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Writer's picturethelila500
Jan 30, 20233 min read

How to Save Property Tax without Any Penalty

Real estate has proven to offer outstanding profits over the long term, but most buyers would prefer to avoid paying property acquisition taxes. There are a few clever techniques to at least lower the tax outlay, even when taxes cannot be completely removed.


Property tax is the sum that a landowner must pay to the local government or municipal body in their area. Every year, the tax is due and payable. Real estate assets include real estate, commercial real estate, and residential real estate that are rented to third parties.

The government levies property taxes on all movable property that a person owns. These real estate assets could consist of apartments, office space, and other locations that are rented out to other people. It is also referred to as house tax.


Taxes are a government's main source of funding, and the amount collected determines the resources that are available to citizens. Every piece of real estate is a taxable asset, and it is the owner's responsibility to pay the annual property tax to the government.


Depending on local government policy, this tax may be paid to the Municipal Corporation or the state government in your area. In this context, "property" refers to any tangible real estate in a person's ownership, such as homes, offices, and spaces that are rented to other people. The concept of property tax has existed for a very long time and is widely known, with records of farmers and peasants paying tax on their land dating back to the Middle Ages.

Ways to save property tax:

  • Stamp Duty Rebate for Women Buyer: The tax known as stamp duty is due on the sale agreement either prior to or on the day when the property is registered. You turn the acquisition of the property into a legal transaction by paying the stamp duty. The stamp duty is often calculated as 5% of the total cost of the property; however state-by-state variations exist. It is relevant to both completed and unfinished properties. Registering the property in a woman's name is one of the finest ways to receive a stamp duty discount of up to 2%. This tax rebate is currently available in many states, including Punjab, Delhi, Rajasthan, and Haryana.

  • Reducing Stamp Duty and Registration Fees by Using Government Guidance Rate: Even the government keeps an established minimum price at which a property can be registered. This rate, sometimes referred to as the Government Guidance Rate or Circle Rate, is typically far less than the property's market value. You can register a property at this price even if you already own it.

  • Ready-to-Move Properties for GST Exemption: A 5% GST will be charged if you buy a property that is still being built, in accordance with recent revisions made by the Goods and Services Tax (GST) Council. Ready-to-move-in properties are not required to pay any GST, nevertheless. Ready-to-move properties can help you save some money on GST if you are going to buy a property but have not yet decided which one.

  1. Home Loan to Save Income Tax: You may be able to lower your income taxes by using a home loan to purchase a home. If you meet the prerequisites, you may claim income tax deductions on both the principle and the interest amount under Sections 80C, 24, and 80EE of the IT Act. Additionally, if you take out a combined loan, both holders are eligible to deduct up to Rs 1,50,000 from their taxable income for the principal balance and up to Rs 2,00,000 for interest payments made during a given fiscal year.

  2. Know More about Local Registration and Stamp Duty Laws: Understanding the regulations that apply in your state can be quite beneficial because registration fees and stamp duties differ between states. For instance, in Maharashtra, the registration fees only apply to the net profit if you are buying a property from a buyer who just purchased it less than a year ago.

There are several options for paying a reduced tax on buying a home. Most buyers are typically unaware of such regulations, which results in them having to pay a far greater tax on a home acquisition.


For saving property tax it is advisable to consult a lawyer. Property Lawyers in Delhi can be consulted if the property is situated in Delhi. Family Lawyer in Delhi can also be consulted if the case is related to family property. Criminal Lawyer in Delhi can also be consulted.


You can also seek advice from lawyers in Lead India. You can ask a legal question and talk to a lawyer in seeking the advice. We also provide free legal advice online. We have lawyers who have expertise in Law.


Call Us: +91–8800788535


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