When you buy a property, you have to pay stamp duty and registration fees. These fees are charged to legally register the property in your name. Stamp duty and registration fee rates in India are decided by the state government and are based on the market value of the property.
Paying stamp duty and registration fees is an important part of the property buying process. These charges depend on several factors such as the type of property, location, and age and gender of the owner. In this article, we will learn about stamp duty and registration fees in detail and also understand how they are calculated.
What is the stamp duty and registration fee?
Stamp duty is a type of tax that is paid to the government when purchasing a property. This fee provides legal recognition to the property documents. Registration fee is the amount paid to register the property documents in the government records.
Overview of stamp duty and registration fees
Description | Information |
stamp duty rate | usually 3% to 8% |
Registration fee rate | usually 1% |
decided by whom | state government |
based on | Market value of property |
when is it due | When buying property |
where to deposit | In Sub-Registrar Office |
tax benefit | Under Section 80C |
discount for women | Available in some states |
How to calculate stamp duty and registration fees?
Stamp duty and registration fees are calculated based on the market value of the property, circle rate, and rates decided by the state government. Let us understand with an example:
Suppose you are buying a property worth Rs 50 lakh and the stamp duty rate in your state is 6% and the registration fee rate is 1%.
- Stamp duty = 6% of Rs 50 lakh = Rs 3 lakh
- Registration fee = 1% of Rs 50 lakh = Rs 50,000
- Total amount payable = Rs 3 lakh + Rs 50,000 = Rs 3.5 lakh
Thus, you will have to pay a total of Rs 3.5 lakh as stamp duty and registration fees.
Stamp duty and registration fee rates in different states
The rates of stamp duty and registration fees are different in different states of India. The rates of some major states are as follows:
- Maharashtra:
- Stamp duty: 5%
- Registration Fee: 1%
- Delhi:
- Stamp duty: 6%
- Registration Fee: 1%
- Karnataka:
- Stamp duty: 5%
- Registration Fee: 1%
- Uttar Pradesh:
- Stamp duty: 7%
- Registration Fee: 1%
- Tamil Nadu:
- Stamp duty: 7%
- Registration Fee: 1%
Note that these rates may change from time to time and vary depending on the type of property, location, and gender of the buyer.
Exemption in stamp duty and registration fees
In some states, special categories of people are given exemption in stamp duty and registration fees. These categories are:
- women
- senior citizen
- disabled person
- soldiers and ex-servicemen
For example, in many states women are given 1-2% exemption in stamp duty. Similarly, in some states, senior citizens also get the benefit of exemption.
How to pay stamp duty and registration fees?
You can use the following methods to pay stamp duty and registration fees:
- Online Payment: Online payment facility is available in many states. You can make online payment by visiting the state government website.
- Demand Draft: You can get a demand draft made from the bank and deposit it in the sub-registrar office.
- E-Stamping: E-Stamping facility is also available in some states. In this you can buy stamp paper online.
- Cash Payment: Cash payment is also allowed in some states, but only up to a limited amount.
Documents required for stamp duty and registration fees
You should keep the following documents ready while paying stamp duty and registration fees:
- property documents
- Identity card of buyer and seller
- Proof of market value of property
- circle rate proof
- PAN card
- Aadhar card
- Photo
Tax benefit on stamp duty and registration fees
Tax benefit is available on stamp duty and registration fees under Section 80C of the Income Tax Act. You can deduct these charges from your taxable income. However, this benefit is available only in the financial year in which you have purchased the property.
Consequences of non-payment of stamp duty and registration fees
If you do not pay stamp duty and registration fees, there can be serious consequences:
- Your property documents will not be legally valid.
- You will not be able to become the legal owner of the property.
- You may be fined.
- You may have to face legal action.
Therefore, ensure that you pay the stamp duty and registration fees on time and correctly.
Online Calculator to Calculate Stamp Duty and Registration Fees
Online calculators for calculating stamp duty and registration fees are available on many websites. Using these calculators you can easily calculate your due amount. For this you will need the following information:
- Market value of property
- property location
- Property Type (Residential or Commercial)
- buyer’s gender
After filling these information, the calculator will tell you the estimated amount of stamp duty and registration fees.
Disclaimer
This article is provided for general information purposes only. The rates of stamp duty and registration fees may change from time to time and vary from state to state. Therefore, before any property transaction, please contact your local sub-registrar office or qualified legal advisor so that you can get accurate and up-to-date information. The author or publisher will not be responsible for any loss or consequences arising from reliance on the information provided in this article.