1. Stamp Duty and Registration Charges

• Stamp Duty: A state-imposed tax, typically ranging from 5% to 7% of the property’s market value, though rates can vary by state and property type.​
  
• Registration Charges: Usually about 1% of the property’s value, this fee covers the cost of legally recording the property transaction.
  
• Additional Considerations: Some states offer concessions, such as reduced stamp duty rates for female buyers, to encourage property ownership among women.​
  

2. Tax Deducted at Source (TDS) Obligations

• Threshold for TDS: If the property’s sale price exceeds ₹50 lakh, the buyer must deduct 1% TDS from the payment to the seller.​
• Compliance: The deducted TDS must be deposited with the Income Tax Department using Form 26QB within 30 days of the transaction.​
  
• Penalties: Failure to deduct or deposit TDS can result in interest charges and penalties.​
  

3. Capital Gains Tax Considerations

• Short-Term Capital Gains (STCG): If the property is sold within 24 months of purchase, gains are taxed as per the individual’s income tax slab rate.​
• Long-Term Capital Gains (LTCG): For properties held longer than 24 months, gains are taxed at 20% with indexation benefits, which adjust the purchase price for inflation, potentially reducing taxable gains.​ 
• Exemptions: Investing the proceeds in specified assets, like another residential property or certain bonds, within stipulated timeframes can provide tax exemptions under Sections 54 and 54EC of the Income Tax Act.​