TAXATION ON SALE OF PROPERTY
You have a property in Bangalore and you want to sell it. But, selling a property in Bangalore comes with its own set of problems. Of course, you have to look for a buyer and you have to get your paperwork done. However, there are also taxes included in the sale of a property. Yes, most of it is applicable to the buyer, but some of it is also applicable to the seller. In this article, we will discuss the taxes that are applicable on sale of a property.
The Different Types of Taxes on Sale of Property
There are mainly five types of taxes that are applicable to the sale of property:
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Capital Gains Tax on Sale of Property:
This is applicable on the profit that has been gained by the seller during the sale of the property. Capital Gains Tax is counted by subtracting the cost of acquisition and cost of improvement from the sale price. However, this tax can be avoided. If the seller invests the amount gained after the sale of property, then the seller won’t have to pay this tax.
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Tax Deducted at Source (TDS) @ 1% on Sale of Property:
TDS gets deducted by the buyer from the amount payable to the seller. Usually, it is counted on 1% of the total amount. But, TDS on sale of a property is not applicable if the amount is less than Rs. 50 lakhs.
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Stamp Duty on Sale of Property:
Probably one of the other most frustrating tax on the purchase of a property. Stamp Duty is required to be paid on the property, at the time of the transfer of title of property and registration with the government.
So, now you know all about the taxation on the sale of a property. If you are seeking help regarding taxation on the sale of property in Bangalore then contact us.