India – Property Taxes

What taxes and fees apply when buying a property in India?

Acquiring property in India means shouldering several compulsory government charges on top of the agreed purchase price. The two most consequential are stamp duty and registration fees — both payable by the buyer — which must be settled to legally effect a change of ownership and record the transaction with the relevant authorities.

Stamp Duty
Stamp duty is a state government tax that must be paid whenever real estate ownership is formally transferred. Across India, rates span from 3% to 10% of property value, with considerable differences between states and gender-based reductions available in many regions. Unlike systems such as the UK’s nationally standardised tiered structure, India’s stamp duty is determined entirely at the state level, resulting in markedly different obligations depending on where a property is located.

State-by-state variation
Maharashtra levies approximately 6% inclusive of surcharges, Karnataka applies 5% on properties valued above ₹45 lakh, and Delhi charges 6% for male buyers and 4% for female buyers. Tamil Nadu and Kerala each charge 8% for male purchasers, while buyers in Maharashtra cities such as Thane, Pune, and Nagpur face a 7% rate. Always confirm the prevailing rate in the specific state concerned before settling on a budget.

Concessions for women and senior citizens
Throughout 2025–2026, numerous states maintain discounted stamp duty rates for women purchasers, reflecting policy efforts to foster female property ownership and greater financial security. The reduction typically falls in the range of 1% to 2% below the standard rate charged to male buyers. Several states similarly offer lower stamp duty to senior citizens — generally those aged 60 and above — making property acquisition more accessible for older buyers.

Registration Fee
Beyond stamp duty, buyers are also required to pay property registration charges, which are generally fixed at 1% of the transaction value across most states. Once stamp duty has been settled, every property transaction document must be registered with the local sub-registrar to give legal validity to the transfer; unregistered documents carry no enforceable title.

How stamp duty is calculated
Stamp duty is ordinarily assessed on whichever is the greater figure: the agreed sale price or the government’s officially notified circle rate or ready reckoner value for the area. Accordingly, even if the purchase price stated in the sale agreement falls below the government’s reference value, the higher of the two is used as the basis for calculating duty.

Worked example (Delhi, male buyer, as of 2025)
For a property purchased for ₹1 crore (₹10,000,000) in Delhi: a male buyer is liable for 6% stamp duty (₹6 lakh), while a female buyer pays 4% (₹4 lakh), with both parties also subject to a 1% registration fee. A male buyer would therefore face total government transaction costs of ₹7 lakh (₹6 lakh stamp duty plus ₹1 lakh registration), equating to 7% of the purchase price. Confirm current figures with the relevant state revenue or registration department before proceeding.

GST on under-construction properties
When purchasing a new or under-construction property directly from a developer, Goods and Services Tax (GST) becomes applicable. A 12% GST rate applies to under-construction properties, though after input tax credit adjustments the effective rate is approximately 5% for most projects. No GST is charged on the registration of property, and no GST applies to the purchase of a ready-to-move-in apartment. Refer to the GST Council’s official website for rates currently applicable to your property type.

Other costs to budget for
Beyond government levies, buyers commonly engage a lawyer for due diligence and sale deed preparation, with fees typically running from ₹10,000 to ₹50,000 or more for higher-value transactions. Real estate agents generally charge between 1% and 2% of the transaction value, though this is negotiable and is frequently split between buyer and seller by mutual arrangement. India does not operate a notary fee system comparable to France or Spain — the sub-registrar’s office effectively performs the equivalent function.

What taxes and fees apply when selling a property in India?

Sellers in India encounter fewer direct government charges at the point of sale than buyers do, but the dominant financial liability is capital gains tax, which is examined in detail in the section that follows. Stamp duty and registration fees are customarily the buyer’s responsibility, though nothing prevents the parties from agreeing otherwise in the sale contract — always ensure any such arrangement is set out clearly in writing before exchange.

