Types of Taxes Levied on a Home Buyer
The implementation of RERA and GST, the government of India is trying to make property purchase in the country a simpler and quicker process. While GST has subsumed several taxes like VAT, service tax, etc.,
If you also have plans of buying a property in India, here are some of the taxes you might have to pay and how you can save on these taxes and get your property at a lower price.
There are different types of taxes levied on a home buyer when they plan to buy a property for sale in India. These taxes are subject to the type of property one is planning to buy.
The government levies different taxes on the under-construction and ready-to-move-in property. Here’s that tax a property buyer would be compelled to pay:
When Buying An Under-Construction Property
Different states have different taxes they seek from one who is buying an under-construction property. These may include GST, stamp duty, and registration charges.
Stamp duty is the tax on pays to make a legal property transaction on the sale agreement while making a purchase.
The government levies a 12% GST on the base cost of the under-construction property. Apart from that, property buyers also have to pay some fees to get their property registered at the district sub-registrar’s office.
When Buying A Ready-To-Move-In Property
Apart from the usual stamp duty and the registration fees paid for property registration, a property buyer does not have to pay any tax on a ready-to-move-in property.
The government has removed ready-to-move-in property from any tax purview in the new Goods and Services Tax law.
Therefore, while buying a ready home, one can save up to 12% of the tax otherwise levied on an under-construction property.
