Govt Increases Advance Tax on Sale or Transfer of Immovable Property

The government has proposed a 1.5% increase in the advance tax on the sale or transfer of immovable property, according to the Finance Bill 2025.

The advance tax, currently levied under section 236C at a rate of 3-4% for filers, is deducted at the time of property transactions. The new proposal seeks to raise this rate by 1.5% for all categories: filers, late filers, and non-filers.

The advance tax on the sale or transfer of immovable property now stands at 4.5-5.5%.

The document highlights that the proposed increase aims to boost government revenue from property transactions—a sector described as having “significant untapped potential.”