A simple conversion of Bigha to acre is nothing compared to a lot many things you might have known but if you don’t know the conversion, it tells your need to take a beginner’s course in real estate.
Different states have different conventions in converting Bigha to acrefor the land measurements. It varies from one state to another. To have a better understanding of them one has to look into the terminologies used in the deed or other documents. Accordingly, the value of the land can be calculated.
There are hectares, acres, square metres, square yards and square feet to be used as units of measurement. These are applicable across India.
Acre to Bigha or bigha to acreconversion is one bigha is equal to = 0.2581 Acres. 1 Bigha is Equal to 27000 square feet.
5.87 bigha is equal to 1 acre.
It may be you’ve bought a property to stay in there and enjoy yourself as an owner and in this case, your strategies will be different. If, on the other hand, you’re going to enjoy rental income from the property you’ve invested in, well, it’s a great idea. You’ve singular focus of getting good ROI and more times than not you’ll be succeeding in the venture provided you’ve given some thought over to the locality, the hinterland, market potential and such other things. If you’ve invested in a fancy apartment or a plush bungalow, that’s your style and fancy. You’ll enjoy a life that borders on opulence, and at least that’s what it would appear to the outsiders. You’ve to pay up a lot in that case, but you don’t mind if you have the fund either in your bank or the bank that’s ready to lend you and you’re solvent enough to meet with the EMI expectation every month. Immediate rental income is everybody’s dream, and if someone says he doesn’t want money, it’s not believable. If the project is new, you should be doubly sure of the builder because the project may go haywire in the middle and your investment in it as a prospective buyer is stuck. The quality of the building, timely delivery, and payment terms and so on will be important factors to ponder on.
one should do a background check on the developer and assess the ground whether one will be safe to invest in the property. If it’s possible, one can contact local agents or broker of repute to get the low-down on the project and the builder.
You can own as many properties as you want. It all depends on the availability of suitable property and finance. But there is no restriction as such. You may gain an advantage on capital gains tax. There are a few exemptions that you may avail yourself of. If you buy a house or build a new house from the sales proceeds of a property that you have sold off, you won’t be paying any property tax. The tax is exempted as such. The purchase should be made within two years of the sale of property or construction of the new house. The new property remains in your possession for at least three years and you can sell it only after 3 years of its construction of purchase.
There is one capital gain account through with you can save the money received in a designated bank. The income tax department will be informed by the bank that you’ve kept the money to purchase the property at a later date.
If you invest in bonds, that will be another way of saving on capital gains tax. Such bonds are issued by national highway authority of India or rural electrification corporation. The bond should be purchased within six months of purchase of the property. The investment cap is 50 lakhs. There are no exemptions for short-term capital gains. Short-term capital gain is the sale of the property within three years.
if the property is held for more than three years, it is known as long term capital asset. The gain from this is known as a long-term capital gain. There is an exemption of 20% on the tax for long-term capital gains.
Your property is considered as a capital asset and the capital gains arising out of the sale is levied with tax from the sale of the property. Gains are calculated after adjustment of the inflation rate.
if the property is transferred as a gift, the stamp duty is in the range of 5 to 12%.
Stamp duty is a tax paid for legal approval of the property. The stamp duty is paid by the purchaser of the property. There is a provision of a tax incentive to the tune of 1.5 lakh. Such exemption is available only for the property occupied by you.
TDS is 1% on a building which is to be paid for the value of more than 50 lakh. The stamp duty varies from state to state. It also depends on the municipal laws. There is a service tax payable too. If the value of the building is less than 1 crore and the floor area is less than 200 sq ft, the service charge will be imposed @14% on car parking and 3.5% on the sale price. So, as a buyer, you have to pay TDS, service tax and stamp duty. VAT also will be chargeable. The language of registration of property document will be the language of the local area. The language can be translated into the language understood by you.
There is a provision of power of attorney too. Here, someone else is authorised by you to do the registration of property. There are two types of power of attorney; general power of attorney and special power of attorney.
Registration of property
There is a process of registration of property. The process includes payment of stamp and registration charges for the sale deed.
The property registration refers to the registering of documents regarding transfer, sale or lease of property. Registration is mandatory according to section 17 of the Indian Registration Act. Once registration is done, the person in whose name property is registered becomes the legitimate owner of the property.
Location of property
You have to keep certain important things in mind while buying a property in a particular town or city. If you buy the property for yourself and your family and you will be staying there, you should select an area with roads, water, electricity and other civic amenities. The place should be well-connected to important locations of the city. If you find that the property is quite expensive and doesn’t suit your budget because it is located in a big city and the area is a posh one, you can look for a property in the suburbs or small cities. The property prices will be easy on your pocket and the property price will appreciate shortly.
Ideally, you should buy a property in a virgin area where development work has just begun and the infrastructure is coming but it will take some years. The advantage of buying a property in these areas will be the price that will be much cheaper. Within a couple of years, the price of the property shall rise in that area.