Indian Tax Guidelines for Buying Property
Investing in real estate in India offers great potential, especially for Non-Resident Indians (NRIs). However, understanding the tax structure is essential to make informed decisions. This guide breaks down all the key taxes involved in buying property in India.
Key Taxes and Charges on Buying Property
When you invest in property, it is important to be aware of the various costs and taxes involved. Here’s a breakdown:
| Tax/Charge | When It Applies | Rate/Details |
|---|---|---|
| Stamp Duty | On all property purchases | 4% to 10% of the property value |
| Registration Charges | On all property purchases | 1% of the property value |
| GST | Under-construction properties | 5% (1% for affordable housing) |
| Income Tax on Rental Income | On rented properties | 30% standard deduction allowed |
| Home Loan Deductions | On loan interest and principal | ₹2,00,000 for interest & ₹1,50,000 for principal |
| Capital Gains Tax | On property sale | 20% LTCG (after 2 years) slab rate STCG |
Make Your Property Investment Easy
Understanding taxes is a key step in making real estate investments stress-free. At Investment4NRIs, we help NRIs make informed decisions while exploring the best property options in India.
With extensive experience in residential and commercial properties across cities like Mumbai, Gurgaon and Goa, we ensure secure investments with strong returns.
Why Choose Investment4NRIs
- Proven expertise in Indian real estate markets.
- Access to prime residential and commercial properties.
- Reliable guidance to ensure safe and profitable investments.
Frequently Asked Questions
1. What taxes should I consider when buying property in India?
You need to account for stamp duty, registration charges, GST (if applicable), and income tax on rental income if you plan to rent the property.
2. Are there tax benefits for taking a home loan?
Yes, deductions are available on loan interest (up to ₹2,00,000) and principal repayment (up to ₹1,50,000).
3. What is the capital gains tax on selling property?
Short-term capital gains are taxed at your slab rate if the property is sold within 2 years, while long-term gains are taxed at 20% after 2 years, with indexation benefits.
Ready to Invest?
Contact Investment4NRIs today to explore India’s best real estate options and secure your future with confidence.