TDS is applicable to every property except the agricultural property. Section 194 IA of the Income Tax Act provides that the buyers are responsible to make a payment of 1% of TDS to the government account if he is making a payment exceeding Rs. 50 Lakh to the seller of the property on the transaction of a residential property.
The capital gain tax can be for a short term basis or a long term. It is important to note that capital gain is only applied for the sale of the property and not in cases of property transfer such as inheritance, gift, will, etc.
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.
It would be a milestone achievement if you have paid off your mortgage. If your mortgage is paid off, it does not mean that you are freed from the tax liabilities. Every state in India imposes a certain property tax on the owner of the property at a certain rate.
A person may incur various taxes in the purchase and sale process of a property. Capital Gain Taxes are levied on the seller based on the capital gain he received from the sale of capital assets. The land has been considered as a Capital asset for taxation purposes as it has appreciable values. It is very important that you time your selling process to avail of the maximum benefit.
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.