Stamp Duty and Registration Charges

Hunting for the right property and finding the one that works for you is an arduous task, but it is only the beginning of your ownership process. After buying a property, you have to register it. So the price at which you buy the property, let’s say your house, isn’t the final amount. More charges are added to that price as the stamp duty and registration fee.

Practically speaking, you should be prepared to lighten your bank accounts by up to 7% of the total market value of your purchased property as the stamp duty charges and around 1% as the registration fee.

The exact charges you need to pay for property registration and stamp duty vary across different cities in the country. These charges are calculated as a percentage of the total market value of the property for which these are being paid. Here are a few examples of the major metro cities of the country:

Property registration, in simple words, means the transfer of the title of property from its previous owner to the new owner (in whose name the property is being registered). The process involves the registration of the property documents in the name of the new owner as per section 17 of the Registration Act, 1908.

In order to complete the registration process of a property, the new owner of the property is required to pay two types of fees to the concerned state government- the stamp duty and the registration fee. Stamp duty can be paid in multiple ways such as by simply purchasing physical stamp papers, paying the e-stamping fee or paying the franking fee to a franking agent. Make sure that you pay the full stamp duty charges to stay out of any kind of trouble.

The stamp duty for a property can be paid in any of the following three modes of payment:

• Physical Stamp Papers: This is the classic way of property registration. You purchase the non-judicial stamp paper and get the details of the transaction typed on them. The amount of stamp duty to be paid determines the number of stamp papers you are required to obtain.

• E-Stamping: As the name suggests, e-stamping is basically stamping done electronically, or online. The Stock Holding Corporation of India Limited keeps track of all the e-stamped papers. It makes the process easier and prevents counterfeiting.

• Franking: The third mode is franking, which is simply the process of an authorised franking agent putting a stamp on the document to confirm that you have paid the stamp duty. These agents (usually banks) have a franking machine that is used to lace the document with a special adhesive stamp. Franking charges are paid separately but are adjusted against the overall amount of the stamp duty.

The property registration/land fee is calculated based on the market value or the agreement value of the property, whichever is higher. Generally, stamp duty officials use the Stamp Duty Ready Reckoner published by the concerned state government to fix the value of a property.

Apart from the value of the property, other factors such as the location of the property, the number of floors in the property, usage of the property, gender and age of the buyer also determine the registration fee applicable.

Many times, buyers underquote the price of the property so that they have to pay a lesser registration fee and stamp duty. Doing so is however a punishable offence and may result in hefty fines and even imprisonment. Therefore, it is always advisable to pay the full registration fee and stamp duty as applicable on your property as a responsible citizen.

Below mentioned are theTop Cities Stamp Duty and Registration Fees and Charges:

Whenever you buy a new property, you are supposed to pay stamp duty and a registration fee to the concerned government. These fees are levied by the state government for the development of the state. You must pay the stamp duty as applicable on your property in full to avoid any possible legal consequences. If you are considering availing a home loan, you can easily avail one at Bajaj Markets at affordable rates of interest.