Stamp duty, TDS on rent, capital gains, DTAA credits abroad, US FATCA reporting. The full tax stack from purchase through exit.
Paid to the state govt at registration. Rate varies — Maharashtra 6%, Karnataka 5.6%, Tamil Nadu 7%, Delhi 6% (4% for women buyers). Plus 1% registration fee.
Annual tax to local municipal corporation (BMC, BBMP, MCG etc.). Rate varies by city + property zone. Pay online through municipal portal — most accept Indian + international cards.
Tenant must deduct 30% from rent before paying NRI landlord. Deposit it in your name via Form 26QC. You claim refund/credit when filing ITR-2.
Sold property held more than 24 months? LTCG at 12.5% on the gain (post-2024 budget — was 20% with indexation before). No indexation benefit anymore.
Sold within 24 months? Pay STCG at 20% (post-2024 budget — was at slab rates earlier). No exemptions available. Best avoided by timing sales past the 2-year mark.
Indian property tax (rent + capital gains) is creditable against equivalent foreign tax — you won't pay twice on the same income.
If you're a US tax resident (citizen, green card, substantial presence), Indian property reporting requirements:
Net sale proceeds (post-TDS) land in your NRO account. To wire them out:
The biggest tax move: hold past the 24-month mark to flip from 20% STCG to 12.5% LTCG (saves ₹15L on a ₹2cr gain). Section 54 reinvestment exemption can defer/eliminate LTCG entirely if you're rolling into another property. US-NRIs especially need a CPA who handles both sides — the DTAA reconciliation alone can save 5-11% of additional US tax.
7.5% rate gap on a ₹2cr gain = ₹15L saved. Always worth waiting if you're 23 months in.
Roll proceeds into another residential property to defer LTCG entirely. Common pattern for NRIs upgrading from 1BHK to 2BHK or moving cities.
DTAA reconciliation, Form 8938, FBAR, Schedule E rental reporting. ~$1,500/year + extra at sale. Saves 5-11% of incremental US tax.
Each is its own focused page.