Property Stamp duty and Registration charges in Chennai
Property prices in Chennai have been constantly increasing in recent times. The availability of many upcoming projects and the prospect of property prices increasing further has led to buyers evincing greater interest in such projects.
Buyers planning to purchase property in Chennai have to take into consideration other charges that add to the effective price of the property, in addition to the actual cost of the property. These include the registration charges and stamp duty charges, which varies from one state to another. Registration charges are the charges that you have to pay to get your property registered while stamp duty is a tax that you have to pay to the State government when registering your property.
Stamp Duty charges in Chennai
In Chennai, the stamp duty in both urban and rural areas is 7 per cent. This rate became applicable in April 2013 while previously it was 8 per cent. The stamp duty is not calculated on the market value of the property, but on the guidance value. The guidance value is fixed by the State government based on the volume and nature of transactions in a particular area and is also referred to as the government rate. The stamp duty in Chennai is generally revised once in 5-10 years, though it can be revised annually if required.
Registration charges in Chennai
Registration charges is the fee charged by the government on property buyers for maintaining the records of transactions of the property concerned. In general, the registration charges for property across India is the same, which is one per cent of the total cost of the property. This rate is applicable in Chennai as well.
Where should the registration charges be paid?
The registration charges have to be paid at the time of registration of property documents at the office of the Registrar. Since each district in a State has a Registrar office, the registration fees and documents for property in Chennai have to be paid at the Registrar office in Chennai. Both the registration charges and stamp duty for property in Chennai have to be deposited at the Registrar office in Chennai for the property to be registered.
Is there a time limit for payment of registration charges?
No time limit has been specified by the government for payment of registration charges. However, unless the registration charges are deposited at the Registrar’s office the property would not get registered. The time limit that has been specified by the government for registration of property documents is 4 months from the date of execution. Hence, in order to avoid delay in registration of property documents, the registration charges have to be paid before this period.
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