The concept of stamp duty was introduced in the late 19th century which made the homebuyers liable to pay a sum of money as tax while they purchase a particular property. In other words, it can be stated as the tax amount that is charged by the state government on the various documents that are required for registration.
The sale of a property invites a tax named the capital gain tax which is levied on the capital gain that is received on the sale of a capital good. The land is a capital good and has appreciable value, hence is taxable.
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.
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.
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.
The consumer does not need to suffer from the calculation and payment of multiple taxes. GST (Goods and Service Tax) is an indirect tax that is levied on the supply of goods and services. It has also replaced several indirect that previously existed.
A loan against property is a secured loan which is obtained by keeping the property (residential/commercial) as collateral with the lender of the loan amount. Many people are of the opinion of investing into real estate, as it is considered to be a safer option as compared to other investments.