Tax Implications on purchase and sale of Immovable Property

CA.Sangam Aggarwal | Last updated: 22 January 2025

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Purchasing or selling immovable property involves significant tax considerations under the Income Tax Act, 1961, and potentially GST. Buyers may need to deduct Tax Deducted at Source (TDS) if the property value exceeds Rs 50 lakh, with specific deadlines and penalties for non-compliance. For sellers, capital gains tax applies, with different rates for short-term and long-term gains, and options for indexation benefits on long-term gains. GST is applicable on under-construction properties but generally exempt for completed ones, with varying rates for residential and commercial properties.

Introduction The purchase of immovable property is not just a strategic investment but also a transaction laden with tax implications under various provisions of the Income Tax Act, 1961. Beyond the cost of acquisition, person must navigate taxes such as Tax Deducted at Source (TDS), and Goods and

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

CA.Sangam Aggarwal

Professional

Secretary NIRC of ICAI (2022-23), Regional Council Member (2022-25), FCA, LLB, DISA, B. Com(H). CA by profession and social worker by heart. I like to debate on social issue. I love to travel and to watch movie recently i watch 12th Fail movie and it is classical movie. I believe in spreading the smile. Help student ... Read more

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