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Property brokerage is a fee charged by a real estate broker for facilitating property transactions such as purchase, sale, rental, or lease. Brokerage is typically calculated as a percentage of the property value or transaction amount, with applicable GST and TDS considered based on the transaction and applicable rules.
Use the EZTax Property Brokerage Calculator to calculate brokerage commission, GST, TDS deduction, net brokerage payable, and the effective brokerage cost based on the property transaction amount and brokerage rate.
A Property Brokerage Calculator helps estimate the brokerage or commission payable on a property transaction based on the property value and applicable brokerage rate.
Property brokerage is generally calculated by multiplying the property value or transaction amount by the brokerage rate. For example, if the property value is ₹50 lakh and the brokerage rate is 3%, the brokerage is ₹1.50 lakh.
Yes. The calculator can be used for different transaction types, including property purchase, property sale, rental, and lease transactions.
Brokerage may be paid by the buyer, seller, tenant, landlord, or both parties, depending on the agreement between the parties and the real estate broker.
GST may be applicable on brokerage or commission charged by a registered service provider, depending on the applicable GST rules.
The calculator allows you to select whether GST applies and enter the applicable GST rate.
GST is calculated on the brokerage amount. For example, if the brokerage is ₹1,50,000 and GST is 18%, the GST would be ₹27,000.
Where TDS is applicable, it is generally deducted from the brokerage amount at the applicable rate and deposited with the government.
The calculator allows you to enter the applicable TDS rate and calculates the corresponding deduction.
Effective brokerage cost represents the net brokerage payable as a percentage of the property value. For example, if the property value is ₹50 lakh and the net brokerage payable is ₹1.74 lakh, the effective brokerage cost is 3.48%.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.