Agent commission
Where a seller engages a real estate broker, the commission is ordinarily 1%–2% of the sale price, though this varies and remains open to negotiation. In practice, commission is often divided between the buyer and seller, but this is not universal — establish the arrangement before formally instructing any agent.

Legal and documentation costs
Sellers may also incur fees for legal review of the sale agreement, procurement of encumbrance certificates, and preparation of no-objection certificates (NOCs) where required. For a straightforward residential disposal, budget approximately ₹10,000–₹30,000, though costs will vary depending on the complexity of the transaction.

TDS (Tax Deducted at Source) on the sale
Where the sale price of a property exceeds ₹50 lakh, the buyer is legally obliged to withhold 1% TDS from the amount paid to the seller and remit it to the Income Tax Department. This is not an additional charge — it functions as an advance against the seller’s capital gains tax liability — but sellers should anticipate receiving 1% less than the agreed price at the time of transfer, with that amount credited when they file their annual return. Where the seller is a non-resident, TDS obligations are considerably higher, as described in the section on foreign nationals below.

Capital gains tax interaction
The principal tax consequence for any seller is capital gains tax on the profit realised from the transaction. Whether the gain is treated as short-term or long-term, and the rate that applies, depends on the duration for which the property was held. Full details are set out in the section below.

How does capital gains tax work on property in India?

Profits arising from the sale of property in India are subject to capital gains provisions under the Income Tax Act. The applicable rates and calculation methodology underwent significant change following the Union Budget 2024, which took effect from 23 July 2024. The distinction between short-term and long-term gains is fundamental, as the two categories are treated very differently under the law.

Short-term vs. long-term capital gains
Land, buildings, and residential house properties are classified as long-term capital assets when the owner has held them for 24 months or more. If the property is disposed of within that 24-month window, the resulting gains are short-term and taxed at the seller’s applicable income slab rates. The principle is broadly analogous to how short-duration disposals attract higher effective tax rates in other jurisdictions — though India’s specific thresholds and rates are distinct.

Long-term capital gains tax rates (as of 2024–25)
For property held beyond 24 months, gains attract a 12.5% rate without indexation, or 20% with indexation where the property was acquired before 23 July 2024. For transfers completed on or after 23 July 2024, a resident individual may elect to pay either 12.5% without indexation or 20% with indexation on real estate transactions. Properties acquired on or after 23 July 2024 are subject solely to the 12.5% rate without indexation. Always verify the current position with the Income Tax Department of India.

What is indexation?
Indexation adjusts the original acquisition cost of a property to account for the effects of inflation, thereby reducing the taxable long-term capital gain. Each year the government publishes a Cost Inflation Index (CII); the purchase price is multiplied by the ratio of the CII for the year of sale to the CII for the year of purchase to produce an inflation-adjusted cost. For properties held over many years, this adjustment can substantially reduce the taxable gain.

Worked example (as of 2025)
Assume a property was purchased in FY 2015–16 for ₹50 lakh and sold in FY 2025–26 for ₹90 lakh. Since the acquisition predates 23 July 2024, indexation may be applied. The indexed purchase price = ₹50 lakh × (363 ÷ 254) = ₹71.46 lakh. LTCG = ₹90 lakh – ₹71.46 lakh = ₹18.54 lakh. Tax at 20% with indexation = ₹3.70 lakh. Without indexation, LTCG = ₹90 lakh – ₹50 lakh = ₹40 lakh; tax at 12.5% = ₹5 lakh. In this scenario, opting for the 20% rate with indexation yields a lower liability. The benefit of indexation tends to be even more pronounced for properties acquired at an earlier date. These figures should be cross-checked against the current CII published by the Income Tax Department.

Exemptions on reinvestment (Sections 54 and 54EC)
Section 54 allows an exemption where a long-term residential house property is sold and the proceeds are reinvested in another residential property in India. The reinvestment must occur within one year before or two years after the date of sale, or within three years if the purchase involves construction. Where reinvestment cannot be completed before the filing deadline, the Capital Gains Account Scheme may be used as an interim measure.

