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.
|Name of the City||Stamp Duty||Registration Fee|
|Bangalore||1% of the total market value of the property||5%|
|Delhi||1% of the total market value of sale deed plus Rs.100 pasting charge||
||1% or Rs.30,000, whichever is lesser|
|Chennai||1% of the total market value of the property||1%|
||1% which is applicable only when the value of the property exceeds Rs.40 lakh|
Stamp Duty & Property Registration Charges
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 a registration fee. According to the Registration Act, 1908, registration fee is charged for registering your property documents in your name. This fee is levied on new property registrations as well as old property transfers.
Property registration fees vary 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.
Given below are the documents required to be submitted during property registration:
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.
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:
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.
There are many legal ways you can save on property registration fees without undervaluing it.
Talk to a property registration consultant today or walk into the nearby property registrar office for more information on property registration fees.
The majority of Indian states impose stamp taxes of 5% to 7% of the entire market value of the property and registration fees of 1% to 2%. The state government collects stamp duty to certify your registration agreement.
In most circumstances, stamp duty and registration fees are paid by the buyer of the property. However, in exchange circumstances, both parties to the transaction are responsible for paying the registration and stamp duty fees.
Property registration fees are often determined as a percentage of the transaction value of the property or the value set by the government, whichever is larger. The appropriate percentage varies from state to state in India and may also be influenced by the location and type of property (agricultural, commercial, or residential).
Most states need buyers to go to the sub-registrar's office in order to officially register the properties. In order to assist landlords in registering their properties online, certain states have created services. To provide hassle-free and timely services, this is done. These online tools allow for the registration of both plots and flats.
Despite acquiring ownership of the property, the owner still runs the danger of losing it because unregistered properties have no legal standing. Additionally, a sale deed that has not been registered will not be accepted in court as evidence.
Within four months of being formed, the deed must be registered. The period is measured starting on the day the deed was executed.
During registration, the buyer, the seller, and two witnesses apiece must be present in the sub-registrar's office. If either the buyer or the seller is an NRI and unable to attend in person, then their authorised agents in possession of a power of attorney must attend.
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