What are the total costs of buying a property in India?

Total costs include the property agreement value, plus 5% to 11% stamp duty and registration fees, 1% to 2% brokerage, home loan processing fees, GST (for under-construction projects), and interior design costs.

Is there GST on ready-to-move-in flats?

No. Goods and Services Tax (GST) is only applicable to under-construction properties. Ready-to-move-in flats that have received an occupancy certificate (OC) are exempt from GST.

What are the tax benefits of a home loan in India?

Under the Old Tax Regime, you can claim deductions for: (1) principal repayment up to ₹1.5 Lakhs under Section 80C, (2) home loan interest up to ₹2 Lakhs under Section 24b, and (3) stamp duty and registration costs up to ₹1.5 Lakhs under Section 80C.

Is there tax on selling a property?

Yes, profits from selling property are subject to Capital Gains Tax. If held for over 2 years, it is taxed as Long-Term Capital Gains (LTCG) at 20% with indexation benefits (or 12.5% without indexation under recent rules; check current budgets).

Disclaimer: This guide outlines general legal, tax, and registration practices for Indian real estate transactions. Property laws are state subjects and transactions should be verified by a qualified legal advocate.

Buying Property in India — Costs, Taxes & Process (2026)

Reviewed for Budget 2025 • Last updated 27 June 2026 • by Sandesh Dhulekar

Direct Answer: Buying property in India costs more than the sticker price: budget 5–11% extra for stamp duty and registration, plus brokerage, home loan charges, and interiors. You can fund 75–90% with a home loan; the rest plus costs is your upfront outlay. Tax-wise, stamp duty and home-loan principal fall under Section 80C, home-loan interest under Section 24b, and a future sale attracts capital gains tax. The calculators below cover affordability, EMI, and stamp duty.

The Full Cost of Buying: Breaking Down the Surcharges

When budgeting for a home purchase, you must compute several additional expenses beyond the builder's agreement price:

Stamp Duty & Registration Fees: Range from 5% in Gujarat to 11% in Tamil Nadu. Concessions exist for female owners in specific states. Read the full comparative study: Stamp Duty Rates Across All States.
Goods and Services Tax (GST):Applicable only to under-construction properties. Affordable housing (≤₹45 Lakhs value and ≤60/90 sq m area) is charged a 1% GST rate, while non-affordable projects attract 5%. Ready-to-move-in flats are exempt.
Brokerage Fees: Secondary market purchases generally carry a 1% to 2% brokerage commission.

How Much House Can You Afford?

Your property budget depends on your down payment reserves, net income, and outstanding EMIs. Banks cap EMIs at 50% of net monthly income. Settle on a realistic property budget with our guide: How Much House Can I Afford? or try the Rent vs. Buy comparison framework to weigh renting.

Income Tax Incentives for Homebuyers (Old Regime)

Homeownership provides substantial tax reliefs under the Old Tax Regime:

Principal Repayment (Section 80C): Deductible up to ₹1.5 Lakhs p.a. (includes stamp duty and registration fees in the year of payment).
Home Loan Interest (Section 24b): Deductible up to ₹2 Lakhs p.a. for self-occupied properties.
Capital Gains Exemption (Section 54): Allows you to reinvest capital gains from selling an old property into a new residential home to save on tax. Check our guides: Capital Gains Tax on Property.

Note that Section 80C and 24b deductions are not available under the New Tax Regime. Compare your regime options with the Old vs New Tax Regime Guide or outline all deductions in the Section 80C Tax Saving Guide.

Deterministic Property Calculators

Estimate your home purchase metrics with our free tools:

Home Affordability Calculator — Project your property ceiling.
Stamp Duty Calculator — Calculate state-specific registration costs.
Rent vs. Buy Calculator — Compare the net worth of both paths.

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Step-by-Step Property Buying Process in India

Title Due Diligence: Hire a lawyer to examine the Title Deed and ensure the seller holds clear title. Obtain an Encumbrance Certificate (EC) to verify that there are no active mortgages or legal disputes on the property.
Agreement to Sell: Draft and sign an Agreement to Sell outlining the transaction price, payment timeline, and possession date. Pay the booking token amount.
Loan Sanction & Disbursal: Submit property documents to the bank to complete the technical and legal valuation. The bank disburses the loan directly to the seller.
Deed Registration: Pay stamp duty online and schedule an appointment at the Sub-Registrar's Office. Sign the Sale Deed in the presence of two witnesses to register the transaction.