STAMP DUTY CHARGES IN INDIA:

Stamp Duty is a tax that is imposed on documents that are charged by state and the central government in India for the consumers who opt to take a residential property to the builders which are mandatory for homebuyers to pay the stamp duty on the sale agreement under section 3 of the Indian Stamp Act, 1899. With the introduction of stamp duty, it is clarified that sales tax, indirect taxes, and value-added taxes will be replaced by GST. The builder or the developer pays various elements of non- creditable taxes like CST, entry tax, etc. which are already implanted in the pricing of units that costs up to anywhere between 22-25% of the price. Stamp duty acts as a major head of revenue for any state.

 

Stamp Duty is also defined as the most crucial wage paid by the homeowner to attain the complete ownership of the house. It acts as legal evidence of a residential property deal. The residence will not be registered under the homeowner’s name until the Stamp Duty has been paid completely. It is usually fixed at 5-7% of the property value. The amount of Stamp Duty to be paid varies from state to state, ensuring that the agreement of the sale is appropriately stamped so that it stands legal and acceptable in a court of law.

 

A physical stamp has to be attached to the document to denote that the stamp duty has been paid before the document was legally effective.

 

Stamp Duty charges vary from state to state and the amount also depends on several other factors such as:

• Status of the property: New or Old
• Location of the property: City area, rural area, etc.
• Age of the owner
• Gender of the owner: Some states also offer concessions for female real estate owners
• Usage of property: Commercial or Residential use
• Type of property: Flat or an independent house, etc.

 

REGISTRATION:

The documents need to be registered under the Registration Act, 1908 within four months from the date of execution after the stamp duty is paid. Unless the registration is completed, an entitlement of the said property is invalid. Registration will be done by the Sub Registrar of Assurances of the Jurisdiction where the property is purchased, If there is any delay in payment of the stamp duty it attracts a heavy penalty as it is a legal instrument and can be introduced as evidence in courts.

To calculate the registration fee and Stamp Duty, different standards are used for different types of properties depending upon different city laws

• Super buildup area is considered for calculation for multi-storey apartments
• For independent houses, the total constructed area is computed
• For plots, the sq ft. area of the plot is multiplied by the predominant guideline value of that area

In Karnataka, the Stamp Duty stands at 5% for the property. There is also a surcharge of 2% and 3% on stamp duty for BBMP & Corporation. The registration charge in Karnataka is 1% of the property value. While calculating the registration charge and stamp duty costs, the guidance value of the property is considered.

 

STAMP DUTY REGISTRATION CHARGES IN HYDERABAD:

In Hyderabad, stamp duty includes Stamp Duty, registration fee and transfer duty and is calculated on the market value or consideration of the property whichever is higher.

Everyone must pay the stamp duty and registration charges at the time of beheading of a transfer agreement such as sale deed between two parties

The registration charges for the resale of residential properties in Hyderabad would be Stamp duty is 4%, transfer duty is 0.5% and the registration fee is 0.5% of the market value of the property.

After submitting the required documents, the documents would be verified and the actual fee payment challan and completing e-KYC, the sub-registrar registers the documents. The same procedure would be applied for other states also but the stamp duty rates and rules differ from state to state.

If the stamp duty is unpaid or paid an inadequate amount, then the documents cannot be accepted and the documents presented to any public officer will be impounded and the Stamp Duty will be levied with a penalty. The penalty of not paying the Stamp Duty differs from city to city. The penalty range would be 8% to 20% of the actual stamp duty.

It is always the homebuyer who pays stamp duty but not the seller. Usually, it should be paid on behalf as part of the purchase process but if there is any additional property brought, then Stamp Duty and the additional stamp duty rate of 3% should be paid.

 

HOW STAMP DUTY IS CALCULATED:

It differs from state to state and area to area. For example, is a homebuyer is looking to buy an apartment in Karnataka and the property value is Rs. 10, 00,000 then the stamp duty would be Rs. 50,000. (5% of the total or registered property value)

The Stamp Duty can be paid in cash, cheque, demand draft, pay order or NEFT transfer. Generally, about 10% of the stamp duty paid is charged and after checking the preview copy, you must sign and return it to the ACC official, who will then generate the final e-stamp.

