Connect with us

Marketing

What Are Stamp Duty And Registration Charges?

Published

on

What Are Stamp Duty And Registration Charges?

Once a property is booked, it is mandatory for the buyer to pay stamp duty and registration fees

These days buying a home has become super easy thanks to conveniences available. All you need to do is find your dream home. Once your bank loan gets approved, you book it. As soon as you book a house from a developer, you need to pay stamp duty and registration fees.

RealtyNXT lists everything you need to know about stamp duty and registration charges.

What is stamp duty?        

Stamp duty is a tax that a homebuyer has to pay once the apartment is booked. By law, when anyone purchases a house in India, they have to pay stamp duty based on the agreement cost of the house.

Why pay stamp duty?

A stamp duty payment automatically makes your property purchase enter in government records. It acts as the biggest legal proof of your purchase. 

Can you delay paying stamp duty?

No. Before going for the sale agreement, you have to pay the stamp duty. 

How to calculate stamp duty?

The calculation is done on which one out of the market value or the agreement value is higher. It is levied only on the sale deed agreement. 

How is the market value decided?

Officials who decide the value do so by referring the Stamp Duty Ready Reckoner. The government releases it each year. 

Differing stamp duty rates

Every Indian state has different stamp duty rates. The following factors also play a crucial role in determining them.

  1. It is located in a village or city
  2. The gender of the property owner
  3. It is agricultural or non-agricultural
  4. It is freehold or leasehold
  5. It is an apartment or office space
  6. Multi-storey apartments or independent houses

The payment of stamp duty

It is paid only on the contents of the registration document. There are three ways in which the payment can be done: Non-judicial stamp papers, franking and e-stamping.

The procedure of registration

You have to get your document registered under the Registration Act, 1908. The time frame for this is six months from the date of execution. The Sub Registrar of Assurances of the area where the property is purchased is the one who does the registration. Until the task is not done, any entitlement towards the property is not valid. 

You will have to shell out an additional amount of money for the registration process. The registration fee is 1 percent of the agreement cost and it doesn’t exceed Rs 30,000. Just like stamp duty, registration charges differ in different states. 

How to get a property registered? 

Get the original document printed and submit it with two additional Xerox copies to the registering officer. It is important to keep in mind that during this procedure, the homebuyer, home seller and two eyewitnesses must physically be present. It is compulsory to get ID proof and proof of stamp duty.

At the end of the sale deed registration, the buyer gets a receipt with a unique serial number.

ALSO READ: Mistakes To Avoid While Investing In A Property

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2019 RealtyNXT | All Rights Reserved