The Section 54 exemption is subject to a ceiling of ₹10 crore (effective from 1 April 2023). It may also be applied to two residential properties simultaneously, though this is capped at ₹2 crore and is available only once in a lifetime. Under Section 54EC, gains may be invested into specified government bonds within six months of the sale to secure an exemption, subject to applicable conditions and limits.

Non-residents (NRIs)
NRIs are liable for 12.5% long-term capital gains tax (without indexation) on Indian property held for more than 24 months. Where the property is a short-term asset, tax is deducted at source at the NRI’s applicable income slab rates; for long-term assets, a 12.5% LTCG deduction applies. NRIs may also be entitled to relief under a Double Taxation Avoidance Agreement (DTAA) between India and their country of residence — specialist professional advice is strongly recommended in these circumstances.

Are there any ongoing annual property taxes in India?

Property tax is a locally administered charge levied by municipal corporations on property owners to fund civic infrastructure and public services, including roads, water supply, sanitation, street lighting, and waste management. It is an annual obligation tied to the property’s location, size, age, and use. While conceptually similar to council tax in the UK or municipal rates in Australia in that it represents a recurring cost of ownership rather than a transaction charge, India’s system differs in having no single national formula — each municipal authority sets its own assessment method and rates independently.

Valuation methods
Municipal bodies across India employ one of several valuation approaches: the Unit Area Value system, the Capital Value System, the Annual Rental Value system, or Hybrid Valuation. The Annual Rental Value (ARV) method computes tax based on the estimated rent the property could achieve in the open market; the Capital Value System (CVS) uses market value as its basis; and the Unit Area Value (UAV) system applies a fixed per-square-foot value adjusted for location and property use. Delhi and Bangalore use the Unit Capital Value (UCV) method, which assigns a per-square-foot figure according to location, property category, and age of construction.

Typical rates
Across India, property tax broadly ranges from 5% to 20% of the property’s annual rental value or market value. Precise rates are established by the local authority, and property owners should consult their municipal corporation or local government body to establish the rate applicable to their specific property. Rate levels in major cities vary considerably as of 2025: Mumbai attracts the highest charges due to elevated land values and a capital value-based assessment model; Bengaluru’s slab-based approach provides greater predictability; Delhi uses a multi-factor layered system; while Chennai and Hyderabad apply rental value models that move with market conditions.

Worked example
Where the assessed property value is ₹10,00,000 and the applicable rate is 0.5%, the annual property tax = ₹10,00,000 × 0.5% = ₹5,000. Given the wide variation in rates and assessment bases across different municipalities, always use your local municipal corporation’s online calculator or contact their office directly for an accurate figure for your property.

Payment and penalties
Payment schedules differ between municipalities, but annual property tax is commonly due during the first quarter of the financial year, with most deadlines falling between April and June. Early payment incentives are available in several cities — Bengaluru offers a 5% rebate, Mumbai provides 2%–5%, and Delhi extends up to 15% for timely payment. Late settlement incurs penalties and interest charges; in many municipalities, outstanding balances attract 18% interest per annum plus a 2% penalty, though this varies by authority. Most municipal bodies now accept payment via UPI, Google Pay, and dedicated mobile applications, providing instant digital receipts.

Who pays?
Under Indian law, the obligation to pay property tax rests squarely with the owner of the property. Unlike certain other jurisdictions where tenancy arrangements can pass this duty to occupants, India places the liability firmly on the owner. Under Section 24(a) of the Income Tax Act, property tax paid on a rented property may be fully deducted from rental income for tax purposes — retain all payment receipts accordingly.

How does inheritance tax apply to property in India?

India levies no inheritance tax, estate duty, or succession duty on inherited property. The Estate Duty Act was repealed in 1985, and no comparable legislation has since been enacted. This means that when property passes to a beneficiary — whether a spouse, child, or more remote relative — no tax liability arises solely from the act of inheritance.

