Stamp Duty and Registration Charges 2024

The state government collects stamp duty to validate your registration agreement. A registration document with a stamp duty paid tag on it acts as a legal document to prove your ownership of the property in the court. Without paying stamp duty charges, one cannot claim the property to be his/her own legally. Thus, it is very important to pay the full stamp duty charge.

Stamp Duty and Registration Charges in Different Cities across India

Given below are the stamp duty and registration charges in different cities across India

Factors that Determine Your Stamp Duty Charges

1. Age of the Property: The age of the property plays a crucial role in determining the stamp duty charges you will be required to pay. As stamp duty charges are calculated as a percentage of the total market value of the property, old buildings usually attract less stamp duty charges and new buildings attract a high charge. This is because the market value of old buildings would have depreciated.
2. Age of the Owner: Almost all state governments have subsidized stamp duty charges for senior citizens. So, the age of the owner plays an important role in determining the charge.
3. Gender of the Owner: Like senior citizens, women in our country also get a discount on stamp duty charges if the property is registered in her name. Men pay about 2% extra to get their property registration documents stamped when compared to women.
4. Purpose: Commercial buildings attract a high stamp duty fee when compared to residential buildings. This is mainly because commercial buildings would need a lot of amenities, floor space, and security features.
5. Location: If your property is located in a municipal locality or an upscale urban area, be prepared to pay a high stamp duty. If your property is located in Panchayat limits or the outskirts of the town, you will land up paying less to get it stamped.
6. Amenities: Did you know that the government will charge you for every extra amenity you have on your premises while registering the property? Yes, the government has a list of over 20 amenities that you will have to pay extra for if you have them on your property. Some of the amenities are lifts, a swimming pool, a library, a club, a gym, a community hall, and a sports area.

How are Stamp Duty Charges Calculated?

As mentioned earlier, there are many factors that determine the stamp duty charge you’ll land up paying. The bottom line is that the stamp duty charge is calculated:

1. considering the total market value of the property. If the market value of your property is high, you will land up paying a high charge and vice versa. In case you have both the market value and the agreement value of the property, whichever is higher will be charged.
2. Apart from the cost or the value of the property, the type of the property, location of the property, gender and age of the owner, usage of the property, and the number of floors in the property all determine the property registration fee and stamp duty charges.
3. Generally, stamp duty officials use Stamp Duty Ready Reckoner to fix the value of the property. The Stamp Duty Ready Reckoner is published by the concerned state government every year on 01 January.

Stamp Duty Calculator

If you want to calculate the stamp duty charge you will be asked to pay, consider using one of the many online stamp duty calculators available. In a few seconds, you will be able to get an idea of the amount you will need to get your property registered. All you have to do is:

1. Enter basic information about your property like the state the property is located in and the total value of the property and hit on the “Calculate” button to get your answer.
2. You can also use a property registration fee calculator online if you wish to know the registration charges.
3. Add cess and surcharges to get the total amount you will need to register your property.
4. If you are unable to use an online calculator, walk into the nearby property registrar's office to find it out.

Documentation Required for Payment of Stamp Duty and Registration Charges

1. Sale deed in the name of the seller
2. Khata certificate
3. BBMP extract certificate
4. Tax-paid receipts for the last 3 months
5. Registered development agreement (If in case of Joint Development Property)
6. Power of attorney/s if any
7. The joint development agreement, GPA, & Sharing/supplementary Agreement, between the land owner and builder
8. A Copy of all registered previous agreements (in case of re-sale property)
9. RTC (Records of Rights and Tenancy Corps) or 7/12 extract
10. Conversion Order issued by the concerned Authority
11. Latest bank statements in case of any outstanding loan amount
12. Certificate of encumbrance up to the current date
13. Sale agreement
14. Electricity bill
15. NOC from Apartment Association
16. Sanctioned building plan
17. Occupancy / Possession certificate from builder
18. Title documents of the land owner
19. Photocopy of Society share certificate & Society registration certificate

Procedure For Payment Of Stamp Duty And Registration Charges

There are 3 ways in which you can pay stamp duty. They are:

1. Physical stamp paper
2. Franking
3. E-stamping

You must remember that all states will not have all 3 methods. In case all 3 ways are available, you could choose the method that suits you.

