Purchasing property- Nightmare in India
Updated: May 23, 2020
Purchasing a property in India is fast becoming a nightmare. We’re not even going into the intricacies of the Real Estate market (the high prices, real estate bubble, liquidity crisis- all of this is for another post).
Say you managed to locate a property you like, have an agreement in hand. What about the taxes?
Let’s deal with Income Tax first — TDS liability
You can read FAQs on the subject here
Now, coming to the GST liability - GST at 5% will have to be paid if the property is under-construction. If the property is fully constructed, there is no GST.
Last bit is the Stamp Duty and Registration fees. This varies from state to state. For eg., for a property purchase in Mumbai, Stamp duty is 5% and registration fee is INR 30,000.
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