If you are interested in purchasing a residential plot in Delhi or Delhi NCR, make sure you check the property tax, plot cost, and legality of land ownership. Make sure to check the title deed, land-use permission, and registration under RERA so that the plot is free of any legal dispute. In the case of residential plots, in most situations, there will be at least some approval by the DDA, L&DO or a private developer. Therefore, zoning approval, records of mutation and municipal approval will all need to be checked before signing a contract to purchase the property. Buyers should also check that the property is freehold or converted properly as leasehold; encumbrance certificates will also need to be checked. Always do your legal due diligence. A little upfront investment will protect your investment and help protect you from litigation in the future.
What is the property tax rule in Delhi?
Property tax is a compulsory tax applicable to all lands and buildings in New Delhi. The Municipal Corporation of Delhi (MCD) levies property tax on all properties that fall under its authority, including residential, commercial, industrial properties and even vacant land. The rates of taxes are determined on an annual basis.
What is Property Tax, and how is it calculated?
Property taxes are a local fiscal responsibility levied annually or semi-annually on real property by local municipalities. Property tax revenue is an important local funding resource for municipalities to provide civic amenities and to finance municipal infrastructure projects including repairs, sanitation, street lighting, and public safety.
Calculating property tax in India
In Delhi & Delhi NCR, property tax is predominantly levied under the Unit Area Value System (UAS). Property tax in Delhi and Delhi NCR is determined by the location (i.e. the category of colony), built-up area, age of property, property use (residential or commercial), and floor factor. The municipal bodies that levy property tax in Delhi (MCD, NDMC and other local authorities in NCR cities (Gurugram, Noida, Ghaziabad, Faridabad)) use a similar model with some variations
The basic formula is:
Property Tax = Unit Area Value × Built-up Area × Age Factor × Use Factor × Floor Factor
There is a variety of exemptions and rebates, including for seniors, women owned, self-occupied properties, educational/charitable institutions. Agricultural land typically is also exempt. Please check the websites of the MCD or respective municipal authority for the current property tax rates, rebates, and possible online payment of property taxes if you are from Delhi, Gurugram, Noida, Ghaziabad, or Faridabad.
What are the property taxes for the area in India?
The Municipal Corporation of Delhi (MCD) levies property tax in Delhi according to the Unit Area System (UAS). The city has been divided into eight categories – A to H. Each category has a fixed unit area value per square meter, which determines the calculation for the tax.
Who needs to pay property tax in Delhi?
Property tax is primarily levied on property, and an owner of property is liable to pay property tax as prescribed under Section 66 of the NDMC Act. If the owner is unable to pay, the property tax can be charged to the occupant of the property.
Who pays property tax, buyer or seller in India?
A property tax is a tax assessed on real property. In India, the buyer of real property will have to pay TDS (Tax Deducted at Source) for the amount paid to the seller. The provision of TDS on the Sale of Property was brought in so that the government gets its tax portion of the sale.
Do I have to pay tax if I own land?
Yes, if you recognize property in Delhi or Delhi NCR you may be liable to pay property tax, depending on type and use. Urban vacant plots, residential land, commercial land, industrial land and farmhouse land are under the MCD or local municipal tax rules, however, agricultural land that has a farming application will not be taxed. Your tax liability will depend on the location, size (in a certain measurement), usage and category of land.
What is the Legal fee for plot purchase
When it comes to buying a plot in Delhi and NCR, generally, legal cost includes stamp duty, registration charges, and advocate fees. The stamp duty is 4% for women and 6% for men. You must also pay registration charges at 1% of the sale deed. A lawyer will charge between ₹10,000–₹25,000 for title verification and documentation. Overall, including legal cost you can expect to incur around 5%–8% of property value.
What costs are involved in plot purchase
When buying a plot of land, it’s important to recognize that the cost of the land is merely the land price. The key costs are the purchase price, stamp duty, registration charges, and fees for verifying and obtaining legal documentation regarding the property. Others may pay additional costs like brokerage, maintenance deposits, property tax, and development charges. In some cases, buyers can also incur costs for insurance, GST if it is a new property still under construction, or consider any other incidental costs depending on agreements or location.
What is the best payment mode for land purchase?
The principal payment modes for land purchase are bank transfers (NEFT/RTGS) for safe and traceable payments, demand drafts (DD), which assure payments, and also cheques (but always risk getting bounced). Cash payments are not legally allowed (usually restricted to ₹20,000 maximum) and are really at risk of penalty. E-stamping is one option, and is commonly used, to pay stamp duty online – making transactions safer and more transparent.
What is included in the total property cost in India?
The total cost of a property in India is not limited to only the advertised amount but also includes direct and indirect expenditures. These are – stamp duty and registration fees, GST on under-construction properties, preferential location charges, parking charges, maintenance, and representation fees in case of buyer vs seller disputes. Understanding all these hidden costs is crucial for budgeting purposes.
What is the total cost of construction, in addition to the cost of land?
The total cost of construction, including land, is called capital cost; this includes costs of purchasing land and costs of subsequently building on the land.
What is the cost of building a house in India?
The cost of constructing a house, in Delhi, depends on numerous factors. In general, it can range from ₹1,000 to ₹3,000 per square foot for construction purposes. If you look to build a house that is 1500 sq. ft, you could be looking at an approximate range of ₹15 Lakh and ₹45 Lakh. This is an estimation only and the cost can vary due to a number of external factors including location, materials, labour percentage and house design complexity.
Is 20 lakhs enough to build a house?
A basic house worth 20 lakhs can definitely be built with a bit of planning, smart material choices, and conscious design to maximise space. In many cases, this will require generous sacrifice, focusing on what is essential, willing to be selective with materials, and concentrating on re-use and design efficiency.
How much does a 1000 sq ft slab cost?
The total cost of constructing a concrete slab of 1000 sq ft, typically has a price range of ₹1,80,000 to ₹2,20,000 depending on prices associated with various factors. These factors would include the cost of the concrete, the steel used, and labour costs for construction with shuttering.
Can I build a house for 5 lakhs?
Yes, There is a chance that a simple, small house can be built for ₹5 lakhs, especially if located in rural areas and smaller towns where land and labour are significantly less expensive than metropolitan areas. The ₹5 lakhs figure estimates the costs of construction, including walls, roof, floor, plumbing, etc. It usually does not include the cost of the land. If you come up with a small floor plan; you use materials that you can source locally; and if you take time to plan, then you can build for that cost.
What is the minimum cost to build a house?
Minimum cost to build a house in India can be highly dependent on the location, materials, and design which are used. Typically, base construction costs range from ₹1,500 to ₹2,500 per sq. ft. For example, for a simple 1,000 sq. ft. house, the minimum cost of build could start at about ₹15-25 lakhs, excluding land cost and approvals and interiors. The costs imposed may increase based on the level of finishes, modern or contemporary design, and materials that are used.
What is the total cost of the plot, including all fees and charges in North East Delhi?
In North East Delhi, a land parcel purchase price is accompanied by stamp duty (4% for women, 6% for men, 5% for joint), registration charges (1% + ₹100), and legal/brokerage fees (approx. 1-2% of the purchase price), total 12% or more. Generally speaking, buyers should expect to budget an additional 5-8% of the value of the plot to pay for these compulsory fees.