GST became favorable to the real estate market as the tax rates fell from 12% to 5% and are considered a phenomenal impact on the industry.
The imposition of the property tax starts with the property tax assessment. You must know how your property tax is calculated as it will provide you with an idea in regards to the amount that needs to be paid to the government as tax.
Property tax is the amount that is paid by the landowner to the municipal corporation or the local government for his/her are. The property tax must be paid every year.
Buying a residential property may be a lengthy procedure if you wish to make the best of the process. A buyer should not only consider the charges he is liable to make the seller at the beginning of the transaction but also the amount he is liable to pay as tax.
GST does impact the home loans as at present service charges, and VAT is not charged and GST is charged in their place. The fact that the earlier rate that was applicable was 15% and after the introduction of GST it has been increased by 3% brings in marginal changes on your home loan.
Usually people are required to pay property tax over the property that they can claim ownership to. The owner of a property is liable to pay the tax that is levied by the local body called property tax.
GST is a single tax which is applicable on a taxpayer to prevent the multiplicity of taxes, and the burden associated by complying with the different types of taxes. It was introduced to replace the old central and state taxes and the different types of taxes which had to be paid.
Property tax, also referred to as house tax, is a tax that is imposed on real estate property owners by municipal authorities like the panchayat and municipal corporations. It is levied by the State Government, unlike Income Tax, levied by the Central Government.
Owners of real estate property who have rented out the property owned by them, have an option to claim the deductions from the rental income. This type of deduction is called a property tax deduction.
It is the owner of the property who is eligible to claim tax benefits on home loans. If the spouses are co-borrowers then too they can file for tax deductions.