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The Cost Of Real Estate Transfer Taxes In India

The Cost Of Real Estate Transfer Taxes In India

The real estate sector in India is huge and it takes time to gain knowledge about real estate in general.

Lately, Tier 2 cities are slowly becoming real estate hotspots in India and being a Tier 2 city, real estate in Mysore is now busier than ever. Mysore is also one of the few cities that offers vacant land as opposed to most metro cities where land is very scarce. When it comes to prices of properties too, those in Mysore are still in the affordable range, making investing in real estate in Mysore the right choice in 2022. It is needless to mention here that property prices increase with time and will therefore fetch a great value on resale.

The Cost Of Real Estate Transfer Taxes In India

Investing in a property in the real estate sector may be heavy on the pocket, but years of commitment in saving up (for at least down payment), keeping a clean credit score (to increase chances of getting home loans easily sanctioned), and proper planning can help greatly. Moreover, with the number of options available for financing, including easy instalments mean that most people can now dream of owning a property and actually make it happen.

As real estate involves a large sum of money, there are many taxes applicable on purchase, resale or sale of properties. One such tax is the transfer tax that is applicable in real estate in Mysore and in also other parts of India. Property transfer is only possible on any property that have a clear owner and is free from any legal complications.

When a property is being transferred from one owner to another – ownership or title – the transfer that takes places will be taxed. This type of tax is called the transfer tax. The owners may be individuals or even companies. Transfer tax could be applicable not just on sale of a property in real estate in Mysore but also on lease, mortgage, gift, etc. that concern the property.

Transfer tax is typically calculated based on the total of the value of the property that is to be transferred, that is, it is a percentage of the property’s actual value. This calculation varies from one state to another and is also different in different countries. However, they could also be similar for multiple states or countries. As Mysore lies in Karnataka state, real estate in Mysore follows the rules laid out by Karnataka for real estate, which could be up to 10% of the value of the transferable property. Other factors that affect transfer tax are the location of the property and the type of the property – whether it is classified under residential real estate or commercial real estate.

In a majority of cases, transfer of property in Mysore takes place from the existing owner to the new owner when a property is being resold. In other cases, a developer may be required to transfer the ownership of a completed property (project) to the buyer. Transfer tax levied on transfer of a property is usually borne by the seller. However, while the buyer need not worry about transfer tax, the seller despite paying the transfer tax can still make profit given the constant rise of property prices.

With a real estate consultant, you need not worry about going wrong in either the choice of property, or about being unaware of the taxes that are applicable. GSS Projects is the perfect real estate consultant if you are looking to invest in real estate in Mysore. Over 25 years of experience has highly aided our expertise. Contact us to learn more from our experts.

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