Capital gains on a later sale of inherited property
While no tax falls due at the point of inheritance, capital gains tax will become applicable if the heir subsequently sells the property. The gain is determined by reference to the original purchase price paid by the deceased, adjusted using the Cost Inflation Index from the year of the original owner’s acquisition (or 2001–02, whichever is the later date, under current rules). For the purpose of classifying a gain as short-term or long-term, the holding period runs from when the original owner first acquired the property — not from the date on which it was inherited. Verify the current rules with the Income Tax Department of India or a qualified tax adviser.

Non-resident heirs
Where the beneficiary is an NRI, the same capital gains rules that apply to any NRI seller will govern a subsequent disposal (see the Capital Gains section above). NRIs inheriting Indian property may also face reporting obligations under the Foreign Exchange Management Act (FEMA) and should seek guidance from an adviser with expertise in both Indian tax law and the law of their country of residence, particularly where a DTAA may provide relief.

Succession and legal formalities
Establishing clear legal title to inherited property in India generally requires either probating a Will, obtaining a succession certificate, or securing a legal heir certificate, depending on the state and the particular circumstances. These processes involve court fees and advocate charges but do not constitute a form of inheritance tax. A local property lawyer should always be consulted, as should your home country’s tax authority, whenever cross-border inheritance situations arise.

How does gift tax apply to property transfers in India?

The original Gift Tax Act was repealed in India in 1998. Nevertheless, the Income Tax Act now brings certain gifts of immovable property received by individuals within the scope of taxable income, making this an area that demands close attention whenever property is transferred by way of gift.

Gifts to close relatives — exempt
Under Section 56(2) of the Income Tax Act, gifts of immovable property received from “specified relatives” are entirely exempt from income tax in the recipient’s hands. The category of specified relatives encompasses a spouse, siblings, siblings of a spouse, siblings of parents, and lineal ascendants and descendants — including parents, children, and grandchildren. A gift from a parent to a child, for instance, gives rise to no income tax liability for the recipient.

Gifts to non-relatives or strangers — taxable
Where immovable property is gifted to an individual by someone outside the specified relatives category, and the stamp duty value of the property exceeds ₹50,000, the entire stamp duty value becomes taxable as income in the recipient’s hands during the year of receipt, at their applicable income tax slab rates. On high-value property transfers, this can represent a substantial liability.

Stamp duty on gift deeds
Gift deeds may be subject to different stamp duty structures from standard sale deeds. A number of states levy a concessional stamp duty rate on gifts between blood relatives — 2% in some states, for example, against a standard rate of 5%–7% — though rates vary considerably from state to state. Always check with the relevant state registration department before completing a gift transaction.

Capital gains implications for the giver
The individual gifting the property does not receive any sale proceeds and, under current rules, no capital gains tax is triggered at the time the gift is made. However, when the recipient eventually disposes of the property, capital gains will be computed using the donor’s original acquisition cost and the original holding period — meaning the accumulated gain does not escape taxation in perpetuity.

Non-residents
NRIs gifting property to resident relatives are subject to the same income tax treatment for the recipient as described above. FEMA regulations may also bear on the transfer itself and on any subsequent repatriation of proceeds. Professional advice is strongly recommended for any cross-border gift arrangement.

How is rental income from property taxed in India?

Rental income derived from property in India is assessed under the head “Income from House Property” within the Indian Income Tax Act, applying equally to residents and non-residents. The substantive tax treatment is broadly consistent for all property owners, though the compliance mechanism differs where non-residents are concerned.

How rental income is computed
The starting point is the higher of the rent actually received or the property’s “Annual Value” — broadly, the prevailing market rent. From this figure, two principal deductions are permitted:

• Municipal taxes paid: Under Section 24(a), the full amount of property tax paid on a rented property may be deducted from rental income.
• Standard deduction: A flat 30% of the net annual value (after deducting municipal taxes) is deductible under Section 24(a) as a standard allowance intended to cover maintenance, repairs, and depreciation. This deduction is available regardless of actual expenditure — no supporting receipts are required for this element.
• Home loan interest: Interest on a loan taken to purchase, construct, repair, or renovate a property that is let out is fully deductible under Section 24(b) without any ceiling for let-out properties — unlike the ₹2 lakh annual cap that applies to self-occupied properties.