 

STAMP DUTY CHARGES FOR DIFFERENT STATES:

 

TIPS TO SAVE REGISTRATION CHARGES:

• When you register the property at its circle rate, it does not only benefit the homebuyers but the seller as well. The seller gets to save on capital gains tax by letting the buyer register the property at the circle rate.
• Some banks offer Home Loans on sale agreement value but not the sale deed value. In case, the buyer may stand to benefit by registering as per the circle rate

There are some ways to save on the peripheral costs associated with buying a house since the home loan does not cover the cost of registration and sale deed. And with the property prices on the rise, homebuyers need to look for a good home loan sanction that covers maximum home buying expenses. Anyway, Stamp Duty and Registration charges are normally excluded from the home loan sanction. So, factor in these changes and save up accordingly.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Telangana of Rs. 10, 00,000?
  If a homebuyer (male) is looking to buy a property (apartment/flat) in Telangana of Rs. 10,00,000 worth then he will have to pay the below charges accordingly.
  Government Duty = Rs. 50,000
  Surcharge Value = Rs. 1,000
  Cess Value = Rs. 5,000
  Stamp Duty = Rs. 56,000
  Registration Fees = Rs. 10,000
  GST = Rs. 50,000
  Total amount paid would be Rs. 11, 72,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Telangana of Rs. 10, 00,000?
  If a homebuyer (male) is looking to buy a property (apartment/flat) in Telangana of Rs. 10,00,000 worth then he will have to pay the below charges accordingly.
  Stamp Duty = Rs. 56,000
  Registration Fees = Rs. 10,000
  Transfer Duty = Rs. 15,000
  GST = Rs. 1, 20,000
  Total amount paid would be 1, 18,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Tamil Nadu of Rs. 10, 00,000?
  If a homebuyer (male) is looking to buy a property (apartment/flat) in Tamil Nadu of Rs. 10,00,000 worth then he will have to pay the below charges accordingly.
  Stamp Duty = Rs. 70,000
  Registration Fees = Rs. 40,000
  GST = Rs. 1, 20,000
  Total amount paid would be Rs.12, 30,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Delhi of Rs. 10, 00,000?If a homebuyer (male) is looking to buy a property (apartment/flat) in Delhi of Rs. 10,00,000 worth then he will have to pay the below charges accordingly.
  Stamp Duty = Rs.  39,000
  Registration Fees = Rs. 65,880
  GST = Rs. 50,000
  Total amount paid would be Rs. 11, 54,880 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Uttar Pradesh of Rs. 10, 00,000?If a homebuyer (male) is looking to buy a property (apartment/flat) in Uttar Pradesh of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
  GST = Rs. 50,000
  Stamp Duty = Rs. 70,000
  Total amount paid would be Rs.11, 30,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Haryana of Rs. 10, 00,000?If a homebuyer (male) is looking to buy a property (apartment/flat) in Haryana of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
  GST = Rs. 50,000
  Stamp Duty = Rs. 15,000
  Total amount paid would be Rs.10, 65,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in West Bengal of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in West Bengal of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = Rs. 50,000
Total amount paid would be Rs.10, 50,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Maharashtra of Rs. 10, 00,000?If a homebuyer (male) is looking to buy a property (apartment/flat) in Maharashtra of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
  GST = Rs. 50,000
  Registration Fee = Rs.50, 000
  Stamp Duty = Rs. 60,000
  Total amount paid to buy the property would be Rs.12, 60,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Rajasthan of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in Rajasthan of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = 50,000
Stamp duty for a male in Rajasthan is 5% = Rs. 50,000
(Stamp Duty for a female is 4%)
Total amount paid to buy the property would be Rs. 11, 00,000 with all the additional taxes.

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Andhra Pradesh of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in Andhra Pradesh of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = Rs. 50,000
Registration Fee = Rs. 50
Total amount paid to buy the property would be Rs. 10, 50,050 with all the additional taxes

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Punjab of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in Punjab of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = Rs. 50,000
Stamp Duty = Rs. 50,000
Total amount paid to buy the property would be Rs. 11, 00,000 with all the additional taxes

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Gujarat of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in Gujarat of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = Rs. 50,000
Stamp Duty =Rs. 49,000
Registration fee =Rs. 1000
Total amount paid to buy the property would be Rs. 11, 00,000 with all the additional taxes

 

• What will be the Stamp Duty charges and Registration Fee If a homebuyer (male) is looking to buy a property (apartment/flat) in Goa of Rs. 10, 00,000?

If a homebuyer (male) is looking to buy a property (apartment/flat) in Goa of Rs. 10,00,000 worth then he will have to pay the below charges accordingly
GST = Rs. 50,000
Total amount paid to buy the property would be Rs. 10,50,000 with all the additional taxes

Now, a stamp duty that is collected by the state government on property transactions is in the form of government tax that is directly levied on the consumer. Thus, stamp duty is a tax where the states can levy, retain and collect the amount within themselves.

And that’s how “STAMP DUTY” is similar to income tax which is considered as a direct tax.