Selling property in Mangaluru: price, papers and tax
Get the papers ready first, price it fairly, and know the tax before you agree a deal.
1. Get the papers ready
Buyers, their lawyers and their banks will ask for:
- The sale deed by which you bought, and the earlier deeds.
- A recent encumbrance certificate.
- The e-Khata in your name, and paid property tax receipts.
- For land: the RTC, survey sketch, conversion order and approved layout.
- For a house or flat: the approved building plan and the occupancy certificate, and for a flat a no-dues letter from the association.
Missing papers are the most common reason a sale stalls. See Buying property in Mangaluru for what buyers check.
2. Set the price
- Look at similar listings in your area on mangaluruproperties.com.
- Check the government guidance value. The buyer pays stamp duty on the price or the guidance value, whichever is higher.
- Leave a little room to negotiate.
3. List it
List free on mangaluruproperties.com with clear daylight photos, the price, the size and honest answers about the papers. Buyers call or WhatsApp you directly. No commission.
4. TDS: tax the buyer deducts
When the price is ₹50 lakh or more, the buyer must deduct 1% of the price as tax (TDS) and pay it to the government in your name. You receive the rest and can claim the 1% against your tax. If the seller is an NRI, the deduction is higher and applies at any price; ask a chartered accountant.
5. Capital gains tax
If you held the property for more than two years, the profit is a long-term capital gain:
- The rate is 12.5% without adjusting the cost for inflation.
- A resident individual or family (HUF) who bought before 23 July 2024 may instead pay 20% after adjusting the cost for inflation, if that is lower.
You can reduce or avoid the tax by putting the gain into another home or certain bonds within the time limits. Held for two years or less, the profit is taxed at your normal rate.
Tax rules change every year. Ask a chartered accountant before you agree the price.
6. Register and hand over
The buyer pays stamp duty and the registration fee, and both of you sign at the sub-registrar office for the area. Take payment by bank transfer, hand over the original deeds and keys, and mark your listing as sold.
Questions people ask
Is TDS deducted when I sell a property in India?
Yes, when the price is ₹50 lakh or more: the buyer deducts 1% and pays it to the government in your name. For an NRI seller the deduction is higher and applies at any price.
What is the capital gains tax on selling a house in India?
For property held more than two years, 12.5% of the gain without inflation adjustment. Resident individuals who bought before 23 July 2024 may choose 20% with inflation adjustment if that is lower.
How do I sell my flat in Mangaluru?
Get the papers ready, check prices of similar property, list it free with photos and the price, agree the deal in writing, and register the sale at the sub-registrar office.