Buying a house is a complex process, but selling too involves tons of detailing, documentation, evaluation and analysis and finally once you have sealed the deal, the process of filing your capital gains begins, filing duly all your documents pertaining to your house as at every step in future you may need documents to authenticate and prove the sales.
It is advisable, imperative and highly recommended that to keep and maintain all the documents and records of the property sold to ensure and safe guard your interest in the near future.
The documents may pertain to your bank loan on the property and the closure letter of the loan paid, the municipal taxes paid till the date of sale, the society taxes, the VAT, the service tax paid, the car parking space charges paid, the documents to prove with relevant permissions from the authorities if you have made structural changes to the property.
Normally people sell house to move to a better and a bigger house, hence your search for a new house must be initiated at appropriate time as searching a new house definitely is a long time consuming process, and to avail tax benefits of capital gains, you need to invest or buy a house in a specific time period, failing which you may have to pay heavy capital gains and other related taxes.
Suggested Read: Home Loan
It is wise to make a decision to purchase a new house within a short time. Once you have sold your old house or even initiate and plan a strategy where the funds realized from the sale of the old home are paid at the same time for the new home purchased and this will give you the chance to settle down in your new home instantly and you may avail all the benefits of taxation.
Investing in real estate is indeed fruitful but you do need to fulfill all the legal formalities before you make a calculated decision which you may not regret later.
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