All the Fees and Charges Applicable in Real Estate Deals in India

Explore all fees and charges in Indian real estate deals, from stamp duty, registration fees, and GST to hidden costs and loan-related charges.

Srishti, Per Annum

— 2 min read
All the Fees and Charges Applicable in Real Estate Deals in India
All the Fees and Charges Applicable in Real Estate Deals in India

Real estate transactions involve more than just the property price. From taxes to hidden charges, knowing all costs upfront helps your finances better.

Government Taxes and Regulatory Charges:

These are statutory charges imposed by the government and must be paid for legal registration and ownership transfer.

Stamp duty

Stamp duty is a state-imposed tax that varies across regions in India. It's charges on the agreement value or circle rate, whichever is higher.

Stamp duty charges in different states of India

Tip: Women buyers often get a 1-2% concession in many states.

Registration Charges

Registration fees are paid to register the sale deed with the sub-registrar. It usually ranges between 1%-2% of the transaction value.

Goods and Services Tax (GST)

  • Applicable only on under-construction properties.
  • Rate: 5% for residential units (without ITC), 1% for affordable housing.

Property Tax

An annual tax paid to the municipal authority for property maintenance. Rates vary based on location, property type and size.

How to calculate stamp duty and registration charges

To calculate:

(stamp duty %) x (Circle rate or Sale price, whichever is higher) + Registration Fee (%)

Example:

For a property in Delhi worth ₹50 lakhs:

  • Stamp Duty @6% = ₹3,00,000
  • Registration @1% = ₹50,000
  • Total = ₹3,50,000

If you're financing your home, consider these additional costs:

Home loan processing fees:

Usually 0.25-1% of the loan amount. Non-refundable.

Charges by banks to verify ownership, property title, and agreements. Varies by bank.

Home Loan Insurance:

Optional but recommended. Covers the outstanding loan amount in case of unforeseen events.

Often not mentioned upfront, these fees are added during possession events.

Charge Type

Description

Brokerage Fees

Usually 1%–2% of the property value, payable to agents.

Maintenance Charges

Monthly/annual charges for upkeep of common amenities.

Parking Charges

Cost of reserved/open parking slots.

Interior/Finishing Costs

Includes modular kitchen, wardrobes, lighting, etc., if not included.

Utilities Connection Fees

Charges for electricity, water, gas connection setup.

Preferential Location Charges (PLC)

Extra amount for units with better views or location advantages.

External Development Charges (EDC)

Fee collected for infrastructural development by civic authorities.

Additional and Transfer Costs:

These may arise during resale or ownership transfers.

  • Transfer Charges: For transferring ownership in builder societies or cooperative groups.
  • Notary Fees: For affidavit attestation and property-related documentation.
  • Property Inspection Fees: For physical site verification and valuation.
  • Club Membership Fees: One-time or annual charge for using society’s clubhouse and amenities.

Hidden Costs in Property Deals

Interest on Delayed Construction

If your builder delays possession, your EMI may start before

Interest on Delayed Construction:

If your builder delays possession, your EMI may start before you receive the home, adding unplanned financial strain.

Loss of Tax Benefits

Delays in possession beyond 5 years from loan sanction can disqualify you from Section 24(b) interest deductions.

Duplicate Charges (PLC/Location-based)

Some developers repackage location advantages under different heads, scrutinise the breakup closely.

Final Thoughts

From stamp duty to post-possession charges, understanding the full spectrum, of costs helps you budget accurately and avoid surprises. Always read the fine print, clarify inclusions, and seek legal advice where necessary.

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