your tax returns for the year of sale.

The documents should include proof and receipts of payment for items that you had included in the sale price, including parking space, structural modifications or additions which enhanced the value of the property, society charges and property tax paid for that year. There should also be a clear record of home loan closure if you had bought the sold property by this route.

The sale of a property involves short term capital gains tax if it was sold before the three years have elapsed since the date of purchase. The tax authorities will factor in the profit you made on selling the property, consider it as regular income for that year and apply tax accordingly.

If you sold your property after three years have elapsed since its initial purchase, you will need to pay long term capital gains tax at the rate of 20 percent post indexation.

There are instruments such capital gain bonds available in which the profit coming from the sale of a property can be invested. These investment instruments come with a lock-in period of at least three years, and the maximum limit for investing in them is Rs. 50 lakh.

Discuss all financial movements resulting out of the sale of your property with a chartered accountant and take appropriate guidance.

It is very likely that you sold your home with the intention of buying a new one with the proceeds, so start your search for a new home if you have not already located one. The proceeds of the property sale will have to be verifiably shown to have gone into the purchase of a new home within three years from the date of sale.

Though three years is by no means a short period, it makes sense to fast-track your home search if you live in a city like Mumbai or Pune. Despite all 'informed' market predictions, the real estate markets in these cities have proved to be remarkably resilient and property prices are rising with every passing quarter.

While you should certainly not rush into buying a new home, it is wise to make a decision within a few months of selling your old one.

Whether you have moved into a newly-purchased home or a rental flat, do not neglect to update your new contact details with all banks, insurance agencies, investment firms, telephone companies and other such institutions that were corresponding with you on your old address. Also, do not rely on the new owner to keep forwarding correspondence to you indefinitely.

The author is the CMD of Amit Enterprises Housing.

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Mumbai
Capital Values Rate/Sq ft (INR)
Aajiwali
3000 - 5000
Ambernath
3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
Note: Price trend are based on asking rate and not necessarily on the transaction date
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