You may have finally bought that dream home of yours in Chennai, but the journey doesn’t end there. You may have the physical possession of the property, but that does not make you its owner. There are certain legal documents that indicate the ownership of the property distinctly, and they can be obtained by paying the stamp duty and registration charges on the property in Chennai.
Simply put, stamp duty is a property tax of sorts, which is to be paid in full by the buyer in the specified time. It is like the income tax or the service tax collected by the government and serves as a legal evidence of the fact that the buyer has purchased the property. Paying the Stamp Duty and Property Registration Charges ensures that the property is officially registered in the buyer’s name. In case the buyer fails to do so, it will result in huge penalties and a decline in the value of the property.
Stamp duty varies from state to state and is determined by various factors like the market value or the agreement value of the property, ownership status (male or female), residential or commercial, et cetera.
Once the stamp duty has been paid, the property needs to be registered at the Sub-Registrar office of the jurisdiction where the property was acquired. It is mandatory to register the property, as per the Registration Act, 1908. Any ownership of the property will be considered to be null and void unless it is registered.
Registration charge is incurred when the buyer transfers/purchases the property and gets it registered in his/her name. The fee for the same is 1 percent of the property’s value or Rs. 30,000, whichever is higher.
The stamp duty and registration charges for the city of Chennai in 2018 can be found below.
|City||Stamp Duty (Rural and Urban)||Registration Charge|
|Chennai||7% of the market value of the property||1% of the market value of the property|
If you have decided to purchase a property in Chennai, then apart from the cost of the property, you also need to consider the stamp duty and registration charge. These two separate fees will add to the effective price of the property and need to be calculated beforehand.
First, let us take a look at the stamp duty and registration fee that one will have to pay in Chennai. Unlike other states, the area in which the property is purchased, be it rural or urban, does not matter. The stamp duty and registration fee to be paid is the same, throughout Chennai. Similarly, there is no distinction in charges for men and women.
Also, remember that here, the market value of the property refers to the guideline value that is the decided by the government. This value depends on the zone where the said property lies.
Let us understand stamp duty and property registration charges clearly with the following example:
Amit bought a property in Chennai with a guideline value of Rs. 20 lakh. He will have to pay the following charges:
Hence, the effective cost of the property comes to Rs. 21,60,000.
Yes, registration charge for a resale property is 1 percent of market value or the agreement value of the property. The stamp duty that will be levied on the same is 7 percent.
In order to successfully register your property in Chennai, the following are the steps that one should follow:
As mentioned earlier, the stamp duty and registration charges need to be paid at the Registrar/Sub-Registrar’s office of the jurisdiction where the property was bought.
The way to go about paying the aforementioned charges in Chennai is with the help of non-judicial stamp papers, which can be found at the offices of Sub-Registrar.
One can also pay stamp duty online, through E-stamping facility. Simply visit the official website of Stock Holding Corporation of India Limited (SHCIL) at http://www.shcilestamp.com/ and follow the instructions to obtain an e-stamp.
You can make the payment for the same through NEFT/RTGS or cash/DD deposit at the relevant SHCIL branch in Chennai.
In order to successfully register the property with the Registrar, the following documents are needed:
The process of registering a property can be a fairly complicated process, especially if one does not know how to go about it. It is recommended to get in touch with a lawyer who specialises in the field of property transactions and understand the intricacies of the process. Alternately, one can also contact the builder to know the procedure for paying stamp duty and registration charges in Chennai.
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