When you purchase property in any state of India, it is mandatory to register the property in the owner’s name and pay mandatory stamp duty charges. According to the Registration Act of 1908, property ownership from one person to another is only valid if registered in the new owner’s name as per Government’s records, and the appropriate stamp duty, which varies from state to state, is duly paid. It is charged on residential, commercial, leasehold, or freehold property agreements.
Stamp Duty Charges: What Is It?
Stamp Duty is the tax that the buyer needs to pay when there is a sale or purchase of a property. Generally, owners are required to pay 1% of the property deal value as registration charges. In some places, even a flat rate is applicable. This tax is paid when the ownership of the property is transferred from the seller to the buyer and is calculated as a percentage of the transaction value.
Stamp duties can be legal or non-legal charges. The legal stamp duty is the fee paid in court. For the property agreement, the stamp duty is considered a non-legal charge, as it is a one-time payment.
Factors Affecting Stamp Duty Registration Charges:
Given below are the key factors that affect the calculation of home loan stamp duty charges:
- Location of the Property
Urban area stamp duty charges are higher than that of rural and semi-urban areas.
- Market Value of the Property
The higher the market value, the higher the stamp duty charges will be.
- Property Type
Commercial property stamp duty charges are relatively higher than that of residential properties.
- Gender & Age of the Owner
Generally, different states in India offer a discounted rate of stamp duty charges for women and senior citizens to encourage them to take properties in their names.
Below is a comparison between the stamp duty charges and the difference in property registration charges between two states, Delhi and Uttar Pradesh.
- Stamp Duty in Delhi
According to recent changes, transfer duty might rise for properties worth more than Rs. 25 lahks in Delhi, and its stamp and registration fee collection is expected to increase by 2.5 times in 9 years.
Stamp duty in Delhi is less for women buyers, whereas the registration charges remain the same for all genders.
Here is the stamp duty in Delhi as of 2022:
|Category||Stamp Duty Charges in NDMC areas||Stamp Duty in Delhi||Registration Charges
|Male||5.5 %||6 %||1 %|
|Female||3.5 %||4 %||1 %|
|Joint Ownership||4.5 %||5 %||1 %|
Stamp Duty in Uttar Pradesh
Stamp Duty in UP has not changed or declined since COVID-19. The last change took place in February 2020 when the property registration charges were increased from a registration fee of Rs 20,000 to 1% of the property’s value by the Government of UP. A 1% reduction of stamp duty on real estate is valid for women up to Rs 10 lakhs for the total value of the transaction.
Here are the stamp duty charges in Uttar Pradesh as of 2022 under section 17 of the Uttar Pradesh Registration Act, 1908:
|Keeper||Stamp Duty in UP according to the property value||Registration rates according to the property value|
|Man and woman||6.5%||1%|
|Man and Man||7%||1%|
|Woman and woman||6%||1%|
Documents Required to Register Property and Pay Stamp Duty Charges in Both the States
You can pay the stamp duty charges to the concerned government-assigned centers in both states through the official website of SHCIL Stock Holding Corporation of India Limited (SHCIL).
You can make the payment through a cheque, NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), demand draft, or account-to-account Transfer.
To get the ownership transferred, you must carry the following documents when paying the stamp duty charges:
- Passport-sized pictures, Address Proof, and KYC documents (of buyers/sellers and witnesses)
- Sale Deed
- E-Registration fee along with the undertaking and E-stamp papers with the property value of the stamp duty
- NOC: No-Objection Certificate for registering a piece of land or a plot.
- Self-Attested Copy of PAN card and Form 60.
Every state in India has its own rules, regulations, fees, and charge structure. If you plan to purchase or sell property, you must abide by the state-specific rules and adhere accordingly. Make sure you check the policies and terms beforehand to avoid any misunderstandings and legal complications in the long run.