Stamp Duty and Property Registration Charges in Kerala

When you are looking to buy real estate in Kerala, you must consider the charges that are levied for stamp duty in Kerala as they can significantly affect the total cost of the property.

Additionally, your property must be registered and there are charges for this too. Both these fees are mandatory. Stamp duty is actually a tax that must be paid to the government of the state when you buy real estate in a given state. It is computed as a fixed percent of the purchased property’s market value. As for the registration fee, it is charged to get your new property registered in your name.

Stamp duty in Kerala is a tax that the Government of Kerala will charge you based on a percentage of the value of the property you buy. This percentage is fixed by the state government. Several factors may affect stamp duty charges in Kerala, and these may range from rebates for senior citizens and concessions for women home buyers in certain cases.

It is vital for you to be aware of stamp duty and registration charges in Kerala in order for you to prepare your budget to buy a property in the state. The charges for stamp duty and registration are shown in the table below for different categories of buyers:

The charges and fees are levied as per the fair value, or value, of the property concerned, whichever of these is the higher value. This can best be explained by an illustrative example:

• The Value of a given property amounts to Rs. 50 Lakhs.

• Therefore, the stamp duty of the property is 8% of property value of Rs. 50 Lakhs which is Rs. 4 Lakhs

• The registration charges are 2% of property value of Rs. 50 Lakhs which is Rs. 1 Lakhs

• The total cost of stamp duty and registration in Kerala is Rs. 5 Lakhs

You must submit certain documentation in support of your property ownership if you wish to undertake registration and pay stamp duty in Kerala. Here is the documentation required:

• Property Deed of Sale

• MC Assessment or Mutation Document

• Aadhaar/PAN Cards

• No Objection Certificate

• The ID proof of two witnesses

• The plan and description of your property

• A photograph of the property

Stamp duties may be influenced by many factors in certain states of India. However, these are how these factors affect the stamp duty in Kerala:

• Property Type - There is a difference in stamp duty to be paid on commercial property compared to residential property.

• Property Location - According to the location of the property, stamp duty may change.

Stamp duty and registration in Kerala is applicable for a tax deduction of up to Rs. 1.5 Lakhs. This tax benefit is applicable according to the Section 80C of the Indian Income Tax Act of 1961. Nonetheless, this deduction is only applicable to brand new properties, and not on ownership plots, resale of homes, or commercial real estate. 

Stamp duty is one of the taxes that must be paid to the state government at the time of property registration. You must pay the full stamp duty as applicable on your property to avoid legal repercussions. If you are planning to buy a new house in Kerala, you can easily apply for a house loan at Bajaj Markets with interest rates starting at 10.49%. The approval process is also easy, and more often than not, can be completed without tedious documentation.