The table below illustrates the taxes that are imposed on properties for filers. We have made this table with the assumption that the parties are on the Active Taxpayers List and file their taxes on time.
| Deemed Income 7E | Capital Gains Tax s37(1A) | Advance Tax s236C | Advance Tax 236K | Excise Duty | Stamp Duty | |
|---|---|---|---|---|---|---|
| SELLER | None if registered with Directorate General Designated Non- Financial Businesses and Professions Otherwise 20% of deemed income | 15% if the property is acquired on or after 01 July 2024 Otherwise • Holding period <1 year then 15% • Holding period >1 year but <2 years then 12.5% on open plots, 10% on constructed property, and 7.5% on flats • Holding period >2 years but <3 years then 10% on open plots, 7.5% on constructed property, and 0% on flats • Holding period >3 years but <4 years then 7.5% on open plots, 5% on constructed property, and 0% on flats • Holding period >4 years but <5 years then 5% on open plots and 0% on constructed property and flats • Holding period >5 years but <6 years, no capital gains shall apply | • If the gross amount is <5 crore, then 3% • If the gross amount >5 crore but <10 crore, then 3.5% • If the gross amount is >10 crore, then 4% | None | 5% | None |
| BUYER | None | None | None | • If the FMV is <5 crore, then 3% • If the FMV >5 crore but <10 crore, then 3.5% • If the FMV is >10 crore, then 4% | None | 1% of the value of property in urban areas OR 3% of the value of the property in other areas* |
*this can be paid equally by the seller and the buyer
NOTE
As per s37 of the Special Economic Zones Act, 2012, all zone enterprises shall be entitled to exemption from all taxes on income for enterprises commencing commercial production by the 30th of June 2020 in the SEZs for the next 10 years, and after this date, the exemption shall be for the next 5 years. The same is mentioned in s126E of the ITO 2001.