Worked example (resident individual, as of 2025)
Annual rent received: ₹6,00,000. Municipal taxes paid: ₹20,000. Net Annual Value (NAV) = ₹5,80,000. Standard deduction (30% of NAV) = ₹1,74,000. Home loan interest (assumed) = ₹1,50,000. Taxable income from house property = ₹5,80,000 – ₹1,74,000 – ₹1,50,000 = ₹2,56,000. This amount is aggregated with other income and charged to tax at the individual’s applicable slab rate. Verify current deduction limits and slab rates with the Income Tax Department of India.

Tax rates for residents
For resident individuals, rental income after allowable deductions is taxed at the relevant income tax slab rates — ranging from nil below the basic exemption threshold, through 5%, 10%, 15%, and 20%, up to 30% for the highest income band. Slab rates are reviewed with each annual Union Budget and may change; confirm the current rates with the Income Tax Department.

Non-residents (NRIs)
For NRI property owners, the tenant — or the NRI’s authorised representative in India — is required to withhold TDS at 30% on the gross rental income before remitting payment to the NRI. The NRI may then file an Indian income tax return, claim the allowable deductions (30% standard deduction, municipal taxes, and loan interest), and seek a refund of any TDS that has been over-deducted. Alternatively, NRIs whose anticipated tax liability is below 30% may apply to the Income Tax Department for a lower TDS certificate.

Short-term holiday letting
Income from short-term holiday rentals — for example through platforms such as Airbnb — is generally assessed as “Income from House Property” in the same manner as longer-term rental income, provided the property is being offered on a straightforward letting basis. However, if the level of services furnished to guests extends beyond basic property use (for instance, regular meals or daily housekeeping), the income may be reclassified as “Business Income,” which requires separate accounting and a different filing approach. Take advice from a tax professional before letting property on a short-term basis in India.

Landlord registration obligations
There is no national landlord registration scheme in India. That said, tenancy agreements beyond certain durations may require registration with the local sub-registrar. State-specific rules apply — Maharashtra’s Model Tenancy Act, for example, actively encourages formal written agreements. Familiarise yourself with local state requirements and consult a property lawyer as appropriate.

Are there any tax advantages or incentives for buying property in India?

India provides a range of income tax deductions and incentives connected to property ownership, primarily available to resident individuals and, in certain circumstances, to NRIs filing Indian tax returns. Taken together, these can materially reduce the effective cost of owning property, particularly where a home loan is involved.

Home loan interest deduction (Section 24(b))
For a self-occupied property, home loan interest is deductible up to ₹2 lakh per year against income tax (as of 2024–25). For a property that is let out, the entire interest paid is deductible with no ceiling. This broadly resembles mortgage interest relief schemes that have historically existed in countries such as Ireland and France, though India’s regime operates within defined limits for owner-occupiers.

Principal repayment deduction (Section 80C)
Capital repayments on a home loan are eligible for deduction under Section 80C of the Income Tax Act, within the overall ₹1.5 lakh annual cap that applies across all qualifying claims under that section. Stamp duty and registration charges paid when purchasing a property also count towards the Section 80C deduction in the year they are paid — a practical tax saving that partially offsets acquisition costs. It should be noted that Section 80C deductions are only available under the Old Tax Regime; taxpayers who have opted for the New Tax Regime, introduced in 2020 and expanded in 2023, cannot claim them.

Additional first-home buyer relief (Section 80EEA)
First-time buyers meeting certain criteria — specifically, a stamp duty value not exceeding ₹45 lakh and a loan sanctioned between 1 April 2019 and 31 March 2022 — are entitled to claim a further ₹1.5 lakh deduction on home loan interest under Section 80EEA, in addition to the Section 24(b) allowance. This scheme has not been extended beyond the March 2022 loan sanction deadline; check the Income Tax Department for any subsequent announcements.