Purchase Of Physical Stamp Papers:

This is the most traditional way of paying stamp duty and registration charges. Here, you purchase Non-judicial stamp paper from an authorized vendor. Non- judicial stamp paper are papers that have impressed stamps. Once you purchase the stamp paper, the transaction details can be written/typed on them. Finding a vendor selling this type of stamp paper is no easy job. Also, many a time there is a shortage of such paper. If the stamp duty that has to be paid is a high amount, then you might require many stamp papers. So, this method is not preferred by many.

E-Stamping

To avoid counterfeit stamp papers and to make stamping easy, the Government introduced e-stamping. In some states, e-stamping is compulsory. E-stamping is essentially stamping done online. Stock Holding Corporation of India Limited (SHCIL), has been appointed as the official vendor for e-stamping and is also the Central Record Keeping Agency for all the e-stamps that are used in the country.

In order to do e-stamping, you have to visit the SHCIL website. Choose your state to see if e-stamping is allowed. You will get information on the transactions that you must e-stamp and the list of collection centres that will issue certificates to those who e-stamp. Fill up the application form and give it to the collection centre along with the money for the stamp duty.

There are several ways you can pay such as through Debit Cards, Credit Cards, cheques, demand drafts, and online banking. Once you pay the stamp duty, you will get the e-stamp certificate. This certificate will come with a unique certificate number (UIN) that will have the issue date.

The benefit of e-stamping is that it is convenient. Another benefit is that the authenticity of your e-stamp can be verified online using the UID number. However, the issue with e-stamping is that a duplicate of your e-Stamp will not be issued.

Franking:

This is a process where an authorised franking agent will put a stamp on your document indicating that the stamp duty has been paid. Before you execute the transaction for which stamp duty has to be paid (typically this will be before signing the document), you should approach an authorised bank that will act as a franking agent, or a franking agent to deposit the stamp duty. Once you pay the stamp duty, a franking machine will be used to frank the document with a special adhesive stamp.

Every state will have a minimum amount prescribed for franking. For instance, minimum franking charges in Bengaluru are pegged at 0.1% of the agreement value. So, if you are buying a house for Rs. 50 lakhs, you need to pay 0.1% or Rs. 5,000 as charges for franking.

This fee will, however, be adjusted against the stamp duty at the time you execute the sale deed. Say, if the stamp duty for the sale deed is 5.5%, then, you need to pay only 5.4% because you already paid a franking charge of 0.1%.

Registration Of Documents After Paying Stamp Duty

Once you pay the stamp duty, the document has to be registered under the Indian Registration Act with a sub-registrar. This registrar should be of the jurisdiction where the property is situated if the transaction involves property purchase.

The basic purpose of registration is to record the execution of the document. Only when you register the document, it becomes legal and the ownership, if any, is transferred to the right owner.

How to Purchase Stamps Offline 

If you opt to buy stamps offline, you can purchase stamp papers worth more than Rs.10,000 from the treasury office. To do this, you need to deposit the required amount at the State Bank of India (SBI) under the account head ‘0030-Stamp and Registration’. 

Registration Fee

The registration fee is a fee that is over and above the stamp duty. This fee varies from state to state. For example, the registration fee in Karnataka is pegged at 1% of the value of the transaction.

Slot Booking for Property Registration 

To complete property registration after purchasing the e-stamp, you need to schedule an online appointment at the sub-registrar’s office. This can be done through the respective state’s land record portal, for example Jamabandi portal if you reside in Haryana. By selecting the ‘Property Registration’ tab, a drop-down menu will appear with the option ‘Appointment for Deed Registration’. Here, you can view and choose from the available slots. Once the appointment is booked, the buyer, seller, and witnesses must visit the sub-registrar’s office at the designated time to finalize the registration process. 

What Happens, If You Pay Inadequate Stamp Duty?

It is not lawfully right to pay less stamp duty for your property. It is required by law, that you pay the right stamp duty when getting your property registered. Many people undervalue their property and quote a low market value to escape paying high registration fees and stamp duty charges. However, it is not advisable to do so. If caught, you will be asked to pay a huge penalty and can even be imprisoned. Also, if you are a commercial builder, your reputation will be at stake.

For more details on stamp duty charges, walk into the nearby property registrar's office or talk to a registered property consultant today.

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score