If you are planning on buying a property in India, apart from the cost of the property you will have to consider the amount you will land up paying to get your property registered. Both property registration fees and stamp duty charges can come up to 7% to 10% of the total property cost, depending on the state the property is in and the type of purchase.
In most cities and towns in India, 1% of the property value is charged as registration fees. Apart from these charges, you will be charged cess and a nominal surcharge.
Property Registration Fees/Charges in Different Cities
||1% of the total market value of the property
||1% of the total market value of sale deed plus Rs.100 pasting charge
||1% of the total market or agreement value of the property or Rs.30,000 whichever is lesser.
||1% of the total market value of the property
- Up to RS.250 is Rs.2
- Up to Rs.500 is Rs.7
- Up to Rs.1,000 is Rs.8
- Up to Rs.5,000 is Rs.9
- Above Rs.5,000 is Rs.11 for every Rs.1,000 or part thereof in excess of Rs.5,000
What is Property/Land Registration?
When registering a property on your name, the concerned state government will charge you a percentage of the total or registered value of the property which is called as registration fees. According to the Registration Act, 1908, registration fee is charged for registering your property documents on your name. This fee is levied on new property registrations as well as old property transfers.
Property registration fees varies from one state to another. It also depends on whose name the property is going to be registered. The state government gives a discount on the registration fees for women and senior citizens.
Factors that Determine Property Registration/Land Charges
New Property or Old Property: The type of property you want to register determines the property registration fees. Generally, you will be paying a high registration fee to get a brand new property registered. This makes sense as the registration fee is a percentage of your total property cost. The total property cost of a new property is usually higher than a old property. The registration charges will be low when you register a not-so-new or a old property as the value of the property would have depreciated from the time it was built.
Commercial and Residential Property: The property registration charges for commercial properties are higher than the fees charged to register a residential property. This is mainly because commercial properties are built with a business motive and it requires additional amenities unlike residential properties like swimming pool, escalators, and exclusive parking.
Geographical Factors: The location of the property highly determines the registration fees. If your property is located in metro cities or developed towns, you will be paying a high registration fees. As property registration charges are charged by the state government, the state you are buying the property plays a crucial role as well.
Type of Transfer: If you are buying a property from non-family member, you will be required to pay the standard registration fee. However, if you are transferring the title of the property to a family member as a “Gift Deed”, the registration charges are very low.
Amenities: As mentioned earlier, you will be required to pay a high registration fee if you have amenities like a club house, community hall, library, outdoor play area, swimming pool, cargo lift, or a gym. Under the amenities-valuation method, you will be required to pay more for every extra amenity you have in your building.
Proximity to the Airport, Bus, or Railway Station: Did you know that you will be charged a high registration fee if your location is close to an airport, bus station, or railways station? Yes, thats correct!
Gender of the Owner: If the property is registered on a woman’s name, the government will give you a discount on the registration fees. So, if you have a female family member, you can choose it get the property registered in her name to reduce the registration charges.
How is Property Registration/Land Fees Calculated?
Property registration fees are calculated on the market value of your property. If case you have both the market value and the agreement value of the property, whichever is higher will be charged.
- Apart from the cost or the value of the property, the type of the property, location of the property, gender and age of the owner, usage of the property, and the number of floors in the property all determine the property registration fee.
- Generally, stamp duty officials use Stamp Duty Ready Reckoner to fix the value of teh property. The Stamp Duty Ready Reckoner is published by the concerned state government every year on 01 of January.
Property/Flat Registration Charges Calculator
If you like to know the property registration fee you will land up paying from your pocket before registering it, make use of an online property registration fee calculator. There are many online calculators that allow you to calculate the registration fee within few seconds. All you have to do is:
- Enter basic information like the location of the property and the cost of the property and hit on the “Calculate” button. In no time, you will see the charges on the monitor. You do not have to walk into the nearby register office to find this out. Thanks to technology!
What Happens, If You Pay Inadequate Property Registration Fees?
Many people find paying high registration fees taxing. Therefore, they reduce the value of the property and undervalue it while registering. Though, this may seem like a quick fix, if caught, you will land up paying high penalty and might even be imprisoned. By quoting a lesser price, you are not paying taxes promptly and therefore the government suffers revenue loss.
How to Save on Property/Land Registration Charges?
There are many legal ways you can save on property registration fees even without undervaluing it.
- Many states offer discount on property registration fees if the property is being registered on a woman’s name or a senior citizen. So, if you have a family member who is a female, go ahead and register it on her name.
- If your property has amenities like club, gym, swimming pool, or library, you will be charged a high registration fee. So, if you are planning to buy a residential property, prefer an individual house with less number of floors as high rise buildings attract high charges.
- Choose the location wisely. If you do not mind buying a property in outskirts, do that. Remember that you will have to shell out more if your property is located in an urban area.
- If you are buying the property from a family member, do not forget to mention it while registering your property. This is considered as a gift deed and a very low fee will be charged in this case.
Talk to a property registration consultant today or walk into the nearby property registrar office for more information on property registration fees.