Buying Property In India; Various Applicable charges

 

In India, it is not easy going while buying a property as there are both state and central government levy various charges, there are various types of charges that come into play while buying a property. These charges can be broadly categorized as:

1.       Stamp Duty:

Stamp duty is a tax levied on the transfer of property. It is imposed by the state government and varies from state to state. The stamp duty is generally a percentage of the property value, and the buyer of the property pays it. The stamp duty charges are usually paid along with the registration fees at the time of property registration. Stamp duty charges on the purchase of a property vary from state to state and can range from 3% to 10% of the property value.

 

2.       Registration Fees:

Registration fees are the charges paid to the government for registering the property. The registration fees are generally a percentage of the property value and are paid by the buyer of the property. The registration fees vary from state to state and are usually paid along with the stamp duty charges at the time of property registration. In most states, the registration charges are between 1% to 2% of the property's total value. However, some states may have higher or lower charges. For example, in Maharashtra, the registration charges are 1% of the property's total value, while in Delhi, it is 1% for properties up to Rs. 1 crore, and 2% for properties above Rs. 1 crore.

 

3.       Goods and Services Tax (GST):

GST is a tax levied on the sale of goods and services in India. The central government imposes a value-added tax. GST is applicable on under-construction properties and is generally calculated as a percentage of the property value. The GST rates vary based on the type of property and the location of the property.

 

4.       Property Tax:

Property tax is a tax levied by the local municipal authority on the property owner. It is calculated based on the annual rental value or the market value of the property. Property tax is usually paid annually, and the rate varies from state to state and city to city.

 

5.       Maintenance Charges:

Maintenance charges are the charges paid by the property owner for the maintenance of the common areas in a housing society or apartment complex. The charges cover the expenses incurred for the upkeep of the building, such as cleaning, repairs, and security. The maintenance charges are usually paid monthly, and the amount varies based on the size of the property and the facilities provided.

6.       Transfer Charges:

Transfer charges are the charges paid by the buyer of a property to the society or apartment complex for the transfer of the property ownership. The transfer charges are usually a percentage of the property value, and the buyer pays them at the time of property transfer.

7.       Brokerage Fees:

Brokerage fees are the fees paid to the real estate agent or broker for their services in helping the buyer find a property. The brokerage fees are usually a percentage of the property value and are paid by the buyer to the broker.

8.       Legal Fees:

Legal fees are the fees paid to a lawyer or a legal firm for their services in helping the buyer with the legal aspects of buying a property. The legal fees vary based on the type of legal services required and the complexity of the property transaction.

9.       Home Loan Charges:

If the buyer is taking a home loan to finance the purchase of the property, there are various charges associated with it. These charges include processing fees, prepayment charges, and interest charges. The charges vary from bank to bank and are usually disclosed to the borrower at the time of applying for the home loan.