India - Property Taxes

Property Tax

Property tax is a tax imposed by the local government on the ownership of property.
The amount of tax is usually based on the value of the property, as assessed by the local government.
The tax is typically paid annually.
Property tax rates vary depending on the location, type and age of the property.

Capital Gains Tax (CGT):

Capital gains tax is a tax imposed on the profits made from selling a property.
The tax is calculated on the difference between the purchase price and the selling price of the property.
The tax rate varies depending on how long the property has been held for.
If the property is held for less than 3 years, the tax rate is 30%. If held for more than 3 years, the tax rate is 20%.

Inheritance Tax:

Inheritance tax is a tax imposed on the transfer of property upon the death of the owner.
The tax is imposed on the fair market value of the property at the time of the owner’s death.
In India, inheritance tax is not applicable.

Gift Tax:

Tax on property income is a tax imposed on the rental income received from a property.
Tax rate for rental income is 30% for individuals and HUFs, and 40% for other entities.
Tax on property income is subject to TDS (Tax Deducted at Source) if the annual rent exceeds INR 2.4 Lakhs.

Income tax benefits on home loan repayment: Taxpayers can claim a deduction of up to INR 2 Lakhs for interest paid on home loans under Section 24 of the Income Tax Act.
Tax benefits on stamp duty and registration charges: Taxpayers can claim a deduction of up to INR 1.5 Lakhs under Section 80C of the Income Tax Act for the stamp duty and registration charges paid.
Tax benefits on property purchase for self-occupancy: Taxpayers can claim a deduction of up to INR 2 Lakhs for interest paid on home loans under Section 80EE of the Income Tax Act, if the property is purchased for self-occupancy.