Stamp duty is nothing but a charge which is obligatory for the house-owner or to-be-house owner. Read on to know about stamp duty, registration charges, city-wise stamp duty charges and how you can save stamp duty in India.
Stamp duty is a fee that is charged while transferring the name of your property to another person. This is the fee that is levied by the state government on the documents you need to register your property. An individual has to pay stamp duty while registering a property as it is mandatory under section 3 of the Indian Stamp Act, 1899. This stamp duty may differ from one state to another.
The state government garners the stamp duty paid to validate your registration agreement. A registration document with stamp duty paid showcases the legal document to prove your ownership of the property to the court. It is very important to pay the full stamp duty charge.
You can pay these charges in the sub-registrar’s office by following these steps:
Paying stamp duty online is the easiest and the best way to pay stamp duty.
You can find many stamp duty calculators online, which will generate the amount you need to pay for your registered property. All you need to do is enter basic information about state and property value.
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The stamp duty charges rely on these several factors mentioned below:
The stamp duty is calculated on the total value of the property because the age of the property plays a significant role in managing stamp duty charges. Mainly the old properties are less expensive as compared to the new property.
Senior citizens usually pay less stamp duty in most cities. This is why the age of the property holder plays an important role in determining stamp duty charges.
It is very important to see which type of property you own because Flat and apartment owners pay more stamp duty charges as compared to independent houses.
Women usually pay less stamp duty charges as compared to men in India. Men have to pay more than 2 percent compared to a woman.
Commercial property lures higher stamp duty charges compared to a residential property. Usually, commercial property has a lot more amenities compared to residential property.
The location is also another important aspect of stamp duty because property located in urban areas attracts higher stamp duty compared to rural areas.
The stamp duty charged is based on the amenities of the property. A building with more amenities requires higher stamp duty fee while the building with lesser amenities will have lower stamp duty.
Amenities like hall, swimming pool, club, gym, sports area, lifts, children area, etc. These amenities attract higher stamp duty charges.
As a rule, stamp duty and registration charges are not incorporated in the Home Loan amount approved by lenders.
Almost majority of cities stamp duty rates varies from each other:
|States||Stamp Duty Rates|
|Bihar||Male to Female- 5.7%, Female to Male- 6.3%, Other Cases-6%|
|Goa||Up to Rs 50 lakh - 3.5%, Rs 50 - Rs 75 lakh - 4%, Rs 75 - Rs 1 crore - 4.5%, Over Rs 1 crore - 5%|
|Haryana||For male - 6% in rural areas, 8% in urban areas. For female - 4% in rural areas & 6% in urban areas|
|Jammu and Kashmir||5%|
|Odisha||5% (Male), 4% (Female)|
|Rajasthan||5% (Male), 4% (Female)|
|Sikkim||4% + 1% (in case of Sikkimese origin), 9% + 1% (for others)|
|Uttar Pradesh||Male - 7%, Female - 7%-Rs 10,000, Joint - 7%|
|Uttarakhand||Male - 5%, Female - 3.75%|
|West Bengal||Upto Rs. 25 lakh - 7%, Above Rs. 25 lakh - 6%|
Stamp duty avoidance is an illegal act it can be menacing for your entire property. But, you can save stamp duty charges, which are legal.
One of the ways to save stamp duty charges is to register the property in the name of a woman. In fact, all states in the country charge between one or two per cent for women. In some states, there is no stamp duty applicable to the woman. So, registering your property in the name of woman will help you save stamp duty or pay less stamp duty charges.