Capital gains reinvestment exemptions
As outlined in the Capital Gains section above, Sections 54 and 54EC offer meaningful exemptions when long-term property gains are reinvested into another residential property or qualifying government bonds. These provisions effectively enable sellers to defer or extinguish capital gains tax on property profits, subject to prescribed reinvestment conditions and caps.

Stamp duty concessions for women buyers
Punjab offers particularly competitive rates for female purchasers, with stamp duty at just 3% against 6% for male buyers — a saving of 3 percentage points. Other states that extend favourable rates to women include Karnataka, Gujarat, Telangana, and Rajasthan, all offering female buyers a 3% rate with a 2% reduction compared to male buyers. On higher-value properties, these concessions can translate into substantial savings.

Applicability to non-residents
NRIs are generally able to claim the Section 24(b) home loan interest deduction and the Section 80C principal repayment deduction when submitting Indian income tax returns, on the same terms as resident individuals. The Section 80EEA additional deduction and certain other reliefs may carry residency conditions — always verify with a tax adviser who has expertise in both Indian taxation and the laws of your country of residence.

What are the tax implications for foreign nationals buying property in India?

Foreign nationals face significant restrictions and additional regulatory considerations when seeking to acquire property in India. The framework is governed by both the Income Tax Act and the Foreign Exchange Management Act (FEMA), and compliance with both regimes is mandatory. The following provides an overview of the key tax and regulatory points, but given the complexity involved, engaging a lawyer and tax adviser with expertise in Indian law and the law of your country of residence is essential before proceeding.

Who can buy property in India?
Foreign nationals who are not Persons of Indian Origin (PIO) or Overseas Citizens of India (OCI) are in general prohibited from acquiring immovable property in India without express permission from the Reserve Bank of India (RBI). This represents a substantial restriction: unlike many countries where foreign buyers may purchase property freely (potentially with additional taxes), India effectively limits direct residential property acquisition to Indian citizens, NRIs, PIOs, and OCI cardholders. Foreign nationals residing in India on a valid visa may acquire immovable property for residential purposes — but only a single property — and may not purchase agricultural land, plantation property, or farmhouses.

Stamp duty and registration for NRIs/OCIs
NRIs and OCI cardholders purchasing property in India pay identical stamp duty and registration fees to those paid by resident buyers — no additional surcharge is imposed specifically on non-residents at the point of purchase, in contrast to, for example, the supplementary duty levied on foreign buyers in Singapore or Canada. The applicable rate nonetheless depends on the state, buyer profile, and property category.

TDS obligations when buying from an NRI seller
Where a property is purchased from an NRI, the buyer is required to deduct TDS at 20% (plus applicable surcharge and cess, which can raise the total to 22.88% or higher depending on the quantum of gain) and deposit this with the Income Tax Department before the transaction is finalised. This obligation is considerably more onerous than the 1% TDS applicable when acquiring from a resident seller for properties above ₹50 lakh. The NRI seller may subsequently file a tax return and apply for a refund if their actual tax liability proves to be lower.

Repatriation of sale proceeds
NRIs disposing of Indian property must comply with FEMA provisions governing the repatriation of sale proceeds overseas. Repatriation is broadly permitted up to the original acquisition cost — where the property was purchased using NRE or FCNR account funds — for a maximum of two properties. Amounts beyond this, or capital gains, may be repatriated via an NRO account, subject to an annual ceiling of USD 1 million and tax clearance requirements. Refer to the Reserve Bank of India and a FEMA specialist for current rules.

Double Taxation Avoidance Agreements (DTAAs)
India maintains DTAAs with a large number of countries. These treaties can influence how property gains or rental income are taxed — certain agreements, for instance, allocate taxing rights over capital gains to the seller’s country of residence rather than to India, or provide for tax credits to prevent double taxation. The precise effect depends on the specific treaty between India and the country in which the individual is resident. Always consult a tax adviser experienced in cross-border taxation before completing any transaction.

