{"id":10,"date":"2026-11-04T10:00:00","date_gmt":"2026-11-04T04:30:00","guid":{"rendered":"https:\/\/propraahi.com\/blog\/real-cost-of-buying-a-flat-in-india\/"},"modified":"2026-11-04T10:00:00","modified_gmt":"2026-11-04T04:30:00","slug":"real-cost-of-buying-a-flat-in-india","status":"publish","type":"post","link":"https:\/\/propraahi.com\/blog\/real-cost-of-buying-a-flat-in-india\/","title":{"rendered":"The Real Cost of Buying a Flat in India: Stamp Duty, GST, Registration and the Charges Nobody Mentions"},"content":{"rendered":"\n

The number you negotiate with the builder or seller is only the starting point. Depending on the state and the type of property, taxes and other charges can add a significant amount, often 10\u201315% or more<\/strong>, to the base price. Plan for them before you finalise your budget or loan amount.<\/p>\n\n\n\n

1. Stamp duty<\/h2>\n\n\n\n

Stamp duty is a state tax paid when the sale deed (or agreement) is registered. Rates are set by each state and differ widely. Many states fall somewhere between roughly 4% and 8% of the property value, and several states charge less when the buyer is a woman.<\/p>\n\n\n\n

Delhi is a common example: about 6% for men, 4% for women and 5% for joint ownership<\/strong> by a man and a woman.<\/p>\n\n\n\n

\n

Stamp duty is calculated on the higher of the agreement value and the government's guidance value<\/strong> for that area (called the circle rate, ready reckoner rate or guidance value, depending on the state). Always check the current rate on your state registration department's website.<\/p>\n<\/div><\/div>\n\n\n\n

2. Registration fee<\/h2>\n\n\n\n

On top of stamp duty, states charge a registration fee, often around 1% of the property value<\/strong>. Some states cap it: Maharashtra, for example, caps the registration fee at \u20b930,000 for most property sales.<\/p>\n\n\n\n

3. GST (only for under-construction property)<\/h2>\n\n\n\n
Property type<\/th>GST<\/th><\/tr><\/thead>
Under-construction residential (non-affordable)<\/td>5%, without input tax credit<\/td><\/tr>
Under-construction affordable housing<\/td>1%, without input tax credit<\/td><\/tr>
Ready-to-move property with an Occupancy Certificate<\/td>No GST<\/td><\/tr>
Resale property<\/td>No GST<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

"Affordable housing" for GST purposes broadly means a carpet area of up to 60 sq m in metro cities or 90 sq m elsewhere, with a value of up to \u20b945 lakh. GST rules change from time to time, so confirm the current position before booking.<\/p>\n\n\n\n

4. TDS on the purchase<\/h2>\n\n\n\n

If the property costs \u20b950 lakh or more<\/strong>, the buyer must deduct 1% TDS<\/strong> from the payment to the seller and deposit it with the income tax department. For years this was known as Section 194-IA<\/em>. With the new Income-tax Act, 2025 in effect from April 2026, check the current section and form on the income tax portal. TDS isn't an extra cost (it's part of the price), but forgetting it can lead to interest and penalties for the buyer.<\/p>\n\n\n\n

5. The charges nobody mentions<\/h2>\n\n\n\n

Builders' cost sheets and resale deals often include:<\/p>\n\n\n\n