What are the tax implications of real estate investment?

In India, real estate investments have certain tax implications. Let's look at some of them:

1. Income Tax: Any rental income earned from real estate investments is taxable under the head of "Income from House Property". The owner has to pay taxes on the rental income earned from the property. In addition, any capital gains earned from the sale of a property are also taxable.

2. Goods and Services Tax (GST): GST is applicable on underconstruction properties, and the rate varies depending on the type of property. However, properties that have received a completion certificate are exempt from GST.

3. Property Tax: Property tax is payable annually to the local government authorities and is calculated on the basis of the property's value. This tax is used to fund local amenities such as roads, water supply, and waste management.

4. Stamp Duty and Registration Fees: When purchasing a property, buyers are required to pay stamp duty and registration fees. The rates vary from state to state and are based on the value of the property.

It is advisable to consult a tax professional to understand the exact tax implications of your real estate investment.