Reporting obligations
NRI property owners may have separate reporting obligations in their country of residence in addition to those in India — for example, declaring overseas property assets on wealth statements, reporting rental income received, or disclosing capital gains. These requirements are independent of Indian tax law and differ according to the country concerned. Seeking advice in both jurisdictions is strongly recommended.

Frequently asked questions: property taxes in India

Do I pay capital gains tax if I sell my India property as a non-resident?

Non-Resident Indians (NRIs) are subject to a 12.5% (without indexation benefit) long-term capital gains tax on property in India if the property is held for more than 24 months. For properties held under 24 months, gains are taxed at the NRI’s applicable income tax slab rates. The buyer is required to deduct TDS from the sale proceeds before payment. NRIs may be able to claim relief under a DTAA between India and their country of residence. Verify the current rates and your specific position with the Income Tax Department of India and a qualified tax adviser.

Can I deduct mortgage interest on rental income in India?

Yes. Under Section 24(b) of the Income Tax Act, interest paid on a loan taken to purchase, construct, or improve a property that is rented out is fully deductible from rental income with no upper limit. For a self-occupied property, the deduction is capped at ₹2 lakh per year (as of 2024–25 under the Old Tax Regime). This deduction is not available if you have opted for the New Tax Regime. Always verify current limits with a qualified tax adviser or the Income Tax Department.

Is there a wealth tax on property in India?

No. India’s Wealth Tax Act was abolished in 2015–16 and has not been replaced. There is no annual wealth-based tax on the value of property held in India. The only recurring tax on property ownership is the municipal property tax administered by local bodies, which is based on the property’s annual rental or capital value, not on the owner’s overall wealth.

Are there any taxes on inheriting property in India?

No inheritance tax, estate duty, or succession duty applies in India — these were abolished in 1985. When you inherit a property, no tax is due on the inheritance itself. However, if you later sell the inherited property, capital gains tax will apply on the profit, calculated from the original purchase cost paid by the deceased and using the original holding period. Consult the Income Tax Department or a tax adviser for guidance on calculating gains on inherited property.

What stamp duty do I pay as a woman buying property in India?

During 2025–2026, several states across India continue to offer reduced stamp duty rates for women buying property. The National Capital Region (Delhi) offers 4% stamp duty for female buyers compared to 6% for males. Punjab offers female buyers stamp duty at just 3% compared to 6% for men. Rates differ by state — always confirm the current rate with the relevant state registration department before completing a purchase.

What is TDS on property purchase and who pays it?

TDS (Tax Deducted at Source) on property is not a separate tax but a mechanism for collecting advance tax. When buying a property from a resident seller for more than ₹50 lakh, the buyer must deduct 1% of the sale price, deposit it with the Income Tax Department, and provide the seller with a TDS certificate. When buying from an NRI seller, the TDS rate is significantly higher (typically 20%+ on the gain). The seller can claim this TDS as a credit against their annual income tax liability. Verify current TDS rates and procedures with the Income Tax Department.

Do I pay GST when buying a property in India?

GST of 12% is applicable on under-construction properties (effectively 5% after input tax credit adjustments for most projects), but there is no GST on the purchase of a ready-to-move-in apartment. If you are buying directly from a developer where construction is ongoing, confirm the applicable GST rate with the developer and verify through the GST Council. For resale (secondary market) properties, no GST applies — only stamp duty and registration fees.

Can a foreign national who is not of Indian origin buy residential property in India?

Generally, foreign nationals who are not NRIs, PIOs, or OCI cardholders cannot purchase immovable property in India without special RBI permission. However, a foreign national resident in India on a valid long-term visa may purchase one residential property for personal use (excluding agricultural land and farmhouses). The rules are set under FEMA and are subject to change — consult the Reserve Bank of India and a FEMA-specialist lawyer before proceeding. Tax treatment on any eventual sale would follow NRI rules, and a DTAA with your country of residence may affect your overall liability.