Knowledge Centre

The True Cost of a Bank Auction Property

Bank auction lots are advertised on reserve price, but the fully-loaded acquisition cost is significantly higher. Budget for these before you place a bid.

NPAAUCTION.IN Editorial5 min readUpdated 20 July 2026
MoneyTaxes

Government charges

  • Stamp duty: 4–8% of sale certificate value (state-wise).
  • Registration fee: 0.5–1% of sale certificate value.
  • GST: 12% (with ITC) or 5% (without) on under-construction lots. Ready properties are GST-exempt.
  • TDS: 1% under Section 194-IA if sale value > ₹50 lakh, deducted by the buyer.

Pending statutory dues you may inherit

  • Property tax arrears with the municipal corporation.
  • Society maintenance and transfer charges (for flats).
  • Electricity and water dues linked to the meter.
  • Development / conversion charges on plots.

Process and advisory costs

  • Title search and legal opinion — ₹5,000 to ₹25,000 depending on complexity.
  • Property inspection and valuation — optional but recommended.
  • DSC and portal registration — nominal.
  • Bank charges on DDs / RTGS — small but real.

Worked example

On a ₹1 crore reserve-price flat in Maharashtra: reserve ₹1.00 Cr + 6% stamp duty ₹6 L + 1% registration ₹1 L + ₹50k advisory + ₹1 L pending dues = ₹1.085 Cr all-in. Use the /tools/auction-cost calculator to run your own numbers.

Put this into action

Frequently asked

Is stamp duty payable on reserve price or bid price?

It's payable on the sale certificate value — which is the final knock-down price you win at, not the reserve.

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