Every property transfer triggers two federal advance taxes, collected before the registry or transfer letter is issued.
Buyer: section 236K
Filers pay 1.25% of fair market value. Non-filers pay 10.5% up to Rs 50 million, 14.5% from 50 to 100 million, and 18.5% above that.
Seller: section 236C
Filers pay 2.75% of the gross amount; non-filers pay 11.5%.
Capital gain
For property bought on or after 1 July 2024, the gain on sale is taxed at 15% for filers, whatever the holding period. Property bought earlier follows the older holding-period tables.
Keep these records
- Deed or transfer letter and payment proof
- Tax challans for 236K and 236C
- The valuation used by the registrar
Both advance taxes are adjustable against your annual tax, so declare them correctly in your return.
A consultant will look at your case and give you a fixed fee before any work starts.
General information, not advice for your specific case. Rates and dates can change; check the current law or ask us before acting.